The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-04-17


a9htlanelphta correspondence.
Pennsylvania Bank of the United states. Re-
port of the Committee Of Stockholders. The
Governors veto.
PmLADELPHA, April 10, 1S4l
The adjourned meeting Of the Stockholders of the
U. s. Bank on Thursday, was attended by more than
thousand persons Mr. VIM. Drayton, now a resi-
dent Of this city, but formerly distinguished leader
of the Union party in South Carolina, was chosen
President, pice Dunlap, resigned. Resolutions were
adopted to preserve the corporate existence of the in
stution, to change the of the Bank, and reduce
the capital to l4OOOOOO, valuing each share at $40,
Ito petition the Legislature to be relieved from the
residue of the bonus yet unpaid-from the obiga-
ton to make loans the State and from the penalties
attached to suspension of specie payments-to make
arrangements with the other city banks to receive the
notes of the u. 8. Bankto restrict the banking ope-
lations the mother institution abolishing all State
agencies-to confne the discounts to business paper
and reduce the salary Of the President to SIS OOO
The facts presented in the report exhibited such
criminal conduct the part Of the officers that strong
resolutions were offered to prosecute some of them
criminally, but they were modified and the Directors
sbllity have been incurred by the officers Of the Bank,
and if So that they those responsibilities to be
enforced at law appears that upon the Of any
extraordinary transactions, the clerks sworn to
secrecy That obligation still existing, precluded
them from giving full information to the Committee.
They were on notion released by the Stockholders
from the further observance of their oaths We may
now expect further developments The u. s. Bank
owes its ruin to the corrupt conduct of its officers.
The several losses suffered by the foreign and Amcri
Stockholders have produced great distress in many
families. An English nobleman holds $500O0O of
stock, and within my knowledge, are several per
whose entire fortunes invested in this institution
now reduced to almost nothing. There is no
apology for the conduct Of the officers. II is illegal
and corrupt and deserves only the censure of all
honest men, bat should subject them to the heaviest
vengeance Of the laws
The officers made loans to near the amount of
$20000,0O0 without the sanction Of the Directors.
They borrowed several millions, and paid them in
such stocks as the West Feliciana Railroad Company,
Grand Gulf Planters Bank and the stocks Of several
other such institutions, all at par. The Cashier, Mr.
Cowperthwaite, paid debt Of $263 900 in such kind
of stocks. For instance he paid 1926 900 in 500 shares
at par of the Germantown and Norristown Railroad,
which is now worth 81 per share; loss 1921 500 Mr..
Biddle settled his debts in Texas Bonds, &C. The
Bank, without the Of the Directors, guaran-
teed contract of Nicholas Bidde, made in his ndi-
vdual capacity for the purchase Of $500 bonds Of the
Safe of Mississippi, amounting to $5,0OOOO0 The
signature of the second assistant cashier, affixed
to the guarantee, on behalf of the Bank, upon the
mere perbal authority Of the President The Bank
was equally obiging in guaranteeing contract en-
tered into by Thos. Dunlap, in his individual capa-
city for the purchase of 81 900 900 of the Illinois and
Michigan Canal stock There is no authority on the
minutes Of the Board FOR these transactions.
The whole examination, imperfect as it is, goes to
show that the institution has been sacrificed by the
cupdity and Encouragement of the late President Mr..
Biddle Instead Of combining themselves to their le-
climate duties and protecting the interests of the
stockholders the President and superior officers were
engaged in specializing with funds obtained without
legal consent iom the bank and reckless had they
laery become that they in the habit of drawing
upon London, without having placed any funds
there to meet their drafts The misery and privation
inflicted upon the numerous widows and orphans,
whose all invested in the stock of this bank, and
the widespread distress that its fall has occasioned
reaching into both hemispheres, is incredible. Shall
the authors of all this ruin 60 UNPUBLISHED shall
the bodness and magnitude Of their vliany to
excuse them a'eo@
The Governor has vetoed the Bank bill. Every
reason he urges against it is sound one. The bill
was obnoxious both to the Banks and people
Whilst it provided for further exactons the part Of
the State from the Banks it assailed the interests of
the stockholders by reducing the dividends to per
cent The objections urged against the bill in
previous letter sustained by the message of the
Governor. The penny papers alone had enterprise
enough to publish the age this morning. Indeed
always indebted to them for the earliest intel
ligence. Their independence of discussion and bold
of structure make them invaluable censors in
rails and politics. Their talent and energy securing
for them great influence. Yours,
II