Indiana Republican, Volume 3, Number 114, Madison, Jefferson County, 13 February 1819 — Page 1

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...jM OSHl.'O HY t.oUK k AKION, . av sM 1 riuv. CONDITIONS. V , h intiirtt'J tin! it -ft 7 ' . . ' . thrrc (h tr s - f'; f i.V t Letter to the Editors ! . V. - ' ' - Mr. S;-ivjcr trom tDc comxr.itioo rnpohited to investig nc the r- "ecviin- ot'thc B.mkot the United feV, A-lie.e; " REPORT. The committee appointed to inp:ct t:e b-oks atid to examine into the proceedings oi" the kink ofthc Cnired St.ite. with J.::ect;en to report theieon, md to report whether the provisions ot iis charter have been viohtcvi or net. Re-rectiVih Renter t Tt:a: under the leave granted by the II m-e, the committee rep;ircd to Philadelph.ia, and there personally inqvetd thebeo!;s of the Bank, nd as 2 further means of examining its proceeding, thev interror 1ted on oath, the president, the cashier, aHthc directors of tle Bank w?r:e utten imre om!d be obtained, an i several of its clerks and of.iccrs. Examinations have also been m.ule at the r.:ee at Bikimoie, at Richmond and at the Citv of Wash ington, inorrler to obtain specific infornntion upon certain subjects on which the books of the Parent Bmk were necessarily deficient". From these enquiries, conducted with qrcat labor, and, the committee ' trust, with c;reit care, they have co'tVoed a nuss of information,' which they now submit to the lhme, and which will be referred to in the course of tliis renorr. This information consists of tables, statcmcntt and extract. ma de bv the comm inittee from the books of the w Bink, or bv them compared J with those books and verified, 1 an of rhe testiuumv of witnes ses and of letters from the Prciwent of the institution. The committee are aware trut from thce sources of insinuation various importont inferences may be drawn, and ppxn them the most intcrestrZ opinions may be predicated: u his been their intention, however, to go no further than was quired by the resolution of t:c House 5 to avoid specula-

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tivc opinions upon general subjects; and to confine them"selves to what they deemed practical objects of cncjViiry, which they settled "T! "Jong themselves previous tcntcring upon the investigation. These objects sccmeil to "divide themselves into two classes; thoe whicli related to the genoral mmagement ofthc 15 ink and the conduit of its officers, and tlioe which vcr. connectcd with the question of a violari(n of its charter. As to the general man.geiuents of the concerns of the institution, among t!ic points of inquiry which appeared to be more immciliateiy intcre.sijng were those which related to a rctural of the Dink ai& its olhecs to piv its notes in specie at anv . " ' . . . . ' other place 1 ttian that where they were made piyahle, and to the practice of selling dratts on eacli otlicr. It appears that the director.; of the Bank on its lirn intitution and up to the 2Sth of Anrust 1 S 1 8. strenuoudv endeavrrcJ to re !eem its netcs at all its oilices ou'iscriuutvatCiV, north U the citv of Charleston. 0 On the yth d y of J.mu iry, iSiy, it conMnenccvl oner a ions by discounting nobs on pledged sttKk, ami to stocliheide: only, and bv the issue or h s bills. 1 he oiiicer at the head of the TreiMiry D-qvo-ttncnt hi i tepcitseillv tireeil the eo.nr.mucernnr ot o w ions, vrt o toe '. b!e view, as, anpear;, i t 11 o nine" t' e re lemtion bv . m the OtiU bmks of their notes in specie. J':J: tetters from the seereMrv of the d'.easury to the Piv-dd 'nt of the Bmk of the Unite 1 States, 1 ;ih Autrust anil e -th November, 1816, marked I, II. ldTorts on th.e part of the treasury to induce the local banks to that mcemre apneir to have b?en abortive, until the me ,00,,, iT,,:r., 1 ,,-,,! . certain prop -vinous wm id,.?, n duccd negoeiations between it and the state institutions, s 1 . v t r 11 i.-i!.. wmcn unauv resuueu 1:1 acouipact cont lined in the resoln tions of the board of directors of the 3 1 st January, id 17, herewith submitted, and marked III ; and in order to exhibit how far th.e Bank complied . . ,....."... S'!,,l,l.-,VJ V of the loans and of notes issued untoth- -tl. Keb. .317, is suhmittc'l .mrUed IV. It n l n'cessary only to refer to ..... ,4.4., 4?,,,, ' "thU wriol Tim ,,oto'f sue of naper bv the local banks had caused an unnatural and artificiAl' depreciation of such nincr which required onlv ,m,W,.ilm. str.idr . PK'.lwlMJ.;. TJpw. Vnrlr. and Baltimore. ' With such a

the banks were variously, osition of the Bank, and nave cue iron tne state oanKS arc ohkc u.. uuu preeiated, some as much as so met its demands for its just reduce 3,972 ooo wh.le the with notes to the amount of per cent, while others were at dues with complaints and re- notes ot the bank of the Urn- 872,000 .and had returned to 1 -n. :, r,v!, it -K nnt intend- tcdbtatesmcitculationamoun- it from Philadelphia 1,697,000

rcductions to restore not to an office at Charleston, exhibiting .t evident from this result, that four hours .n the o lice but uniform .r but to its true val- the conduct of the local banks the bank d.d not exercise with wre constantly remitted to ths HK S., in that place it is presented to sufficient energy the power north wit h the . i v rind. .C u.uie. .,, , !. mnr!.-,',! VIII. which it possessed and miclit issued. And there cm be no

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iftK Ind nn the last dav of 1 tic committee arc 01 opm- iuviu.uKu,uuLi4iuu4m..u. uul, ,.4w..T..Jv - Febuarv, 1 So. (vide statement ion that instead of conducting cd inducements to the state statements referred to, connect, mirked V) 8 848.000 dollars with the alledged rigor towards banks to extend the amount of ed with these fac s, that tue H JTn it flom the state banks the state banks, the bank of their circulating notes, and drafts from Baltimore giva.

LIBERTY DWELLS, THERE IS MY

MADISON, (INDIANA) -SATIKDAY, FEBRUARY 13, 1819,

credit constantly accumulating by the transfer of tic treasury funds, ami by the payment of the second instahn:nt in the notes of the state banks it was in the power ofthc United States' lVvnk to Ivare coerced the. local institut'uns into a moderate and rcasoiablc reiltiction of tluir circuiting notes, An attempt to do s was mule by compact, JUj aid although the Hank ofthc tinted States appears to li ivc bceuanxious to cilect the object, it (id not prr. severe in the tlei-n. Hy its subsequent acts, it improvidently alforded a teuptati.n, to the western banks j o ticulary, to extend their cir. illation of notes, by in,istit:gonits hi inchcs pn ing out theirowu no-es pieierence to tloe ot t..e . 4. - I I .1 1 ' si.uc o uiks, ana on men ut n - critiLT drafts on the ntern :itits, whenever it coiid heii'u.e to prevent tle icnil tancr ! their own notes, "ike. hroich h notes, cV; the draftsi vied iiuonsequence ot tnec ;-t tra :;;on , were swept away by the r.eihtv ci rer.ii;t.tnce tie v given. wen l?v U.e utiiii iIV I 1 ..'.! 4 e i fiam i-V vacuaui i!i t 0.1 t:m be m 1 w.-i ).ie J on; v ov t ne. 1 moe wliieli were :e 101' eeivcvl bv the o..';i ; ( t t P ink ol the U, sited .S: it: - s end w-.c reiair.ed bv taem a a fund upon wiii el: iiUuc-t v.: ..4 : r t . y 4 1 1 .m K 4 , . . o f th: Ih v ddem ; market I T - I 1 1, exu.:ies c urse per iled by the bard; in this rcepecr. i ibe Bode of tlie United States rcciev cd from the IVea;urv t!ie mv.es ot the local 1:1st iunions, in moo" ei:: a puolie depo -its, to he olid out in imii;r bills Prom Ap'iil, 1 S 1 7, to time, t he amount s o re. ieved appo s Innn olateJucn: VII, to he 2, 75:. 750 iio,. 1 uoo if which 8. ;.:r eititia. u on .lino o nano. te ivimr e.o v;,aoo a - - .... . . . . 4. . ..!!. t 4T-144f 'y 4. OU.O sn-ne v the B oik k of the Uaite t !.. ruinm:! f ee - - ' . havens found arv evidence of the bmk bavins" attempted tooom-sithc st it" bank-, ci t her by wanton4 demands of s-vcie or bv the rej ecti m of tViriotcs. Much complaint )., : 1 rvwicd v.t in tnc V. cc W l 'l i.v- come to instances u u n ua "' y the knowledge of the coi.ii.iittec, thes.ate hanks have bee,, in the wroaS, and some of ,in, ntfl-w:.Mw.rd have refused the most rnuhable prop. cd to trouble the House with any of the various letters which have passed on that subject, but as the president of the Bank transmitted a letter from the the United J the more serious charge of ha.

smites c :ih c to thus increased one ot the evi s lortne proceeus or muw

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ving increased the amount of In answer to an inquiry adnotc's in circulation, by its ac- dressed by the committee on ccptancc of them in those pla. this subject to the president of ces, where it was known they the bank, they were furnishwould not be redeemed in spc cd with his views, and a letter cie: and by making them in from the ofllec at Boston marthc manner before mentioned, lied IX, and were referred toa the only circulating medium in report of the committee of dithatpait of the country. The rectors on the 28th of August forbearance' ofthc bank to- 1 8 1 8, m irked X. Those docwards the state banks is vindi- umcnts exhibit tnc reasons of cited on the ground of ita be- the bank for adopting thcresing the only means to induce ohitions of that date, by which the resumption of specie pay- the notes of the offices were incuts. This cilect ii rcaily refused acceptance. In the letowing to that cause, has been ter of the B nton om;e much proved to have been but tern- stress is placed upon tiie large porarv, and experience has accumulation nfpaper and drafts : lie v u t!iat at the same time or at B ;ston, issued by ther.outhboen after the refusal of the crn and Wcstsm oiliccs. And bank of the United States to this become an important obreceive the notes of its oilices, ject ot impiiry. The b.-.oks of nuny ofthc tate banks began the Parent bank do not furnish to st; p.nd aiui evade their information respecting the spvde pavmcnts. drafts made by, and upon the

So ion;' as the notes or each oiheewere piy.itdc at all tf;c otlkis, and tlie omce isstm.g them, v.n nut exclusively Itaide lor their re ieuipinm, the di -count ; at those puces, a-i-.itr.l u file i tlere u r. a bdauce of trade, became larger in prop-o: tion to their indemnity .1 -1: in o onands. As the tunes o-i t !ie oihees were 1 apidiy cari;e:i oti. the payment of thee deomiis were neccssirily made in the noies of the local i:uti:mioe; and tuin it ,... inevitable etleet e)i" vMS the i:'.A system to increase the o.n: i c;f tl:e state banks to to tlie D-i!oc of . t! of the .tales at tnose ohTiie tie.orairls of the I I. I ink were sutihred to aceumulaie iiimropevlv, in it e id ot lieing -V uiualiy reduced, .is specie was c-.miicd at other e.hce, ,.,0 iiall quantities t:at v f '0 ' not have been te1:. liielr reduction was not insisted on bumiently earlv, and when the bmk began to call tor snecie, its demands were so considerable as not only to expose tlie local banks, but the citizens in their vicinity generally, to very severe xi 4 pie-suic. , . , .-. . .1 ...... r nY suusntunng me crcm: 01 individuals for the payment of the second instalment which will be presently stated, instead of coin or the notes of State bnaks, the bank cf the United ouiom i iircac measure ucprived itself of the early and i ; prompt check which the posscision of their notes would have aflonlcd, to the more extensive increase of local m. per. In July .8.7, the debts ted to 4,73 ,, 000 dollars by which it might have been subjected to embarrasmcnts arising from the calls of the local institutions. The committee think it was intended to correct.

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oiiiccs, excepting tno-e wmcfi were made on it. And the Committee have not ascertained their amount, exceot at toe offices in Baltimore and tliU citv. From the local situation o; Baltimore, the statement' obtained at that office marked Xf, XII. m a y b e c o n s i d e r e d as f u r -nis'.iing suliicient proct of the a correct nc:. of the opinion ex pressed by the Boston office, Po the oifice at Bosron, its dent lluctu ired between 34,300 e aid 2 1 ' -s until May last. illce v.mich it has been indebted to iSiltiiiKTe from cod to ooe dollars. 4 debc to the ,m; it New-York, lias varied from 1 o'),o do to 1,947.000, and until October hsc, it has generally owed that oifice, mor than 1,-00 ,c At th time, the New-York office was brought in debt to Biitimore 07,2 8, its debt in November last was 10,948. The explanation ot these extraordinary re ductions of the Baltimore debts is given fro.11 the circumstances of 1 reasury drafts on the north h.'Mrirr e hwred finvrrivto the. r, B.iltimerc odice, or sen: to it through the office at this rity; and bv a check on New Vo.k for more than a million ixiven 1... .i,. i : oy uiun uu, i p.ivment of foreign bills of echange, hereinafter mentioncd. The Baltimore deoi to the Parent Bank his vaiiedt-oin 1,500,000, to nine millions .inn K"'"JU) u " millions. Notwithsundingthcir , . D heavy ucbts oNcwork, Boston am Pli.lade,p!..a,the drafts of the Baltimore ofl.ee on those places continued unmterunted and excessive in amount: that dollars in its notes, and yet u is stated by the l elkr that it never had a sullic.ent : quantity of notes to meet its demands; that they did not remain twencounted, were unwarrantably

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