gress. While the committee refer to the transactions of the Bank in the funded debt of the United States, for the purpose above mentioned, they also have in view the presentation of the subject to show, not only the manner of disposing of that stock, but whether it was not contrary to the express understanding with the Government at the time of obtaining the stocks. For the loans of four millions of dollars, of five per cents. made in 1821, and the five millions of four and a half per cents. made in December, 1824, there was strong individual competition, at a premium for a part or the whole, against the bank; yet the bank had a preference over the individual offers, upon the principle that it would be more advantageous to give it to the Bank at a reduced rate, and participate as a partner, than give it to individuals at a premium. This was confirmed at the trea sury. pike roads, made too, after the General Government had declined to make appropriations for similar objects.* A question would naturally arise whether the public funds in the bank, for that institution, is expressly founded upon the principle that it is necessary to, and constitutes a part of the treasury of the United States, can be appropriated to objects indirectly, by the officers of that institution, when the Government directly refuses to expend its revenues on the very same objects. The committee have looked in vain for any authority in the charter to give away the money of the stockholders. If the charter contains the powers by which the bank is to act, and they are to be strictly pursued, there is then no grant to make gratuities for any object whatever. The consequences of the exercise of such a right, might be fraught with very great injury to the stockholders; certainly of dangerous interference in the rival trade of different sections of the country, and of pernicious influence upon the operations of Government. The committee approach the last ground, which is the building houses to rent or sell, and erecting other structures in aid of that object. They will merely pre sent the fact and the law, and leave the House to place their own construction upon the case. By an extract from the minutes of the board of directors, communicated to the Senate on the 18th day of March last, the following facts appear, viz. "The committee on the offices, to whom was, this day, referred a letter to the president, from George W. Jones, agent, dated May 23d, recommending to the bank the construction of two canal basins, and the erection of warehouses around one of them, according to the plan submitted by him, recommend to the board the adoption of the following resolution: 66 Resolved, that the board approve of the formation of two canal basins at Cincinnati, proposed by Mr. Jones; one of them to be on square number fifty-five; (55,) and the other to be on the square of ground be. tween Walnut and Vine streets, and Canal and St. Clair on Court streets; and that he be authorized to erect forthwith, warehouses on the margin of this last mentioned basin, not exceeding six in number, either in one block or separately, as he may deem most expedient for the interest of the bank." The president of the bank, in a letter dated 15th December, 1824, which will be found among the documentary testimony, after saying he had taken the whole of the $5,000,000 loan at par, says, "and since we have taken the loan at par, on the distinct ground of our having the means of doing it, it would be advisable, in every point of view, not to sell any of the Florida loan in Boston." By a statement of the amount of funded debt sold by the bank, marked No. 6, it will be seen that, as early as June and July, 1825, the year after it was taken, the bank began to sell this stock, and continued to do so, sometimes at a premium, and sometimes at a loss, up to the 27th day of November, 1829, on which day they had disposed of all but $93,925 92, and that too at a loss of $4,443 34, notwithstanding offers were made by individuals for a large amount, at a premium, and rejected by the Government, upon the principle before stated. The same document shows that there was, between February, 1829, and October of the same year, sold of the $5,000,000 Florida loan, $1,742,261, at a loss of $17,661 09. For this loan, the committee are not aware of there being any offers by individuals at a premium. The same document shows, that, between February 1826, and February 1832, the whole of the $4,000,000 loan of 5 per cents. of 1821, has been disposed of at a premium of $136,789 25. The premium paid for which, at the time it was taken, was provided for in a semi-annual appropriation of $60,000, in the report of the 1st of July, 1821, before adverted to. By these operations, it will be obviously perceived, that, if the bank is allowed to sell stocks acquired by special agreements with the Government, it can secure, by speculations, all the advantage which the Government might possess, in putting up its loans to the highest bidder. It not only destroys competition, but takes the loan of the Government from other individuals, who would have given a premium for it, and which the government refuses, because it expects to derive a greater profit in another way, but in which it may be defeated, by an immediate sale of the loan, and which, if the right to sell by the bank is acknowledged, might have been made directly to those very individuals who had just of fered a premium. In relation to the four million loan of five per cents. of 1821, Mr. Cheves, in his report on the 1st of October 1822, says: "The four million loan of five per cents. are longer irredeemable, than any other stock of the government of the United States, and hence probably this stock is more valuable than any other stock of the United States." He also says, "the more the bank can retain of this stock, the better for the institution." In the whole of which, the committee In considering the second general head as to any cir most fully concur; for, it may be mentioned with feel- cumstances of mismanagement of the bank, your comings of pride, that such is the high credit of the govern-mittee have fully appreciated the delicate character of ment, its stock is better than specie, and would be to the bank, in any emergency, precisely the same. The committee proceed to mention the 5th case, which is making donations for roads, canals, and other objects, the amount of which is, $4,620 00, as will appear by document No. 8. Two of the largest of these items, amounting to three thousand dollars, are for turn These six ware houses were built. It is also under.. stood, says the same extract, that several other houses have been built by the agent at Cincinnati; but, as they were erected in part by contributions in labor and mate. rials, by debtors to the bank who had no other means of payment, and, in part, by disbursements, no accurate statement of either their number or cost is on the file. The agent has been instructed to specify these details, in order to complete this return. In reference to the foregoing, the committee believe it enough merely to quote the following provision of the charter, to wit: "The land, tenements, and hereditaments, which it shall be lawful for the said corporation to hold, shall be only such as shall be requisite for immediate accommodation, in relation to the convenient transaction of its business, and such as shall have been bona fide mort. gaged to it, by way of security, or conveyed to it in satisfaction of debts previously contracted in the course of its dealings, or purchased at sales upon judgments which shall have been obtained for such debts." of the violations of the charter. some of the duties assigned them, and the high responsibility of the office of inspecting the books, and exa The president furnished this statement without explaining the grounds of these donations, no explanation having been particularly required of him. States. It is possible that the improvements were in the neighborhood of the real estate of the bank, and are made upon the ground that said donations would increase the value of that real estate. In discharging that trust, they have not felt themselves at liberty to inquire into the private concerns of any individuals, of any denomination, unless the public interest was involved in their transactions with the president and directors of the bank. The investigation was ordered by the House under peculiar circumstances, and in anticipation of a debate on the renewal of a charter of a national bank, whose annual operations amount to two or three hundred millions of money, whose influence extends to the remotest parts of the Union, and whose connection with the Federal Government gives it a pub-my attention was called to them by the circumstance lic character. Impressed with the importance of the great variety of interests involved, your committee have executed the office assigned them, by inquiring, generally, into the proceedings of the bank, not only for the purpose of ascertaining whether its powers had been violated or abused, to the injury of the private and public interests of the country, but with a view to obtain information for the use of the House, and to suggest, should Congress determine to continue a national bank, such modification as the proceedings of the existing institution would seem to have rendered necessary. Hay mining into the proceedings of the Bank of the United befriending Mr. Noah, and assisting him in the purchase of a share in a newspaper; and he asked if the bank would discount the notes of these parties, adding that, although as a merchant he did not wish to appear as a borrower, or to put his name on paper not mercantile, yet he would, at any time, do so, whenever it might be necessary to secure the bank. I do not recollect (says the witness) whether he then mentioned the time which the notes would have to run. The committee being authorized to discount any paper the security of which they might approve, agreed to do them. As Mr. Burrows was going out of town, I (the president and witness) gave him the money out of my own funds, and the notes were afterwards put into my possession. They remained with me a long time, as I had no occasion to use the funds, nor was it till the close of the year that that a new board of directors and a new committee of exchange would be appointed: the same committee which made the loan should consummate it. I had seen, also, in the public prints, many reproaches against the bank for lending money to printers and editors, and I was unwilling that any loan made by the bank should seem to be a private loan from one of its officers. ing no use for the money, it would have been perfectly convenient to let the loan remain as it was, but I thought it right that every thing done by the bank should always be distinctly known and avowed, and, therefore, gave the notes to the chairman of the committee, Mr. Thomas P. Cope, who entered them on the books." This is the account given by the president himself of the transaction in its origin. The money, $15,000, was advanced on the 26th of March; the notes bear date on the 1st of April thereafter, and were ten in number for fifteen hundred dollars each, with the interest added on as they respectively became due, which was on the 1st of April and October of the years 1832, 33, 34, 35, 36, and amounted, with the interest thus added, to $17,975. At the time they were entered on the books of the bank, on the 2d of January last, the president received the money for them. These notes were placed on the books of the bank at this time, and it will be seen, on the 2d of March they were withdrawn, as will appear hereafter. On the 9th of August last, after the foregoing transaction had taken place, J. W. Webb and M. M. Noah made an application to the bank for a loan of $20,000, accompanied by a letter from a gentleman formerly a director of the Bank of the United States, to the president of the bank, in the following words:"I cheerfully forward the enclosed as requested. I see no reason against this application being treated as a fair business transaction." This was accompanied with sundry letters of Webb and Noah, and the depositions of persons in their service as to their solvency and ability to pay the loan requested, all of which will be found marked No. 9. This loan, at six months, was granted, with no other security but that which is just mentioned, the largest loan made on that day. On the 16th of December following, another application was made, by these same parties, for a loan of $15,000, which was granted, for six months, by the exchange committee, without any additional security, or recommendation. At this time, there was a considerable pressure in the money market, and many notes of the citizens of Philadelphia were rejected. It was one among the largest loans of the day. These loans, together with the loan made in March to Burrows, amounted to the sum of $52,975, which consisted of notes drawn and endorsed by the editors only. Adhering to these rules, the committee believed it entirely within their province to inquire whether the influence of the bank, acknowledged by all to be of vast control, and, if improperly directed, of dangerous tendency, had insinuated itself either into the management of the press, or the direction of the government. This could only be done by an examination of the transactions of the bank with editors and public functiona-ries. And here the committee wish it to be distinctly understood, that they do not pretend to set up the absurd idea, that editors or officers are excluded from the right common to the rest of the citizens, of borrowing money when and where they please, from banks or individuals, without being answerable, in the slightest degree, to any person whatever. But while this admission is demanded by the clear rights of the parties to whom it relates, it will not be denied, that if they obtain more favors than the rest of their fellow citizens, it is, at least, a just cause of complaint against the bank, and however they may be innocent of any improper or sinister connection with that institution, it does not, by any means, disprove the fact, that some other influence may have been intended to operate upon their minds wholly unsuspected by them at the time. If, therefore, it should appear that these individuals received larger loans than those who are its usual customers; that they receive these loans without the security usually required under circumstances not known in any other case, it would seem to the committee that, instead of a complaint from those whose transactions with the bank have thus been investigated, the grievance is entirely on the other side. Whether such cases do exist, the committee will leave to the better judgment of the House to decide, upon the facts which they have collected, and now respectfully submit. It had been repeatedly alleged that the bank had employed its funds for the purpose of subsidizing the press, and the charge was reiterated during the debate upon the resolution authorizing this inquiry. The attention of your committee was particularly drawn to this subject, at an early period of their examination, by a communication from an editor of a New York paper, who had been accused to a member of the committee, through the president of the bank. The evidence relating to this case will be found in papers 8 and 9, and in which are presented the following facts: On the 26th of March, 1831, a Mr. Silas E. Burrows applied to the president of the bank, and informed him, to use the language of the president, that he was desirous of The committee will now submit the facts in relation to the manner in which this loan has been disposed of, first premising that the resolution for inquiring into the affairs of the bank was introduced into the house on or about the 17th of February. The loan of August was reduced $2000 at its maturity, on the 10th of February last. On the 2d of March last, Mr. Silas E. Burrows obtained from the exchange committee, discounts to the 1 1832.] UNITED STATES BANK. On the 3d of April the committee, by resolution, called for the following statements to assist them in the elucidation of certain facts which had appeared in other documents, viz: 1st. A tabular statement, showing the aggregate amount of notes discounted and still due the bank, drawn and endorsed by non-residents of Philadelphia; which will be found marked A. amount of thirty-two thousand four hundred and forty-of notes being discounted for the accommodation of any six dollars, being the largest sum loaned on that day, merchant and trader, at 1, 2, 3, 4, and 5 years' credit, unless to secure a debt in jeopardy, there were presentand while many notes of citizens of Philadelphia were rejected. That the notes for $17,975, payable in 1832, ed to the committee four other cases. '33, 34, 35, and '36, were paid and withdrawn by him on the 2d of March, without the knowledge of Webb On the 14th of the same and Noah, as they state. month, Burrows obtained another discount from the bank of $14,150, and on the 15th of the same month, the note of Webb and Noah for $15,000, loaned them on the 16th of December previously, and not due till June next, was paid off by two drafts from Webb, obtained at the United States Branch Bank at New York, accompanied with the following remarks, contained in a letter to the president of the bank, dated New York, Although March 11th, 1832, and found in No. 9; viz: " the loans to us by the Bank of the United States are purely of a business character, and made upon statements showing the necessity of the accommodation to our establishment, and of our ability to meet our payments, there can be no doubt but that the enemies of the bank, as also our political opponents, will endeavor to give a The loan, false coloring to the whole transaction. though strictly defensible, is a large one, and the amount may give rise to the charge of indiscretion on the part This, it is not only our duty, but our of the directors. desire, to prevent, if possible; and, therefore, with some little inconvenience to ourselves, we have made arrangements to pay the note of $15,000 in the course of a few days." The evidence of the president of the bank explains the character of these various loans, and the circumstances which induced him to be satisfied with the security, and to make these advances; which, together with all the testimony and correspondence on this subject, will be found in the papers marked No. 9. In that evidence it is stated, by the testimony of Webb and Noah, that they knew nothing of the first 15,000 dollar loan made by the president of the bank, to Burrows; that Burrows made them believe the $15,000 were loaned to Noah by his father, and that he had his father present to carry on that transaction, and for which loan Noah allowed Burrows 24 per cent, and did not receive it all for some months after giving his notes; that the notes were discounted by the bank, in their names, without their knowledge, and paid off in the same way. It will appear by the testimony of Mr. Webb, that the paper of which he is the editor, made two publications in the latter part of 1829, favorable to the establishment of branches; that shortly thereafter it commenced its opposition to the bank, and was, for sixteen months warmly opposed to it; and that, on or about the 8th of April, 1831, it changed its course in favor of the bank. Connected with this fact, is an admission on the part of one of the editors, that before the first loan was negotiated he held a conversation with a gentleman, through whom the loan was then negotiating, (who the committee know to be Burrows,) in which he, Burrows, urged the editors, one of whom, Webb, had expressed himself in favor of a modified recharter, to but expressed advocate an unconditional renewal, great satisfaction at learning that [one] was in favor of a charter under any circumstances." 66 The committee will state they were anxious to obtain the testimony of Burrows, but were unable to do it. A subpoena was issued for him and sent to New York, to which the marshal returned he was not to be found. It was then sent to Washington City, and the Sergeantat-Arms made the same return. The marshal of Pennsylvania was directed by the chairman, to make and continue a search for the witness in Philadelphia, having heard of his expected arrival in that place; that the marshal reported to the chairman that he ascertained that the witness had arrived in that place on Thursday, the 5th inst. but he was not able to serve the process, because he could not be found. To an inquiry. whether there were any other instances 2d. The aggregate amount of good notes offered for discount, and rejected by the board; drawn and endorsed by residents of Philadelphia, on the following days respectively: 9th of August; 16th December, 1831; 2d January; 10th February; 2d and 14th of March, 1832; 24th September, and 15th October, 1830. That statement, marked B, will show the amount of notes discounted; but the officers of the bank state their inability to discriminate between those that are good or otherwise. 3d. The aggregate amount of notes discounted on personal security, and made payable more than six months after date, which appear to be only four in num. ber, besides the case of J. W. Webb, and M. M. Noah. 4th. The aggregate of notes now due the bank, discounted for a firm, or the partners of a firm, without the name of some person not belonging to the firm, as drawer or endorser, distinguishing in each of the above statements the amount loaned to members of Congress, editors of newspapers, or persons holding offices under the general government. To this last resolution were added the following amendments, viz: "1st. A statement of the loans made by the bank and its branches, to members of Congress, editors of newspapers, and officers of the general government, and the terms of such loans." "2d. And the names and amounts of payments to members of Congress, in anticipation of their pay as mem"3d. And the amount of money due the United bers, before the passage of the general appropriation bill." States, on the deposite in the bank, after deducting "And lastly, a statement therefrom the sum thus advanced to those to whom the United States are indebted." in detail of the amounts paid to those who are now, or have been members of Congress, or officers of government, since 1816, for services rendered to the bank, stating the nature of the service. For the information sought by these inquiries, see papers marked C. Besides these, there were furnished statements of loans made to five editors or publishers of newspapers, by which it will appear, that the accommodations to those five editors were upwards of $110,000, previous to the institution of this inquiry. The various reports which have for a long period past, charged the bank with too frequent intercourse with brokers, and also of undue favoritism to certain individuals, as well as the large transactions which exhibited themselves upon many documents called for by the committee, induced them to examine particularly the accounts of the firms of which Mr. Thomas Biddle was and is the chief partner with the bank, as a broker. Four subjects of investigation presented themselves in relation to their transactions with the bank. 1st. The allowing and paying interest to them on deposits. 2d. Relates to certain loans upon the pledge of stock, and the discounting of notes made to T. Biddle by the president or others without the knowledge of the board, The committee would refer for the particulars of and on part of them the pledge of stock without interest. these two charges to the papers marked No. 13. The third subject is the amount of discounts made The document T. Biddle, and the rate of interest. marked No. 14 will show the amount on the 15th of each month from the 15th day of September, 1830, to the 15th day of February, 1832. By this, it appears, that on the 15th of October, 1830, he had discounted upwards of $1,120,000, and has at no time since been less than $400,000. The committee doubt the policy of such large accommodations to individuals or firms, at any time, as it deprives the bank of the power of fulfilling one of the great objects of its institution, which is to facilitate trade by loans in time of pressure, and it may be proper to add, that these large loans, at a low rate of interest, in times when money is plenty, are usually followed by overtrading, which produces pecuniary embarrassment and general distress. 2d. The amount of specie exported since 1819, will be found in the statement marked No. 22. To England, To France, By a statement entitled, "Remittances to Europe," marked No. 16, it appears that the foreign purchase of foreign bills, were made of Thomas Biddle and Co., Of this amount, there was in gold, drawn by them, viz: In bullion, 2,598,357 00 2,257,398 50 $4,855,755 50 2,387,927 50 596,717 00 1,871,111 00 $4,855,755 50 $32,399 68 3d. The amount purchased since 1824, marked No. Oct. 14, 3 bills at 75 to 90 and 105 days, a gold coin, 17,596 00 592,000 00 gold bullion, 438,000 00 Dec. 10, 9 bills at 40 to 110 days, and at a premium of 10 per cent. 1832. Feb. 14, 14 bills at 40 to 105 days, and at a premium of 10 per cent. 4th. The amount of specie sold since 1817, marked No. 24, shows it be 400,000,00 $5,184,910 29 Of which there was, American Feb. 14, 3 bills at 50 to 70 days, and at a premium of 11 per cent. 81,734 44 148,000 00 $1,794,060 79 By the foregoing statement, it appears that the bank purchased between the 14th of October, 1831, and the 16th of February, 1832, of T. Biddle and Co. foreign bills to the amount of $1,794,060 79. gold, 48,291 35 5,051,884 50 $5,184,910 29 5th. The amount of specie drawn from each of the southern and western offices, since 1820, to the Bank of the United States and New York, marked No. 25, shows $22,523,387 94 the total amount to be Of which $20,925,990 07 has been drawn $20,925,990 07 With regard to these large loans, the committee refer to the statement marked No. 19, by which it appears that on the 9th of April, 1832, the total amount of discounts on bills and notes at the bank in Philadelphia, was $7,939,679 52. Of that sum more than two-thirds were loaned to ninety-nine persons, to wit, $5,434,111. is More than $3,000,000 were in the hands of twenty-seven individuals; and nearly the seventeenth part in the hands of one person. The committee have already expressed their conviction that these large accommodations, to a few individuals, are injurious to trade generally, and they will add, that they ought always to be made by either the board of directors, or the commit-committee did not call for documents to enable them to What profits were made on the specie exported, the tees empowered by them for that purpose. For an explanation of this subject, see papers numbered 13 and ascertain; it must, however, from the great quantity sent away, have been considerable. 18. 19,171 85 $77,968 71 as none was returned, they presume none was imported. coin the committee have not before them the means to What proportion of the gold exported was American statement; but in looking into them, the gold exported determine; it was expected to have been given in the is without a designatory name; it is believed, however, The committee called for a statement of all the spe. Properly connected with this subject is the accommo-cie imported by the bank from abroad, since 1819; but, dation extended by the bank to individuals on the pledge of stock. In all the monthly statements of the condition of the bank, prior to the first of March last, there was no column showing these loans. In that month, for the first time, so far as the committee can discover, a new column is exhibited, entitled "loans on other stocks." and which appeared, at that time, to have been transferred from the line called "bills discounted on personal sceurity," This change was made in consequence of a call for stock loans, by the House of Representatives. A statement of the same was called for, marked No. 20, which exhibits a list of stocks pledged, consisting of Theatre shares, Museum stock, Arcade stock, Rail-road and Canal stocks, Coal company stock, real estate in Louisiana, &c. &c., amounting to the sum of $1,713, 297 34. The various transactions in specie, by the bank, has been a subject of special notice by the committee, and various statements called for, show the magnitude of them. The first statement, marked No. 21, shows the amount of specie exported by the Bank of the United States, during the year 1831: the amount is considerable. In examining this subject minutely, the committee find that large amounts of the specie have been drawn from the office at New Orleans. Of this there can be no complaint; it is the principal depot for returns of goods shipped to Mexico, which are almost exclusively paid for in specie, and it cannot be expected that it will remain there. But the committee suggest whether the withdrawal of the specie from most of the other ports of the country, and substituting paper in its stead, might not be highly iujurious to those sections of country subject to its operation. The subject of the bank's furnishing bills of exchange for the trade of India, China, and South America, has been brought to the attention of the committee by document marked No. 26; and having been so strongly described as affording great advantages to the country, "econo in the triennial report of September last, as The mode in which these bills are drawn and disposed of to the purchasers, having twelve months to run, it will be seen by a copy of the obligation taken by the bank, marked No. 27, the committee consider of doubted utility to the country. The legitimate object of a bank, the committee believe to be the granting facilities, not loaning capital. The supplying of bills appears even more objectionable than loaning capital, for it encourages an operation which commences and ends without the employment of any capital whatever, and is similar in their character to respondentia securities. The buyer is enabled, within the term of credit, to make the voyage, dispose of his goods, and obtain from the proceeds the funds to meet his obligation, and the bank to transmit the same to the place upon which their bills are drawn, (which are at six months sight,) long before they become due. It would seem to produce a greater export of specie eventually, than would otherwise take place if the operations were commenced with specie, and not with bills purchased in the manner described; for the merchant relying upon his immediate resources, would not engage to such an extent in the business, and would combine in the operation much of the produce of the country; whereas, relying upon an extensive credit he hazards every thing on the success of his enterprize. It is a species of speculation in trade leading to great risks, and certainly terminating in overtrading-the evils of which the country is now sorely experiencing. By loans of a similar character by insurance companies, providing funds for traders to China, Government has sustained more loss than in any other branches of trade. The increase of the number of branches established since 1832, cannot be passed over in silence by the committee, and deserves, as a source of extended influence of the bank, the most serious consideration. In some few instances where new branches have been established, perhaps they may have been called for by the community, and may have been useful to them and profitable to the bank; but, in most of these cases, the committee doubt whether they were called for from public utility, and their establishment will, in the end, not only prove unprofitable to the bank, but prove very injurious to the communities among which they are located. Mr. Cheves, in a letter of the 27th of May, 1819, to Mr. Crawford, then Secretary of the Treasury, says: "I am perfectly satisfied that, with the present organization of the bank, it can never be managed well. We have too many branches, and the directors are frequently governed by individual and local interests and feelings. For a time we must bear with the branches, but I hope they will be reduced." Again, in the same letter, he observes, "the real and original evil under which the country is suffering is overbanking. This leads to excess in trading, manufacturing, building, and the history of the ill-judged enterprizes which have been undertaken in these several concerns, would give a full history of all the distresses of this country, excepting a little agricultural distress growing out of the inordinate expectations which the others excited." These opinions fully accord with the views of the committee, and they consider them as peculiarly applicable to the present time, as exhibiting similar causes now operating with extended force, from which similar effects must follow, augmented in proportion to the increase of its branches. The stockholders, at the triennial meeting on the 1st of October, 1822, recommended a withdrawal of some of the branches then existing, in these words: "In taking into view the business of the bank, as connected with its offices, the committee think it right to recommend to the continued attention of the president and directors the necessity of withdrawing those branches which are found to be unprofitable, and transferring their funds to the offices which shall seem to require additional capital." Since this period two have been discontinued, and nine others have been established, as per triennial report of 1831. These opinions of Mr. Cheves, in which the committee have concurred, were approved by the stockholders, as will appear by the following extract from this same report in 1822. They say, "they take great pleasure in unanimously declaring that the circumstances of the bank fully realize their anticipations as expressed at their last meeting in regard to the president, (Mr. Cheves,) who, by his talents, disinterestedness, and assiduity, has placed its affairs in an attitude so safe and prosperous as that the burthen of duty devolving upon his successor will be comparatively light." The committee cannot but think that, had the succeeding direction of the bank been guided more by the opinions and wishes of the stockholders, as then expressed, and gone on gradually growing with the growth, and increasing with the natural wants of the country, great sufferings to the community would have been avoided. In the year 1817, great abuses existed in the branches of which Mr. Cheves speaks without reserve, in his last report to the stockholders, as well as in his correspondence with Mr. Crawford, and upon casting the eye over the monthly statements, it is remarkable to observe what losses have taken place at the branches compared with the mother bank. For instance: on the first of January last, the loss of the mother bank, on a capital of sixteen millions and a half, was, in round numbers, $328,000; that of the Baltimore branch was, $1,662,000, on a capital of one million and a half, so that it lost more than its capital. That of the Norfolk branch was $229,000, on a capital of 500,000, losing nearly onehalf of its capital, and so with all the rest of the branches, their losses are out of all proportion to their capital, and ten times greater than the mother bank, according to the amount of their respective capitals. These losses, however, were principally incurred prior to 1819. The proper inference to be drawn from these facts, is, that the worst of mismanagement has existed in the branches. The "Contingent Fund" has claimed the attention of the committee. The object for which it was originally created, and the original amount provided, together with the additional appropriations which have been made to it, and the manner in which the same have been applied at different periods, will all be explained in the following documents. The report of the board of directors, in July, 1821, published in the gazettes at that time, marked No. 28; the reports of the stockholders at the triennial meeting in October, 1822; the report of the dividend Committee, on the 16th January, 1823, marked No. 29; a statement of the particulars of the debts "considered best," |