The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-11-27

il
make thorough investigation OF its affairs
Il will be seen that the committee scrutinized
closely, and had free and liberal access 10
every thing that could promote their object,
and the resu, must be highly satisfactory to
all who are interested in the institution. The
report falsifies and refutes in the clearest
manner the many calumnious attacks that
have been made upon the character Of the
Bank, its solvency and integrity.
! GIRARD BANK
AT an annual meeting Of the Stockholders OF the
Girard Bank in the city OF Philadelphia, held al
the banking house on Tuesday The 9th Of November,
| 1885, John r. Vogdes, Esq. was called 10 the chair,
and Henry Welsh was appointed Secretary
The proceedings OF the last annual meeting oil the
Stockholders were read, when Mr., Briggs moved
that they be approved by This meeting,
i The Hon. Mar. Champneys then moved post
po6ement Of the question: for The purpose OF intro
ducing series OF resolutions which he read TO the
1 Chair.
Mr. Briggs Withdrew his motion for the purpose
of receiving the annual statement of the affairs Of
the Bank, which was read TO the meeting
Series OF resolutions were then read by Messrs.
| Henry Horn, Daniel W. Coke, and the Hon. Ed
| war King; whereupon Mr.. John w. Ashmead
moved TO postpone the several questions before The
Chair, for the purpose OF introducing the following,
4
resolutions were adopted as follows, viz:
Whereas the officers OF the Grard Bank have
presented 10 the meeting of Stockholders, held this
day, statement OF the condition OF the said Bank,
showing the capital Of the said bank TO be wholly
| unimpaired and The Institution in hourishing and
sound condition. and in order that the state Of
the bank may be exhibited in decided and satis.ac-
tory manner 10 the public, therefore,
Resolved, That the statement OF the affairs oil the
Bank together with the several resolutions before
/ is aiuuh a aferr In
CATION who are to report TO subsequent meeting OF
! the Stockholders.
Whereupon Messrs. John w. Ashmead, John J.
| M'Cahcn, Thomas Cave, Charles s. Richie, r. s.
Smith, James Evans, (of Lancaster,) and Henry
| Welsh, were appointed said Committee.
The meeting then adjourned TO meet again al the
same place ON Wednesday, November H. 1882 at
ten o'clock in the forenoon
WEDNESDAY, Nov 3D. 1889.
The meeting met pursuant 10 adjournment.
| Mr. Ashmead, from the committee Of investiga-
! lon, made the following report, viz:
| The undersigned, being committee appointed at
the meeting of the Stockholders Of the Girard Bank,
held on the 9Th inst. 10 investigate the condition OF
the bank, andto whom was also referred sundry re-
solutions offered at the meeting Of the Stockholders,
respectfully report:
| That they assembled at the Banking House on the
| evening of the 9Th inst and proceeded 10 the per-
| Torrance Of the duties assigned them. Their first
upon organizing was the reading all the rcsolu-
toDs offered at the meeting OF the Stockholders,
with the view of ascertaining exactly what inlorma
ton was desired or expected, and the task Of inves-
4 tgation was conducted with the view OF arriving
simply at the TRUTH and communicating the result,
whatever II might be. In order that no difficulty
might arise in the inquiry, the committee determin
! ed al It's FIRST meeting that no proposition should be
settled by vote Of the majority of its members, but
that each gentleman comprising ii should be al liber-
~ to for himself, and to call for any books and
papers that he might deem material to the investiga-
lion. Accordingly the request of each member Of
! the committee was complied WITH and the most
thorough examination was gone into, that the time
afforded TO the committee would allow. The officers
OF the bank readily offered every facility which the
committee could require, and nothing was concealed
| or kept from them which they desired 10 know. In
| TRUTH the conduct OF the officers oil The bank has
been SUCH that your committee deem it but an act of
! justice to notice 1t in an especial manner as cir
cumstance highly credable 10 them. The result of
all has BEEN that the members Of this committee
have arrived at conclusions respecting which
| unanimous opinion is entertaiL ed.
The Girard Bank was chartered in the year 1882
and went into operation in August OF the same year,
with capital Of ST. 100000. In October, 1888, it
| became deposit bank. In March, 1884, by drec-
ton OF the Stockholders it began TO refund the pub
lie money TO the government then 81, 100000 in
amount. In July following, it had paid off the whole
sum except SsS5, 600
In August Of the same year, at the request of the
owners Of large majority of the stock ii obtained
from the Secretary Of the Treasury restoration Of
the public business. Upto May 1886, the bank made
the following dividends, viz: in May, 1883, per
cent; in November following, 3 ID per cent; in
May, 1884, per cent; in November following,
per cent. in MAY, 1885, per cent; in November
following, per cent; and in May, 1886, per cent
In March, 1886, an increase OF 81, 500 600 10 the
capital was authorized making il altogether 80 OOO,-
600. The motive in part for obtaining this increase
was to enable The bank to hold larger amount Of
public money, (Which was then enjoyed without in
terest,) than il could do with smaller capital In
March, 1887, the public money in the banks in all
no business Government,
was about 81, 100000 of which amount 81, 700 900
were TO the credit of the Treasurer OF the United
States. In May of that year, the bank in common
with the other institutions of the country, suspended
specie payments and The deposes on account OF the
United States ceased TO be made In the following
August, the debt was almost wholly discharged,
there being the 3la day of that month but SlI7,-
600 remaining subject to the drafts OF the Treasurer,
which sum in November was reduced to $4,000,
and in January 1885, TO less than $1,000. During
the period in which the Girard Bank transacted the
public business, the sums which were passed to the
credit of the single account oil the treasurer OF Inc
United States amounted to $l4000,000. They were
drawn for often in large sums, and in almost all
| cases without previous notice, which the bank did
not require A list of portion OF these heavy pay
ments is appended 10 this report
By this i, appears, that the largest sums paid on sin
| so eIh Dec Dec, 1884, " " $I,961 O4o ~
! LIST April 1887, wv 1O9 "
| Isl July. 1887 6S4 1874 26
And that drafts for 100000, $4,000 and $4,000
| we're very frequent.
The necessity OF the Bank keeping tse in posi-
ton to meet these heavy demands, must be admitted.
Il formed the chief difficulty in the management
Of the public deposits How was this TO be accom-
plished so that at the same time the public might
not be deprived of the of the money the bank
of the benefits resulting from il, it being then OBJ
ged under the deposit act OF June, 1886, to pay in
terest on portion Of the same2 There was but one
mode viz: 10 keep the bank general creditor, with
considerable specie fund, and such amount of short
domestic bills as actual business might throw IN its
way; and 10 loan out large sums returna6le on de-
mand or al short notice. on colleteral securities,