Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-04-23
RICH MON ID:
FRIDAY MORNING. APRIL ~.


c will be found on the outer side of the paper by III
country reader. They are certainly Of a very his
5 order Of composition, and the third is a masterpiece,
A fourth is forthcoming. The Committee, VIC pr,
sumo, are waiting for him to exhaust his CULVER be
fore they rejoin. Whatever the true state Of the cas-
is as to the cotton speculation, upon the other poin,
which he brings under review, MIR. Biddle seems t
us to be impregnably intrenched behind the re
cords. His retaliation upon Messrs. Lippineott an,
Eyre, in his third letter, is overwhelming.
On the point OF the cotton speculation, the Bostol
Courier has an elaborate and severe critique, whicl
we transfer to our columns, in order that the reader
by comparing it with Mr.. Biddle's first letter, ma,
be enabled to form his own opinion of that transac
ton. II Mr.. Biddle acted with improperly in tina
speculation, the South at least will be disposed L
regard the alteration with an indulgent eye, as hr
competition in the cotton markets at the depressed
period OF 1887, certainly saved the Southern plan,
ters many millions of dollars. His unbounded
sway over the Directory, as disclosed by the transac,
ton. is the most striking evidence of that intellectual
superiority which all concede him.
The Boston Courier thus analyses Mr.. Biddle's
first letter -
"MR. BIppLE's FiRsr LErrER.-That MI. Bid
die is n man of talents, and an exceedingly CUNNING
man, we freely admit. But the greater the talents,
the greater the mischief, when they are PAM
ed either by want OF principle, or by great rlshness
and imprudence. His want ofopenness and sincere
ty is amusingly developed, by only one sentence,
which occurs in the third paragraph Of this first let.
ter to Col. Clayton :-"But as | know you are de-
sirous of ascerianing the truth, | shall proceed 10
explain to rou, rs a personal friend, several mat
| ters," &c Here II Is clearly implied, If not Greet
~ asserted, that the letter was written as a private
one, TO a personal friend" merely to satisfy HIN,
when it is objectionable, that IL was written ex-
pressly for publication, and to have an effec, on the
public mind. This first letter relates solely to the
famous cotton speculatons, and TO Transactions grow
ing out OF them.
Mr.. Biddle says, that these originated in u desire
10 place funds in Europe, without risk to the bank,
in 1887. He urged some ofthe directors 10 purchase
and ship large amounts of cotton, sc. on funds TO
be advanced by the bank, the bank, of course, to
have a lien on the COTTON till it was reimbursed.
This lien was, we suppose, the shipping of the cot
ton in the name OF the bank. "But (slys MIR. Bid
d,e) finding none Of the mercantile part of the direc-
tors disposed to large operations, | determined, that,
as rs II must be done, | would DO II myself" Here
IS ar evident miSstaiement TO begin with. IL will
appear presently that he was interested Only one
haif-the other half being for account of two other
officers Of the bank. These transactions amounted
TO many millions of dollars. MIR. Biddle here saws.
1T was thought proper TO employ a large portion
of the capital of the bank" in thus business.
The advances thus made Ivy the bank The con-
linueS) were on "the actual shipment OF produce TO
an American house in England, ,ri! ing and cole to
protect American property" &c. This house was
humphreys Bldile, the latter person being Mr..
n. BIdGle's own son, and, very probably, Mr.. N.
Blddle himself a private partner. These cotton
speculations, therefore, would be sure To place an
Immense sum IN the pockets of this house, and in the
f.miiy OF MIR. Biddle, in the shape Of commissions.
How abe this house was, to ''protect American
property with its own funds, is very doubtful.
The pretended advantages arising TO planters
and TO the bank from these operations are specious,
but altogether unsound. THE bank (says he) got
& large ejaculation OF Its notes-and il got funds in
Europe" Yes, the cotton was paid for in bills Of
the bank, advanced for the purpose; but these bills
soon came home 10 the bank for payment in specie
long before the funds could be realized by sale OF
the cotton; and this was one ofthe principal eau.
sRs of tie embarrassment OF the bank, and of the
great sacrifices which were consequently made. Ii
got funds in Europe,"-but these very funds were
required, in part, to pay the obligation ofIhe bank,
issued for the very purpose, among Others, of meet
ing the plymento Of It's bills, Sc. advanced in pur-
chaSes OF the cotton.
Another pretended advantage was that these
speculaiions produced competition, and raised the
price ofcotton ct the South. But even if ii did for
a short time, the re'ection, from placing such large
quantities IN Europe, well known TO all dealers in
cotton there, ksp, down and reduced the price there,
and consequently here; and Uhea il could be held
no longer, and The sale was forced, the Revision
WIS more disadvan'ageous, than were oil the pre-
vious advantages, II any, which had arisen from
competition.
1t must DO borne in mind, that MIR Biddle was,
at this time, president Of the bank-these cotton
transactions commencing in July, 1887, and Mr. Bid
die continuing in office I'LL Mach, 1899, which was
the last year Of shipping cotton. The final settle
ment of the cotton concerns, however, was not made
till December, lsi0;-though, il seems, Mr. Biddle
ASSUMED or anticipated a settlement, so far as actu-
ally TO receive from the bank and put in its Docket
$500, 900, Tor his proportion Of that sunni as profits
on these speculanons, when, IN fact, out Of 1893, 600
bales of cotton, 5000, or hall the amount, remained
unsold;-and not only unso!d, but, we believe, could
not then be sold without loss. Yet the profits on
the quantity unsold were estimated the same, as on
that which mad been actua ly sold. This is indeed,
one way % making the bank perfectly secure, in
"placing funds 90 EarUye;"-viz. advancing the full
cost and expenses, on merchandise, and therefore
running all the risk Of a 'Oss on it.--1nd, even more
than this, advancing 10 the spectators the nnt:ciplt.
ed prohtso Of the speculation, when one half remain
ed unto.d! Indeed, for such pure "disinteres:ed-
ness" as MIR Bddle says he was aciuated by in this
business, these transactions are, it mus, he confessed,
sOmewhnt ineXpIcIJle, and not 90 much calculated
for the security and advantage u the bank, as for the
profit and convenience Of certain individuals.
But it should be fairly stated, that Mr.. Biddle
says, that q "margin of $500 900" Of the anticipnt
ed proh's were left in the bank, go provide agnins,
all possible contingency" The value orthis great
"mirgin,n and it, reality 10 provide against contin-
EANelNaH AAiAl bt AA|aa ~ ~. AHNN vi Il4@
die, (0r these speculators,) were, afer closing the
concern, IN 1910, obliged 10 pay back 10 The bank
upwards Of 500 COO The actual loss on the
shipments, IN 1889, was, according 20 the Com
miItee's Repou,) $685., 524. OF this sum, the bank
allowed the spectators, upon only 2j26,0OO OF
Southern funds, furnished 5y the bank Tor purcha-
sing cotton, the large sum Of s3IO,07l as a dis
count What the actual current rate Of DISCOUNT
was at that Time we cannot tell; but II is impossible,
we think. that u should be half that sum.
MIR. Bidiis says, that "On winding up The concern,
he was informed by the cashier, eighteen months
after Mr. BidJle had ielt the bank,) thnt there was
On over advance Of SG3I 800, and that the portion,
which u belonged nee 70 return, was e35I SOS"
This "Over ady1ncC' means a payment by the bank
10 the spectators, Of that excess Of anticipated p,o-
fits. This, Mr. Biddle refused 10 repay, under the
pretence that "this loss was IN fact occasional by
the sacrifice oftbIs property Ohe couon) in order to
sustain the bank in Europe from Embarrassment
brought on wholly by the bank itself" His grounds
are, that Mr. Jaudon, being IN great distress for the
want Of funds, induced humphreys h Bidd'c 70 sell
largo portions OF this cotton, held in the name Of The
bank, but on account Of these spectators. Now
the notorious f1ctis that, in so far ns these cotton
advances were concerned, these Embarrassment
we e not brought on wholly by the bank itsolLp
The money was advanced Ivy Inc bank on condi
ton that 81 should be refunded by proceeds Of sales
Of this cotton In Europe and Mr. Jaudon was lus.
tilted IN calling for the advances made, which Hum
phreys & Biddio were bound 20 ray, and II neces-
Saty, % cell the cotton for that purpose, on account,
and at the fisque and loss, u there should lie any,
Of the sTcculiiors. What the precise agreement
With the bank was, we have no means Of knlv
ing, except from the statement of Mr.. Biddls
himself, In this lcuer. II Is this the ocents