The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-04-17

from the reckless waste with which Il has been often
thrown into the market with an entire disregard Of all
American interests The combination of these causes
application OF capital this side, and the pru-
dent reserve on the otherhas saved 10 the planting
interest amount which Il is difficult TO estimate be-
low ten or ffteen millions of dollars believe too,
that nearly one half of the commercial debt of this
country TO Europe has been paid by the difference
between the actual sales of the securities and staples,
and the prices they would have realized, had they been
thrown unprotected into the hands Of Europeans
These measures were essentially of temporary ma
ture-they were measures Of emergency, adopted in
the midst OF public calamity and to be discontinued
with the necessity which caused them. As soon,
therefore as the capital and industry of the country
had time to subside into their accustomed channels
these operations were relinqushed AMI they have
totally and finally ceased"
In the meantime the benefit was very great alike
10 the Bank and to the country. To the Bank, be-
cause got the advantage of large circulation of its
notes-it got the premium of its drafts from the South
lit got the funds in Europe without the least risk,
and large collection Of its southern debts What is
more important still, the possession Of these funds
abroad was the means Of protecting and saving the
agent Of the Bank, and, Of course the Bank ITSELF
from prostration OF this the most decisive evidence
is declaration made by the President of the Bank
himself, in letter to Messrs. Bevan and Humphreys,
of the 9th of February, 1910, in which he says -
The state of the debt due by the Bank to Messrs.
Humphreys and Biddle of Liverpool, has been for
some time the subject Of great anxiety. These gem
Il
which our thanks particularly DUE sustained Mr.
yaudon In many periods Of his late struggles with
the aid not merely of their funds but with all they
could raise their credit and have enabled him to
meet his payments iohen but for their assistance ne
| Mould not hare been able 10 ertricate himself"
Finally, the operation of great use not merely
to the Bank, but 10 the whole country. The total
prosuation of all means and all credit in the South at
the time placed the whole crops at the mercy of the
| foreign purchaser. The purchases made to provide
bills for the Bank obliged these foreign purchasers
to give something more like the real value to Southern
producet made actual difference in favor of the
Southern States Of at least twenty twenty five mil
lions which gave them facilities in the discharge OF
their debts to the Northern States well as to the
/ Bank itself
While these operations were in progress, left the
| Bank about two years ago-and the whole matter
was Of course await the event of these salesto be
treated as mere ordinary mercantile transaction,
which it in fact was After / had left the Bank, a
statement presented to me by Mr.. Cabot, Of the
house of MessIs. Beyan and Humphreys, who was
then Director Of the Bank, and did this whole bust
ness as the intermediary between the Bank and his
house. His statement was as follows: