The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-05-25

were accordingly saved. With the house Of Thomas
Biddc q Co. mould NOT interfere, but requested
Committee 10 examine their affairs, and II they thought
II expedient Iio0uid consent to
IL is true that by the state OF the Bank, laid upon
the Directors table at every stated meetng the amount
OF these advances merchandise was included in the
amount OF Foreign Bills Of Exchange" u Is true,
also, that the Committee thought when they made
their report, and still think that so large an item
ought TO have attracted attention. and explanation
and detail of the particulars called for and examined
Sii Il Is fairly open to this remark, that ~ the dal
ngi Foreign Exchange al always begin regarded as
abe favorite, because the profitable and at the
same time the safest branch Of the business Of the
Bank the Directors who inspected the Statement
doubtless gratifed, rather than otherwise in observ
ing the extent Of that line and certainly had no
reason to suspect any thing improper under such
head Au
On quoting the passage of the Report in which this
Is inen,ioned MIR. Biddle excains, 9 Thanks to this
pind rage Tor more vengeance they thus reveal what
completely answers all that they have previously writ,
ten; and never, certainly, was seen at tho Quarter
Sessions witness caught completely in his own
trap" The Committee can only say that every part
OF the Report was well weighed, and this part well
ms every other The facts which are not con-
troverted and they show, what the paragraph in
tended To show, with wha: improper laxiiy the bust
ness was transacted-what form the Board of
Directors and its Standing Committees had become,
and how entirely satisfied the President seemed be
OF his own ability unassisted to direct its affairs
Ona ree examination Of the whole matter the Com
mittee are fully borne out in their position thai the
Advances on Merchandise" an operation UNDER
taken and carried on, without the authority, sanction
or even knowledge, of the Board Of Directors
Some facts, however, have heen stated in relation TO
this business, which were not known to the Commit
tee, and which requires few remarks, in order that
their proper bearing may be clearly Understood.
|. We supposed that the $500 900 drawn from the
Bank, and distributed among the parties for pro-
| fits actually then realised.
Il now appears, from the statement of Mr.. Joseph
Cabot, published by Mr. Biddle in his First Letter
that one half Of the for anticipated pro
fits. We take the statement correct although there
| are some plain mistakes in the calculations.
So that we have it from the best authority that
the 22d of August, 1889 Mr.. Jaudon the agent in
London wrote to Messrs. Biddle and Humphreys for
the advance Of f5oOO0 telling them, IF 5000 bales
of cotton must 90 let them 90, be the loss what il
may" and on the following day for ESQ 900 mole, in
consequences of which, as is pretended the cotton
sacrificed at that very time Mr. Bidde and his
cates in this business in possession Of amount
drawn from the Bank estimated profits which, with
out doubt would have been sufficient fin the hands of
Mr. Jaudon 10 have prevented the necessity of The
| flee.
2 1t appears that Mr.. BddIe undertook this opera
tion without the least idea of pecuniary advantage TO
HIMSELF and that the object not profit, but simply
to enable the Bank to make with safety the large
mtances necessary TO meet It's bonds payable in Lon
| don, which had been issued the relief Of New
| York. II was then entered upon by Mr.. Biddc, as
President Of the Bank and for the benefit of the
Bank, On this ground, and this ground alone, is
vindicated. Il is even boosted, that 1.-THE possession
of these funds abroad, the means of protecting
and saving the Agent Of the Bank, and of course the
Bank itself, from prostration."
If then the whole operation undertaken for tho
benefit Of the Bank in order to enable il 10 transmit
its funds, how is it that after the $500 900 have been
Withdrawn and repayment is demanded of part of
this sum to make good subsequent LOSSES the transac
ton suddenly changes its character? It becomes all
at once, according TO Mr. Bidde, I" a question how
| far, looking at it simple ercial operation,
the only possible light in rhich IL could be regarded
he, stranger, no longer connected with the Bank,
ought to bear the burden of this sacrifice"
IT. according to the only possibly light in which
it could be regarded" il was :. a simple commercial
operation" Of Mr.. Nicholas Biddle then here the
chief officer of that institution employed at salary
of $4,000 per annum, in order that he might devote
his whole mind TO its business, engaging in large
commercial operation for his own benefit; and what
is more and worse, using to the extent of many mil
lions the money Of the Bank for that object without
the appreciation or even the knowledge Of the Board
of Directors.
IT, the other hand it be regarded as an operation
undertaken solely for the benefit OF the Bank, TO en-
able it TO make remttances to meet its payments in
Europe, then when il becomes absolutely necessary to
make sacrifice in order to sustain the Agent Of the
Bank and the credit of the Bank, the very object OF
the whole operation, on what principle, consistently
with this view could the parties refuse repay the
money appropriated to themselves under the name of
| Profits
Had the $500, 900 never been drawn, it is evident
that the Bank would still have been loser on the
whole business to the extent of Sal ,46227 For the
readers Of the Report will remember that in settling
the account the parties interested claimed and were
allowed deduction for loss on Southern Funds and
in the purchase of COTTON of $3I007i 80, which
proper allowance, il il operation designed for
the benef, of the Bank but was without any good
if the only possible light in " hch il could be
regarded" that OF simple commercial operation of
individuals.
| One two other matters remain 10 be briefly
ticed in connection with this branch ofthe Report:
l. Mr.. Bddle states that il after he had left the
Bank, that Mr. Cabot presented to him the statement
of the profits realised and expected the sales of the
Cotton, and that when he received this account, he
presumed the matter correctly stated, and II was
SO settled accordingly. Mr.. Biddle resigned the Pre-
sidency the 29th of March, 1889. The Committee
cannot Of course say when he received the $4,000
his pretended share, in hand but the books give the
following the dates at which the money drawn:
March 25, 1899 Si5O,OO0
80 10000
April l6 /" 100000
May %, {" 100000
$500 600