Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1841-04-22
MIR. uIDpi.E,s DEFENCE.

CIay,on.in reply 10 the dispar"gns re-
port Of the Bank Committee, appear to
be sufficiently explanatory aud conclu-
,ive, unless all testimony be false, IN
sindicaliog Mr.. i'iddle's declaration on
esigning The "irice of President of the
Bank in 1899, thai she left the insi,tu-
Ilon sound and prosperous" and that
whatever mis,o,iunes have since come
upon ii, can IN M wise be justly charged
upon hin,. The correspondence is far
too volunnous TO admit Of its pubIica-
ton in our columns, aud we must there.
fore refer all who would form an intelli-
gent and impartial opinion on the subject
to the mercantile journals Of the princi-
pal cities in which II has been already
extensively publi,hed.-N Bot. .Mer.
The first letter il devoted entirely to
an account of the cation speculation, oi
which the writer says
You heard in the report long and
colnplicnied story about cotton purcha-
ses, and il is so often SAID that many be-
nin TO believe it-thut the Bank of the
United States specuated largely in cot
ton, and lost grent deal OF money 10y
1t. 1t seems pkind TO disturb so es'ab-
ished "a fact--but The truth is, that dur
nv my connexion with the Bank, 1t
never owned bale of cotton, and will
moi, ! believe, lose dollar by any ope-
ration ia cotton, unless by nisn'anage-
ment hereafter. That whole matter has
alwa, been TO me source Of SO much
pride, from its benefits to the Bank and
to the country, that | take pleasure in
stating the real history OF II.
/ Alter giving clear and concise enu-
meralion Of the facts, Mr.. Biddle reca-
pitulates in conclusion as follows:
\ Such is the history of this cotton upe-
ration. 1t consisted mcisly IN thls-lhat
Il the Bank, accustomed 10 buy bills OF
| exchange on private credit, resolved for
greater precaulion when private credit
was very unsafe, To buy from only Il
known patty on real shipments of pro-
Il ducc. This lasted about tw, I've months,
aud when it is over il being iouad that
| the Bank had advanced for these coiions
more than they realized, in const quence
of the conduct OF tine Bank itself, and
the parties interested refunded the money.
Yet The transaction, simple, straIght!or-
ward and public, Is perverted into nys-
mud iu,unus sppr rIilutlnn
The second letter appears successfully
to prove the s6undness and prosperity oi
the condition OF the Bank, at the time
he retired from the administration Of and
further psitici patton ia It's concerns and
no less 80 that the present prostraIon OF
this once successful aud invaluable pub
lie institution Is solely attributable to IA
shameful uining with It's credit, by draw
Ing bills Oh llouingucr x Co. Of Paris,
/ when Unauthorized SO TO do, and even
without ad, ising Of its intention, in the
desperate expectation aud unwarran,a-
bic attempt to direct The pressure con.
sequcnt upon too speedy resumption o.
specie payments in January last, upon
the Banks Il New Yors. In spcakin.
of this attempt; Mr.. Biddic says:
Il Here then is revealed the real and Sc
cret cause of the disaster, OF the Bank
Now, without meaning to say II sing 10
word about The obJ, CT ot'ih-se drafts,
and without intending the slightest CEN
sure OF nny one, i, is iniposslble no, to
see, in this single circumstance, the so.
tuition oi .nany ot the difficulties OF the
/ Bank. The Bank, as l understand,
suddenly draws an immense amount OF
bills on A!essrs. Ilollinguer g. Co. with.
out having IL dollar OF funds in thtil
hands without having any authority IL
draw for a dollar without line OF eX.
,,lanation as to The nature and extent o
these unexpected dais and wiihou,
even the usual commercial notice that
such balls had been drawn. Messrs
Holiingurr s. Go. could not, as pruden
men, do otherwise than protest these
bills and thus The Bank, in the vcr,
lullness Of lis high credit, was suddenly
disgraccd in the eyes of all Europe.
I'll The talents of Mr.. Jcudon repaired
= To a certain extent this disaster, but il
obliged him, in order TO project the dralll
drawn Oh muisllf as well as MsssTs
: uottinsuer & Co. to make loans and tt
pledge stocks, which were thus, instea
of being sold, locked up to await the
' depreciation which has since overtakel
them. And now let me ask in all fair
ness whether this secret wound this
neglect, or inadvetence, or OMISSION
call II by whatever name you choose
to apprize Mcssrs. Holi,ngucr q Co. o
these drails-a thing which belonged I,
/ the interim details of the Bank-can b,
charged upon my administration, whicl
had ceased long before lha, time. Yc
these two officers, we see in the allow.
letter, regarded that "as tho immediate
cause OF the disasters which have at
hictcd the Bank"
II Even alter this shock, such was til,
Vitality OF the Bank, that ] have nj
doubt 1t might have revived afE pros
percd but Ior the late fatal Resumption o
specie payments.