Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-25

ne xt line that the flrst oil March, lcii, ~ 1
reduced to Sll 500. And again, at pages j? anu o.
his whole account is given. debit and credt-s'oe W
s;d, ON the same page. What closer Jnxlapos,''o''
what more fnl disclosure could have been desilcu'
g. The Cotton operations. p.I,
We have carefully examined Mr. Biddles FIRST Let,
ter in relation To the Cotton operations wlou no
haen able 10 discover that single fact stated " '1
R.,ort on the subject has been directly conlroseiu
II - minated howe YER that these TRANSACTIONS VIZ.
nubl;clv known at the time they were gong on, "nu
that therefore the Board of Directors couia ~,
been ignorant of Them though II remains -,
WHY their formal consent was not asAea 'u ~ In,;,u
~ rro an augmentation of the funds oil the lns','u
,;,n &c, en- unusual a purpose. The evidence leheu
IN to sustain the position that the DIRECTORS coiu
have been ignorant OF 1t, is an extract iio'l a
dies avn published letter to Air. John quincy fua''
ar the t,e of December 10, 1855 IL is TO De reh"h
~ ,h II ,b;s letter il was said, that "ss soon as tue
c,pi,ol and industry Of the country had ie u suo
aide into their accustomed channels these ope,a
lions were renqushed, and now they nave ,o,ai'y
and finally ceased So that, according 10 MI p'uul
hi. nublication was after these transactions were
Iosod. and supposng that it stated them correctly, u
would be of no vail to the point IN question: DI
il bv no means stated the operation as 1t reaiy was -
contained this language: "As the Bank couin 10. Pui
chase these staples, il made advances upon the W ~.
smith The Bank, however, did not advance 10 inc
Southern planter or shipping merchant, as the para,
graph implies. On the contrary, lis funds were useu
5v Mr. u Bidde and his partners in interest, to enanie
Them to purchase cotton aud ship to England, III oroef
that it might have the privilege OF purchasing lhei
bills or the bills OF their agents. Tor the pfoceeu' "
which TO make remittances.
Now the evidence that the operation never was au-
,horizcd or sanctioned by the Board Of Directors IS
l. That not one syllable in relation 10 It Is to be ounu
on the minutes of the Board either at tie time OF lo
inception during iis progress
, The preamble and resolution OF the DIRECTORS,
Messrs. Cabot, VAIN, Neif, Connell, Eyre, Price,
Lewis, Martin, Handy and Taylor, adopted uhan''
mously on the 2st Of December, 1910:
"As it appears, by the report OF the Con'mttee on
Advances, that large transactions have been going on
for ycal years without the sanction or knowledge oi
The Board Of Directors, and it further appears That
these transactions were mostly if not wholly Tor the ac-
count and to the profit aud loss OF the Executive ON
GERS of this Board at those times 1t IS due from 'h's
Board that their Just condemnation Of such things
.bouId be fully EXPRESSED and recorded 1t IS there
fore =.
Resolred, That the large advances made by the OH,
GERS of the Bank in the periods Of 51c, and 1875
btiny toaiy unauthorized AMI unknotcn 10 the Eoard o.
Directors, merits and receives our just cehsute ana
condemnation.
9 Mr. Biddle's own admission 81 Determined that
as it must be done | would do il myself
Indeed, it is very apparent, that Mr.. Bidde, espei
cally during the latter years of his Presidency, con
sidered himself as Tie Bank, and still considers HIM
self to have been So This exhibits itself in several
other parts Of his letters besides that which has just
been adduced. For example, IN speaking OF the re-
sumption in January last, he says: "ilad occupied
the position once did, scouid not haze permitted that
resumption" Referring the assistance q ven III
1897 to two large firms in this city, he says "hc first
took in hand myself making the necessary advances
to carry them through their troubles, and they were
accordingly saved. With the house OF Thomas Bldde
X Co.. ,cond not interfere, but requested Commit
TO examine their affairs, and II they thought II ex-
pedent, ,rOuid consent 10 H..
II is true that by the state of the Bank, laid upon
the Directors table at every stated meeting, tue
amount of these advances merchandise was inclu-
ded in the amount of "Foreign Bills of Exchange,
1t is true, also, that the Committee thought when
they made their report and still think, that so large an
ought to have attracted attention. and explana-
and detail Of the particulars called tor and exam
incd. Still, If is fairly open to this remark, that as
the dealing in Foreign Exchange had always been re-
gardcd as the ayore, because the most profitable,
and at the same time the safest branch Of the bust
ness of the Bank, the Directors who Inspected the
statement doubtless grated, rather than other.
WISE observing the extent OF that line, and certain
~ had to suspect any thing improper under
such head.
On quoting the passage of the Report in which this
is mentioned Mr. Bddle exclams: "Thanks to this
blind rage for vengeance, they thus reveal what
completely answers all that they have previously
written; and never, certainly, was seen ut the Quar-
ter Sessions witness caught completely in his
own trap. The Committee can only say that every
part Of the Report was we'll weighed, and this part
as well as every other. The facts winch 1t states are
not conroverted, and they show, what the paragraph
intended 10 show, with what improper iaxily the
business transactcd-what mere form The Board
of Directors and it's Standing Committees had become
and how entirely satisfied the President seemed 10 be
of his own ability, unassisted TO direct It's affairs
On re.exarnination Of the whole matter, the Com
mittee are fully borne out in their position that The
"Adyances on Merchandise" was operation under
taken and carried on without the authority, SANCTION
or even knowledge, of the Board Of Directors
Some facts however, have beeen stated III relation
to this business which were not known 10 the COM
mttee and which require few remarks IN order That
their proper bearing may be clearly understood
J. We supposed that the $500oOO drawn from the
Bank and distributed among the parties, were Tor pro-
fits actually then rceli-ed
II now appears from the statement oi hir. Joseph
Cabot, publishedby MIR. Bddle in his first letter, tiat
one half of his wss for anticipated PrchfS we
take the statement correct although there are some
plain mistakes in the calculations.
So that we have it from the best authority, that on
the second Of August, 1889, when MIR. Jaudon, the
agent in London, wrote 10 Slessrs Bddle ~ nun,
phreys for the advance of f50,000 telling them, III
1000 bales of cotton 90, let them 90, be the loss
what it nav" and on the following day for SoOoOo
more in consequence of which, rs IL pretended, inc
cotton was sacrifced-at that very time Mr.. bdnie
and his associates this business were in possession
of an amount drawn from the Bank rs estimated pro-
fits which, without donbt, would have been sniacIen'
in the hands of Mr. Jaudon to have prevented The ne
cessty Of the sacrifice.
2 it appears that Mr.. Biddle undertook tins ope'
raion .swhout the least idea Of pecnnlary advantage
to HIMSELF and that the object was not Poit, out sun
ply 10 enable the Bank TO make with safety the large
remittances necessary TO meet its Bonds payable IN
London, which had been issued for the relief OF New
York. 1t was then entered upon by Mr. Bidde, as
President of the Bank and for the benefit OF the BANK
On this ground and this ground alone, IT is vnd.
Gated II is even boosted, that "the possession Of
those funds abroad the means OF protecting ana
saving the Agent of the Bank, and OF course the
Bank itself from prostration.
II then the whole operation was undertaken Tor the
benefit Of the Bank, in order to enable It 10 transmit
its funds, how is it that, after the eight hundred
thousand dollars have been withdrawn and repay
ment is demanded of part Of this sum to mike
good subsequent losses, the transaction suddenly
changes its character 1t becomes all at once according
Mr. Biddle, ia question how far, looking Al, !; as a
simple commercial operation the only possible light IN
which could be regardrd he, "a stranger, no longer
connected with the Bank ought TO bear the burden OF
this sacrifice
If ACCORDING IN fhe only possibe light in which IL