The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-07-26

years after it had gone into operation, FROM
2 l-2 to per cent per months condition of
embarrassment the most serious continued to
follow. The bank in vain attempted to repien-
ish It's Golfers with specie-the drain continued
daily and hourly, and in three years 1t STOOD up
on the very brink of bankruptcy. All its ~
eminent stock which it could dispose OF -
gone except 100000. Mr. John Sergeant had
been paid 5000 TO negotiate the sale in En-
rope, and had brought back millions of dollars
in specie, which were withdrawn from the bank
almost as soon as it was deposited; and in 1919,
100000 of the Government stock was
gone, and TO meet all its demands 1t had less
than $3,OOOOOO. We repeat it stood upon the
brink of hopeless insolvency. will not dwell
on the frauds and speculations to which It's
management gave rise. AS it has been IN Its
end unfortunate, SO was it in its beginning. II
was turned into shop for swinders and specu-
lators.
A change of directors became necessary to
save it from ruin. Mr.. Cheves was placed al
its head, and by almost closing its doors tor four
wears, during which time no divide nds were de-
clared he handed it over to Mr. Biddle in con-
dion greatly improved. Let any one look to
the table accompanying Mr. Spencer's report.
Among other things, he will find that, during
the most prosperous period of its first seven
wears, it kept out only dollar for dollar, and al
forded but few accommodations TO the commu-
nity 1t could not be otherwise. The State
banks, with their closed doors, renewed them
selves out Of its treasures. 1t was a game OF
"al pluck one," and it was not until all the
other banks had possessed themselves OF as
much specie as they wanted at the outset, that
any thing like advantage was obtained by the
community at large. doubt whether there
ever was more perilous time to the commerce
and interest of the country than from 1919 TO
1923.
Would better fate attend a new bank, if
now in operation? The situation is by many
times told over worse than in 1916. There are
now ten times as many banks, most of which
have been suspended for six years. There is
ten times as much Indebtedness, added to which
there is an annual export Of specie to meet the
interest on State stocks held abroad equal to
about 100000 How could the bank stand
up against tne ucIuduu WHICH WOulu NC LlduC
upon it, if it circulated any notes of conse
| quence? The State banks would refuse to re-
sumo specie payments until the bank had sup
piled them with specie, while it would be annu-
ally drained of immense sums to meet the de-
mands for foreign export If it could do moth
ing from 1916 to 1923, when there was only
home demand for specie, how could it live under
the home and foreign demand united? The
whole thing is ridiculous, and worse than that
deceptious. bank could bring no relief to
the country foriyears, if ever, and yet a party
stakes itself upon bank, and seeks artfully to
create the belief that the President has proved
a traitor to the party which brought him into
power, for having vetoed the miserable patched
up bank bills of the extra session.
If was called upon to say what had been
the greatest curse ever inflicted upon the coun-
try, should pronounce it to be the Banking
system
shall continue the subject in my next.
MACON.