The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-07-26

years after il had gone into operation, from
I-2to5 per cent per month"; condition OF
embarrassment the most serious continued TO
follow. The bank in vain attempted TO replen-
ish its Golfers with specie-the dram continued
daily aud hourly, and in three years II stood up
on the very brink of bankruptcy. All It's Gov
eminent stock which IL could dispose OF was
gone except $500, 600 MIR. John Sergeant had
been paid $50 600 TO negotiate the sale IN Eu-
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in specie, which were Withdrawn from the bank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,
Sl5,000,000 of the Government stock was
gone, and TO meet all its'deinands II had less
than S3,000,000. We repeat, II stood upon the
brink of hopeless insolvency. | will not dwell
on the frauds and speculatons TO which its
management gave rise. As il has been in its
end unfortunate, SO was it in its beginning. 1t
was turned into a shop for swindlers and specu-
lators.
A change Of directors became necessary TO
save it from ruin. Mr.. Cheves was placed at
its head, and by almost closing It's doors for four
years, during which time no dvide ends were de
dition greatly improved. Let any one look to
the table accompanying Mr.. Spencer's report
Among other things, he will find that, during
III most prosperous period OF IFS first seven
years, 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
Il. r 1, ant
call 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 10
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 $40 ,OOO,O0O How could the bank stand
up against the demand which would be made
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 united2 The
whole thing is ridiculous and worse than that,
deceptious bank could bring no relief to
the country forsyears, if ever, and yet party
stakes itself upon bank, and seeks arttuy to
create the belief that the President has proved
traitor to the party which brought him into
power, for having retoed 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 ii to be the Banking
system
shall continue the subject in my next.
MACON