Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-04-23

nNe have deemed Il naceecary 20 make this Isl! and
rn,aseryet, communication, by which yoa viii liza!
free sales of The cotton shipped by yon nhsoac
" necessary 10 refund the immense Of money we
had borrowed from bankers and brokers for the OF
| Mr.. Jaudon"
So maniiestly wrong was it to throw upon them the
loss upon this cotton that the President of the Bank
himself, iii { ia~r 10 Messrs Bevan and Humphreys
of the 9th of February, le40 actual. assnrsa This
| loss His letter was follows:
BANK or TIVE U. s.
Feb ), 1910.
Messrs Bevan and Humphreys, Philadelphia.
| Conference.-The state of the debt due by the Bank
TO Messrs Humphreys and Biddle, Of Liverpool, has
been for some time the subject of great solictude =
These gentlemen have with zeal in favor of the Bank
! for which our thanks particularly DUE sustained
Mr. Jaudon in many periods of his struggles with the
aid not merely Of their funds, but with all they could
raise their credit and have enabled him TO meet his
payments when but for their assistance, he would moi
have been able TO extricate himself We learn by
the last advIces that their own credit will suffer un
less they relieved from their heavy responsibilities
on his We are, therefore, extremely anx ons
TO repay them but in the present state of the Bank u
is impracticabe to do it by direct remtanccs. We
understand, however, that they have still on hand q
quantity of merchandise shipped by you, some OF when
they have already been obliged to sell to meet then
most pressing engagements on account OF Mr. Jaudon
4 A
due 10 them, ! have to request that you will direct
them 10 raise funds by the sale oil any or all the mer-
chandse consigned by You to them, and if tins sale
should be attended by any saertce on as cost, we VIII
make up the difference and that the same difference
riH be made upon uhat then hare already sold. liay-
inu no other method of paying debt Of so sacred a
character we must submit 10 any merely pecuniay loss
| il must occasion
| With great respect, yours,
T. DUNLAP, President.
Here them the positive evdence-first that inns
loss was incurred, BY sacrifices for the benefit of the
Bank and second, that the loss recognized and
assumed by the Bank
Fearful that my own judgment might misead me, !
determined to consult eminent gentleman, out OF
pbilndelpba who would look at the matter with can
dor and mpariiality and l. therefore, submitted the
whole case to Chancellor Kent. That gentleman an
swer was as follows
New York, Sept. II, 1910.
Nicholas BidMe, Esq.
Dear SRI have carefully perused the papers yon
sent me Yesterday containing the draft of your letter
to the President and Directors of the Bank of the
United States, and copy of Mr.. Dunlaps letter TO
Messrs. Bevan and Humphreys, of the 9TH of Febru-
airy, 1910.
we'll founded in law and equity in your claim to have
deducted from the account, the difference between the
cost of the Gotten sold at Liverpool by Mcssrs Hum
phreys 4 Bidde 10 repay their advances 10 Mr. Jau
don and the proceeds OF the sales. The letter OF MIR
Dunlap as President Of the Bank directing the sale al
all events and sacrifice 10 save Mr.. Jaudon and
EXEMPT the Bank from dlscredii-and stating that the
! Bank would make up the difference if there any
sacrifice on the cost, md that the assurance should
ply to the merchandise already sold well TINT 10
be sold puts end in my judgment TO all doubt and
difficulty as the question of the responsibility of the
Bank, and Of your claim TO indemnity against the sa
crificc The letter with its assurances il retrospective
as we'll as prospective, founded the equitable cons
deraon and justice Of the case, that sacrifices made at
the pressing solicitations of Mr. Jaudon as The Agent
of the Bank to relieve il, ought to be borne by it.
| am, dear Sir,
Yours very respectfully,
JAMES KENT.
II was then manifest to me that my property Ind
been sacrificed TO the necessities Of the Bankbsoushi
on hy the conduct of the Bank after left tbroug hi
On BY the efforts 10 break down the Banks Of New
York-the real cause of all the disasters of the Bank
Of the L. S-which called upon me to repair The
injuries its own conduct had inflicted. To these per
sons denied all right to make any such call would
not consent that should be made to suffer from their
Encouragement At the time, desired to avoid
al! controversy, especially with the Bank.
/ With these impressions, | put the whole mntter into
the hands OF friend, second 10 none IN tins city fo
intelligence and character, and requested him TO settle
it in any manner which he might deem Just and proper
lie has authorized me TO make the following state
ment
81 began BY informing the Committee that you be-
eved your property had been sacrificed by the Bank to
meet its sstes, and tat you would not consent to
any loss growing out Of that transaction. had seye
raj interviews with The Commil;ee--thcy ended by the
gentlemen composing il expressing wish that the
matter in dispute should be amcahly closed To this
answered that under all the circumstances you do
not recognize the claim 10 anything, and that 70,
would pny merely from an unwillIngness to have
controversy with The Bank. Among the securities
mentioned on the occasion sterling bonds
i Texas PAYABLE in London and as the Committee were
strongly impressed with the belief in which Mr. Jaudor
then recently from London concured that these bond
would BY the expected success OF the Texan ioan b'
4 forthwith paid in London, and be equal TO cash there
they preferred these TO the other securities, and they
were accordingly gwen.
ain subsequent interview after discussing various
kinds of securities the Committee asked whether yol
could not furnish the whole amount OF The balance IN m
same Texan securities This, after consultation will
you was agreed to- and the arrangement was SO con
cuded. The principal parts OF It were,
"lst. That il was maintained by you that The Bani
had no claim upon you.
"2d That the payment was yielded to BY you Tor TIT
sake Of peace.
"3d That these particular securities were selecte'
by the Committee themselves
!, Accordingly the deficiency was PROVIDED lot IN ina
way-the other parties settled for their shares
and thus the whole advance was refunded by CIV
inp securities which may be or less easily con
vrr,ible but which cannot fail, / should think, TO re
place the whole of the advance. AS to Inc seen
rtes-tbose of Teyas-they are al this moment WORT
far more than the stock Of the Bank ITSELF and 1t hap
pens, opporiunely enough, that have ms very Ga!
heard from Europe, of the success OF the leHiah ,oa
which secures the payment of these bonds as Mr.. Jau
don anticipated.
Now this payment Of mine was wholly gTatultous.-
| would not paw until had asceralnrd ana ASSERTED
nv riehis-and having done hut voluntarily yIeIde'
them The Committee said that they wished scttie
, amcaby. Undoubtedly they did-for they knew tina
unless chose to pay they could never receive DOL
lar. actually paid these 800 900 dollars, which wa
not under the least obligation 10 pny,-whIch Chancel
or Kent declared neither law equity made 1t neces
strong proof how far ancient and kindly recollection
of the Bank prevailed over all selfish consde raons
Perhaps should have been wiser-certanly shoui
!, have been rcher-had | abstained from genefosh
which has been ill-requited
Such is the history of this cotton operation IL con
sisted merely in this-that the Bank accustomed 10 Ou
bills of exchange private credit, resolved Tor gfeae
precanton when private credit very unsafe, to bu
only from known party real shipments OF produce
This lasted abou, twelve MONTHS and when 1t is over