cause he transmits at the same time some of the materials on which the directors were to form their own judgment, to which others were added by Mr. Webb. But when an old director of the bank, forwards "cheerfully" an application to his ancient colleagues, which he says should be treated as "a fair business transaction," it implies certainly no responsibility—bu it may be well regarded as a declaration, that were he still a member of the board, he would sanction it. Under these auspices the board proceeded to consider it. One of the parties had been appointed by the President and Senate of the United States, to a confidential and lucrative post under the Government; the other had already invested $33,000 in the paper, and his father-in-law, Mr. Stewart, whose letter acccompanied the application, was known to be a wealthy man. Both were considered men of talents and peculiar aptitude for the business in which they were engaged. Then what was that business? It was the conducting of the largest newspaper in the country, requiring, of course, considerable means, and giving employment to a great mass of active industry. Its situation was represented to be this: Mr. Webb declared that were there then 3300 daily subscribers at $10, 2300 others at an average of $4 50, 275 yearly advertisers at $30, 310 days advertising, at 55 per day, Making Deducting from this, 10 per cent. on the daily subscriptions and advertisements, (of which about one-sixth is paid in advance,) say 5,830 and 20 per cent. on the other There remains a gross income of $33,000 10,350 8,250 17,050 of which could be collected on pre- Due in l'ew York, more than four Making While the whole amount of debt was Leaving an excess of 10,000 20,000 8,000 38,000 28,000 10,000 That they had been deemed worthy of credit in New York, appeared from two facts. 1. That the banks of New York had lent them $15,000, which they had repaid. 2. That the respectable mercantile house of J. L. & J. Joseph & Co., a firm well known to the directors, had lent them $20,000, which had been repaid out of the profits of the establish ment, as those gentlenen themselves certify in a document accompanying the papers. Finally, they had no accommodation, direct or indirect, out of any bank. The case then stood thus: Here are two persons of skill in their profession engaged in an establishment of which the capital is 65,000 The gross income, The expenditures, And the nett income, 60,750 25,750 In conducting such a business, where the receipts are semi-annual, the payments daily and 68,650 weekly, they naturally require, like other men in business, some credit. They accordingly apply to borrow $20,000. They wish to bor row it, not to pay previous debts, not to spend it on objects unconnected with their business, but for the purpose of employing it all in a way 2,070--7,900 to increase the profits of the concern itself, by procuring a new press and enlarging their 60,750 means of obtaining early commercial informa. 35,000 tion, and thus make the paper more valuable. Now the statements may be presumed to Leaving a nett annual income of 25,750 present the most favorable aspect of the case, This statement is confirmed by the affidavits from the sanguine temper in which men are of the book-keepers and press nen of the esta-prone to estimate their own professions and blishment. prospects, and yet unless they were wholly fal. The total value of the paper was thus stated: lacious, the board saw enough to warrant the James Watson Webb had invested in it $33,000, loan. It was further justified by the event; for for which $40,000 had been offered, provided when the note fell due $2000 were paid off at a the other half could be had for $25,000. This time when the demand for money induced ma he declined, but it is mentioned to prove that my other debtors to ask for a renewal of their the whole might have been sold for $65,000 notes. Then it was an improving establishment. It had owed a debt to the banks of which it had paid off in April and May, 1831, out of the collections of the last six months, which had amounted to "So much for the loan of $20,000." The other loan rested on the same principles as the first, with this addition. The parties stated, that owing to the part which they had taken in regard to the Bank, they had been de20,000 prived of their usual accommodations in their 29,000 business. Whatever might be the reason, the fact of an abridgment of these facilities furnished a reason for extending the loan in addition to the belief of its safety-which was, that by so 10,000 doing, any hazard to the original loan might be prevented; and the best evidence of its security is, that the parties have since repaid the loan. In regard to the other loans, which appear in their names, they were given without any know-perceive, by far the greatest amount of loans to ledge of their being discounted at the bank. They editors is to the friends of the present adminis were done at the request of a person of un-tration, and a large portion of that to the dedoubted solidity, which has been proved in the cided opponents of the bank." most decisive way-by the actual payment of All the directors who were examined, testithe notes. That they intended to aid Mr. Noah, fied that they granted these loans under the the drawer of the notes, in purchasing a share full belief that they were safe loans, and Mr. in a newspaper, was stated at the time. Bu Cope, a gentleman of intelligence and high chathat formed no objection to them. He borrow.racter, gave the following explanation of the ed money as thousands borrow money every views and motives by which he was governed day, to employ it in his active business. If Mr. in voting for the second loan of $15,000. Noah himself applied to the bank for a loan to "Documents," said he, "were exhibited to buy a share in a newspaper, and the security the committee, containing a statement of the was satisfactory, the purpose of the loan would means of the parties to the note, by which they have made no difference. Nine-tenths of the appeared to be worth about $30,000, with a loans made of the bank, probably are made to prosperous business, and a large subscription persons to buy something, or to pay for some-list. The loan was made, as all other loans are thing already bought. Men borrow money to made, without any regard to the politics or bubuy a share in a ship-a share in a cargo-asiness of the parties, but solely because it was share in a bank-a share in a canal-why not a the business of the bank to lend on adequate share in a newspaper? The bank had no diffi. security." culty about the loan, because it was thought se- "I was well aware, at the time, that they cure; nor about the object, because that was were partisan printers, and I knew that if we not the concern of the bank. It does not in- made the loan it might be ascribed to improper quire, and does not care, where its money goes motives, and that if we rejected it, it might be its only anxiety is, that it should come safely said we persecuted the individuals on account back; and whether, in the interval, it is em- of their politics." ployed by a merchant, or a farmer, or a lawyer, Such are the grounds upon which the direcor an editor, is a matter of which it takes no tors granted these loans to James Watson cognizance." Webb & Co. "In respect to loans generally to editors of It will be readily perceived that the direcnewspapers, the bank proceeds on the princi-tors of the bank were placed in very peculiar ple of knowing no class of citizens, and pre- circumstances by this application. They had scribing none. Even with this rule, its situa- been accused in various quarters of having tion in regard to such loans is a little peculiar. brought the power of the institution to bear upFrom the nature of their occupations, editors on the politics of the country, and particularly engagea in the discussion of matters of nation with having taken sides against the present al concern, have generally expressed opinions administration. Having invariably pursued a in regard to the bank; and their dealings with course in their transactions which recognised the bank render it difficult to escape censure. no distinction of political parties, it was very When an editor, friendly to the bank applies for natural that, while laboring under the imputaa loan, if it is granted it is ascribed to favorit-tion just stated, they should have been scrupuism; if it is refused, the party naturally_thinks lous to avoid giving any color of foundation for it ingratitude. When an editor opposed to the it. bank applies for a loan, if it is granted, it is As the evidence and recommendation prodeemed an attempt to influence him, while, if duced satisfied all the directors of the safety of it is refused, it is called a persecution on ac.the loan, they could not but feel that, if they count of his free opinions. The bank has 'en refused to grant it, they would give countedeavored in these matters rather not to deserve nance to an imputation which they were laudireproach than to escape it. In reply to that bly anxious to avoid. part of the question which relates to politics, I It is proper to add, that James Watson believe that, if in granting the loans in question, Wehb & Co, in their paper, the Courier and there was insensibly blended with the mere Enquirer, had declared themselves in favor of business considerations any political feeling, it renewing the charter of the bank, some months was probably this: that charged, as the bank before the application for their first loan; and habitually is, with hostility to the present ad- that they stated to the directors, on making apministration, it was due to the interest of the plication for the first loan, that the bank of stockholders to correct so unfounded an im N. York had cut them off from their accustompression, when a fair opportunity occurred of ed facilities, as they believed, in consequence giving accommodation to those who were con- of their espousing the cause of the Bank of sidered as the most strenuous and efficient sup. the United States. porters of that administration. The directors It is also proper to add, in this place, that of the bank understand too little of the subject the loan of $17,975 which was made in March, to attempt to adjust the balance of accommoda-1831, was not a loan to Webb and Noah, or to tion to political parties, nor have I myself ever either of them. The money was borrowed by had even curiosity sufficient to notice it, until Silas E. Burrows, a man of large fortune, upon the inquiry of the committee has suggested it. his own responsibility, without the knowledge But, undoubtly, as the committee cannot fail to of either Webb or Noah. They both testify that they had never been apprised that Mr. It appears that Messrs. Webb and Noah aBurrows had obtained this loan from the bank, vowed themselves in favor of a renewal of the until a very short time previous to the visit of charter of the Bank of the United States on th's committee to Philadelphia. They had, the 8th of April, 1831. It is difficult, thereuntil that time, been under the impression that fore, to conceive what possible influence could the money was obtained from the father of Mr. have been produced upon their course by Silas E. Burrows, in Connecticut. The loan to Mr. Burrows, of which they had no following extract from the testimony of Mr knowledge. It is equally difficult to perceive Biddle will exhibit a clear view of this transac how the loans of August and December, 1831, tion : could have had any possible agency in produc"These notes were discounted by the ex-ing the change which it is alleged took place change committee under the resolutions just in the course of these editors upwards of four referred to. They were done at the request months before. of Mr. Silas E. Burrows, of New York. Mr. Under all the circumstances of this case, the Burrows had, sometime before, brought minority of the committee declare, without any me a particular letter of introduction from an reserve, that there is nothing in these transac old friend, Mr. Monroe, the Ex President. Mr. tions calculated to induce them to doubt the Burrows had been very liberal to Mr Monroe honor and integrity of the directors, and this, in his pecuniary mi-fortunes, and he had re- they feel authorised to say, is the opinion of a cently received from the President of the U. majority of the committee, from the opinion alStates particular thanks and commendations for ready publicly expressed of one of its memhis generous conduct towards a Russian ship bers. They also deem it to be due to the ocof war. I understood him to be a very rich casion, and to their own sense of justice, that merchant of kind and benevolent disposition, they should add, that, they do not believe there and constantly engaged in doing acts of libe-exists in the United States a bank direction rality. In one of his visits to Philadelphia, he composed of more upright, independent, and said, he was desirous of befriending Mr. Noah, honest men, than that which granted the loans and assisting him in the purchase of a share in a in question. newspaper, and he asked if the bank would Most, if not all of them, are men of indepen discount the notes of these parties, adding that, dent fortunes, having no connection with poli although, as a merchant, he did not wish to ap-tics, and being entirely independent of banks. pear as a borrower, or put his name on a paper They are generally men who are engaged in a not mercantile, yet he would at any time do safe and successful business, with fortunes, so whenever it might be necessary to secure which they have made, not by adventurous spe the bank." "The committee being authoris-culations, but by steady industry and moderate ed to discount any paper, the security of which but certain profits. This is, indeed, the genethey might approve, agreed to do them. As ral character of the merchants and capitalists of Mr. Burrows was going out of town I gave him Philadelphia, a circumstance which renders the the money out of my own funds, and the notes location of the bank in that city peculiarly forwere afterwards put in my possession. They tunate for the stockholders and for the country. remained with me for a long time, as I had no The next subject brought to the view of the occasion to use the funds, nor was it till the House by the report of the majority, which it close of the year that my attention was called to is now deemed necessary to notice, is that of them by the circumstar ce that, as a new board the transactions of the bank with Thomas Bidof directors, and a new committee of exchange dle & Co. would soon be appointed, the same committee Mr. Thomas Biddle, the principal member which made the loan should consummate it. of the firm, is a distant relation of the presi 1 had seen, also, in the public prints, many re-dent of the bank, and it was owing to this cirproaches against the bank for lend.ng money cumstance, probably, that his accounts under. to printers and editors, and I was unwilling went a most prying, not to say inquisitorial, that any loan made by the bank should seem to examination. be a private loan from one of its offi ers. Hav- The first thing that struck the attention of a ing no use for the money, it would have been part of the committee, as worthy of scrutiny, was perfectly convenient to let the loan remain as the fact, that this House had obtained from the it was, but I thought it right that every thing bank, in August, 1831, loans to the amount of done by the bank should always be distinctly upwards of a million of dollars, on a pledge of known and avowed, and I therefore gave the stocks,-a sum which had been gradually re notes to the chairman of the comm tiee, Mr. duced, however, to about six hundred thousand Thomas P. Cope, who entered them on the dollars. books. On the 2d day of March, Mr. Bur- On examination, it was found that this loan Bows called at the bank and paid the notes. I had been made at the special instance and ur ought to add that the loan was made at the re-gent solicitation of the directors of the bank; quest of Mr. Burrows, and that neither I nor and that the bank, and not Thomas Biddle any of the committee had ever seen Mr. Noah & Co., was the party accommodated. The Go. or Mr. Webb, or had any communication with vernment having then recently paid off several them direct or indirect about the loan. It millions of its stock, which the bank had ownwas made on the credit of Mr. Burrows, wbo afterwards paid it.” • Col. R. M. Johnson. ed, the consequence was, that a large portion was not one word of truth in it from the begin. of the money capital of the institution was renning to the end. He added, that from the redered unproductive, and it became a matter of lation in which the witness stood to him, he great importance to have it invested. In this would have suuk into the earth, sooner than he state of things, the directors adopted a resolu would have dared to come to him with such a tion, authorising the loan of a large sum at less remonstrance as he pretended to have made. than the legal interest, upon the security of any The officers of the bank, from whom the witgood stocks. It is to be here remarked, that ness alleged that he derived this information, this was that portion of the capital of the bank were examined, and all of them positively conwhich had never been invested, and which it tradicted him. They testified and demonstratwas not deemed expedient to invest, in the ac-ed from the books, that Thomas Biddle & Co. tive business of discounts. The loan to Tho- had never obtained money, in any instance, mas Bidile & Co., on the pledge of stocks, was without paying interest, and that the two notes, analogous to a loan to the Government. The which Whitney asserted to have been discountstocks could, on any emergency, be sold and ed by the president alone, had been discounted converted into cash; so that this investment regularly by the directors. had, in some sort, the twofold attribute of In the interval between the adjournment of money in the vaults of the bank, to meet any the committee, that day, and its meeting the pressing demands against it, and money, at the nex', a member of the board of directors sugsame time, drawing interest. gested to Mr. Biddle, that he was, about the All the directors, who were examined on the time of this alleged transaction, in the city of subject, stated that they considered this trans- Washington. On examining the journals of action more for the benefit and accommodation the board and the letter book, it was found by of the bank, than of Thomas Biddle & Co.; and entries and letters, that for several days previ the president of the Bank of Pennsylvania stat-ous to the alleged interview between the presi ed, on oath, that the bank over which he pre-dent and Whitney, and for several days aftersided, would have been very glad to have ward, the president was absent on a visit to made large loans to Thomas Biddle & Co., at this city, on the business of the bank, and Gethe same time, and upon the same terms-the neral Cadwallader was acting as president in his board of directors of that bank having authoris-place! ed such loans at 4 per cent. Thus was this artfully devised story, which There was one occurrence during the exa- was intended to blast the reputation of a highmination of the transactions of Thomas Biddle minded and honorable man, through one of & Co., with the bank, which merits particular those extraordinary interpositions, by which notice. Providence sometimes confounds the contrivanAn informer and witness, by the name of ces of the wicked, made to recoil upon the Whitney, who had formerly been a director of head of its inventor, who must for ever stand the bank, was produced, who declared, upon forth as a blasted monument of the speedy and oath, that, in July, 1824, two of the cashiers of retributive justice of heaven. the bank, and one of the discount clerks, had inThe minority of the committee will avail formed him that Thomas Biddle & Co. had been themselves of this occasion to say, that they in the habit of drawing money out of the bank, had the most conclusive evidence, that in all on a deposite of stock in the teller's drawer, the transactions of the bank with Thomas Biddle without paying interest; and that the presi- & Co. and Charles Biddle, the president has dent of the bank had discounted two notes, one been, not only free from the slightest imputafor Thomas Biddle & Co., and one for Charles tion of partiality or favoritism, but that his conBiddle, without the authority of the directors. duct has been invariably governed by a nice This witness stated, that he went with these of and scrupulous sense of delicacy and proprie ficers of the bank, and examined the teller's ty. And this they feel authorized to say, is the drawer and the discount book, and found the opinion of a majority of the committee. The facts which had been stated to him verified by following resolution was unanimously adopted the examination. He also stated, to give ad. by the committee: ditional certainty to his averments, that he made Resolved, That the charge brought against a memorandum at the time, with the dates of the president, of lending money to Thomas the transactions, which memorandum he pro-Biddle & Co. without interest, and of discountduced to the committee. Having thus un l'ering notes for that house, and for Charles Biddle, ably fixed the date of the transaction, as if by without the sanction of the directors, are withsome fatality, he went on to say, that he imme-out foundation; and that there does, not exist diately proceeded into the room of Mr. Biddle, any ground for charging the president with the president, and remonstrated with him having shown, or manifested any disposition to against these irregular proceedings; and that show, any partiality to these individuals, in Mr. Biddle promised him that they should not their transactions with the bank. The report of the majority, adverting to the Mr. Biddle was present during the examina- withdrawal of specie from the southern and westtion of this witness. On that day, being on ern branches, and the substitution of paper in oath, he said, that he was utterly astonished at its stearl, suggests a doubt whether this operathe testimony of the witness, and could only tion may not be highly injurious to the southoppose to it his solemn declaration, that there ern and western States. So far from concur occur again. ring in this doubt, the minority are of the opi-cumulations and credits in Europe, the means nion that there are no portions of the Union so of remittances in its own bills, to the amount of much benefitted by the general operations of $5,295,746, and parted with its surplus specie the bank as the southwestern and western to the amount of five millions, making an ag States, and that the change produced by the gregate contribution to our commerce of $10,bank in the system and in the rates of domes 295,746." tic exchange, has been particularly beneficial The extent to which these operations of the to the whole of the southern and western States. bank must have relieved the country, are too Connected with the exchange operations of the obvious to require comment. Without this bank, the transmission of specie from New Or-temporary relief-and it was only tempoleans to the northern Atlantic cities, is nothing rary relief that the community requiredmore than a natural operation of trade, carry the greatest commercial distress would have ing the specie imported at New Orleans to its probably ensued. The criris is now nearappropriate markets. This operation is carried ly passed. The pressure on the money on by the bank instead of being left to indivi-market has, in a great measure, ceased; duals, to the undoubted advantage of the com-commerce has had time to correct its own ex munity. cesses; importations have been diminished, the With a view to connect itself more com- unfavorable state of the foreign exchanges no pletely with the commercial operations of the longer exists; specie has ceased to flow from country, the bank has also deemed it expe- the country, and has begun to flow into it. dient to deal freely in foreign exchange. It is Since March last the specie in the bank has inobvious that this branch of its business is as creased more than a million of dollars, and eveimportant to the foreign commerce of the ry thing is rapidly assuming a sound and healthy country, as dealing in domestic exchange condition. is to our internal commerce. The majority, in the concluding part of their Having heretofore had large funds in Europe, report, intimate the opinion that the bank, by and having still extensive credits there, it has its imprudent and excessive issues, has had a been, and still is, the policy of the bank to af- considerable agency in producing the overford to the mercantile community every facility trading and excessive importations of the last for carrying on foreign commerce. At the year. south, where the staples of exportation are Whatever show of plausibility there may be produced, it is constantly in the market as a in this opinion, facts demonstrate that it is enpurchaser of bills on Europe, to the great tirely erroneous. It will be seen from the benefit of the planter; and at the north, statements herewith exhibited, that the domeswhere foreign merchandise is imported, it is as tic discounts of the bank had not increased constantly in the market as a seller, to the like perceptibly, from March, 1829, to March, benefit of the importing merchant. In this way 1831; but that they maintained an almost unithe price of foreign bills is 'kept uniform and form level during the whole of the intervening steady, and those injurious Auctuations are period. The excessive importations, however, prevented which would otherwise operate as commenced in March and April, 1831, and heavy taxes upon the business classes of the must have had their origin in causes some community for the benefit only of private deal- months anterior. It is apparent, therefore, ers in exchange. that these excessive importations were not proThe majority of the committee have selected duced by the excessive issues of the bank, and for commentary, a particular branch of the fo- must have originated in other causes connected reign exchange business of the bank-that with the state of Europe. The more correct which is connected with the trade of India and view of the subject, is to consider the excessive South America. This subject has been alrea. importations as producing a state of things dy explained in another form, and it will be which rendered it necessary for the bank to sufficient to remark here that it has almost en-extend its discounts, with a view to relieve the tirely arrested the direct exportation of specie community from the temporary pressure to from this country to China, and that it saves to which it was thus exposed. this branch of our trade the whole of the inter It so happened, that at the very time the est upon the entire amount of every commer-country stood most in need of bank accommocial adventure, for at least six months out of dations, the bank had increased means and intwelve. On the subject of the general facili ducements to extend those accommodations.— ties which the bank has afforded to the country, The government having paid off, within the in the operations of foreign commerce, the last eighteen months, ten millions of its stock, minority of the committee will refer the House which was held by the bank, the directors to the perspicuous exposition furnished by the found that if they did not increase their dis president, of the general operations of the in-counts considerably, some millions of their stitution, which is herewith submitted and mark-capital must be idle and unproductive. It thus ed A. happened that the wants of the community, It will be seen from this document that du- the means of the bank, and, it may be added, ring the recent pressure upon the commercial the obligation of the directors to the stockcommunity, produced by the excessive impor. holders and to the community, all co operated tations of the last two years, the bank furnish to call for that extension of bank accommodaed, since September last, from its own actions, which, so far from having produced over |