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(No. 26.) Report of K. Pritchette, Bank Commissioner, rela
tive to the Macomb County Bank. To the Hon. the Senate and House of Representatives of the State
of Michigan : In compliance with the joint resolution of the legislature, the late Commissioner, Alpheus Felch, Esq., together with the undersigned, visited the banking-house of the Bank of Macomb county, at Mount Clemens, in said county, and made an investigation of the affairs and condition of said institution, the result of which is embodied in the following report.
The Bank of Macomb county was placed under injunction on the 6th day of January, A. D. 1838, and has so continued until the present tirne. The injunction was obtained on the complaint of an individual, on the relusal of the bank to redeem a quantity of its bills in specie. The bank, however, previous to the service of the injunction, paid the coin. Notwithstanding this compliance with his demand, the complainant served the injunction, and no effort, up to the date of the examination, seems to have been made for its removal.
The examination was made by the Commissioners on the 8th and 9th of February ultimo. The president, A. Weeks, Esq., was the only person present. He had charge of the bank, and expressed a disposition to give the Commissioners all the aid in his power, and his regret at the absence of the cashier, C. A, Emerson, Esq., who would have been better able to make the necessary explanations. He stated that Mr. Emerson had gone to Buffalo, N. Y., to make arrangements to reinstate the bank. The return of the cashier was expected in the course of ten days, and he was very desirous that before a report was made Mr. Emerson might have an opportunity to communicate with the Commissioners, and promised to wait upon them with him, if the report was not made previous to his arrival. No promise, however, was given to delay the report. Important information touching the previous transactions of the bank, was promised by some of its former officers, which has been received within the last few days, and is made a part of this report. By a communication from the present cashier, addressed to the Governor, it appears that he has returned from Buffalo. No further informa. tion, however, has been afforded by him.
On the opening of the examination, a statement of the condition of the bank, lest by the cashier previous to his departure, of which the following is a copy, was presented to the Commissioners, as exhibiting the situation of its affairs at that time.
Mt. Clemens, 5th Jan. 1839. Statement of the Bank of Macomb County. Bills discounted,
$63,927 62 Due from banks,
4,974 91 Agency in Buffalo,
4,800 56 Exchange account,
18,390 00 Due from individuals,
619 13 Expense account,
2,876 81 Bank furniture,
1,808 30 Real estate, banking-house and lot,
2,850 00 Bills of other banks,
4,256 00 Specie,
35,420 00 64,325 00 5,532 22 2,024 59 166 27
8107,470 33 Of the above circulation, $26,765 has been taken up by the stockholders and is now in the banks of Detroit, which leaves in actual circulation only $37,560, and of the above deposites, $1,121 88 of the $2,024 59, is deposited to apply on discounted paper now due, which leaves only $902 71 cents for immediate liability. Of the exchange account, there should be credited the sum of $4,000 or $5,000, being moneys collected in the bills of the bank,
RECAPITULATION. Circulation and Immediate Lia
Brought up from below. bilities. $37,560 00 circulation.
$16,197 91 902 71 deposite.
7,000 00 drafts on Buffalo 23,197 91
Immediate Resources. $2,967 00 specie. 4,256 00 bills of other banks. 4,974 91 due from banks. 4,000 00 collected by agency in Buffalo.
We have about ten thousand dollars on hand, in suit, that are good and will be collected soon ; there is a draft of $3,000, in collection in Milwaukie, which will unquestionably be received. Of the amount in the hands of exchange agent in Buffalo, a large proportion is now in process of collection.
Mr. Emerson has now gone down to get a statement of the busness iin Buffalo, and will bring back the money collected.
Ou examination, the items forming the above statement, were created as follows, to wit:
$500 00 for
600 00 for
671 11 of L. H. Pratt, endorsed Sam'l F. Pratt,
7,000 00 discounted in 1837, and renewed, Wm. Vander
voort, and endorsed Vandervoort, & Co. 10,000 00 for
87 00 for
75 00 for
500 00 for
250 00 for
280 00 Stock note, Geore B. Martin, (no endorser,
200 00 Note of R. Ambrose, endorsed L. Godard & S. Titus, 500 00 John Stockton, (mortgage,)
2,424 51 Stock note, Wm. Vandervoort, (Dec. 2, 1837, on demand, no endorsement,)
11,875 00 Stock note, Wm. Canfield, (no endorsement)
250 00 Note of A. Weeks, (endorsed A. Weeks & Co.) 3,350 90 Note for
155 68 for
300 00 for
300 00 for
66 00 for
25 00 for
139 00 for
20 00 for
“Due from other banks,” Michigan state bank,
$4,154 29 This is a deposite of Brest bills, which were paid into
this bank by Enoch Jones, in 1837, he receiving Macomb county bills therefor. The deposite in State bank was made April 25, 1838. There were
also deposited some Clinton bills. Bank of Michigan, Farmers' and Mechanics' bank, Detroit,
348 00 472 62
$4,974 91 “Agency in Buffalo,"
4,800 56 Lucius H. Pratt, Buffalo. This is the balance that appears to be due on ledger. The account is brought down to, and the last item entered Iecember, 1837. Mr. Pratt has notes of the bank taken by him. "Exchange account,"
$18,390 00 Feb. 11, 1837. Cash, L. H. Pratt, $10.000 Total of credits,
5,110 Cash, W. Vandervoort, 10,000 Aug. 28.
do. L. H. Pratt, by Forbes, 3,500
18,390 00 These advances were made in the notes of the bank, and were to be advanced for discounted paper in Buffalo. Notes were accordingly taken to the amount of about $15,000, payable at Commercial bank of Buffalo, N. Y. They have for the most part been put in suit. The persons who received the money, Pratt and Vandervoort, are able to pay. The object was to give a credit in the Commercial bank.
“Due from individuals." Amount due from individuals as per ledger.
“Expense account,” As per ledger.
"Bank furniture,” As per ledger.
"Real estate, &c" As per ledger.
“Bills of other banks." One package of Detroit city chartered bank bills, containing
$2,660 00 do do
544 00 do containing chartered, city and coun
try and New York bills, amount-
380 00 do country chartered bills,
205 00 do city chartered,
One package principally bills of the Bank of west
ern New York,
$780 00 179 00
$4,918 00 Four hundred or five hundred dollars of the bills of the Bank of western New York were received of Mr. Hubbard about a week since by A. Weeks, the president, and put by him into the bank. It is not credited on the books, nor on discounted paper. Mr. Weeks intends to have it passed to his credit. He thinks some of it has been received by exchange. Some of it received before the legislature passed the resolution to investigate--some since. He thinks the same funds, except as above, remain as when the injunction was served.
"Specie” said to have been originally $11,000. About eighteen months since, Lewis Godard and E. Jones, borrowed four or five thousand dollars in specie, of the bank. They had it four or five days. President supposed it went to Brest, but does not know any thing further about it. Silver,
$2,230 47 Gold,
$35,420 00 The original stock book is not to be found in the bank, nor is the transfer book, nor the proceedings of the directors.
Twenty per cent was originally paid in on the stock, part in specie and a part in bank notes. Enoch Jones, one of the original subscribers, paid his stock in part at least, in Brest money. Four instalments, of ten per cent have since been called for, and a portion paid as follows: Stock note of Geo. B. Martin, (no endorse
$200 00 Stock note of Wm. Vandervoort, (no endorsement, on demand,)
11,875 00 Stock note of Wm Canfield, (no endorsement)
$12,325 00 Check of Wm. Vandervoort, on Bank of Buffalo,
$3,240 00 Check of Jas. Sweeney, on Bank of Buffalo, 1,500 00 These checks last above were drawn and
sent to Buffalo for payment, and are now in the hands of L. H. Pratt, for col