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

not expedient within the legitimate powers OF
the Bank engage in the purchase and sale of mer-
chandise or to invest funds directly in it, the personal
integrity of the officers who sanctioned must remain
unmpeached far the transactions in question are
concerned lift be shown that the Directors sanctioned
the proposition, and that the Bank alone was benefited
by the operation had been designed. We most
earnestly hope that Mr. Biddes letter will dssipate
many doubts and clear path to full and appre
citation Of the whole subject. II IS matter OF sincere
regret that either part any expression should be
used which may detract from perfectly temperate
consdel alton Of the points in dispute. The contro-
versy has but commenced. II will evidently be long
and laborious one. As we have always respected in
common with the public the gentlemen engaged on
both sides Of the question, and entertain feelings of
personal regard towards many Of them, we are the
more anxious for deliberate survey of the whole
matter, and we trust that it may result in removing
the odium under which this city rests through the
cast upon many conspicuous persons who have
enjoyed very high trusts, and confidence at home and
abroad.
ANpALUslA, Bucks County,
April 8, 1871. !
Hon. John M Clayton, Dorsr, Dciapare.
My Dear Sir-During your late visit to Phiadel-
phia, you were good enough to express your opinion
of the peculiar hardship Of my position respect the
late meeting Of the Stockholders of the Bank of the
United States For sixteen years had been the Prcs
dent Of that institution, which up to the hour left il
enjoyed long Of prosperity Two years after
wards il fell into great trouble, and il to be the
desire those connected with to ascribe all its
misfortunes, including the fatal resumption few
weeks ago, entirely to my administration. Had this
been done in fair and open and manly way, no one
would have been ready than mysclfto meet that
question. But instead ofths, what the
pursued A committee of stockholders has been
Tor three months at work with all the books and papers
of the Bank under their control, raking up every
thing which by distortion may injure my adminstra
lion, or revenge their own personal gries pander
to the morbid appetite which prevails abroad about
banks and those connected with them. From all COM
municaton with that inquisitorial body was stud-
ously excluded; and understand that proposal to
invite my attendance or to apprize me Of what they
were doing, was rejected. They ended at last by
porting exparte and partial statements in regard my
self, and. you mt the meeting opportunity
was given TO let the accused be heard before he
condemned, and the report is widely circulated with
an air Of official authority in distant places, where
explanation efmine follow it. Now all this
seems TO me signal act of injustice know that
misfortune has right to be querulous but this
summary condemnation without chance ofexplana-
tion or defence, privilege never denied to the
humblest criminal cannot fail TO be regretted by
those who have Joined in it when the passion of the
moment shall subside deeply regret t-less my
own account, however than because think such an
act OF injustice inficts injury the Bank it
self regret IL still because although separ ated
from the Bank felt sincere interest in its fate and
had prepared with great industry what deemed the
of reviving its prosperity which meant to sub
init to the stockholders.
All that, ofcourse is over now But as know you
are DESTROYS Of ascertaining the TRUTH shall proceed
to explain to you as personal friend several matters,
very simple in themselves but which have been strange
ly mirepresented. For instance,
You heard in the report long and complicated story
about cotton purchases, and it is often said that
many begin to believe ithat the Bank of the United
States specialized largely in cotton, and lost great
deal of money by it. Ii seems unkind TO disturb so
established fact-but the truth is that during my
connection with the Bank, it never owned bale OF
coton-and will not, believe, lose a dollar by any
operation in cotton unless by great mismanageme
nj hnla haab oap IN mo
of SO much pride, from its benefits TO the Bank and to
the country, that take pleasure in stating the real
history of it.
In the year 1887 the Bank went to the relief of the
city of New York, by issuing its bonds payable in
London. The question how to provide the
means Of paying those bonds Hitherto the only mode
of doing it was by the purchase of bills drawn at the
South shipments Of pioduce-but the difficulty
that in the general prostration of credit al
the South, there great danger in taking private
bills drawn there-while many of the Liverpool houses
on whom these bills were usually drawn were them
selves embarrassed 1t occurred to me- therefore, thai
the only mode of avoiding these dangers was to pur
chase no bills at ALL except founded direct ship
mcn,s of produce under the control Of the Bank.
accordingly urged the mercantile part of the Directors
10 engage in that operation-but finding Of then
disposed to large operations, determined that i
must be done would do it myself. / accordingly re-
quested Messrs. Bevan and Humphreys to carry out
the plan, which simply TO let their Agents at the
South draw on them domestic bills, for which they
would receive the Of the Bank purchase the pro
duce and send il TO France and England; then a,
their domestic bills came to maturity in Philadelphia
10 pay the Bank, by sterling bills the houses il
England and France TO whom the produce sent
and by whom il was sold. This was the whole ope
ration which lasted from the summer of 1897 TO tn,
fall Of 1885, II was undertaken without the least idei
of any pecunary advantage and the only understand
ing that subject mere verbal assurance from
me-that if after repoyng these advances to the Banl
there should be any excess the Bank could not by III
charter buy this produce of course take any profits
arising from it, such should be given to those
who encountered the trouble and the responsibility
Nor there the slightest desire to conceal it. Or
the contrary all the correspondence and entries be-
heve passed Through the Bank-it was announced
over and over again in publications known to come
from the Bank-and it was particularly described in
published letter Of mine to Mr.. Adams the 10th o.
December, 1888, of which the following is an ex-
tract
In like manner the arrangement Of the currency
placed the staples of the South entirely at the mercy
of the foreign purchaser who could have dictated the
terms Of sale to the Frustrated planter 1t was thought
proper avert that evil by employing large portion
of the capital OF the Bank in making advances on
Southern produce This had two effects The first was
to provide remttances to pay its bonds in England
issued TO New York merchants in their extreme dis
ress for the Bank could not purchase these staples