The Illinois free trader. (Ottawa, Ill.) 1840-1841, 1841-05-07

gentlemen OF tne place, aAu strangers VINO may
be in town, are respectfully invited to attend.
pcnnsyivanin Bank of the Uniiod ainies.
All that has ever been spoken and written TO
expose the evils Of the present banking system,
has never told one half the knayery that can be
perpctrated in but single one Of these glorious
institutionc. So it would seem, Mt least, from o
report we have from committee of the stockhold-
ers Of the United States Bank Of Pennsy lyania,
upon the manner in which the affairs of that con-
Germ have been managed for the last few years.
We'll and truly indeed has this been termed an
"AwfH Report" for it exhibits to the world the
fearful abyss into which the people Of this coun-
try are about to be prccipiiated by the most un-
scrupu,ous and extensive system Of plumber the
world ever saw. 1t Is now in vain that we
4 nope to find particle OF honesty among bank
era. When such men as Biddle, Cowperthwai
JauJon, Dunlap, &c, ill 'stricfiy moral and
highly respectable men" turn kna,es, and by their
own acts place themselves upon level with Lewis
and Dyoit, then Hdi fopc must be Felnqushed,
and il becomes the patriot to look to the nature
Of the system itself for the source of that fearful
decentralization which has overtaken this land.
There lies the grand error. Its inherent tenden-
cy is to corrupt the heart, and uproot the ounda-
ton of all honor and honesty ID society; aud if
suffered to exist much longer among us, it will
make this nation nation of bankrupts and place
us hopelessy at the mercy of a set Of knayes and
scoundrels.
The report of which we give a sketch below, is
but the beginning of the disclosurcs--an intro
dactory chapter-thc first leaf of that immense
volume of iniquites that will ere long be opened.
II deals in gcneraies--in round numbers it
tells us that lnayery has been practised to fear
full extent and points to tGp direction in which it
lies; and it will in the end, we presume, be left
to a court of justice to unraWl the awful details.
That it may be rgdy done, aud examples made
Of the guilty, is the wish Of every honest man.
The report begins by examining into the actual
condition of the bankits resources and liabilities
and submits an estimate of the value of its as
sets, from all Of which it appears that the amount
on hand to represent a capital Of $50, 500 900, is
Sl4 s20,256.
With regard to the active and suspended debts
Of the bank, the committee states that it was deem
ed best not TO submit list in detail from a desire
not to injuro the credit of individuals, but remarks
that "but a small proportion consists of regular
commercial discounts" The rest is in large
amounts aud was mostly TO individual and COM
pany spectators, now nearly or entirely broken
down. If this list should be given in detail, i,
would giveshe clue 10 many transactions which
are now inexplicable, and would be fine com
nentary on the beauties Of the erSda system.
The report next gives a short history Of the opc-
rations Of the bank for the last five years, and
traces out the causes which led to the present
failure. When it was perceived that the charter
Of the late Bank Of the United States would not
be renewed by Congress, the President and Di-
rectors commenced winding up its concerns and
after having made some progress in this business,
the President submitted to the board lin Marci,
1885, "a general view Of the situation of the bank,
its neans and liabilities &c, showing its ample re-
sources and power ofexpanson' -whcreupon the
"Committee of Exchange" which was composed
OF three directors appointed by the President, was
authorized by the board to make loans on the Sc
curty Of the stock Of the bank, and other approx
ed security, and, il necessary at lower rate than
o, but not less than 8 per cent. TO the opera
tions Of this committee are ascribod all the suisse
qnent difficulties Of the bank At the end of the
FIRST year after it had been clothed with such ex-
tensiye powers, the amount Of loans upon stocks
"of every hue" which a, the commencement of
the year amounted TO but 81 800, 900, had ncreas
TO over S20,000,000. The consequence was that
the active means Of the bank were comparatively
small and at time too when large bonus had to
be paid to the state for its charter when il had to
settle with the U. IS Government for its stock, and
when circulation Of over $50 900, 900 had TO be
met To meet these heavy demands the bank
was forced into the market MS borrowers, and Mr.. |
Jaudon was sent to Europe for that purpose.
At first loans were made in England on liberal
terms, but the bank became every year more and
more involved, and the necessity for further loans
continually more pressing, until towards the last
hey had to be made on greatly disadvantag eous
errns. In this way the bank became indebted
. the amount Of more than sl2,00O,000 in Eu-
-, upon loans mad st loss Of near 200, 900