Indiana Republican, Volume 3, Number 117, Madison, Jefferson County, 6 March 1819 — Page 1

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INBIANA MEP UEIIAN;

cc WHERE LIBERTY DWELLS, THERE IS MY COUNTRY vol. in. MADISON, (INDIAN a) SATURDAY, MARCH 6, 1819. No. 117.

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rl-Kl.iS!ir.l) BY jOUt'K ARiON, lvx:KV SATURDAY. 4'OMHTIONS.

... " H I'H'Bliit ft'1 f rrt cs c Hi.H rru y, ?!.;7-r ;c II 'j'Jisc mttnuf until ai r.r;:ir; are ?' . r;., ., f in trj!'y at the eu,l of Iveri '-tic's n it evrndirz a iri!! ! iiisfrtt'i three tttr.es S .7 J ! r; 'Ur one u fri,pir- ;,., an I if the n t ilsr Inxerttvns 7 r itnu' at the 'i; rnst J the All Letters to the Editors must be post pan!. Report of the committee appointed to investigate the proceedings of the bank of th: Uni ted States CONCLUDED. The committee deem it their duty also to submit to the hause a resolution marked LXVJII. authorising a discount or a note of 2 c. ceo dollars, at 6z J-iys, ind directing that it should be piid by a post note driwn at 6o d.iys after date. 1l is stated by the cashier in his wis muie piyable in Paiti ilph:i. They frvd a resolution vt vvz 30th of Jan. 1S17, XLIX, cxpresdy authoiising the oiliue In Biltimore fo rant discounts to the amount of 100, ceo dollars, to be paid in pi s notes at 60 days after date. There is no doubt entertained that this vi done in Baltimore ti om its subsequently asking pernv.i'n to do more, although, f o n the in inner in which the books of tu at o ILc are kepr, ir would be diilicult to ascertain the fact. Hie only circumstance which thrown any doubt tp ;:i the transaction being iei:ned usurious is, that instead of exacting more than lawful interest, the bank has charged and received interest money that it never loaned. hot heinu a draft on another

...-rV.I fl!1-"J it cannot be considered

as an exchange operation. As tiic parties have a remedy in the courts ut jusiice, for any injury they may have sustaiuthe committee do not deem it necessary to recommend any frovioti on the sulject. Under the resolutions authorising discounts on pledged stock, a term of pledge was aoprcd, marked XXIU, A, and under the resolution of 25th Juv another form was adopted XXIL both of which were sed by those obtaining loans. !he shape of a niortrrie or hv ;v,uii uie latter torm is in Phecation, yet the equitable ytcrcst in the stock was in the r-k- It might be questioned aether the stockholder could Vcte upon his shares which had Dn actually transferred to the .kier in that form. It docs i'vt aPPar that any objections vc b"a made to such rotef,

but that they have been received without scruple. It will be found diilicult to reconcile with the orh fundamental article of the charter a resolution of the 24th June, 1817, by which the board resolved to purchase 2,000,000 dollars of the public debt, as the agent of the commissioners of the sinking fund, and to deliver it to them at par. That resolution, with the letter or the president of the bank, announcing its purchase, and a statement of its cost, are submitted, marked L. a. b. c. From these it will appear that the bank had sold 2,000.000 dolls, of its debt, in Kngland, with which to purchase specie. The Secretary of the IVeas n y claimed the right to redeem ir, under the provisions of the charter ; and, after some negociation, compromise was effected, by the bank undertaking to purchase two other millions in lieu of that sold, and to deliver it at par. The idea of its purchasing, as the agent of the commissioners of the sinking fund, is exploded, when it is discovered that the slock cost it 2,954.264 dolls. 26 cts. which n was b;mnd to deliver at par, by w hich a loss v.ts produced or 54.264 dolis. 26 cts. It would be a novel idea, th:it a mere jq;ciu '.vas to do the businews or hi principal solely at the cxpenee or the ajent. And 4 V J it is obvious from the whole transactions, that the purchase was reullv on account, ami for the ben lit or the bank, to enable it to maintain its faith wkh the purchasers of the debt sold in England. The anoloi- v lor the bank is, that it wis done under the sanction of a high oiticer of the government, and altnough the c omuiittee teel bound to say that it was a vi-oUri-m of the article before quoted, yet, under all the circumstances, considering that itwas dime in good faith, they do not themselves think it such a violation as requires the interposition of congress. On the subject of the facilities furnished bv the bank to the government, in the transmission and collection of the public revenue, and its fulfilment ol its engagement in discharging the duties of commissioners of loans and agents for military pensions, the accompanying letter of the Secretary of the Treasury marked LI. shows its conduct has been satisfactory'. There appear to have been some contentions between the parent board and some of its officers, but the committee have not deemed them sufficiently connected with any practical objects of enquiry, to justify their going into the merits of these controversies, which would be a work of much time and labour, and woidd not repay the trouble. And it would be unjust to make any statement, without making it in detail. In order to give the house full information of the state of the bank since its institution, a statement exhibitiing its con

dition at different periods, marked XLlll. and various tables and statements, complied by the committee, or by them verified, are submitted: among them will be found statements of notes issued payable at each office, and of notes returned to the offices respectively; reports of the committee of directors previous to each divi. dend; 1 complete list of the stockholders ol the bank, No. 1 , exhibiting the names of those who were such at the first dividend, with their places of residence, and the number of shares held by them respectively, at tint time, and at each subsequent dividend. No. 2, exhibiting the names of those who became stockholders alter the first dividend, and No. 3, exhibiting thoc who became stockholders after the .second dividend, together with a ikt of those who held shares as attorneys for others. Other letters and miscellaneous documents, not sneciallv refened to in the preceding pan of this report, but elucidating the facts grated, will aLo be found. Statements obt.di.ed from the offices a 1 Richmond, ami this city, are :d: o submitted, which will show that the affairs of thoeofhVes have generally been conduced with prudence and aoiiitv, and that evcrv effort was ir,.i ic by them to execute the directions of the puent board in a maimer the least inconvenient to their customers. In considering the question whether the charter of the bank lias been violated or not, the committee have thought the expressions used, mean whether in any instance the provisions of the charter have not been complied with r There mav be many violations of a charter, which could not be considered, by a court of law, as producing a forfeiture. The principle on that subject the committee believe to be this; those acts of usurpation of poo. rs not granted, of misuser and of nonuser of those granted, which defeat the very objects of the institution, as expiced in the charter itself, would produce a forfeiture ; and that all other instances of abuse of the powers granted, or of usurpation of powers, must be punished and restrained either by the ordinary process of mandamus and quo warranto or by other means than a dissolution of the corporation. The committee think they are required by the resolution to report all instances of a violation of the provisions of the charter, which have come to their knowledge : but they do not consider themselves called upon to state which of them would in their opinion produce a forfeiture or any other legal consequences ; and one inducement to this construction of the resolution arises from the consideration, that, if they were to confine themselves only to those violations which would produce a forfeiture, and should give a mistaken or incorrect opinion,

that the charter had not been violated, so as to produce a forfeiture, the house might, under a strict construction of the act, be precluded from expressing any other opinion, and from directing the proceedings contemplated by it; whereas, by reporting all instances of violation that have occurred, without reference to their technical character, the house is left free to pursue any course it may judge proper. In speak ing, therefore, of violations of the provisions of the charter, the committee wish to be understood as not expressing any opinion whether such violations would cause a forfeiture or not. They present the f acts, and the house will determine whether, under those facts, it be or be not expedient to direct the issuing a scire facia to ascertain whether the vio. itions are such as to cause a dissolution or the corporation. The committee then are of the opinion, that the provisions of the charter of the Ihnk of the United States have been violated in the lollowiug instances. 1. in purchasing two millions of pu'dic debt, in order to substitute them for two other millions of similar debt, which it had contracted to sell, or had sold in Europe, and which the Secretary of the Treasury claimed the right of redeeming. The facts on this subject, and the views of the transaction entertained by the committee, have been already raiven.

II. In not requiring the ful filment of the engagement made bv the stockholders on subscribing, to pay the 2d and 3d instalments on the stock, in coin and funded debt. The facts on this point are fully before the house, and they establish, beyond all doubt, 1st, that the Directors of the Bank agreed to receive and did reccive what they deemed an equivalent for coin, in checks upon, and the notes of the Bank and other Banks suifposed to pay specie. This substitution of any equivalent whatever, for the sped lie things required by the charter, was in itself a departure from its provisions ; but, 2d, the notes and checks thus received were not, in all cases, equivalent to coin, because there was not specie to meet them in the bank ; 3d, that notes of individuals were discounted and taken in lieu of the coin part of the 2d instalment, by virtue of a relution for tint purpose, passed before that instalment became due ; 4th, that the notes of individuals were taken in many instances and to large amounts in lieu of the wdiole of the 2d and 3d instalments, which notes -are yet unpaid. III. In paying dividends to stockholders who had not completed their instalments, the provisions of the charter in that respect were violated. IV. By the judges of the first and second election allowing many persons to give more

than thirty votes each, under the pretence of their being attorneys for persons in whose names shares then stood, when those judges, the directors and officers of the bank, perfectly weil knew that those shares really belonged to the persons offering to vote upon thern as attorneys. The facts in respect ol this violation are in possession of the house, and establish it beyond the reach of doubt. The committee are of opinion that no other instance of a violation of the charter has been established. In closing this report of a most laborious investigation, the committee observe, that whatever difference of opinion can exist among them ai to the reuk and inferences to be drawn from the facts stated, they unanimously concur in giving to the preceding statements of tacts and abstracts or documents, their sanction, d'hey have not recommended ihe adoptioa of any measures to Correct the many evils and mischief they have depicted, excepting that of the bill before mentioned, because, by the provisions of the- charter, the Secretary of the Treasury haj full power to apply a prompt and adequate remedy, whenever the situation of the bmk s'ull require it. And if, after the stockholders have becouvacquainted with the mismanagernentof the institution, they shall adopt no means to prevent its continuance, cr th? directors themselves shall persist in a course of conduct requiring correction, the committee cannot emertain a doubt that the salutary power lodged in the Treasury Department will be exerted, as occasion may re quire, and with reference to thebest interest of the United States. It is due to the officers of the Bmk at Philadelphia to state that every facility in their power was rendered in explaining the books, and assisting the researches of the committee.

W rl r!eM SATURDAY, FEB. 6. HOUSE OF REPRESENTATIVES. Mr. Robert Moore offered for consideration the following resolution : Resolvcdy that the committee on roads & canals be instructed to enquire into the expediency of authorising the secretary of the Treasury to subscribe shares in the stock of the road laid out from Pittsburg, in the county of Allegany, to Waterford, in the county of Erie in the state of PennsyU vania. In offering this resolution, Mr. M. said, that the Legislature of Pennsylvania had incorporated companies to construct an artificial or turnpike road from Pittsburgh to Waterford. I hat if gentlemen would refer to the map of the country, they would at once see the necessity, in a national point of view, of connecting the waters