The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-08-22
MONEY MARKET.
Sunday, August 2I-6 p


ereport of the committee of the Board of Brokers'
whom referred the matter Of Boorman, Johnston &
Co. will probably be made this morning There
be but opinion uron the subject and mercantile
are becoming seriously apprehensive of the effect Of the
reputation Of the contract with Little Co. acknowledg.
ed to be just in equity, the strength of legal
opinion Tkere throughout the south and a
large number of bills drawn upon New York by the
agents of houses established If the of Boor
man. Johnston Co. is not dealers TIE
south will become very cautious those bills How do
know, say they, but that mistake in account-some
legal bubble in utterrg, aledged inability
at law-may be set pretence for regulating
these bills If mercantile houses openly that they
acknowledge obligations but those which be
forced at law there is end to all credits There
Few questions in the which ought to be answered
To Thomas Smith, Esq. principal of Boorman, Johnston
Co and director of the Bank Of Kentucky. Did you
your influence close and keep closed the books
of the Bank order to plead that in evasion Of your
tract made through Boorman, Johnston Co. with Little
& Coz
Boorman, Johnston & Co. Would you had M. specua-
ton favorable have enforc 81 rules Of the Bosri
chad it been necessary against Little Co. to compel
fulflmcn of the contract
Daniel Lord, Esq. In Boorman, Johnston Co. had
been obliged to enforce settlement with Little & Co.
would your legal lore have furnished authortesto
show that the transfer by power was perfectly legal7
George Newbod, ESQ., President of the Bank of Ameri
ca Are not all the Orleans bank stocks transferable
your Bank transferred by power and certificate Had the
kentucky stock been at par the maturity of Boorman
Co.'s contract would you have decided transfer by pow
er to be illegal
Answers these questions under oath, would throw
great deal of light upon the equity of the case.
In the Of American Life and Trust the assets
which we published Saturday it will be observed that
very large had been loaned by the Company its
own stock. This pastculary the with the Pre-
sdent John Duer Esq, who owes over 100000 on the
stock of the company which he presided This fact
accounts the which got up in that stock
time SINCE 1t up to Is 20 per cent premium,
and brokers short time obliged to give ll5 for
stock to deliver it having become suddenly
now appears it was pledged the company ITSELF in
other words the company refunded 10 per cent Of its
capital This system of trading in their own stock is
practsed to great degree by monied institutions An
instance occurred recently in that redoubabe concern
the Mechanics Banking Association large part of its
capital subscribed in bonds and mortgages, which
received at a fixed value and stock for the same
issued in exchange. In this way piece of pre-
perty situated Long Island mortgaged for $1,000
The motgager having for time neglected pay the
interest," the Bank forscosed the mortgage and bought
in themselves They then advertised it for SALE and
bid 50 900 another gentleman offered high $40 GEO.
II then appeared that the Bank had exchanged the proper
ty with brother Of its President for 900 shares of its
own stock al time when that stock selling at about
81 pcr cen in the market This would make the value
received by Bank $3.50 $3.50 less than they had
been offered cash for it, why thisi They have not
announced that they in process OF hqu1aton nor
the stockholders passed any resolution to that effect
What right have the officers to refund the capital why
has not the Bank Commissioner, Chandler Starr, ESQ.,
taken of the transaction As financial ope
ration the affair ridiculous. 81 $50 OF the property OF
the stockholders thrown away TO benefit the iani-
ly of the President This is the way in which the tribe
of Bank Directors Presidents and officers manage the pro-
pery them by simple minded stockholders
In the received from abroad it singular feature
that amid all the vtuperation abuse and ill nature with
which the accounts Of dealcaton failure and repudiaon
IRON THISTLE are received there sales Of American
stocks No one seems disposed to part with them This
may be partly because the present low prices
not be obtained to any amount but 1t must principally be
ascribed to lingering feeling that something will yet be
done to improve their valuethat in the progress Of that
ofprospery which low prices and the abundanc
Of money will not fail to bring about, some movement
toward compromise will be made. II Ia true that many
letters from the highest authorities received yester
iav state that the refusal OF the Senate Of Penn yyana
TO make provision for their liabilities is the severest blow
that American credit has yet received greatly shook