The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-23
FOR THE MADIsoNIAN.
Mr.. r. M. WHITNEY AND THE BANK
UNITED STATES

UNITED STATES
On reading the report Of the Committee Of the
Stockholders Of the IT, 8. Bank we were forcibly re-
minded Of the strong analogy between some Of the
transactions Of the Bank detailed in that report and
some referred to by Mr.. Whitney in the testimony,
given by him in 1892, before d Committee OF Con-
gress.
On referring to public documents, we find Mr..
Whitney gave the following testimony Some time
IN 1924, Mr.. Walker and Mr. Andrews mentioned
TO me that some transactions had taken place in the
Bank, in which T. g. j. G. Biddle were concerned,
which they were not willing should exist without
some member Of the Board being informed of them
asked what they were. They replied that L. & J. G.
biddie had been in the habit Of coming TO The Bank
aud getting money, and leaving certificates Of stock
which represented il, in the First Tellers drawer
without paying interest, They also stated that the
Messrs Biddcs had had notes discounted for them by
the President, which entered on the books Of the
preceding discount day. l asked them what sums
there were of the Kind in existence at that time They
went with me 10 the First Teer's drawer, and wa
found one sum Of $45 600, dated o5th Nav. and one
for $24 600, dated 2Gth May. We went 10 the dis
count Clerks desk, and found one note at fifteen
days, dated 18th May, for S2O,OOO, of T. Bidde's
and one note Of Charles Bidde's, dated 2lst Nav nj
sixteen days, for 1888 3I9 The two former sums re-
presented cash, and the two latter notes-whch thew
stated TO me- had been discounted by order Of the Pre-
sident OF all these, made a memorandum (now
produced at the time which corresponds with the en-
tries now in the books now shown to me-
Immediately after examining the books, came
into the Presidents. room and communicated to him
utath hal Lzz.. n n
learned by examining the books After stating this,
desired that nothing of similar nature should oc
cur while ! was Director of the Bank He told me
there should not.
~ directed the officers to enter on the books the
money that had been loaned from the Teller drawer
and which was represented by stock certificates Ii
was done; ! did not see il done, but know it was
done. Subsequently | saw this entry Of bills re-
ceirabie, which knew was the entry made for that
purpose In the entry the semi weekly statement
state of the Bank, under date of 9th May, under
bills receivable, the Of 500 900 is entered which
is the exact amount of the two sums Of $i5 900 and
$24 600, represented by stock certificates in the Tel
lers drawers"
Mr.. Whitney stated, subsequently, that he might
have been in TO the loans from the TelleIs
drawer having been made without interest; and, also
as to the time he demonstrated with the President in
regard to those unauthorized transactions in place Of
having done SO at the moment he was informed Of
them, it must have been done three or four days sub
sequently. This, however, was mere circumstance;
the facts We're confirmed by the books of the Bank,
which were produced at the time.
For his testimony, Mr.. Whitney was denounced and
vfed for years, in and out of Congress, in manner
without precedent in this any other country, and
with force and power which would have over
whelmed almost any private individual.
In memorial which Mr.. Whitney presented to
Congress, vindicaiing himself from the allegations
| against him, made in report of minority of the
Committee, and, ALSO of an individual member of that
minority; after referring TO the character and inlu-
of his ASSISTANTS, he says" Nor is this all the
force that has been been arrayed against your memo
ralist. His assaants, besides all their other advan-
tages bring to their aid against him. to add weight
their denunciatons the influence Of high station
| lie is attacked from eminence. He stands as an
obscure citizen, before high tribunal Of justice
brought there witness, to give evidence before it,
in cause which il is to try. And he is assaed and
denounced as perjured 'intormer,' stimulated 10
inrenf an artfuy derised story, fabrication III
teriy destitute IF truth foundation, as blasted
monument IF The speedy and retributire justice Of
| Hearenr ="
We turn to the report of the Committee Of
the Stockholders In that after detailing the evil
sequences 10 the interests Of the Bank fiom the
loose and irregular manner in which the business OF
loaning money was conducted" the Committee say
The established course Of business seems to have
bcen for the First Teller pay presentation the
counter all checks, notes, due bills having en-
oised the order the initials Of of the Cashiers
and to place these vouchers in his drawer for much
cash, where they remained until just before the regu
lar periodical counting Of the cash. by the Standing
Committee Of the Board on the state Of the Bank
These vouchers were then taken out and entered as
bills receivable, in small memorandum book, under
the charge of of the Clerks These bills were
discounted but bore interest payable semi and
secured by pledge of stock, other kind
of properly" " As illustrative of the extent Of these
transactions il may be proper state that the
tai of bills receivable
On the 4th March, 1886, was sc, 221, G63 IS
On the 4th March, 1887, SlS3445 Oh
On the 9TH March, 1888, 1928, SOB %
On the 18th March, 1899, 6,772,73 50
On the 4th March, 1910, 4,04l, 7O4 94o
4 hese loans lsays the report) were generally IN
large amounts. In the list of debtors on bills re-
ceivable Of the first Of January, 1887 twcn,y-one
individuals, firms and companies, stand charged each
with amount Of one hundred thousand dollars and
upwards. One firm Of the city received accommoda-
tons ofths kind between August, 1885, and Novem-
her, 1887, 10 the extent Of 42l3s7S dollars 30 cents
more than half Of which obtained in 1887. The
officers of the Bank themselves received in this way