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

on bis account We are therefore extremely anxious
10 repay them but In the present state of the Bank
il mpracticabe TO do Il by direct remittances We
understand, however, thai they have still on hand
quantity Of merchandise shipped by you, some Of
which they have already been obliged 10 sell 10 meet
their most pressing engagements on account Of Mi.
Jaudon. As the only remaining method Of acquitting
the debt due TO them, have to request that you viii
direct them to raise funds by the sale Of any all the
merchandise consigned by you to them, and IL this
sale should be attended by any sacrifice its cost,
will make up the difference, and that the differ
soiH be made upon hat they haze already sold.
Having other method ofpaying debt Of SO sacred
character, we must submit to any merely pecuniary
loss II must occasion.
r. DUNLAP, President.
Here then was the positive eyidence-frst, that this
loss incurred by sacrifices for the benefit Of the
Bank, and second, that the loss was recognized and
| assumed by the Bank
Fearful that my own Judgment might mislead me,
determined to consult some eminent gentleman, out OF
Philadelphia, who would look at the matter with can
dor and mpartiality, and therefore submitted the
whole case TO Chancellor Kent. That gentleman's
| answer was as follows:
New YoRK, Sept IT. 1910.
Nicholas Blddle, Esq.
Dear SRI have carefully perused the papers you
sent yesterday, containing the draft Of your letter
| to the President and Directors of the Bank Of the
United States, and copy of Mr.. Dunlaps letter to
Messrs. Bevan and Humphreys Of the 9th Of Feb,
| 1910.
| am Of opinion and most decidedly, that you are
well founded in law and equity in your claim to have
deducted from the account the difference between the
cost Of the cotton sold at Liverpool by Messrs Hum
phreys & Bhdle TO repay their advances to Mr..
Jaudon and the proceeds Of the sales The letter of
Mr.. Dunlap, President Of the Bank, directing the
sale at all events and at any sacrifice to save Mr. Jau-
don, and exempt the Bank from discredt-and stating
that the Bank would make up the difference If there,
any sacrifice the cost, and that tko assurance
should apply to the merchandise already sold as well
as that to be sold puts an end in my judgment TO az
doubt and difficulty as 70 the question of the respond
gainst the sacrifice The letter with its assurances is
retrospective well prospective, founded the
equitable consideration and justice ofthe case that
riices made at the pressing solicitations Of Mr. Jau
don, the Agent Of the Bank TO relieve it, ought
be borne by it. am dear sir,
| Yours very respectfully,
JAMES KENT.
1t was then manifest to me that my property had
been sacrificed to the necessities ofthe Bankbrought
on by the conduct of the Bank after left itbrought
on by the efforts TO break down the Banks of New
Yorkhe real cause Of all the disasters of the Bank Of
tht United States,-whch now called upon me to re-
pair the injuries its own conduct had inflicted. To
these persons denied all right make any such call
would not consent that l should be made to suffer
| from their Encouragement. AT the same time de-
sired to avoid all controversy especially with the Bank
With these impressions put the whole matter into
the hands of friend second none in this city for
intelligence and character and requested him to settle
lin any manner which he might deem just and proper
| he has authorized me to make the following state
| ment
began by informing the Committee that YOU be-
eved your property had been sacrificed by the Bank
to meet Its necessities and that you would consent
TO any loss growing out Of that transaction. had
several interviews with the Committee they ended
by the gentlemen composing it expressing wish that
the matter in dispute should be amicaby closed To
this answered that under all the circumstances you
did not recognize the claim to anything and that you
would pay It merely from an unwilIingness to have
controversy with the Bank. Among the securities
mentioned on the occasion some sterling bonds
OF Texas payable in London, and the Committee
were strongly impressed with the belief in which Mr.
Jaudon then recently from London concurred that
these bonds would BY the expected success Text
an loan be forthwith paid in London and be equal to
cash therethey preferred these to the other securi.
ties, and they were accordingly given.
+" In subsequent interview after discussing vari-
Gus Kinds OF securities the Committee asked whether
you could not furnish the whole ofthe balance
In the same Texan securities This after consuta-
ton with YOU was agreed to- and the arrangement
was SO concluded The principal points of it were,
list ihatit was maintained by you that the Bank
had no claim upon you.
! I'D. That the payment was yielded to by you for
| the sake Of peace.
"3d. That these particular securities were selected
| by the Committee themselves
Accordingly the deficiency provided for in that
way-the other parties settled for their respective
shares, and thus the whole advance was refund
cd by giving securities which be less easily
convertible but which cannot fail should think to
replace the whole of the over advance. Asto the
curies-those Of Texas-they at this moment
orh far more than the stock ofthe Bank ITSELF and
il happens opportuney enough that have this very
day heard from Europe of the success Of the Texan
loan which secures the payment of these bonds Mr.
Jaudon anticipated.
Now this payment of mine wholly grautous.
would not pay until ! had ascertaned and asserted
my rights-and having done that voluntarily yield
ed them The Committee said that they wished it
settled amicaby Undoubtedly they didfor they knew
that unless chose to pay they could receive
dollar. l actually paid these 800 600 dollars which
was not under the least obligation to pay,-which
Chancellor Kent declared neither law equity made
it necessary to pay-and insdoing it, thought was
giving strong proof how far ancient and kindly re-
collections ofthe Bank prevailed over all selfish consd-
erations Perhaps should have been wiser certain
ly should have been richer-had | abstained fr ON
| generosity which has been il. requited
| Such is the history of this cotton operation. 1t
consisted merely in this that the bank, accustomed
buy bills Of exchange private credit resolved for
greater precauon when private credit very unsafe
to buy only from known party on real shipments of
produce This lasted about twelve months, and when
1t is over it being found that the hank had advanced
for these cottons than they realized, in
quence of the conduct of the Bank ITSELF the parties
interested refunded the money Yet this transaction
simple straightforward and public, is perverted into
mysterious and ruinons speculation.
Tomorrow will explain to you another matter
and IN the meantime remain with great respect and
teen. N. BIDDLE
The following preamble and resolutions were
unanimously passed on Wednesday morning by
the Annual Conference of the Maryland District
of the Methodist Protestant Church, now con-
vened In Philadelphia. Independent of all party
/ considerations. "a such n trih ct ho IN