The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-12
a9htlanelphfa Correspondence.
Pennsylvania Bank Of the United States. Re-
port of the Committee Of Stockholders. The
Governors veto.
April 7th, l64l.

NOVernOf'6 VetOs
PHILADELPHIA, April 10, l64l.
The adjourned meeting of the Stockholders Of the
U. s Bank on Thursday, attended by more than
thousand persons. Mr.. VIM. Drayton, now resi-
dent Of this city, but formerly distinguished leader
Of the Union party in South Carolina, chosen
President, rice Dunlap, resigned Resolutions were
adopted to preserve the corporate existence of the in
sttuon, to change the name Of the Bank and reduce
the capital to $l4 900 600, vaung each share at $40,
Ito petition the Legislature to be relieved from the
residue of the bonus yet unpaid-from the oblga-
ton to make loans to the State and from the penalties
attached to suspension of specie payments--to make
arrangements with the other city banks to receive the
notes of the u s. Bank-to restrict the banking ope-
nations the mother institution, aboshng all State
agencesto confine the discounts to business paper,
and to reduce the salary of the President to $1,000.
The facts presented in the report exhibited such
criminal conduct the part Of the officers that strong
resolutions offered to prosecute some Of them
crminay, but they were modified, and the Directors
instructed to ascertain whether any legal respon
sibty have been incurred by the officers of the Bank
and if SO, that they those responsibilities to be
enforced at law appears that, upon the eve of any
extraordinary transactions the clerks to
secrecy. That obligation still existing, precluded
them from giving full information to the Committee
They were, motion, released by the Stockholders
from the further observance Of their oaths. We may
now expect further developments. The U s. Bank
its ruin to the corrupt conduct of its officers
The several losses suffered by the foreign and Amer
Stockholders have produced great distress in many
families An English nobleman holds 100000 of
ato Vvith kno Iadr
whose entire fortunes invested in this institution
reduced to almost nothing. There is
apology for the conduct of the officers II is illegal
and corrupt and deserves not only the of all
honest men, bat should subject them to the heaviest
vengeance of the laws.
The officers made loans to the amount of
$40 900 900 without the sanction Of the Directors
They borrowed several Millions and paid them in
such stocks as the West Felicana Railroad Company
Grand Gulf Planters Bank, and the stocks Of several
other such institutions all at par The Cashier, Mr.
Cowperthwaite paid debt of $685. 900 in such kind
of stocks For instance, he paid in 800 shares
at par of the Germantown and Norristown Railroad,
which is worth 81 per share; loss $2l 500 Mr..
Biddle settled his debts in Texas Bonds &c. The
Bank, without the consent of the Directors guaran
tced contract Of Nicholas Bddle, made in his ind
vdual capacity for the purchase Of $500 bonds Of the
State of Mississippi, amounting to $5,OOO,OOO. The
signature of the second assistant cashier, affixed
to the guarantee, on behalf of the Bank upon the
mere perbat authority Of the President. The Bank
equally obliging in guaranteeing contract en-
tered into by Thos Dunlap, in his individual capa-
city, for the purchase of 81 100000 of the Illinois and
Michigan Canal stock. There is authority on the
min into of 4 he Roard for fhasa tran snctin
The whole examination, imperfect as it is, goes to
show that the institution has been sacrificed by the
cupidty and Encouragement of the late President Mr.
Biddle. Instead of combining themselves to their le
Ultimate duties, and protecting the interests of the
stockholders, the President and superior officers
engaged in specializing with funds obtained without
legal om the bank, and SO reckless had they
atterly become that they in the habit of drawing
upon London, without having placed any funds
here to meet their drafts. The misery and privaon
inflicted upon the numerous widows and orphans,
whose all invested in the stock Of this bank and
the wide spread distress that its fall has occasioncd
reaching into both hemispheres is incredible. Shall
the authors of all this ruin go unpublished or shall
the boldness and magnitude of their viliany
excuse them 2
The Governor has vetoed the Bank bill. Every
reason he urges against it is sound one The bill
was obnoxious both TO the Banks and people
Whilst it provided for further cxactons the part of
the State from the Banks it assailed the interests Of
the stockholders by reducing the dividends to s per
cent. The objections ! urged against the bill in
previous letter sustained by the message of the
Governor. The penny papers alone had enterprise
enough to publish the message this morning. Indeed
always indebted to them for the earliest intel
ligence. Their independence of discussion and bold
ness of structure make them invaluable censors in mo-
rails and politics. Their talent and energy securing
for them great influence Yours,
III