Evening star. [volume] (Washington, D.C.) 1854-1972, 1858-02-01
L0CAL INTELLIGENCE.

u..s IN THE DisTRIcT OF CoLrNBfA.-We
-. already published synopsis Of the bill to
.h,bt the circulation of bank notes within the
rp,.,r,ct Of Columbia, which was reported to the
'I.,s nv Mr. Slidell from the select committee
eea;n,ed TO examine into the condition Of the
ePPnr.,ions and associations acting as banks Of
deposit, ds0O Vi
Coi.hs r,por which accompanied that bill, the
IN set forth the reasons for pursuing the
con "s they have adopted. The main facts given
co ,his report are stated below:
rbe committee first sent the trustees of each
ny in the District a circular letter containing
80 reouest that the parties addressed would i'm
I furnish a detailed statement of the condi-
~ and operations of the institution under their
b,rye Mention is then made that the Bank of
Comnere, Of Georgetown, should not have been
besn included in this category, as IL 4" was organ
;,sd i'm 1852, by association of individuals
1I,iming no peculiar immunities or privileges,
Int forming partnership for the transaction of
banking business. under no other obligations or
restrictions than those resulting from the general
law regulating commercial partnerships in the
District of Columbia, and therefore not subject
to the supervision of Congress In the admins
tration of their affairs; - and The committee ex-
pres, the opinion that the law has been violated
by it in the issuing Of notes for circulation.
The incorporation Of the other banks is then
alluded to briefly. and the various extensions of
charter privileges noted. In this connection the
Committee call attention to the act of July 3,
1910 which seems to have escaped the attention
Ofc m
Brown x Little's Statutes at Large, vol. g. DID,
sIes This act the Committee interpret to mean
chat the charters of the banks who should accent
of the conditions it Prescfibes mig hit be extended
N OTScr 90 gre them time to close up their bus-
,aess, but not to continue them in the employ
,neut of the full privileges which they had pre-
viously enjoyed. Instead, however, Of comply
Ing with the restrictions imposed, the banks con-
tinusd to impOrtune Congress for further priyi-
lsges The Committee then 90 on to saw that
falling in their efforts to obtain renewal of their
charters the banks determined TO evade o: vio-
late all the conditions imposed upon them by the
act Of gnly 3, lelO, and adopt the provisions of
the act of May 25, ISIS Aftti considerable dis
cussion in regard to the legal points involved.
the Committee say
But whatever advantage they NAV or MIGHT
have derived from their circulation, these banks
have no claim upon the indulgence of Congress
Thew exist and carry or business, if not iD direct
ana open defiance OF law, as your committee be-
leve, certainly by most shameless violation of
the spirit Of our past legislation They have
with one honorable exccption-viz: the Farmers:
and Mechanics Bank of Georgetown-refu.ed to
give the committee such information as will on
able II to form any correct idea of their condition
aud solvency. The mere array of figures, show
,ng certain amount of assets In bills discounted !,
&c, Is not, Tor the purpose of any serious exam
anaton, worth the paper on which it is written ::
bank may have its portfolio bursting with
promissory notes and other evidences of debt
ana De utterly unable TO meet the demands of its
creditors; and the refusal to permit anv inouirv
into the character of their securities is not clcu
lated to create confidence in their soundness
This remark, true in its apple alton to all
banks applies with peculiar force to those of the
District Of Columbia; their bills or notes dis
counted form much the largest item of their as
sets. In large commercial cities they are gene
Tally based on real transactions, the exchange of
credit for merchandise. and are, of course almost
invariably paid at maturity. Here, on the con-
trdry, where there is little or no external com
meTce, except the export of flour and grain from
'IeOrgetown. large proportion of the notes dis
counted Is what are styled accommodation notes
or notes OF persons borrowing money from the
banks with endorsements for security This
class Of paper is always repndated by hanks
doing business on Legitimate principles; because
the borrower generally requires additional time
for the payment of his debt and renewals become
the rule iR,tead of the exception. In all old in
>ttutiens much of this sort of paper will be
found; and when they are forced into liquidation
fts woTihiessness will generally prove to be in
proportion 10 the remoteness of its origin
. Ii may be- assumed d fact, justifird by all
the experience of the past that the true condition
Of any joint-stock bank that has been engaged in
business for thirty or forty Years. can only I've as
certaned, even approximately, by winding il up
IL is hoped that the result may prove more favor
able with the District banks than with nearly all
Others which have gone through the same pro-
cess. These banks, too have prof;ed in another
way by their suspension of payment. Ii will ap-
pear, by the annexed statement from the treasury
that, instead Of employing their specie for the
payment of their debts, they have, from the Goth
OF September, le55, until the 18th of January
lc0S, exchanged S2U7 $50 Of coin for like sum
an transfer warrants, which they have of course
10 their favorites
''Yoar committee, after full deliberatiop, are
unanimously OF opinion that it is expedirnt to
prohibit the issue of all notes for circulation lay
individuals or associations in the District of Co.
iumbla, not expressly authorized by law TO make
such issues, aud to prevent the circulation of all
BANK notes issued cut of the District or Columbia
oil less denomination than fifty dollars and
have reported a bill accordingly
The committee also are Of opinion that it is
lne1Pedient 10 authorize the establishment either
by general or special laws, of banks of issue
within the District of Columbia and report res
oiution to that effect but should the Senate think
P'oPer 10 instruct the committee to prepare and
report general law authorizing the establish
tnent OF banks of discount, deposite aud issue i'm
cue District of Columbia, it will endeayor 10
frame bill which, while confering all proper
P,Islieges Tor such purposes, will, as far pos
SInis, project the community from their abuse
Oatcn. ''''
" ReSolred, That il is incxpedient to authorize
,he establishment, either by general or special
lumbia" "a W.
The report is accompanied with statements
hon The several banks of the District.
IN The CIRCUIT CouRT, on Friday, the great
case OF Stathdrn, Smthson l. Co. rs Vim Nj
Mann, which has occupied the Court for long
Time past, was decided by jury for the defend
ant The amount of damages was laid al : 10 INN
In the declaF alton, which sum the plaintiffs aver
Mann had in trust, and used TO his own al van
tage Tor sever al years. The alleged sum of 10 ON
was given him in trust for circulation by the
plaintiffs, formerly banking finn in this city
The firm stopped issuing several years ago aud
redeemed their notes. The legal point which
decided the case was, that the plaintiff, had no
regular bank charter, and that their issue, were
not legal currency. We understand that an ex-
oePton has been taken to the decision and that
me case is to be carried to the Supreme Court of
the United states
On Saturday, the case of VIM Britton and
webb rs VIM CiPps was tried, and decided
Tor the plaintiffs.
The case of W. ". Abel rs Bernard Dreipk-
hdrd was then taken up, being action to re-
tosst damages for an alleged breach of contract
IA 'ns construction of a house. The jury brought
I'D verdict for the defendant
u iIs next case taken up was one of Barrick,
au 20, Use Of Richard Wallacb, rs Samuei
r ri'tn.t "Ioe The jury gave verdict for the
fia'n'in. The Court then adjourned.
rREs On Saturday night, about - O'Clock,
mr. was discovered in an unoccupied house on
pennsylvania avenue, between Nineteenth and