Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-12-16
FINANCIAL FINESSE.
Old Nick Biddle and the Savannah
Branch Bank.

Boston Commercial Bulletin.l
Forty years ago the brokers and specu-
lators knew very little OF corners, "
such as have rendered the operations OF
these gentry in New York and Chicago
Notorious in these latter days. Stocks,
grain, and provisions were bought and
sold then in quite a primitive fashion
according to our present ideas. But, not
withstanding their Ignorance Of the I'M
proved facilities for making money
which these latter days have developed,
our fathers at times conducted financial
schemes so daring and startling as TO ev-
idence they We're not unworthy progen-
itors Of the brilliant geniuses OF this day.
One of these, a desperate and reckless
effort, made during the fore part OF Gen
eral Jacksons administration, to gain
control of the then United States Bank,
for the aid its funds would afford about
election times, was entirely worthy OF
the best of our present party managers
The first effort was made upon the
Branch Bank at Portsmouth, New
Hampshire, of which the celebrated
| Jeremiah Mason was President; but the
result was so hopeless that the tactics
were changed; and so a hue ana cry
was finally commenced upon the bank,
as a monster ofpolitical corruption and
public danger. This aroused the bank
1 for its charter would expire, if not re-
newed. in some five or six years. rms
new element of controversy speedily
drew in all the adherents of the respec-
/ tive parties: and in a short time the en-
tire nation was holly by the ears upon
subject that nobody had Thought about
at all until the politicians cried aloud
over it.
From insinuations. the assailants OF
the bank soon proceeded TO specific
chan ges; and finally they came out with
the astounding assertion that the bank
was positively insOlvent, and they made
! the coufiding sold herOn honestly be-
Iieve this was so. A charge so grave
only added to the fury Of the contest, as
might well be supposed; but the story was
stronger meat than the public was yet
ready to digest. In this state of the
struggle the idea was conceived OF
breaking one of the branches of the
bank, of which there were twelve. u
the attacking party could do this, they
might feel certain that the adversary
would fall under the shock. Such an
| effort was full of danger. A discovery
and exposure of a plot so diabOlical
/ would have overwhelmed its Originators,
and swamped the party. But 1t was moi
| time. nor were the managers in q
mood. to stick at means, nor hesitate
over dangers. The agent chosen to dc
/ the work was Clark. For the valuable
consideration which the job would net
to his purse, he readily undertook it-iI
i n ithf
branch selected to be assailed was the
Savannah Bank. This was not so diff.
cult task, either, as might be supposed
/ for that bank was at a very remote quar-
| ter in those DAYS, and its business was
comparatively small. Usually the
amount of specie in its vaults was only
from eight to twelve thousand collars
| To secure far more than that sum of ltS
| bills was easy; and as every bank was
liable to nav specie for every bill pre-
/ sented, and was a broken bank If II
| failed to do so on demand, it appeared
TO be an assured work that the Savan'
nah branch would be broken. True
even if the matter proved a success, she
scandaJous means and the malignant
motive would be plainly exposed and
/ everywhere denounced among intelli.
| gent and business men. But the greal
| mass of voters would only see and hear
| that the bank had failed and one par
being proved to be rotten, the whole
| concern would be regarded as in like
condition. The insolvency ofthe United
States Bank would have too much prob
ability with the masses for it to stem the
| tide, or secure a renewal OF ats charter.
And so two hundred thousand dollar;
were placed at the disposal OF Clark
with orders to call for as much more a.
| ne required, and to take his own time t.
complete his work.
As a broker, Clark quietly gathered
and boarded Savannah Branch BanE
notes as they came along, or as be coulC
! secure them without suspicion III thu
regular course of business.
| But there was another chapter which
was forgotten or unknown TO Clark, bu
which came into the story and gave i
/ finishing touches; and that was the in
/ exorable laws of financial tides, and th'
system pursued by the mother bank a
| Philadelphia in dealing with its branch
es-nOt emitting Nicholas Biddle, Pres
| idept of the mother bank-familiarlN
! known in the strategy Of that notable
/ war as "Old Nick" This impOrtan
! consideration seems not to have beeI
! fully studied nor cOmprehended by tn
! New York broker, nor the political f1elt
marshals in Washington. From thu
revolution up to the days Of which w
4 write, neither money nor fame We're sui
/ ficient to secure men in places of higi
| trust and responsibility. Integrity, eX
| perience, and brains were the essential
for such honors, It was certain, there
fore, that no sec0nd-rate man Woul'
hold the vast power in the money world
and the complicated duties involved il
the Presidency of a bank with thirt.
millions of capital, collecting and dis
bursing every dollar of the national rev
| enues, and with a business credit tina
1 had penetrated even to HOng-kong
| Nicholas Biddle was the happy individ
usl upon whom this distinguished homo
fell, and right ably did he sustain hi
place and reputation So, while Broke
| Clark was mousing round New York
slyIy gathering in Savannah Brancl
notes, and hording them Nicholas Bid
/ die sat on his golden throne in the banl
parlor at Philadelphia,
1 Calm as a summers morning.
We know what Broker Clark wa
about, with his little ''cOrner'' in NeN
i York. Now let us see what Nichola
Biddle is about in Philadelphia.
/ The branches of the United State
Bank made weekly returns to the moth
er bank, including the amounts of re
spective branch notes received durini
the week. This kept cold Nick" Away
| informed Of the general amount of note
IN circulation from each branch, as wei
as a bird's-eye view of the circulation
and business of the whole. Necessaril.
these weekly returns were CRITICAL,
scanned and compared. An understand
ing Of this part of the business system
pursued by the principal bank VIII max
what follows clear, and incline US 10 Zee
curious over the success of Mr.. ClarB
the broker, in his search for Savanna
Branch notes.
Of course, sold Nick was constantly
on the alert for his coming and powerful
foes. Like a spider in the center of hi
net, he watched sharply TO see wher
and how it was threatened. Studyin
over the usual weekly returns one day
| he observed this, in the return rom on
branch:
1--WE return you less than our ayerag
of Savannah Branch notes.
This was not calculated to arrest an
lspecial attention. But the next wee
two branch returns said:
"Our return, this week, shows les
than the average Of Savannah Branc
notes.
1t maybe supposed that Nicholas Bic
die turned his Eyeglasses upon this sec
ond warning with curious interest, an
when the next week and the succeedin
weeks-and every week-the steady
I wholesale disappearance Of Savanna
Branch notes from circulation Wa
. thus proved, we fancy we see the Mich
olas Biddie place the right digit asid
his nose, and thOughtfully ponder. \
, one but himself knew Of those signs of
storm coming from all quarters. Jul
what it all meant, he could only CUES
but he hit the truth. So, keeping h
own counsel, be quietly shipped tw
hundred thousand dollars of specie
the Savannah branch-with letter
!