The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-16

Il made advances upon them In the South receiving In
exchanges bills on Eufope-the second was 10 intro
duce into the market competition and thus pre-
vent the unconditional subsection Of the planter TO the
foreign purchaser These advances were made not a.
in past years the personal security Of the mer.
chants which the confusion Of all private credit would
have rendered too hazardousbut on the actual snip
ment Of the produce 10 an American House IN Eng
land willing and able to protect American properly
from the reckless waste with which il has been oen
thrown into the market with an entire disregard o. az
American interests The combination OF these causes
the application Of capital this aide, and me plu
dent reserve the other-has saved 10 the p'anuns
interest an amount which il Is difficult 10 estimate pe
low ten or fifteen millions Of dollars believe VOC,
that nearly one half Of the commercial debt OF TINS
country Europe has been paid by the mere
between the actual sales Of the securities ana staples
and The prces they would have realized had they been
thrown unprotected into the hands Of Europeans
These measures were essentially Of temporary ma
ture--ihey were measures Of emergency, adopted ID
the midst Of public calamity and TO be discontinued
with the necessity which caused them. As soon,
therefore as the capital and industry Of the country
had time to subside into their accustomed channels
these operations relinqushed, AMI now they have
totally and finally ceased"
In the meantime the benefit very great alike
10 the Bank and to the country. To the Bank, be-
il got the advantage Of large circulation OF its
notes- got the premium Of its drafts from the South
lit got the funds in Europe without the least risk,
and large collection of its southern debts. What IS
more Important btli tnt pOSstbsion VI tncoc iutup
abroad the means Of protecting and saving the
agent Of the Bank and, Of course, the Bank itself
from prosraton. OF this the most decisive evidence
is declaration made by the President Of the Bank
himself in letter to Messrs. Bevan and Humphreys,
Of the 9Th Of February, 1910, in which he says -
The state Of the debt due by the Bank to Messrs.
Humphreys and Biddle Of Liverpool, has been for
time the subject Of great anxiety. These gen
temen have, with zeal in favor Of the Bank, for
which our thanks particularly due, sustained Mr.
Jaudon in many periods Of his late struggles with
the aid not merely of their funds, but with all they
.L-:- ia, L--a enabled him 10
meet his payments irhen but for their assistance he
mould NOT hare been able 10 srfrieate himself"
Finally, the operation of great not merely
to the Bank, but 10 the whole country. The total
prosraton of all and all credit in the South
the time placed the whole crops at the mercy of the
foreign purchaser. The purchases made TO provide
bills for the Bank obliged these foreign purchasers
to give something like the real value to Southern
producc-t made actual difference in favor Of the
Southern States Of at least twenty twenty five mil
ionswhich gave them facilities in the discharge OF
their debts TO the Northern States as well as to the
Bank itself
While these operations were in progress, lef the
Bank about two years ago-and the whole matter
was OF course TO await the event Of these saesto be
treated as mere ordinary mercantile transaction,
which it in fact After had left the Bank a
statement was presented to me by Mr.. Cabot Of the
house Of MessTs. Bevan and Humphreys, who was
then Director Of the Bank, and did this whole bust
ness as the Intermediary between the Bank and his
house. His statement was follows: