(No. 30.) Message from the Governor, transmitting papers relative to the Bank of Macomb county. EXECUTIVE DEPARTMENT, To the House of Representatives: } I enclose herewith a communication, with other papers, from C. A. Emerson, cashier of the Bank of Macomb county, which I am requested to lay before the legislature. S. T. MASON. DOCUMENTS. Letter to the Bank Commissioner, from the Governor. EXECUTIVE Department, DEAR SIR-I enclose you herewith a letter from the Cashier of the Bank of Macomb county, accompanying which, is a statement of the condition of the bank on the 23d February instant, to which I beg leave to call your attentien. I am, sir, yours, &c. TO KINTZING PRITCHETTE, Esq. S. T. MASON. Bank Commissioner. (No. 2.) Bank of Macomb County, Mount Clemens, 23d Feb. 1839. Statement of the Affairs of this Bank, February 23, 1839, Loans and discounts, $76,619 10 Capital paid in, $105,420 00 Due from sundry per's, 1,261 45 31,585 00 Real estate, 2,850 00 Bank furniture, 1,808 30 On exchange, 9,390 00 "John Ward & Co. 2 25 Due from other banks, 3,704 73 I, C. A. Emerson, cashier of the Bank of Macomb county, being duly sworn, do depose and say, that the foregoing statement is true, to the best of my knowledge and belief. C. A. EMERSON, Cashier. Subscribed and sworn, this the twenty-third day of February, 1839, before me. T. R. BROWN, Notary Public. (No. 3.) Letter from C. A. Emerson, Cashier, with a Statement of the condition of the Macomb County Bank. Mount Clemens, 23d Feb. 1839. To his Excellency STEVENS T. MASON, Gov. State of Michigan: DEAR SIR-During my absence from home, I understood that the legislature desired a statement of the condition of this institution, and that the Bank Commissioners were directed to make an examination. I have not been able to see the report made to the legislature by them, but I am conscious that their report will mislead the public, as to the true situation of our bank. A portion of the stock has been recently paid in by the stockholders, and the circulation much reduced. Specie and other funds have been placed in the vaults of the bank, to a greater amount than the whole of their liabilities to the public. We have also made a movement to have the injunction now upon the bank dissolved, so that those holding the bills of the bank can receive their pay for the same, if they desire. It is to correct the public in this respect, that I transmit the actual state of the bank, and request, that you will lay the same before the legislature. I am, dear sir, your obed't and humble serv't, Cashier. (No. 4.) Letter from the Bank Commissioner. Detroit, February 27, 1839. To his Excellency STEVENS T. MASON. SIR-In reply to your communication, calling my attention to a letter addressed to you by C. A. Emerson, cashier of the Macomb county bank, covering a statement of the condition of that institution, and expressing a consciousness that the report of the Bank Commissioners will mislead the public as to the true situation of the bank, I have the honor to state that on the examination of the bank there was no person present to explain its affairs, but the president, A. Weeks. His ability to make the proper explanation of the transactions of the bank, he stated, was limited, and expressed a strong desire that the report should, if possible, be delayed until the return of C. A. Emerson, the Cashier. He promised that Mr. Emerson and himself, would wait upon the Commissioners in Detroit, and explain the former transactions of the bank, and the arrangements then in process of completion by the cashier, to reinstate its affairs. The former president and one of the directors likewise, promised to furnish some information, which they have since done. With a view to a full and impartial report, its completion has been delayed. From the course, however, which has been taken by the cashier, it would appear, that he is not disposed to redeem the pledge given by the president. The report, therefore, will be prepared without further delay, from the materials in my possession, and transmitted to the legislature. With great respect, Your obed't serv't. K. PRITCHETTE, (No. 31.) Report of the majority of the committee appointed to inquire into the condition of the Michigan State Bank. The select committee of investigation, to whom was committed the examination and inquiry into the condition of the funds of this state, the disbursements made by the officers and agents of the same, and also to give their opinion as to the safety of the money belonging to the state, and if the same is now available, have had the subjects embraced within the inquiry under consideration, and having, in the opinion of your committee, bestowed the attention that so important and deeply interesting subject demands, beg leave to submit the following report and accompanying docu ments. To enable your committee to proceed to the investigation without delay, they instructed their chairman to communicate to the president of the Michigan State Bank, that a committee had been appointed for the purposes above mentioned, and requesting him to name a day at his earliest convenience, to receive the committee at the bank to proceed with their examination; and in reply to that letter, your committee received for answer, that on the following Monday, the bank would receive the committee at its banking-house, and submit a statement of its affairs and condition for their inspection. In the mean time, and with a view of facilitating this inquiry, the committee instructed their chairman to propound the following written interrogatories to the president of the bank, and would respectfully refer the House to document marked (A.) for a copy of the same. On Monday, the fourth of February, your committee had their first meeting at the bank, and received from F. H. Steevens, Esq. the president thereof, the following statement, marked (B.) in the accompanying docu ments. After an examination was had into the above mentioned state. ment, your committee concluded, that further information was necessary to enable them to arrive at just conclusions, either as to the condition of the bank, or the safety of the funds belonging to the state deposited there; and they consequently instructed their chairman to propound further interrogatories, with a statement annexed, contained in document marked (C.) After a delay of several days, your committee received from the president of the above mentioned bank, a statement, the correctness of which was verified with his oath, purporting to be answers to the several interrogatories, propounded in documents, marked (A. and C.) and which is herewith annexed, marked (D.) To this statement, your committee felt called upon to take strong and decided exceptions. They could not resist the conviction that forced itself upon their mind, that their inquiry was sought to be evaded, or themselves treated with disrespect, and consequently the following correspondence took place between the committee and the presi dent of the bank; their respective communications, marked (E. and F) will be found in the accompanying documents. It will also be seen from this correspondence, that the committee proposed to pursue a different course, in continuing this investigation, and in pursuance of that determination, a meeting was had at the bank, and a particular inquiry instituted relating to that very singular item, in document marked, (D.) “ Various other bank notes, $16,690," the result of which will be found in document marked (G.) At the above meeting and with a view to prevent any future misunderstanding between the committee and the bank, they submitted the following statement, marked (H.) in documents. In their subsequent examinations at the bank, the committee have been enabled to establish the following facts: First, that within the past year, the Michigan state bank has received from the State Treasurer, and in behalf of the state, and principally to the credit of the general fund, $14,919 78, which sum has been entered upon their books and marked "special," not sealed up and placed into the vaults of the bank for safe keeping, to be handed back to the depositor in kind, but left in a condition to be handled, used or appropriated, not only by the officers of the bank, the State Treasurer, but the board of internal improvement, and various other persons under their direction, who were desirous to make selections from the same. Second, that these funds were so situated, that your committee cannot for a moment believe, that any distinction was or could be kept under the circumstances, between the funds of the state, and similar kind of funds received by the bank; and in support of this position, is the fact, that the officers, of the bank were unable to state to the committee the precise kind of funds received when those entries were made upon the books of the bank. Neither can they inform the committee of the specific kind of funds, that have been paid to contractors and others, from the internal improvement fund; but testimony has been elicited to show that a large quantity of very worthless money has been paid from that fund, and a portion of which, at an advanced period of last sum mer. The officers of the bank testified before the committee, that city funds or their equivalent, had been paid in all cases to those having claims upon the internal improvement fund, since the first of August last, and yet that is positively contradicted by other testimony. The president of the bank sets forth, in document (D.) |