The Washington union., 1858-01-31

and not the notes of the District banks at discount
and the very ingenious declaration that their failure to
nay them when presented for redemption has enabled
them to increase their circulation, offer lr exposition
of the principles which those institutions are conduct
ed The worthy president OF the Bank Of Washington
has given the best possible rcasa for the suppression OF
District hank notes.-the regular disbursements of the
treasury in gold and silver furnish all the circulating
medium required those disbursements exceed In the
aggregate six millions OF dollars per annu OF hvc nun
,ired Thousand dollars per month the latter sum being
double the circulation of all the banks OF the District,
when stimulated by the suspension OF specie pay
mcnts. s..---.-..- ~ ..-.-- - ..-.- ai. i
But whatever advantage they may might have de
rived from their circulation these hanks have no claim
upon the indulgence of Congress They exist and carry
on business if not in direct and open defiance OF law as
your committee believe, certainly by most shameless
violation Of the spirit Of our past Legislation. Ihey
have, with honorable cxcepuon--vizi the Farmers
and Mechanics Bank Of Georgetown-refused to give the
committee Nch information will enable II to form any
correct idea of their condition and solvency Inc mere
array of figures showing certain amount Of assets if
bills discounted &C., is not for the purpose OF any Sc
rious examination worth the paper on which 1t writ
ten; bank may have its portfolio bursting with prom
issory and other evidences Of debt and be utterly
unable 10 the demands of its creditors and the re-
fusal to permit any inquiry into the character oi their
securities is not calculated to create confidence In their
soundness This remark, true In its application to all
banks applies with peculiar force to those Of the District
of Columbia; their bills notes discounted form much
the largest item of their assets In large commercial
cities they generally based on real transactions the
almcst invariably paid at maturity. Here ON the
contrary where there Is little or no external COM
merce, except the export Of -four and grain frem
Georgetown large proportion of the notes discounteds
what are styled accommodation notes. notes OF persons
borrowing money from tho banks with for
security This class of paper is always repuiated by
banks doing business legitimate principles because the
borrower generally requires additional time for the pay
ment of his debt and renewals become che rule nstoah
of tho exception In all old institutions much OF TINS
sort of paper will be found and when they are Iorced
be in proportion to the remotene Of its origin 1t may
be assumed as fact justified by a the experience Of the
past that the condition Of any lcntsock bank that
has been engaged in business for thirty or forty years can
only bc ascertained even approximately by winding it
up 1t Is hoped that the result may prove more iavora
bic With the District bans than with nearly all others
which have gone tlnough the same process Ihese eanks
too have profted In another way by their suspension OF
payment 1t will appear, by the annexed statcmentfrom
the treasury that instead of employing thoir specie Tor
the payment OF their debts they have from the 10Th OF
September 1851 until the 18th Of january, 1903, ex
changed $2O7 O5O of coin for like sum in transfer war
rants which they have of course sold for considerable
premium, or given at par to their fayoritcs so.8
Your committee, after full delibcratton, are unani
mousy of opnion that it is expedont TO prohibit the is
sue of nil notes for circulation by individuals Or assoc
Aons in the District OF Columbia, not expressly author
lied by law to make such issues and TO prevent INC cir
cuation of all bank notes issued out OF the Lssrct Oh
Columbia of less denomination than fifty dollaTs and
have reported a bill accordingly. st5 gh
The committee also Of opinion that 1t is inexpedent
cial Laws Of ranks of issue within the District of Colum
ba and report resolution to that effect but should the
Senate think proper to instruct the committee 70
and report general law authorizing the Oh
banks of discount dcposite and issue in the District of
Colttnbia IL will endeayOr to frame BILL which, whilc
comforting all proper privileges for such purposes WILL
as far possible, protect the community from their
abuse. essf BE- nv gsgi9 g5a afat 1881
The committee also submit the following resolution:
c,olpe That it is inexpedept to authorize the estab
shment, either by general or special LAWS OF banks OF
issue within the District of Columbia.
as PATRIorIc BANK or WASHINGTON,
trs-i5 !, "a gss ,sa,fssl December 81, 1857.
Gssr1xxEs have the honor to acknowledge the re-
eeipt OF your letter of the Esd instant, communicating
copy Of the resolution passed by tho Senate on tho I'D
instant. sssi8 OIL a tiia v aa. ks9f4B
Your communication has been laid before the board of
trustees who have instructed me TO transmit statement
the affairs of the bank prepared up TO the Ast january
1853 which it Is hoped will be satisfactory to the COM
mittcc.a siF s,.fG itttr8 4ast t5 20 gtsa4fa
have been further instructed by the trustees to say,
for the information of the committee that TINS bank is
not an incorporated institution but voluntary associa
ton of individuals, acting through board OF trustees
appointed under deed of trust duly executed and record
cd the clerk office of the circuit court of United States
for the District of Columbia. ,sii 8At lfr
s Very respectfully, your obedient servant,
@ re, .3ss- s e Ba JOHN PURDY, President.
Hon JoM sLIpmd, l.ii saaa mrg va
sis Chairman of Committee. NJ Vi Yas
Statement Of the Panac Bank Of Washington, January !,
3 eaEl 1855 b ash htitsG
LIABILITIES ai 9 81 aze
Due To hanks - -$6G, 500 45
Due to individuals -.------------ 81, ,452 AZ
Due to special deposites 1856 SO
Notes in circulation --- ----i--------- 23,l35 90
Capital stock -------- ------ 600 %
ta7 lttll 4sg5 fH & asa.sl ltl p------
jfsa isdf }4, 4ssifta Go e5ea ssEg 372,562 80
AssR1s at Ysq
Due from banks- -$60, 0O4 AZ
Due bank stock ---------tl sa 20 90
Lands in Maryland md Pennsylvania --a 600 90
Banking house ------4----------- - IA 900 90
House and lot in Washington --------- $500 90
Canal bonds --------- ---4--------- ~ 900 90
Patriotic Bank stock 100 90
Bills and notes in suit ---------------i 4,636 81
Bills and notes discounted ------ 85,89S Is
Suits at law ------- -------.--- ll6 rs
Ioss and profit ----------- 10, 768 Al
Checks and notes of other banks -------- S208 70
Specie 49, ---.-- 49, ---l-- l2,4O9 95
arIf INV SsF altt ~ bgfiltH9uN t hsE -----------
asigai dsio 81 T s72,5s2 SO
heissi 4fH seea gssf --tafsi5f Se>to
e,u21 FARMERS AND MEcmANfcs BANK.
A Georgetown, D. Co. January O. 1858.
SIR In response to your communication Of the 23d of
December transmit herewith the cashiers last weekly
statement showing the condition Of this bank on the 3st
of December utinio
In regard to your request to be furnished with t Of
the debtors Of this bank instructed by the board Of
trustees to say that they feel very reluctant to furnish
such a statement to become public document which
might thereby operate inurously 10 such debtors but
they are willing that you, the whole committee, II it
will suit your convenience to do So should call at tho
bank and examine all tho on our discount led