Albuquerque morning journal., 1915-05-04

handles their financial affairs. Il
transacts business TO the extent OF
more than $500, ,O00. 600 annually
The bank has paid an annual divi-
dend of 25 per cent to its stockhold-
ers during recent years. II transacts
business with banks in all parts OF
the world, having extensive foreign
! relations
similar Questions at Issue.
This is the character OF the insti-
tuition whose officers accuse the Off
cials of the United States treasury
of animus to the point of attempting
to wreck the bank. This Is the bank
from which the officials of the treas
ury have, within recent months, with
drawn nearly $2,500,000 of deposits,
until. with its back against the wall
decision was reached to fight and
spread its affairs on the tables Of the
courts for the scrutiny Of the entire
country.
The history OF the bank shows how
the institution came into vogue as
something more than a bank--ns n
landmark In Washington. Until a
few years ago, the Rigs occupied, on
lis present site, quaint building
which had defied the hands of inn
provement since 1927.
The old bank, the mother bank,
was in Philadelphia. and was then in
the heyday of its power That was
nine years before Jackson broke up
the United States bank Nicholas Rid
die. president Of the United States
bank, was one OF the most widely
known persons In the United States.
and had managed its affairs with
great ability during the bitter con
test of the early '30s waged against
him and the institution he repre-
sented.
The removal of the government de-
posits from the old United States
bank gave rise to stormy debates In
congress. and this exercise OF execu-
tive authority met with fierce, unre-
lenting opposition from the wings
during the Jacksonian period
Strangely enough, the removal Of
government deposits from the RIGGS
National bank figures in the battle II
has begun In the courts against Sec
retary McAdoo and Controller VIII
liams And Just as oddly, the legal
power and right Of the controller is
being challenged by the Riggs bank as
the executive authority of jackson
was challenged by the United States
bank and its political supporters.
How United states Bank Was Broken.
When the old United States bank
was operated in Washington, there
were other branches In several cities.
When the removal of government de-
posits was ordered and William Du-
ane, secretary Of the treasury refused
to obey the order of President jack .
Il. s.,f .f - a.
B. Taney of Maryland, afterward |
chief justice of the United States
Taney carried out Jacksons orders by
not allowing any more deposits to be
made in any of the branches of the
bank. and Il began to totter, but the
branch of the bank held
on until 1897, when II failed
After Jackson had vetoed the bill
by which congress proposed to extend
the charter Of the United States bank,
in 1886, the bank of Corcoran a. Riggs
was formed. RIGGS came out Of a
old Maryland family.
William w. Corcoran, a native OF (
was a member of
the private banking firm of George
Peabody, who also became a famous
banker and philanthropist.
In the summer of 1S43. just before
The Mexican war. Peabody became a
banker In London and amassed a
great fortune. while Corcoran and
Riggs were prospering as bankers
in Washington. There was close in :
financial relation between
he firm of Corcoran q Riggs and that
Df Peabody in London. corcoran
founded the Corcoran art gallery In
Washington and established the
Louise home in Washington for old
women.
Corcoran Saves Bank Heavy Loss.
In 1S47-S, Messrs. Corcoran and
Riggs took the government loan OF
s23, 600, 600 needed to carry on the
Mexican war. The opposition of the
Hhig party to the war extended to and
influenced the money markets, and
{ was regarded as q very risky move
IN the part of Corcoran & Riggs. The
.redit Of the country was at low ebb
md the financial situation as most un-
.ertain The failure of the United
states bank had affected banks
the union. Under these
conditions il was found difficult to
AIRY the loan. Corcoran e Riggs
ound themselves, in 184S, with s12,- \
100 600 of the loan unsubscribed and +
he demand falling off and the stock +
eyeral points below the price at !
which they had taken il. Coreoran !,
determined to try the European mar J
.et
on his arrival in London he con- .
erred with n representative Of the I
louse of Barring brothers and George 4
,eabodv. They told him il was inn /
,ossible to place the bonds i'm Lon !
on. Corcoran responded that he y
houpht This would he their replv. and Z
10 =, "a J.. ,,,,.,,,;,,,a tho,,r 20 thaI