The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-16


COMMITTEE OF INVESTIGATION,
APPOINTED Ar THE MEETING OF STOCKHOLDERS OF
THE
BANK OF THE UNITED STATES.
The Committee appointed at the meeting Of the Stock
holders Of the Bank Of the United States held Jan.
4, loli, TO examine the details of the statement
then submitted BY the President respectfully sub
nit the following
REPORT:
The Committee originally appointed, consisted of
Joshua Lippincott, Moses Kempton, Charles Massey,
Thomas p Cope, Richard Willing, and David Kirk.
patrick. The three last named gentlemen declined
acting and Edward Coles, James s. Newbold and
Jacob Bacon having been selected TO fill the vacan-
cies, the COMMITTEES finally organised by the
election of Joshua Lippincott Chairman, and
George Sherwood Secretary and on the twentieth
ninth day of January, commenced the performance Of
the duties assigned them.
The Committee were accommodated by the Board
Of Directors, with an apartment in the Bank, and
were from time 10 time attended by Committee of
that body well by the Officers and Clerks Of the
Bank. Every facility afforded TO them, in the
prosecution OF theil labors far practicable,
by submitting to their examination the Books Of the
Bank, and by giving such verbal explanations and
furnishing such extracts and copies, request
cd At early stage of their proceedings they were
officially notified by the President that Resolution
had been adopted by the Board Of Directors, tina,
the Committee of Stockholders be informed, that the
Board is ready to afford them every facility in the
prosecution of any investigation, which the Commit
loo may DO willing make OF the affairs and transac
tons Of this Bank, and the causes Of It's actual stua
ton, and that it is the wish of this Board that the
Committee should make such investigation in order
that the results may be laid before the meeting of the
Stockholders in April next" Conceiving il to be
their duty, under the terms of their original appoint
mcnt well as under the invitation thus extended
to them by the Board, the Committee accordingly
commenced examination Of the affairs and trans
actions Of the Bank, and the causes of its actual
situation"
The Committee proceeded in the first instance, to
verify in detail the Statement Of the Assets and Liza
bilities Of December 81, 1871. The securities and
evidences in the possession Of the Bank at Philadel
phia, were accordingly produced, and on comparison
Herewith, the same was found to be correct The
cash was counted on the second of March, and cor
responded with the Leger Balance ofthat day The
returns from the several offices and Agencies were
read and found to agree with the printed statement
The accounts of the circulation and issues of the late
and present Bank were also examined.
The Committee have prepared and herewith submit
still more detailed statement of the Assets and LA
bies ofthe Bank on the twenty-frst day OF Decem-
ber 1910, than that heretofore presented exhibiting
the particulars of each item of the original statement,
IN the same order and arrangement as Is therein pur-
sued; emitting however, the items Bank United
States Stock, balance unsod and the amount credit
ed as I" Bonus for Charter"
The next object proposed was to make q valuation
of the Assets. With this view they proceeded to re-
examine the items of Active and Suspended Debt,
Stocks, Real Estate Bonds and Mortgages, Foreign
Bills Of Exchange, and Amounts dueb State Banks.
The President Of the Bank also requested TO OBJ
tain estimate of the probable loss the Assets at
the different Offices and Agencies returns from all
Of which have accordingly been received. The csti-
mates thus made presented in column, added TO
the detailed statement, submitted and before re-
ferIed to, (Appendix Al
The attempt to make an estimate of Probable Loss
es was found to be attended with considerable diff
Guilty and embarrassment To adopt the present de-
pressed market value of the several stocks and loans
held by the Bank, would not be fair criterion OF
their actual worth which, rather than their present
availability that at which the Committee endea-
vored to arrive. Still they have been necessarily
guided in great measure, by the Price Current OF
the day. Ofthe Real Estate and Bonds and Mortga-
ges very imperfect Judgment could be formed,
without inquiries as to the title and membranes,
which the Committee had not lime 4" make: Many
impracticabe to form reasonable conjecture of
their value While therefore the Commute bcspcak
for this portion of their abonrs that regard which -
due to honest effort, from the best means within
their reach to arrive at the truth, they must he per-
mtted qualify it with the remark that is nccessa-
ry only an approximation, in which they cannot ask
the stockholders to place entire confidence The abil-
ity of the institution to realize anything like fair
equivalent for its Assets, will depend much upon the
course of Obey it may in future pursue, and upon
circumstances which can be expected toforesee
The estimate presented however with less reluctance
as from the details now given, each stakeholder VIII
be able to form Judgment Tor himself,
II may he proper here to remark, that Il mas been
thought best by majority of the Committee not to
submit the lists in detail of the active and suspended
debt The injury which would result to the credit Of
individuals by such an exposition might ultimately
be detrimental TO the interests of the stockholders
while no benefit of sufficient importance TO counter
balance such mischief, appeared to present itself
In regard to these two lines the Committee Will con-
tent themselves with remaIking, that but a small pro-
portion consists irregular mercantile discounts On
tba Acti Debt December 81 1S10 m loans To
incorporated or other Companies of u 93 dol
lars, % cents including ono of 502222 dollars, ~
to the Philadelphia, Wilmington and Baltimore
Rail Road Company. The sum of740,056 dollars
80 cents, is obligations, having that day more
than six months to rum and of this sum 597 OPS dol
lars 5 cents had more than twelve months TO run
The sum of279 1888 dollars A cents, part of this
Line entered Bills Receivable, being nominally
PAYABLE on demand though really composed OF per-
manent accommodations is not included in either OF
these amounts Nor is the OF Co., 500 dollars, 30
cents, Bills receivable for sale OF Ohces "A con-
siderable part of is in large amounts as will sum
GENTLY appear from The fact that ior'y-eght M
firms and companies have discounts exceeding ~
600 dollars each of whom twenty have discounts
exceeding 50 600 dollars EACH and nine exceeding
lO0, 900 each. .
A similar examination of the suspended debt cxhi-
hits as the result ywo individuals, firms and COM
panics standing charged the books of that depart
mcnt with more than 20 900 dollars each, twenty
with than 10000 dollars each, anu eighteen
with more than 900 dollars each. There are SIX
individuals and firms whose debts amount to 25il
600 dollars two of which are over $50 900 dollars EACH
large amount of which will be lost; and four others
who have loans amounting to $4,000 dollars Eleven
Joint Stock Companies are indebted on tins List SoI
5SI dollars % cents, OF which the Philadelphia and
Germantown Railroad Companies is l29,9O2 dollars
rs cents.
The whole result of the valuation made by the Com
mttec may be thus stated in short
The assets of the Bank, amounting on the list day
of December, 1910, according TO the statement OF the
Committee, to 60 53l 7i2 dollars i6 cents, have been
es,;ma,eJ n, $5l, 779, 795 46
Ernm which deduct liabilities 500 CD