2

2

tion of vessels is as two hundred to one. The whole number of European vessels in a series of five years-1849 to 1853-varied from 17,563 to 21,586; the American vessels during the same years varying from 76 to 135. These figures show the small comparative interest of the United States in the reduction, or abolition of these dues-large enough to make the United States desirous of reduction or abolition-entirely too small to induce her to become the champion of Europe against Denmark: and, taken in connection with our geographical position, and our policy to avoid European entanglement, should be sufficient to stamp as QuixFotic, and to qualify as mad, any such attempt.

CHAPTER LXXXVII.

LAST NOTICE OF THE BANK OF THE UNITED
STATES.

enable her to bid for a re-charter at the extra session. This was the last hope, and which had been resolved upon from the moment of General Harrison's election. She was empty. The seventy-six millions of assets, sworn to the month before, were either undiscoverable, or unavailable. The shortest month in the year had been too long for her brief resources. Early in the month of February, her directory issued a new decree of suspension-the third one in four years; but it was in vain to undertake to pass off this stoppage for a suspension. It was felt by all to be an insolvency, though bolstered by the usual protestations of entire ability, and firm determination to resume briefly. An avalanche of suits fell upon the helpless institution, with judgments carrying twelve per cent. damages, and executions to be levied on whatever could be found. Alarmed at last, the stockholders assembled in general meeting, and verified the condition of their property. It was a wreck! nothing but fragments to be found, and officers of the bank feeding on these crumbs though already gorged with the spoils of the monster.

FOR ten long years the name of this bank had resounded in the two Halls of Congress. For twenty successive sessions it had engrossed the national legislature-lauded, defended, supported-treated as a power in the State: and vaunted as the sovereign remedy for all the diseases to which the finances, the currency, and the industry of the country could be heir. Now, for the first time in that long period, a session passed by-one specially called to make a bank -in which the name of that institution was not once mentioned: never named by its friends! seldom by its foes. Whence this silence? Whence this avoidance of a name so long, so lately, and so loudly invoked? Alas! the great bank had run its career of audacity, crime, op-ing to Europe, where four millions sterling of pression, and corruption. It was in the hands of justice, for its crimes and its debts-was taken out of the hands of its late insolvent directory-placed in the custody of assigneesand passed into a state of insolvent liquidation. Goaded by public reproaches, and left alone in a state of suspension by other banks, she essayed the perilous effort of a resumption. Her credit was gone. It was only for payment that any one approached her doors. In twenty days she was eviscerated of six millions of solid dollars, accumulated by extraordinary means, to

A report of the affairs of the institution was made by a committee of the stockholders: it was such an exhibition of waste and destruction, and of downright plundering, and criminal misconduct, as was never seen before in the annals of banking. Fifty-six millions and three quarters of capital out of sixty-two millions and one quarter (including its own of thirty-five) were sunk in the limits of Philadelphia alone: for the great monster, in going down, had carried many others along with her; and, like the strong man in Scripture, slew more in her death than in her life. Vast was her field of destructionextending all over the United States-and reach

her stock was held, and large loans had been contracted. Universally on classes the ruin fell-foreigners as well as citizens-peers and peeresses, as well as the ploughman and the wash-woman-merchants, tradesmen, lawyers, divines: widows and orphans, wards and guardians: confiding friends who came to the rescue: deceived stockholders who held on to their stock, or purchased more: the credulous masses who believed in the safety of their deposits, and in the security of the notes they held-all-all saw themselves the victims of indiscriminate

ruin. An hundred millions of dollars was the himself-the president being engaged for the lowest at which the destruction was estimated; moment. Presently a side door opened. He and how such ruin could be worked, and such was ushered into the presence-graciously reblind confidence kept up for so long a time, is ceived-stated his business-was smilingly anthe instructive lesson for history: and that les-swered that he could have it, and more if he son the report of the stockholders' committee enables history to give.

wished it: that he could leave his note with the exchange committee, and check at once for the proceeds: and if inconvenient to give an indorser before he went home, he could do it afterwards: and, whoever he said was good, would be accepted. And in telling me this, the member said he could read "bribery" in his eyes.

on loose security, or none: and when paid, if at all, chiefly in stocks at above their value. The report of the committee thus states this abuse :

"These loans were generally in large amounts. In the list of debtors on 'bills receivable' of the first of January 1837, twenty-one individuals, firms and companies, stand charged, each

From this authentic report it appears that from the year 1830 to 1836-the period of its struggles for a re-charter-the loans and discounts of the bank were about doubled-its expenses trebled. Near thirty millions of these loans were not of a mercantile character-neither made to persons in trade or business, nor govThe loans to brokers to extort usury uponerned by the rules of safe endorsement and to jobbers, to put up and down the price of punctual payment which the by-laws of the in-stocks-to favorites, connections, and bank offistitution, and the very safety of the bank, re-cers, were enormous in amount, indefinite in time, quired; nor even made by the board of directors, as the charter required; but illegally and clandestinely, by the exchange committee-a small derivation of three from the body of the committee, of which the President of the bank was ex officio a member, and the others as good as nominated by him. It follows then that these, near thirty millions of loans, were virtually made by Mr. Biddle himself; and in vio-ceived accommodations of this kind between lation of the charter, the by-laws and the principles of banking. To whom were they made? To members of Congress, to editors of newspapers, to brawling politicians, to brokers and jobbers, to favorites and connections: and all with a view to purchase a re-charter, or to enrich connections, and exalt himself—having the puerile vanity to delight in being called the "Emperor Nicholas." Of course these loans were, in many instances, not expected to be returned-in few so secured as to compel return and, consequently, near all a dead loss to the stockholders, whose money was thus disposed of.

The manner in which these loans were made to members of Congress, was told to me by one of these members who had gone through this process of bank accommodation; and who, voting against the bank, after getting the loan, felt himself free from shame in telling what had been done. He needed $4,000, and could not get it at home: he went to Philadelphia-to the bank-inquired for Mr. Biddle-was shown into an ante-room, supplied with newspapers and periodicals; and asked to sit, and amuse

with an amount of one hundred thousand dol

lars and upwards. One firm of this city re

August 1835, and November 1837, to the extent of 4,213,878 dollars 30 cents-more than half of which was obtained in 1837. The officers of the bank themselves received in this way, loans to a large amount. In March 1836, when the bank went into operation, under its new charter, Mr. Samuel Jaudon, then elected its princiWhen he resigned the situation of cashier, and pal cashier, was indebted to it, 100,500 dollars. was appointed foreign agent, he was in debt 408,389 dollars 25 cents; and on the first of March 1841, he still stood charged with an indebtedness of 117,500 dollars. Mr. John Andrews, first assistant cashier, was indebted to the bank in March 1836, 104,000 dollars. By subsequent loans and advances made during the next three years, he received in all, the sum of 426,930 dollars 67 cents. Mr. Joseph Cowperthwaite, then second assistant cashier, was in debt to the bank in March 1836, 115,000 dollars; when he was appointed cashier in September, 1837, 326,382 dollars 50 cents: when he re signed, and was elected a director by the board, in June 1840, 72,860 dollars, and he stands charged March 3, 1841, on the books with the sum of 55,081 dollars 95 cents. It appears on the books of the bank, that these three gentletheir joint accounts, in the stock and loan of men were engaged in making investments on the Camden and Woodbury railroad company, Philadelphia, Wilmington, and Baltimore rail

legal opinion, from counsel of high standing, and the views of the former president, by whom the agreement with Mr. Jaudon was made, that the case of extraordinary loans was not anticipated, These enormous loans were chiefly in the year nor meant to be included in the original arrange1837, at the time when the bank stopped payment, allowed the further charge of $83,970 37. ment on account of the "specie circular," the These several sums amount to $335,937 39, as "removal of the deposits," and other alleged misdoings of the democratic administrations: and this is only a sample of the way that the institution went on during that period of fictitious distress, and real oppression-millions to brokers and favorites, not a dollar to the man of business.

Two agencies were established in London-imperious corporation. Protect the country at one for the bank, under Mr. Jaudon, to borrow money; the other for a private firm, of which Mr. Biddle was partner, and his young son the London head—its business being to sell cotton, bought with the dead notes of the old bank. Of the expenses and doings of these agencies, all bottomed upon the money of the stockholders (so far as it was left), the committee gave this account:

ceeds to be remitted to their house in London, then acting as the agents of the bank. The amount of these shipments was 2,182,998 dol

nally made on a pledge of stocks, were paid for in the same kind of property, and that too at par, when in many instances they had become depreciated in value. It is very evident to the commit-lars 28 cents. The proceeds were passed to the tee, that several of the officers of the bank were credit of the bank, and the account appears to be themselves engaged in large operations in stocks balanced. The results, as to the profit and loss, and speculations, of a similar character, with do not appear, and the committee had no means funds obtained of the bank, and at the same time of ascertaining them, nor the names of the par loans were made to the companies in which they ties interested. In the autumn of 1837, when were interested, and to others engaged in the the second of these transactions commenced, it same kind of operations, in amounts greatly dis- will be recollected, that Mr. Samuel Jaudon had proportionate to the means of the parties, or to been appointed the agent of the bank to reside their proper and legitimate wants and dealings. in London. About the same time, a co-partnerThe effect of this system, was to monopolize ship was formed between Mr. May Humphreys, the active means of the institution, and disable then a director of the bank, and a son of Mr. it from aiding and accommodating men engaged Nicholas Biddle, under the firm of Biddle & in business really productive and useful to the Humphreys. This house was established at community; and as might have been anticipated, Liverpool, and thenceforward acted as agents for a large part of the sums thus loaned were ulti- the sale of the produce shipped to that place, mately lost, or the bank compelled, on disad- which comprised a large proportion of the whole vantageous terms as to price, to take in pay-amount. In explanation of these proceedings, ment stocks, back lands and other fragments of the estates of great speculators."

The cotton agency seemed to be an ambidextrous concern-both individual and corporation -its American office in the Bank of the United States-the purchases made upon ten millions of its defunct notes-the profits going to the private firm-the losses to the bank. The committee give this history:

the committee annex to their report a copy of a
letter dated Philadelphia, December 28, 1840, to
the president and directors of the bank, from
Mr. Joseph Cabot, one of the firm of Bevan &
Humphreys, and who became a director at the
election in January, 1838. This letter was read
inserted on the minutes.
to the board, December 29, 1840, but was not

"This arrangement continued during the years 1837, 1838 and 1839, the transactions of which amounted to 8,969,450 dollars 95 cents. The shipments were made principally to Biddle and "In the course of the investigation the atten- Humphreys, were paid for by drafts on Bevan tion of the committee has been directed to cer- and Humphreys-the funds advanced by the tain accounts, which appear on the books as 'ad- bank, and the proceeds remitted to Mr. Samuel vances on merchandise,' but which were, in fact, Jaudon, agent of the bank in London. It ap payments for cotton, tobacco and other produce, pears that there was paid to Messrs. Bevan and purchased by the direction of the then President, Humphreys by the bank in Philadelphia during Mr. Nicholas Biddle, and shipped to Europe on the months of March, April, and May, 1839, the account of himself and others. These accounts sum of eight hundred thousand dollars, and the were kept by a clerk in the foreign exchange account was thus balanced. The committee department, this department being under the have reason to believe, that this sum consticharge of Mr. Cowperthwaite, until September tuted a part or perhaps the whole of the profits 22, 1837, when he was elected cashier, and of derived from the second series of shipments Mr. Thomas Dunlap, until March 20, 1840, How, and among whom, it was distributed when he was chosen president. The original they have not been informed, but from the documents, necessary to enable the committee terms of the final settlement, to be adverted to to arrive at all the facts in relation to these presently, each one will be at liberty to make transactions, were not accessible, having been his own inferences. The third and last acretained, as was supposed, by the parties in-count, amounting to 3,241,042 dollars 83 cents, terested, as private papers. A succinct view of appears on the books, as bills on London, adthe whole matter, sufficient to convey to the vances S. V. S. W.' These letters stand for stockholders a general idea of its character, may the name of S. V. S. Wilder, of New York.be drawn from the report of a committee of the Messrs. Humphreys and Biddle, to whom these board of directors, appointed on the 21st of consignments were made, continued their acJuly, 1840, for the purpose of adjusting and counts in the name of Bevan and Humphreys, settling these accounts, and who reported on the but without the knowledge of that firm, as ap21st of December, 1840, which report with the pears by Mr. Cabot's letter of December 28, accompanying accounts, is spread at large upon 1840. The result of these last shipments, was the minutes. The first transactions were in a loss of 962,524 dollars 13 cents. July, 1837, and appear as advances, to A. G. amount the sum of 553,908 dollars 57 cents was Jaudon, to purchase cotton for shipment to for excess of payments by Messrs. Humphreys Baring Brothers & Co. of Liverpool, the pro-and Biddle to the London agency, beyond the

Of this

Thus, the profit of eight hundred thousand dollars on the first shipments of cotton went to this private firm, though not shown on the books to whom; and the loss of nine hundred and sixty-two thousand five hundred and twenty-four dollars and thirteen cents on the last shipments went to the bank; but this being objected to by some of the directors, it was settled by Mr. Biddle and the rest-the bank taking from them stocks, chiefly of Texas, at par-the sales of the same being slow at a tithe of their face. The bank had also a way of guaranteeing the individual contracts of Mr. Biddle for millions; of which the report gives this account:

called upon for explanations-which they refused to give. Thus:

"In this last account there is a charge under date of June 30, 1840, of $400,000 to parent bank notes account,' which has not been explained to the satisfaction of the committee. It must be also mentioned, that among the expenditures of the bank, there is entered, at various dates, commencing May 5, 1836, sums amounting in all to 618,640 dollars 15 cents, as paid on the 'receipts of Mr. N. Biddle,' of Mr. N. Biddle and J. Cowperthwaite,' and 'cashier's vouchers.' As the committee were unable to obtain satisfactory information upon the subject of these expenses from the books or officers of the bank, application was made by letter to Mr. N. Biddle and Mr. J. Cowperthwaite, from whom no reply has been received."

These enormous transactions generally without the knowledge of the directory, usually upon the initials of a member of the exchange committee; and frequently upon a deposit of stock in the cash drawer. Besides direct loans to members of Congress, and immense fees, there was a process of entertainment for them at immense expense-nightly dinners at hotels -covers for fifty: and the most costly wines Besides "Upon the eighteenth day of August, 1838, and viands: and this all the time. the bank guaranteed a contract made by Mr. direct applications of money in elections, the Nicholas Biddle in his individual capacity, for bank became a fountain of supply in raising an the purchase of two thousand five hundred election fund where needed, taking the loss on bonds of the State of Mississippi, of two thousand dollars each, amounting in the whole to itself. Thus, in 1833, in the presidential election 5,000,000 dollars. The signature of Mr. Thomas in Kentucky, some politicians went into the Dunlap, then second assistant cashier, was affix- branch bank at Lexington, assessed the party ed to the guarantee, in behalf of the bank, upon in each county for the amount wanted in that the verbal authority of the president. Upon the 29th of January, 1839, the bank guaranteed to county-drew drafts for the amount of the asthe State of Michigan, the punctual fulfilment sessment on some ardent friends in the county, of the obligations of the Morris canal and bank-received the cash for the drafts from the bank, ing company, for the purchase of bonds of that state, to the extent of 3,145,687 dollars 50 cents. for 2,700,000 taken at par, and including interest on the instalments payable every three months up to January, 1843. On the 29th of April, 1839, the bank guaranteed a contract entered into by Mr. Thomas Dunlap in his individual capacity for the purchase of one million of dollars of the 'Illinois and Michigan canal stock.' In regard to these transactions, the committee can find no authority on the minutes of the board, and have been referred to none, by the president, upon whom they called for information."

Unintelligible accounts of large amounts appeared in the profit and loss side of the bank ledger; which, not explaining themselves, the parties named as receiving the money, were VOL. II.-24

and applied it to the election-themselves not liable if the assessment was not paid, but the same to go to the profit and loss account of the bank. In such operations as all these, and these are not all, it was easy for the bank to be swallowed up: and swallowed up it was totally.

The losses to the stockholders were deplorable, and in many instances attended with circumstances which aggravated the loss. Many were widows and children, their all invested where it was believed to be safe; and an ascertained income relied on as certain, with eventual return of the capital. Many were unfortunately deceived into the purchase or retention