The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-16
Deduct for interest, over estimate, &c.
Estimating French exchange at S. IS.
l.2OO.OtN


From this amount it appeared that the profits reai-
zed, and confidently expected amounted to ST. AGO.
0OO and that after paying $500 900 and reimbursng
all the advances to the Bank there would still remain
sum Of 100000 in the Bank, TO be enjoyed by the
Bask in any way permitted by the charter And now
what possible disposition could be made othis excess
If there had been profit at ALL should have been
content, for profit object in the operation But
ifthere was profit, whether Of five dollars or five
million of dollars the Bank could take no part of it.
Tor having no right to purchase the produce ITSELF
take the least portion of gain upon it would divolve
ownership which forbidden by the charter; and
all that the Bank could do to receive back its prin
cipal and interest and exchange with the collateral
benefits of the operation. had never known any
thing whatever of the accounts details and being
wholly unconnected either officially or individually
with the Bank, when received this statement pre-
suned that the result of the matter correctly
ted and il was settled accordingly, leaving the
gin of 100000 dollars to provide against all possible
contingency.
Eighteen months after | had left the Bank how
ever received letter from the Cashier stating that
on winding up this concern it found that there
was advance Of 1861 800 81, and that the por
ton which it belonged to to return SO sos a.
his, of course fair charge, and intending to
be wholly responsible and that the Bank should be
exempt from loss | should have paid ii at once but
for this consideration. found, upon examining the
case, that this loss in fact occasioned by the sacr
flee of this property, in order to sustain the Bank in
Europe from embaITassments brought wholly by
the Bank itself; and it became question, how far,
looking at 1t simple commercial operatIon the
ly possible light in which it could be regarded, !,
stranger no longer connected with the Bank, ought
TO bear the burden of this sacrifice The nature and
the cause oft were soon discovered. Ii was thus
Messrs. Humphreys and Bidde, of Liverpool,
the first of June, 1910, addressed private and conf
dental letter to Messrs. Bevan Humphreys in which
they reply to inquiry by the latter TO the
of their paying much money to Mr.. Jaudon
that it impossible for them TO resist the repeated
and nxious requests of Mr.. Jaudon for assistance
| Thus they say that their advances to Mr.. Jaudon
were at time high 270000i, besides being
parties to bills on London houses which were then
| running for 226 000i They then quote from Mr..
Jaudons letters to them extrac s like these. On the
22d Of August 1889, he writes as follows
" | must look to you for 0000i to make up the
sum. If do not get this get none; for all
tngent on my making up my estimates, every thing,
therefore, turns upon what you can dofor here am
exhausted. You must therefore work your hardest
for melfe death the Bank of the United States
is the issue. Ii 5000 bales of cotton must 60 let them
go, be the loss what it may-it be great as
the loss from protest. and mus. be borne by owners
or Bank they may settle the matter between them.
leave all to you knowing that you will leave nothing
would do the business and there be no doubt as
to the choice of this evil rather than the other"
And on the 23d he says further;
III wrote you yesterday stating the absolute nccessi.
y ofmy relying upon you for O0Oi help out list
without which the whole must fall through, the large
sale of cotton will help to provide this hope now
want your further aid for another 50000i in bills on
Hueth & CO."
They conclude these extracts by saying: "In this
dilemma we had no alternative but TO make your cot
ton available for the desperate emergency and again:
1--WE have deemed it necessary to make this full and
unreserved communication, by which you will see that
free sales of the cotton shipped by you absolute
| ly necessary to refund the immense sums Of money
we had borrowed from bankers and brokers for the
use of Mr.. JaudoD."
So manifestly wrong was it to throw upon them the
loss upon this cotton, that the President of the Bank
himself, in letter to Messls Bcvan and Humphreys,
of the 9Th Of February, lS40 actually assumed this
loss. His letter was follows:
! BANK OF THE UNITED STATES
February 5, 1910.
Messrs. Bevan and Humphreys, Philadelphia.
| Gentiemen,-The state ofthe debt due by the Bank
TO Messrs. Humphreys and Bidde, of Liverpool, has
been for some time the subject of great soliciude
These gentlemen have with zeal in favor of the Bank
for which our thanks particularly due, sustained
Mr.. Jaudon in many periods Of his struggles with the
aid not merely of their funds but with all they could
raise their credit and have enabled him to his
payments when but for their assistance he would
have been allie TO extricate himself We learn by
the last advces that their credit will suffer
less they relieved from their heavy responsibilities