, 1841-05-22

$500
don's own commissions, and the expenses
of the Agency in London amounting, up to
January /, 1841, to the sum of69,344 pounds
IL shillings 6 pence sterling, which at nine
per cent, exchange is equal TO s35,937 dol.
lars SO cents.
1t may be proper to explain, in passing
how this large sum for the expenses Of agrn.
cy in London arises. When Mr.. Jaudnn
was elected to the place of foreign agent, he
was the principal Cashier, at salary of 1000
dollars per annum. Tie bank paid the
loss on the sale OF his furniture, 6o74 dol
lars, and the passage OF himself and family
to London, a further sum of I,Ol5 dol ars.-
He was to devote himself exclusively to tie
business of the Bank, to negotiate an uncov-
cred credit in England, To provide for the
then existing debt in Europe, to effect sales
of stocks, and generally to protect the inter-
ests Of the bank and the " country at large"
For these services he was TO receive the
commission heretofore charged and allowed
to Barring, Brothers & Co., equal to about
$4,000 dollars per annum In addition to
which, tie expenses Of the agency were al
lowed him. including Il salary of EI.OOO
sterling TO his brother, Mr.. Charles B. Jau-
uol. Is llS y iIlCllbu CtCiAs IIbIIl IlIc IL
crease of money operations, arising from
facilities afforded by the Agency, the amount
upon which commission were charged
was greatly augmented. SO that the sums
paid him for his ordinary services up to Janu-
AIRY, lG4I. amounted ut . per cent exchange,
to 1904 dollars AZ cents. and the expen-
seS of the Agency to 35.166 dollars SO cents.
In addition to these sums, he WAS allowed by
the Exchange Committee an extra commits
sion of | per cent. upon Il loan effected in
October. 1889, Of 100000. say 1876 dol
lars SIS cents, andupcn his claim for Il similar
commission upon subsequent loans in
France and Holland. TO the amour of 1887,
l4l dollars 90 cents. the Board OF Directors,
under the sanction Of a legal opinion, from
counsel of high standing. & the yiewso the
former President, by whom the agreement
with Mr.. Jaudon was made. that the case
o! extraordinary loans was not anticipated,
nor meant to be included in the original ar
rangcment, allowed the further Charge Of
$500 d,lllrs 81 cents. These several Sums
amounted to 335,937 dollars SO cents, IS be-
fore stated.
Such were some of the results of the res
Olut;rn of March, 1885. though il cannot be
questioned, that much my be attributed to
the unhappy situation q: the business and
exchanges oil the county. cogcu ing with the
unfortunate policy pursued by tic the ad-
mniStration Of the bank. Thus the ~irstitu-
ton has rone on, to increase its Indebtedness
abroad, unit. ii has now more money borrow
cd in Europe. than il has on Loan on It's lis,
of active debt in America. To this has been
/ S~upcradlcd. extensive dealing in stocks, and
a continuation Of the policy OF loaning upon
stocks securities. though II was evidently
proper upon tie rechar:er. tia; such 7 poll
~ should be ut once and entirely abandon
cd. Such indeed was its avowed purpose.
vet one wear afterwards. in Marcel. 1887. its
loans upon stocks & other than personal secu-
rity had increased 1921 SAL dollars, while
the bills discounted on personal security and
Domestic EXCHANGE. had suffered y diminu-
ton Of ~9,5I6.463 dollars 70 cents. 1t seems
to have been sufficient, 10 obtain MONEY on
loan, To pledge the stock OF an .Incor-
Poratcd Company however remot its
operation or uncertain its prospects. Many
large loans, originally made on Z pledge Of
stocks, were paid for in the same kind of
property. and that too at par, when in MANY
instances they had become deprecated in
value. Ii is very evident TO the commit
tee. that several of the officers of the Bank
were themselves engaged in large operations
in stocks and speculation, of a similar char
acter, with the funds obtained of the bank.
and at the sane time loans were made
TO the companies in which they were inter
esteh, and TO others engaged in the same
kind "f operations, in amounts greatly dis.
proportionate to the means of the parties, or
la their proper and legitimate wants and
dealings. The effect Of this system, was
20 m~onopoliSe the active means Of the in
stirution, and disable it from aiding and &C.
commodatIng men engaged in business really
productive and useful to the community;
and as might have been anticipated, a large
part of the sums thus loaned were ultimate
ly lost. or the Bank compelled on disadyan-
tageous terms as TO price, 10 take in pay
ment Stocks, Back Lands and other frag-
ments of the estates Of great spectators.
The loose and irregular manner, in which
the business of loaning money was conduc-
ted, tended greatly to produce this result, and
deserves particular notice and explanation.
From, March, 1885, the period Of the pas
sage Of the resolution above referred to. the