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

ish, towards inc country, of kindness to the planter
and Of security and economy 10 The Bank lie ss:s vi
was undertaken without the least iGsa ofany pecuHaTy
advantage and the only understanding on that subject
{ WAS mere verbal assurance from me-hat alter re-
paving the advances 10 the Bank If there should De
any excess Us the Bank could not by lis charter buy
this produce of take any profits arising from
it, such should be given 10 those who encoun-
tered the trouble and the responsibility, nor was thefe
the siiaies: dr. =. soi,cenl IT,.
This is brief statement of the case as s@ereo tci''
the letter already alluded 10.
Mr. B,dde gets out by declaring il would he unsafe
for the Bank buy bills drawn against cotton us h
always done in former years, IN consequence u VI"
embarrassed state of trade indeed this assertion seems
TO be relied on as an excuse for engaging IN the sPecu
! lation. ..c, -,
Mr.. Riddle must have been greatly misiniormed on
this point if he really believed good os cou,u NJ. Nc
bought in New York drawn against couon-tne u'Sas
ers of 1896 and 1897 and the failure oil Inc BANK OF
The United States in May of the latter year. had Obliged
those who came out from Europe TO buy cotton, 10 arm
themselves with than usual IN the cleoiis
they brought out-those credits were paceo win
| Lyyo n The HIGHEST eminence in New York, who in
their mrn have letters of credit 10 those who were to
draw from the South and in very many instances ley
were furnished with credits from the New ork banks
Besides the usual mercantile credit from England the
Ranks of Liverpool furnished many of the cotton buy
ers with bills already accepted to prevent tue posi-
| bility of their being dishonored
There are no previous occasions where the buyers OF
cotton or those who made advances on Shipments were
so amply provided with the means OF ootahnS iu"o
for their drafts in the North.
To add TO these facilities it SO happened that at no
former perod within the recollection OF the writer, ad
there been great demand for drafts on the North
particularly on New York-so much SO, that at one OF
Tho Southern ports, Exchange from = Id TO 80
premium on New York, between the beginning OF te-
bruary and the middle of March, 1888. There can be
no doubt them but drafts on the North, or bills on Eu-
rope direct could have been negotiated in the Southern
cities 10 any extent required for the purchase OF The
whole cotton crop at such prices the market OF Eu
rope could justify-and consequently sterling bulls TO
any amount the Bank required could have been bought
either at the South or in n. York
Rut remittance by bills did not suit Mr.. Biddlc-he
had possession Of the of the former Bank OF the
l. S-specic payments were suspcnded-he could send
those notes in any quantity 10 his own agents at the
South. with orders to sell them and pay over the pro-
ceeds 10 the agents Of Beyan Humphreys, to pay Tor
: cotton
on Bevan a. Humphreys, Mr.. Biddle bought his cot
tonic what extent does not appear. The object in
buyinq the COTTON he declares, to throw funds INTO
the hands of Mr.. Jaudon, 10 meet the bonds of the
Bank becoming due in 1888. 1t IS evident that MI
Bidde made no advances himself whatever for the
purchase Of the coton-the whole OF It was bought
as already stated with the Of the old Bank of the
United States, which, was presumed, were to be de-
soyed being paid into the new Bank and not to be
re-lssued. How much from the COTTON was
and the proceeds sent 10 MIR. Jaudon, we have no
means of ascer,anng but the facts, that large Por-
ton of the cotton sent to Liverpool in the spring and
summer of 1895, held over until ls3-ior had IT
been sold arrival in reasonable time AFTER we
know that it would have been attended with an over
wbeIminr loss The then having been kept for
better prices with the exception of such adranccS as
t Messrs Humphreys II Biddle might have it in their
/ mower to make on it,) the Bank must have been
heavy loser by the interest money it was obliged to
IL adyan-
taoe Of any advance cotton that mig take place.
There was however, time for all things. In 1889,
Mr. Jaudons wants for the Bank became SO urgent,
I that on the 22d of August Of that year, he wrote
Humphreys & Bddle, who had received more cotton,
that they must send him f1O,O00 sterling, in which
letter he uses the following language
81 must look you for E10 600 10 make up the sum-
If do not get this, get none; for all are contingent
on my making up my estimates; every thing therefore,
turns upon what you do; for here am exhausted
You must therefore work hard for me-lc deuth to
Tie Bank Of the u. S. is the issue"
Mr. Biddle says: "1he Bank got the funds in Eu-
ropc without the least risk. Mr.. Jandon thought
otherwise when he declared life death TO the Bank
. was in The issue. No risk indeed But the Bank
eyposed 10 every risk Mr. Biddlc furnishes list Of
Isl 900 bales; on the later shipments there has been
heavy loss-let suppose loss oil SlO bale (which
would have been incurred, had the cotton OF lc5-S
been sold) on these Isl 900 bales making loss Of ST.
80 COO Could he have refunded such loss We think
not: not even with Texan bonds
We now come 10 what we think very singular fea.
ture in this business. Mr. Bidde takes the money Of
j the Bank on his own authority alone, We presume
bnvs oton with H. sends it 10 England TO his son
hon wi directions place the proceeds to The cred
II Of the Bank Of the United States with Mr. Jaudon
The market ialls-cot0n cannot be sold except al
oss-and heavy one no doubt MT. Jaudon must re-
ceve ESQ 600 on account Of the Bank, or stop pay
$ ,neni The sacrifice is made-Mr. Blddle, who had
made the shipment the winter Of I-3S-39 with the
money Of the Bank, complains that he should su
fer tie loss while the Bank derived the beneht Of The
sale BY receiving back its own money. In l35o, by
boldnr on 10 the cotton, Mr.. Bdde had been saved
from ruin not only So; but large profits were made ana
nockeed In 1880 BY being forced TO sell, he loses
and then complains that the bank should throw the loss
We cannot believe Chancellor Kent was acquainted
;,h Tho whole history of this cotton business when he
rave his opinion the subject Inc advances hau
been made by the Bank and it had an undoubed right
To force the sale Of the cotton tor It's REIMBURSEMENT
This question well settled IN England cons'gnee
hos rpht 10 sell goods which he has paid the ad
vance whenever he thinks fit TO do so; and the whole
;, transaction, it seems is source Of pride to MI BID
: die. So be it,
. From The Norfolk HeralA.J
!. us BAyK-Mr. Nicholas Biddes reJoinder 10 the
h report Of the Stakeholder Committee which We spoke
Of few DAVIS ago. as forthcoming, has made lis appear
,nce n mari in the Philadelphia National Gazette, IN
tho frs, If series of letters addressed TO the Hon
J., John NJ Clayton Of Delaware We very much dono',
from calculation based upon the length OF his ilrst
letter whether il will be in our power without com
hitting too great lrespass upon the many Of our sub
scr;befs 10 whom such matter would be nninteresng,
d 10 publish the whole of these letters We shall retain
It them rs copy however as they come to hand ana II
l. we can publish thcm without SO tresPasslng we Ger
. ,oinlv viii NOT be backward in giving -- Mr.. BID
l. die his due; which we frankly acknowledge he IS emit
tied 10 at our hands, have published the report
a of the Committee.
is Mr. Bddes FIRST letter is exclusively conhneo 10 le
affair Of The Cotton The Bank, having undertaken
The chyarous task of relieving the City of New York
' from the awful predicamen in which it was placed by
the failure of her Banks 1887, issued its bonds to
!, large amount payable in London and exchange being
,aned sarous loss if had RENTED bills of exchange
to paw those bonds as they became due 1t was there,
fore supnescd that shipments of cotton which could
j, then be purchased the South at greatly reduced
-:aaa ,.anlL hn the more elrible remittance. But