nated in the resolution of this board, on the 20th with the heavy responsibilities of the bank on a July last are as follows: At Philadelphia, 20th July, the amount Actual reduction Reduction required by the resolution of 20th of July count of the foreign portion of the Louisiana debi the extreme delinquency and magnitude of the debt $10,424,900 due by many of the state banks,the incessant drain o 7,913,600 specie from the bank and its offices, and the cer tainty of the continuance and increase of the foreig 2,511,300 demand, indicated by the unexampled premiun paid at this time for specie, which is said to be 10 pe 2,000,000 cent. on Spanish dollars, and a considerable, though less premium on other coins; your committee art constrained to urge a steady perseverance in the 511,300 curtailment of the discounts at the bank and its offi ces, wherever it may be found practicable and use 9,080,500 ful; a vigorous enforcement of payment of the debts 7,844,300 due by state banks, and in default thereof, or of a satisfactory arrangement for their gradual and cer 1,236,200 tain liquidation; within a reasonable time, to cease 2,000,000 receiving either in payment or on deposit as cash, the notes of every such bank. The actual exceeds the required At Baltimore, 20th July, discounted 26th October, reduced to Actual reduction Deficiency 763,800 The application of the means which have been provided in London, must depend upon circumstan ces, as the bills of the bank cannot be forced into 2,996,500 market, without materially affecting the exchange, 2,477,400 which it is desirable to avoid, but the committee think it probable that favorable negociations may be 519,100 made, for bills in payment of the Louisiana debt, 700,000 with the agents of foreign stockholders, and that the funded debt of the United States, belonging to 180,900 the bank, and now waiting the answer of the secre tary of the treasury, may be applied to the same 1,420,400 purpose, but they do not see any prospect of nego1,253,200 ciating the bills on Calcutta, in the only way in which they would be useful to sell them, namely: 167,200 for specie which may have been collected for ex300,000 portation, so as not to give rise to new expeditions. With this view of the resources and responsibili. 132,800 ties of the institution, the committee respectfully 763,800 recommend the adoption of the following resolu 180,900 tions. 132,800 1st. That the president be authorised and request. ed to order an additional sum of one million and a 1,077,500 half of dollars, in French coin, to be shipped on account of the bank, with as little delay as possible, 2d. That the branches which have not reduced their discounts, as required by the resolution of the 20th July last be required to complete said reductions. 3. That in addition to the reductions require by the resolution of the 20th July last, the following offices be required to reduce their discounts at the average rate of 12 1-2 per cent. each discount day, until the aggregate shall amount to the following sums, viz. At Middletown, Connecticut $100,000 1,000,000 400,000 1,500,000 That upon investigation of the state bank, they find that large funds have been provided, and an ex-for the port of New-York. tensive credit established in London, by actual funds remitted, and three millions of dollars in the five per cent. debt of the United States, pledged in the hands of the agents there, upon which bills may be drawn. That a credit has also been established in Calcutta of 1,500,000 sicca rupees, to be used as occasion may require,orrelinquished without charge; that the residue of the funded debt of the United States belonging to the bank, amounting to $393, 049 12, at the prices at which the said debt was subscribed, has, by order of the board, been offered to the secretary of the treasury, with a view to the sale of the said stock in the market, if he shall decline taking it, which there is reason to believe he will do. That French coin to the amount of about 850,000 dollars, according to advices from the agents employed by the bank in London and Paris, must 4th. That the office at Charleston be directed to at this time be on its passage, of which the greater hold, subject to the order of the office at Savannah part may be hourly looked for: that an unlimited order of specie continues open at Jamaica; but that the low price of bills, the scarcity of specie at that market, and the prohibition of intercourse forbids the expectation of aid from that quarter; and that an effort has been made, through a respectable agent, to negociate for 3,000,000 of Spanish dollars, deliverable at Vera Cruz; but without success, as permission to export the dollars could not be obtained by the individual who held them. In comparing the means which have been pro'vided, and those which are in a train of execution $250,000 (including the $60,000 for which the lat ter, now holds the check of the cashier of this bank,) to ship to this port by the first regular packet, $150,000 in specie, consigned to the cashier of this bank, giving timely advice for insurance; and that the president and directors of the office at Charleston, be informed, that after the execution of the foregoing order, it will be expedient to regulate their discounts, according to the circumstances of the office, and the extraordinary demand for specie, which may be expected to prevail during the ensuing season. 5th. That the offices reciprocally refrain from drawing on each other, or upon this bank, until further orders. capital here to commence with, should not be less than $1,500,000, viz: $800,000 in specie, and $700000 in notes of the bank of the United States. They 6th. that the cashier of this bank be authorised make no account on funded debt, as they do not and required to draw upon the cashiers of the follow-perceive how that can be applied to the branch as ing named offices respectively, for the annexed active capital. sums in specie, and direct the same to be forwarded in the most secure aud expeditious manner to this bank, viz: The office at Richmond in specie, or The office at Lexington in specie, Cincinnati, Pittsburgh, 100,000 100,000 $550,000 believe, that the amount now standing to the credit In taking a view of the revenue, they are led to of the governnfent in the banks here, exceeds three millions of dollars, and that the average amount 50,000 hereafter in deposit may be about $1,500,000, which if collected and received by the branch, we might calculate on the use of one million in discounts, &c. &c. this added to the amount of $1,500,000 as desired, would make up the sum of $2,500,000, which 50,000 į might be considered as active capital. But, from the 100,000 contents of a circular from the treasury department, under date of the 20th inst. which has been addressed to the state banks here, and of which you have no doubt a copy, no account can at present be made 7th. That the cashiers of all the offices of this by the branch bank here, for any portion of the revebank be instucted to receive in payment, and on sults that the branch bank here cannot safely openue, until after the first day of July next, hence it redeposit as cash only, such bank notes as are actually rate but on the capital actually received from the paid in specie on demand, within such distance as mother bank, including the amount of specie to shall have no doubt of the fact at the time of receiv-be received from the commissioners who have ing any such notes, and not to credit as cash the notes the subscriptions, and who are to receive the of any bank which shall remain indebted to this in- second instalment, which, if paid, will probably stitution after payment shall have been demanded. amount to about $500,000; the residue of $500,000, 8th. That when the banks at Cincinnati shall have to make up the $800,000, will of course have to be made arrangements with the cashier of this bank for provided for in such manner and period, as the the payment of their respective debts, the cashier circumstances of the bank, and that of the country, of the office at Cincinnati may receive the notes of will render most convenient. any such bank as cash, provided the said banks shall thereafter pay its notes in specie on demand* RECAPITULATION: Of the means comprehended in this report, exclusive of the funds in London and Calcutta, of what may be received from the debtor banks, and of the accumulation of the public deposits arising from the duties and tonnage, viz: 850,000 Specie expected soon to arrive, Funded debt of the U. States to be sold, this bank, suppose Specie from Charleston, as designated, I have the honor to be, most respectfully, sir, Your obedient servant, (Signed) JOHN JACOB ASTOR, William Jones, Esq. Opinion of counsel, and resolution prohibiting transfer of stock, which had not been fully paid up. At a meeting of the president and directors of 1,500,000 the bank of the United States: 400,000 January 24th, 1817, Present, W. JONES, president. 1,000,000 Messrs. Ralston Savage Eyre Girard Price Wetherill Fisher Goddard Evans 700,000 1,500,000 $7,027,500 THOS. M. WILLING. Bank of the United States, Oct. 30, 1813. The president informed the board, that he had in pursuance of the resolution passed at the last meeting, submitted the following questions to coun sel, and had received an answer, with a form of a certificate of stock, which were ordered to be entered on the minutes; viz. 1st: Is it obligatory upon the corporation to provide for the transfer of stock of the bank, prior to the completion of the shares. 2d. If it is obligatory, and the bank shall have Answer given by the president of New York branch, as provided for the transfers accordingly, has the board to amount of specie required, of directors the lawful authority to withold the transfer of a certificate of stock, on which a partial payment shall have been made, when a subsequent payment shall be due and unpaid. *New York, 28th December, 1816. STR-I had the honor to receive your letter, with 3 copy of the resolution passed by the board of directors of the bank, on the 16th inst. which I have 3d. If the respective instalments shall not be paid in compliance with your request, submitted to the at the time prescribed by law, has not the board of board of directors for their consideration; the re-directors the lawful authority to demand the intersult of which is, that they deem it desirable that the est thereon, from that time, until the day of actual payment? *The above resolutions were adopted. 4th. If the authority of the board shall, in your opinion, be incompetent to the end proposed in the foregoing questions, is there any other adequate expedient, within the lawful authority of the board? Philadelphia, January 22d, 1817. SIR-We have given to the questions proposed in your letter of yesterday (received this day) all the consideration the limited time would admit, and we beg you to inform the board, that during Mr. Sergeant's absence, we shall, at all times, be ready to confirm the reference which he has made to us, in the letter of which you have furnished us an extract. In answer to the first, we are of opinion, that there is no obligation on the part of the bank, to provide for the transfer of the stock, prior to the completion of the shares; but it is in their power to provide for such transfer, in the manner, and under the conditions they may deem expedient, and we are therefore of opinion, that the board may adopt a form of transfer, which will confine transfers to such shares only, as are not in default for any instalment. We take the liberty of handing herewith, such a form. certain the amount of the notes of the corporation payable at this bank and its offices of discount and deposit severally, which have been received at the office at Boston on account of the public revenue; also, the amount of debentures, and the manner in which they have been paid. If the data in your office will enable you to furnish the information required, you will give it retrospec tively to the commencement of your operations, or as far back as the discrimination may be practicable. I am, with respect, your obedient servant. (Signed) JONA. SMITH Cashier. Samuel Frothingham, Esq. cashier Boston, List of notes of the bank of the United States received, OFFICE OF DISCOUNT AND DEPOSIT, DEAR SIR-In reply to your favor of the 14th inst. which I received yesterday I have the honor to state that this office commenced the collection of the public revenue, on the 6th February, 1817, and from that date, to the 13th March following, receiv ed on account thereof, Do. Baltimore office The second question has already been answered. In answer to the third question, we are of opinion, that the board has not the authority to demand inte-In notes of the bank of the U. States, $135,320 05 rest upon instalments in arrear. On this question we 22,800 wish to be understood, as expressing our present Paid in debentures to the last date 108,598 27 opinion, which a further consideration may alter. On the 13th March, 1817, we commenced receiv In answer to the fourth question, we have alreadying in deposit as cash, and paying promiscuously suggested the only arrangement which occurs to us, for promoting the punctual payment of the instalments, viz. depriving the shareholders of the benefit of transfering any share in default. We are, very respectfully, sir, your obdt. serv'ts. Wm. Jones, Esquire, president bank United States. No. Bank of the United States of America. 2 instalment due is entitled to share in the capital or attorney, subject nevertheless to the third payment, to come due thereon, accord 3d Instalment, dae ing to the terms prescribed by the Witness the seal of the President, 18 The question submitted to counsel, and their opinion thereon, in respect to the transfer of stock of the bank, upon which the respective instalments which may be due, shall not have been paid at the time of any such application to transfer, being under consideration. with the notes of this office; the notes of the bank, and several branches, and continued with a trifling intermission, until the 19th March, 1818, during this time, we have no data, by which to distinguish the amount received for the revenue. Debentures paid during this time, $975,727 57 The amount of notes of the bank of the United States and several offices, received in payment of the revenue at this office, from the 19th March 1818, to this day, is $1,372,474 14, as follows, viz: Notes of the bank of United States Office at Baltimore New York Norfolk $598,429 14 97,635 156,165 99,725 44,150 22,230 44,360 New Orleans Providence Middletown Debentures paid from the 19th of March last, to this day, $731,892 96. The debentures have principally been appropri ated in part payment of the duties. When payment of the debenture has been requir ed, the bond for duties having been previously dis charged, during the time that the notes of the other offices were received at this as cash, such debentures have been paid in these notes which were re sponded for in specie at this office, if required, and the notes of this office. Since that period, such debentures have been paid in the notes of this of re-fice. On motion, resolved, that the officers of the bank be instructed to confine the transfers of the stock of this bank, to such shares only as are not in default for any instalment. Jonathan Smith's cashier, letter to S Frothingham, specting notes of the bank of the United States, ceived for duties, &c. re BANK UNITED STATES, Dec. 14, 1818. DEAR SIR-The committee of inquiry wish to as nated in the resolution of this board, on the 20th with the heavy responsibilities of the bank on ad July last are as follows: At Philadelphia, 20th July, the amount Actual reduction Reduction required by the resolution of 20th of July count of the foreign portion of the Louisiana debt, the extreme delinquency and inagnitude of the debts $10,424,900 due by many of the state banks, the incessant drain of 7,913,600 specie from the bank and its offices, and the cer tainty of the continuance and increase of the foreign 2,511,300 demand, indicated by the unexampled premium paid at this time for specie, which is said to be 10 per 2,000,000 cent. on Spanish dollars, and a considerable, though less premium on other coins; your committee are constrained to urge a steady perseverance in the 511,300 curtailment of the discounts at the bank and its offi ces, wherever it may be found practicable and use 9,080,500 ful; a vigorous enforcement of payment of the debts 7,844,300 due by state banks, and in default thereof, or of a satisfactory arrangement for their gradual and cer1,236,200 tain liquidation; within a reasonable time, to cease 2,000,000 receiving either in payment or on deposit as cash, the notes of every such bank. The actual exceeds the required At Baltimore, 20th July, discounted 26th October, reduced to Actual reduction Deficiency 763,800 The application of the means which have been provided in London, must depend upon circumstan ces, as the bills of the bank cannot be forced into 2,996,500 market, without materially affecting the exchange, 2,477,400 which it is desirable to avoid, but the committee think it probable that favorable negociations may be 519,100 made, for bills in payment of the Louisiana debt, 700,000 with the agents of foreign stockholders, and that the funded debt of the United States, belonging t 180,900 the bank, and now waiting the answer of the secretary of the treasury, may be applied to the same 1,420,400 purpose, but they do not see any prospect of nego 1,253,200 ciating the bills on Calcutta, in the only way in which they would be useful to sell them, namely: 167,200 for specie which may have been collected for ex. 300,000 portation, so as not to give rise to new expeditions. With this view of the resources and responsibili 132,800 ties of the institution, the committee respectfully 763,800 recommend the adoption of the following resolu 180,900 tions. 132,800 1,077,500 That upon investigation of the state bank, they find that large funds have been provided, and an extensive credit established in London, by actual funds remitted, and three millions of dollars in the five per cent. debt of the United States, pledged in the hands of the agents there, upon which bills may be drawn. That a credit has also been established in Calcutta of 1,500,000 sicca rupees, to be used as occasion may require,orrelinquished without charge; that the residue of the funded debt of the United States belonging to the bank, amounting to $393, 049 12, at the prices at which the said debt was subscribed, has, by order of the board, been offered to the secretary of the treasury, with a view to the sale of the said stock in the market, if he shall decline taking it, which there is reason to believe he will do. That French coin to the amount of about 850,000 dollars, according to advices from the agents employed by the bank in London and Paris, must! at this time be on its passage, of which the greater part may be hourly looked for: that an unlimited order of specie continues open at Jamaica; but that the low price of bills, the scarcity of specie at that market, and the prohibition of intercourse forbids the expectation of aid from that quarter; and that an effort has been made, through a respectable agent, to negociate for 3,000,000 of Spanish dollars, deliverable at Vera Cruz; but without success, as permission to export the dollars could not be obtained by the individual who held them. In comparing the means which have been provided, and those which are in a train of execution 1st. That the president be authorised and requested to order an additional sum of one million and a half of dollars, in French coin, to be shipped on account of the bank, with as little delay as possible, for the port of New-York. 2d. That the branches which have not reduced their discounts, as required by the resolution of the 20th July last be required to complete said reductions. 3. That in addition to the reductions require by the resolution of the 20th July last, the following offices be required to reduce their discounts at the average rate of 12 1-2 per cent. each discount day, until the aggregate shall amount to the following sums, viz. At Middletown, Connecticut $100,000 1,000,000 400,000 1,500,000 4th. That the office at Charleston be directed to hold, subject to the order of the office at Savannah $250,000 (including the $60,000 for which the lat ter, now holds the check of the cashier of this bank,) to ship to this port by the first regular packet, $150,000 in specie, consigned to the cashier of this bank, giving timely advice for insurance; and that the president and directors of the office at Charleston, be informed, that after the execution of the foregoing order, it will be expedient to regulate their discounts, according to the circumstances of the office, and the extraordinary demand for specie, which may be expected to prevail during the ensuing season. |