Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-10-22
FOREIGN.
{ From he London Times Of SEPTEMBER II
THE UNITED STATES BANK.


ing The accounts from France of the acceptance by
MessIs Ho'linguer and Co. of bills TO large amount,
drawn by the Bank oil the United Staes-s this tana.
mount I" an entire suspension Of payments, and what
are Tie consequences To which il must lead! That we
entertain very decided opinions Of own this sub
Ject will not be doubted after the various warnings given
and the various articles written relative TO IL bal being
particularly desirons of the immense inle-
rests al stake IN this matter 10 tie impressions
upon II OF The best cOmmsrcisl authorities connected
with The United States rather than in the first
instance, have taken the trouble personally Of con
suIting several Of Them and give he following as The
result
"Some draughts Of the United States Bank upon their
correspondents in Paris Messrs Hotlinguer & Co have
been accepted The well known responsibility,
wealth, and honorable character of the Paris house, for
bid any srmise tina! the resolution to refuse acceptance
10 the signature of The Bank, has been taken without
due consideration, been dictated by caprice or III Will
10 that institution; the other hand any proof
that blfssTs HoilInguer " Go entertain any doubt as
10 the soycncy Of the States Bank, its ability
all lis engagements Their conduct has probably
been Influenced by wish TO adhere TO limits which The
Bank has either Knowingly in mistake exceeded and
by that prudence and caution which every independent
mercantile establishment feels necessary 10 exercise,
unless il is prepared to allow the public 10 conclude that
It's prosperity and existence entirely dependent
the fate Of foreign institution OF which il is the cor
respondent But II does not necessarily follow because
hessrs Huttngupr have present refused accept the
bulls. that subsequent remances of Gdvces from the
United States may not induce them hereafter 10 honor
them al least 10 pay them at their maturity, which
will not fOi sixty days. that other parties
interfere Tor the honor of the Bank Still less
is il inevitable consequence of the Paris transaction
that the agency in London for The United States Bank
will be unable regularly pay all the claims upon il
The lale remittance Of 300 eco sovereigns proves the
anxiety Of the Bank 10 place IN Mr. Jaudon 5 hands
pl, to iQndae his engagements they fall due,
and the rapid aud regular steam communication with
America both enables him 10 inform his employers Of
his warts as they and facilitates their relief by
speedy rrmanccs. There may. therefore, exist ten.
poary dicu',ps in Paris, whilst oil may smoothly
and regularly in Lond"n but still It cannot be doubted
that the TACT announced that the signature of the
President Of lh S Bank has been dishonored, is
which be seriously injurious 10 The credit Of that
establishment, and The pubic Ul be led 10 inquire how
il has happened that barking institution which a few
years back einyrd UnriygIed repuatlon hose ope
raiinus both home and abroad inspired with unlimited
c"nid"ncel Whose engagements were always met with
the most punclua exacti'uie apparently from It's own
resources. and not by system al renewing debts and
pGsponng payment hose stock was 20 or - per cent
above its present qn"taon and which IN lc:iG able
To borrow through the itn London which then
Quoted lis agency. a sum Of Il UuOuuO sterling IN The
course OF few days, should III So short time have
placed is European such position. that by
exceeding al reasonable limits of credit, shodld have
forced old aud faithful and correspondents into
their present painful pr,dcament
.'fo intelligent observers, who have watched the 0pc
raons Of The S. Bank for the last lew wears, the oh.
viii naturally occur, that departing from
thu legitimate province Of banking has constituted 1t
sell great radinI sIocu!allng corpoT5tIon; ana
that entering upon field at operations tor It's
capital, great even as that IS, 1t has continued 10
trade and speculate upon credit until II finds Itself en-
numbered with large mass OF stocks and securities Oi
uil kinds aud large quantity oil cotton The realization
Of 81 winch STOPPED by The state oil the European
ney markets but upon the advantageous sale OF WHICH
il pcitly relied 10 all It's engage nlenis abroad
and uppy adequate funds FOR lis banking operations
home Forgetting that credit however bIlghl aud how.
ever powerful, may be furnished and away by
slant and extensive use, the L. ) Bank has relied
the magic Of liz stamp with value every bit 0i
papcr end has thought it easy and prosperous gume
10 borrow much money in Europe al !ow rates
could cougtegatt, and 10 employ IL IN The u ~ iadl
PURCHASES If stocks, and Ci coiio in advances
upon such securities from which it plated rich
laIvesl OF high rates Of interest LILLE thinking that the
time would came wien The money might be demanded
in Europe y hls neither lie stocks The cotton might
be wanted.
1t Is !mmalcfal TO Consider whether Tie money
employed IN purchases III advances, when its
very depends upon the sale Of he commodities, lEe in.
vesulrGi Is aTQsl equally dangerous, and equally 0p
poS 10 sound banking principles. Mr.. BlGde has
shown himsella man Of great ability and great
in emergencies but he has evidently exaggerated his
power well as mistaken his duy He has supposed,
perhaps from patriotic motives and national feelings,
i..al he placed in position where he must, by al
ccs furnish funds 10 the panters luralisis and
producers oi the great staple OF The u. S. and at The
sane time furnish the means 10 States and companies
for all their plans of internal improvement These adj
naturally conveyed TO him the control both of
the aud Of the bonds Of States and poraons
and whether willingly or not, necessarily involved The
bana in an attempt monopoly Of the produce Of the
loans and money transactions Ui the ). That such
was his may be CLEARLY by his declaration in
letter 10 air Adams that he had sent Mr.. laudon TO
England 10 protect the commerce and maintain the
dit the States The result will fear show that
unhnged The trade IN cotton lowered The prices
Of all American securities, and seriously damaged the
interests of The bank itself Whether The bank
will revert TO sound principles must be mailer Of
doubt Ii is evident that il has entered path from
VIII b it will require considerable time TO exuicaie
itself and ii is probably that difficulty which has
ppdrd the rransier of the agency 10 The London firm
wheel! formerly had charge of it, and which it
rrny reported some time back was about 10 resume 1t
il may b. surmissd that The firm stipulated certain Im
tatons Of dill and facilities, 10 which the bank s
able or unwilling the existing Of It's affairs
uiedialry cUncede; for, IL must beremembeed that
whilst Mr. JanGGn, as mere agent had only 10 obey |
the orders OF his employers, any independent, mercan
rIp banking establishment must look to the general
crc, Of the operations n its c"responde"' ." .ts Gre
dir lis husii,csS, is- e''=~s-.- ''' :, nat,
on IN. IN nmhI,c seem rather have lost sight Of the
r,,,,r,,r secured Wills, the agency was vested IN
debts Of h unaa in general business Una. hue he
confed 10 certain limits ond would be EXTENDED
an underlined nmonnt Had second Mr. Jaudon been |!
esahshrd nj Paris. there doubt there would have
been limit 10 hls pances but il is equally certain
la, there would have BEEN OF danger TO all
Interested in The United States Bank.
.Annrher question which it would be idle 10 attempt |
blink, because must force itself upon The mind OF
every concerned, This: Should the occurrence IN
Paris force tine agent in London 10 stop payment what
would be the result in this country and the u States:
Our belief Is, that It's immediate and inevitable effect
would not be disastrous might BIZ on rst con
sheraton supposed The iahIli'ies Of the United States
Back IN winch The different class Of society III THIS |
country are interested, The acceptance OF Mr. Jau
don Of bills drawn By the bank, the post notes oil The
Bank PAYABLE I'll his ri:cp without his acceptance. and
the United States Bank shares There is doubtless an
amount OF Iunni.g loans tor which securities have been
n but IL may he presumed that the Lead