Columbus Democrat., 1840-10-03

branch Of trade and agriculture appeared prosper
Gus whlle tie bank was expanding Us circulation;
bot when il found uset IN 1919 on tie verge Of
bankruptcy from IT, excessive issues, are had n
commtnce a ngid system Of contraction Go preserve
lis existence, a scene Of distress and ruin commenc-
ed which we viii leave the newspapers Of that day
10 depict The measures adopted by Nj. Chcves
(who succeeded Mr.. Jones as Presden) saved the
bank, bit they were the means OF running the eoun-
try.
The condition of the bank was such as 10 cause a
committee OF Congress 10 be appointed To examine
into IFS affairs. The proceedings ni this committee,
with some remarks on the subject Of their enquiries,
we extract rom Mr.. Gouge's work on Banking:
"A committee OF congress- which had been ap-
pointed on the s0lh of November, 1918, TO invesi-
gate the affairs Of the United States Bank, arrived
in Philadelphia the 9th Of December and left it
on the 26lh. Some Investigations were subsequent
ly made of the state of the branches al Richmond
and Washington and on the 10Th Of January, 1919,
the committee made report, giving an account Of
the operations Of the Bank, and concluding with
declaration that It had violated its charter, in four
particulars, viz: in purchasing two millions Of pub
lie debt in not requiring the stockholders 10 pay the
second and third insalmens Of the stock in coiL and
funded debt; in paying dividends 10 stockholders
who had not completed their instsments; and in
suffering certain individuals, under pretext Of their
being attorneys for others, 20 give more votes for d.
| rectors than the charter allowed
| "Mr Spencer, the chairman Of The committee,
offered resolution 10 cause a scre fdetdS To b. sued
out 10 call on the corporation of the United States
Bank to show cause why It's charter should not be
forfeited unless the Bank would consent to certain
alterations in the act OF Incorporation. Mr. Tnmble
offered resolution 10 scire faeids 10 be ssu-
ed Immediately. Mr. johnson offered resolution
to repeal the charter OF the Bank.
| AGer dahata Mr. rrImhlp'9 resoutOn was rpIPc-
ted on the cath Of February, Ihlry-nne members
noting in its favor, and one hundred and sixteen
against IT, Mr Johnson's resolution was supported
by thirty members and opposed by one hundred and
twenty one and Mr. Spencer, discovering by these
votes the disposition Of the House, withdrew his res
outon.
"'We learn says Mr.. Niles, shat about foul
members are slocAholders-some Of them heavily
so re hope that none Of them uoted in their owr
case. The great danger Of interpretations 49, tha
the chief members Of them are our governors, Judges
and Legislators; and thus their individual interests
may be placed between the people and the justice
that they claim
"rhe Bank was in more danger from its owl
operations, than from any proceedings Of congress
On the receipt in Philadelphia OF the report Of The
committee, the stock fell to 93 and Mr.. William
Jones, the president soon after fed IN alright from
the institution. Mr.. Cheves of South Carolina, wa
invited to take his place, and Mr.. James G, Fisher
ofPhiIadelpha, served as president pro tempore."
Thus we find that committee OF Congress de
cIared in their report on the United StaWs Banl
lha, in less than three years after il was chartered
this institution which The wings of this day represen
as immaculate, had violated It's charter in no es
than -four particulars"
lft had confined itself TO violating its charter !
would have been well for the community; but tht
history of the times shows that il was the means o
bepQnrnp thousands of the best portion OF The popu
luton throughout every part Of the Union. IL
prove this we will commence by giving some extract
from the report of committee OF the Senate o
Pennsylvania "appoined 10 enquire into the cause
and extent Of tho public distress" This report wa
! made on the 29th of January, 1890:
"In ascerlaning the ertent of the public distress
your committee has had no difficulties 10 encounter
i Members Of the legislature from various quarters 9
!, the State have been consulted in relation to thl
subject, and their written testimony in answer t
, nterrogaloties submitted to them by the committee
= has agreed, with scarceya single exception, on
. material points. With such a respectable weight {
evidence added to that which has been derived lroT
f, the prothonoares, recorders aud shertis OF the d
:, lerent counties, from an intercourse with numcrou
y private citizens residing in different parts Of tn
p State as well as from the various petitions presene
: to the legislature, your committee can safely asser
n period Of It's independence, prevails throughout ii
:, commonwealth
>, The committee after giving the extent ol the dl
20 iress then gave a sh0t account OF banking IN Pen
v sylvania, and the operation OF the United Stat
,e Bank up 10 July 1918, after which they proceed
nr follows:
,r "Ths unwse procedure of replunging the peoT
into the debts from which they had been partla
n cxtricated, and of involving others who had hthel
ye escaped, was continued for time but the dread
an day of rerlbuton at length arrived. The Bat
Qhat is the Uuted States Bank) discovered aim
IN too late tia, its issues had been extended beyond
90 limits of safety, and that it was completely in
h power ofts creditors Ii also loresaw that the .;
No. ment oItha portion of the Louisiana debt, redeem
:, BILE on lhe 2lst OF October, 1878, which was held
foreigners, might occasion demand for consde
nj he amount OF CON- that the enhanced prices Of
av ma India aud other goods, occGsioned by the dep
A. cdton Of the currency from the orcr issues Of it'
hs and the State Banks, would lead to a demand
"a specie, and that as II was proIessedy specie Bi
orc and liable, under penalty of twelve per cent
is annum to pay its notes on demand, the same deIic
-, aud iorbearance would not be exercised toward
'ssn as To the State Banks. These considerations c,
vas PEELED IL To seek its own safety and from that
~, ment a system Of reduction commenced This
,s ducton operating on the State Banks, which had
90 prohted by the opportunity afforded them of c
=, lractlug their loans whilst the other was extend
49,, obliged them also TO diminish their tranSac tons
" a general curtailment enSued which has not yet
la It's consunmaton. he severity Of the pressure
L~r monced in The city in October, 1918, and was
~ tnued without intermSslon for year; al the exT
Inp I ton Of which time it is said that the reductions II
our ~ ~ Wy II -
EsH "uu ~ y 'o ..'el 20
y country banks during the last thre wears, NAV be-
" ana terred from the following statement which exh
'es wy "'N'' - W ~ '''' VI
Eu eut periods.
dis November lS, 1916 $4,756, ,46
p ali Do 1877 5,7S2, 76
,rd Do 1918 SOILS
Two. DO 1919 l,3lS97
,g." From the foregoing history, it will be seen
ress influence has been produced upon the atiarS Of
community hY the banking syslem Real nrnr