322 THE STATE CREDIT. the most reasonable calculations fail, the sum of twelve hundred thousand dollars is secured to the Treasury, in the form of taxation. This is strictly pledged to the payment of interest on the public debt. It now remains to be shown what other sources of revenue designed for interest purposes have been opened by the late Legislature. They will be found to be most abundant. Of them I must however be permitted to make a single prefatory remark. Some of them are sources of revenue to which the Representatives of the city resorted with extreme reluctance. They were regarded as measures of partial and unjust taxation-so much so, that urgent as was the necessity which exacted new revenue, neither my colleagues nor myself Still, such thought ourselves authorized to vote for them. as they are, their probable productiveness ought to be stated. This can only be done in the form of estimates-but estimates carefully and cautiously made. Heretofore the tax on collateral inheritances has been habitually and almost avowedly evaded. Its product during the last fiscal year was 23,458 dollars, but twenty-seven An act passed this session counties making any returns. to secure its collection will increase this product during the current year to 30,000 dollars. The auction duties and commissions during the last year amounted to 96,207 dollars. By an act of this session the auction system has been fully revised and extended, and the estimated revenue from this source may be stated at 110,000 dollars. Stock, Exchange and Bill brokers are required to pay an amount annually for licenses. This is a small matter, but may be stated at say 3000 dollars. I now come to the taxes authorized by the act of 4th of May, 1841, entitled "an act to provide revenue to meet the demands on the Treasury, to pay domestic creditors of the State and for other purposes," and have no hesitation in expressing my firm conviction that if the taxes authorized by that law be faithfully collected, as I am confident they will be, they alone will amount to seven hundred thousand dollars. I have no doubt this statement will surprise those whose attention being only directed to the provisions of the bill so far as they affect the banks, has not been attracted by its far I make this estimate with enmore important enactments. tire confidence. By the tax-law of 11th June, 1840, a tax is imposed upon persons, trades, occupations and callings of one mill upon every dollar of the actual value thereof. By the 9th section of the Revenue Bill this tax is increased to one cent in the dollar or ten times the amount of last year's tax. This item alone ought to render 350,000 dollars, nor have I any doubt that it will. By the Act of 4th of March, 1824, and its several supplements, venders of foreign merchandise were classified and required according to the amount of sales to pay a graduated license tax-the maximum of tax was fifty dollars-the minimum ten dollars. The largest amount of sales contemplated was but 50,000 dollars. The product of the tax under these laws during the last fiscal year was 81,071 dollars. The Revenue Bill extends this tax to dealers in domestic as well as in foreign merchandise, with certain specified exceptions and modifications, and altering the classification contemplates the maximum of sales at 300,000 dollars, and the maximum of tax at two hundred dollars. It may be safely estimated that the additional taxation thus authorized will not be less than 150,000 dollars-making an aggregate revenue from this source of at least two hundred and thirty thousand dollars. In relation to the tax imposed by this act on offices under the State and under corporations created by the State, I am unable at this time to form more than a general estimate.Every salary over two hundred dollars is chargeable with a tax of two per cent. on the amount thereof. The amount of the tax chargeable on salaries paid by the State, may perhaps be estimated-but the salaries paid by corporations and emoluments received under them in their varied forms, municipal corporations included, cannot easily be ascertain- .$1,200,000 Thus, gentlemen, by the legislation of this session for the purposes of maintaining inviolate the public faith, new been secured, and the public creditor may confidently rely revenue to an amount not less than 1,400,000 dollars has on an aggregate of revenue derived from taxation alone and specifically pledged to the maintenance of the public credit of more than 2,100,000 dollars, as follows: Taxes under Act 11th January, 1840.... Auction Duties and Commissions. Taxes under Act of 4th May, 1841. Collateral Inheritance Taxes. Hawkers and Pedlars.. Tax on Writs... Brokers' taxes. Tavern Licenses. Taxes on bank dividends. Total amount of revenue from taxes 710,000 110,000 30,000 4,800 39,000 50,000 3,000 100,000 2,246,800 Thus it will be seen by the action of the Legislature which has just adjourned, and on whose acts so much censure has been either ignorantly or wantonly bestowed that a very large amount of permanent revenue has been secured, and this too at a period of unprecedented pecuniary embarrassment throughout the country. The amount of interest on the present debt will not exceed in any event 1,950,000 dollars-leaving a surplus of tax revenue, according to the preceding estimates, of nearly 300,000 dollars. I hope you and the public will be satisfied that the late Legislature has done much-very much to discharge its responsibility. Of the Revenue Bill and its relations to the currency and the banks, I have no wish here to say a word. It is before the people. Its provisions have I believe, been grossly misunderstood. Understanding your inquiries to relate merely to the matter of taxation, I have confined my answer wholly to that point. I feel assured that I have satisfied you that whatever may be our opinions as to the modes of taxation, we have secured abundant revenue in a legitimate way and done our duty in sustaining the public credit. One remark, and but one, in conclusion. It has been matter of sincere regret to observe the prevalence of an opinion founded in ignorance and often uttered in levity that our State credit has been fatally impaired and that the State I will venture to say that no obligations will not be met. one who has given utterance to this opinion has taken the trouble to ascertain from proper sources of information what ever did more under equal embarrassment, and I earnestly the Legislature has done or left undone. No Legislature repel the imputation which is so lightly cast on Pennsylvania. Show me any State in the Union which has done what Pennsylvania has done within the last two years; she has raised by direct taxation more than enough to pay the Pennsylvania than ever. interest on a debt of nearly forty millions. I am prouder of I have the honor to be, W. B. REED. P. S. I may take occasion hereafter to show further the action of the State with reference to its credit. ! No. 2. PHILADELPHIA, May 15, 1841. GENTLEMEN :-Inquiries are frequently made as to the state of feeling and opinion in the Legislature and throughout the country, on the subject of the State Debt, and its obligation. Since my return from Harrisburg, I have more than once been asked, what was the prevailing sentiment there, on this subject. My answer has been uniform, that I have never heard the expression of a doubt of this obligation, or of the duty which devolves upon the Legislature to maintain at all hazards, and at any cost, the public faith.There are, and always will be, diversities of opinion as to modes of taxation. There is naturally a disposition to calculate on larger proceeds from existing laws than are verified by results, but let the necessity once be made manifest that there must be a choice, between a violation of the public faith and new contributions from the people, and there will not be a moment's hesitation. The experience of the last two years, shows this conclusively. So confident am I in the expression of this opinion, that I have no doubt if at the next session it should be found that the proceeds of existing taxes prove inadequate, the Legislature will impose new ones, and that the people will as cheerfully submit to them. But, I am happy to say that I anticipate no such necessity. The taxes now in force, will be more than adequate for the maintenance of the public credit, and I look forward with entire confidence to the next Legislature for a new measure of relief to this community by equalizing existing, and now partial taxation, and modifying laws to which even urgent necessity could not reconcile me. There are, however, other measures than taxation, which the public exigency required for the maintenance of the credit of the State. In the Revenue Bill of May 4th, 1841, there will be found more than one salutary provision, to which, probably, the public mind has not been directed. To these I wish to direct your attention. supervision was had or even attempted. By the policy adopted at the last session, each year's Legislature will have to provide for each year's expenditure. Hence economy will be enforced, or the responsibility will rest on those who ought to bear it. There can be no doubt that the restoration of this system will save to the Commonwealth many hundreds of thousands of dollars every year. But to the public creditors, and particularly to those who are interested in the funded debt, these provisions of the Revenue Bill, give a new and great security. Among other specific appropriations guarded by these provisions, is that of certain revenues to what is known to the law as the Internal Improvement Fund-or the Fund created at the commencement of the improvement system, for the payment of the interest and ultimate liquidation of the principal of the public debt. Owing to circumstances to which it is not necessary now particularly to refer, these revenues were for many years diverted from their appropriate object. The subject was brought to the attention of the Legislature by the Executive, and a bill reported and considered, having for its object what has been, in another form, provided for in the Revenue Bill, the security of this interest fund. It failed in the Senate in consequence of a difference of opinion as to details, but its substantial enactments have been embodied in the the Revenue Bill. It cannot be evaded or safely violated, and if kept inviolate the public creditor will be sure of this certain fund at all times hereafter, for the punctual payment of the interest and gradual extinguishment of the principal of the debt. The Revenues thus secured to the Internal Fund according to previous estimates for years ensuing, are as follows: Tax under Act of 11th June, 1840, Collateral Inheritance Tax, Canal and Railroad Tolls, Auction duties, Escheats, Dividends on Bridge, Turnpike and Navigation 1,200,000 30,000 80,000 900,000 37,000 $2,247,000 The 15th section provides: "That where moneys have been, or shall be specifically appropriated to the Internal Improvement Fund, or any other object, by an act of Assembly, the same shall not be applied by any officers of this Commonwealth to any other purpose or object than that to which they have been so specifically appropriated, and if any officer round numbers at 1,950,000 dollars. I may here take occaIn my last letter I stated the annual amount of interest in aforesaid, shall knowingly offend against any of the provision to state on what principle this is estimated. sions of this section, it shall be deemed a misdemeanor in office, and such officer so offending, shall, on conviction in any court of competent jurisdiction, be subject to a fine of not less than 500 dollars, and not more than 2000 dollars, at the discretion of the court." In connexion with this, it will be observed that the whole amount authorized by this bill (3,100,000 dollars,) is specifically appropriated, and with the exception of the following relatively insignificant amounts, not one farthing is applied to new expenditure: To Nicholson Commissioners, $ 1,500 10,200 $11,700 No new appropriation is made to prosecute the unfinished lines of the public works, and in order to prevent the accumulation of a new debt, to be liquidated at the next session, it is provided: "That the Canal Commissioners are hereby expressly prohibited from entering into any new contract for any work upon the unfinished lines of the public improvements, whether for abandoned sections or otherwise, during the ensuing year, or until this prohibition is repealed by act of Assembly." The effect of this cautious and provident legislation, can now hardly be appreciated. By the single provision of specific appropriation, the late Legislature has completely renovated the whole financial system of the Commonwealth and restored the policy which the Constitution contemplated. Heretofore no annual appropriations had been made, except for Internal Improvement purposes. Hereafter, current de mands on the Treasury must be met by annual and temporary appropriations. Heretofore the Legislature knew nothing of these annual demands, until they were paid. Expenditures were made under forgotten statutes. No regular The interest due for the next year on the present debt, payable in specie, (and no calculation ought to be made except for payment in specie,) will be as near as may be, - $1,762,800 Add 1 per cent. on $930,000 to be converted Add to this 1 per cent. on $3,100,000, on the 1st of June, 1841, into a 6 per cent. loan, Actual amount of interest, 31,000 9,300 $1,803,100 In my former estimate I included an addition of four per cent. on 3,100,000 in the improbable event of its being funded, which would make the interest 1,927,100. For all purposes of practical calculation, it ought to be set down at 1,803,100 dollars, so that if this statement be correct, (and I believe it to be though made without particular reference to documents by which it may be verified,) there will be a balance to the credit of the Internal Improvement Fund for the coming year of at least 400,000 dollars to be applied as a sinking fund for the extinguishment of the principal.So much for this most important portion of the Revenue Bill, and the new financial policy thus designated and hereafter to be pursued. It is due to the public and to you, gentlemen, that I should state the probable condition of the treasury at the end of the next fiscal year, so as if possible to remove from the public mind the apprehension that seems to rest on it that a new accumulation of debt must continue to oppress it, and that recourse must hereafter anew be had to those institutions which had heretofore relieved it. For the current year (1841) estimates of revenue must be made according to provisions of existing law, and without reference to the benefit of the revised assessments and the new taxes, and estimates of nett revenue are made on the assumption that the loan authorized by the act of 4th of May, 1841 will be negotiated. It is to show the state of things as it will be if the measure goes into operation, that these estimates are now made, and unquestionably it is matter of legitimate consideration, if it shall appear that no new loan will be necessary hereafter, but that from its revenue alone the Commonwealth will be able to meet all its liabilities. The revenue for 1841, estimating State tax at but $700,000, taking receipts from all other sources as they were last year, will be...... $2,348,700 The liabilities not provided for by the act of 4th May, 1841, or in other words, the interest on public debt, to which the whole revenue is appropriated, will be ...... 1,803,100 3,800,000 islature adjourned, and will no doubt be the first that will occupy the attention of its successor. Such has been the policy of the late Legislature with reference to the public credit and the financial condition of the Commonwealth. A careful revision of all its acts will show that its aim has been steady to restore public credit by the legitimate use of its own resources; adequate taxation, specific appropriation of the proceeds of revenue, and the suspension of all farther experimental expenditure. It is legislation which will vindicate itself. It is legislation too which has had no reference to any action of Congress in relation to the State credit. The majority in both houses, whilst they hoped for the beneficial interposition of the General Government, felt that they would not have met the expectations of the people had they legislated merely on that hope. The true and honest policy was to depend upon ourselves and our own exertions. If they prove adequate, the aid of the General Government, whilst it will be greatly acknowledged, $545,600 and may be most opportunely rendered, will not be essential to the restoration of Pennsylvania credit. As to the Revenue Bill, I have avoided entangling you 3,485,500 and myself in the discussions to which it has given rise. If 545,600 it be shown, as I think it can be, that there is no reason for a panic or a doubt as to State credit, the Legislature having $4,031,100 furnished ample and secure means for the punctual payment of the interest on the public debt, and the appreciation of the State stocks, and having secured the State against any increase of the principal of the debt, one of the current objections to this measure is removed; if it be further shown that at the end of five years or sooner, when the loan authorized by the Revenue Bill is to be re-paid, the financial condition of the Commonwealth must be such as to remove all reasonable doubts of its re-payment; if the currency authorized by the Bill be shown to be in accordance with the Constitution as construed by the highest judicial tribunal of the land, and in point of value to be far better than the currency from abroad with which we are afflicted, or the new certificates of Bank deposit which ingenuity had contrived, but which the Legislature has thought proper to prohibit; if the forfeiture penalties against the Banks of which heretofore they have complained so much be suspended, not indefinitely but until under a different and better state of things payments in specie can be restored;-if repose be thus given to those who so much need, and have so often solicited it, and it be made a matter of contract, as it is that no new requisitions be hereafter made by the State;-if these results be attained, it may be worthy of cautious consideration whether this measure should be precipitately rejected by the institutions, for whose benefit in some degree it was matured. It was a measure of compromise amongst difficulties which none of those who now form and express harsh judgment can appreciate. If it be accepted and no benefit results, it will not be the first time that the Legislature has with the best intentions enacted laws which have failed to produce the effect contemplated. If it should be rejected and calamitous results ensue to the community and to the Banks themselves, (and to my mind they seem most certain) it will not be the first occasion in which the sagacity of those who direct the Banks has been mistaken. Still the question is for their decision alone. $231,100 I am fully aware that the estimates extending to so remote a period must be taken with great allowance, and I certainly do not mean to offer these as entitled to any peculiar respect. I believe them to be in the main accurate, and assuming that a new state of things has arisen in the financial condition of the Commonwealth which forbids the creation of new loans, and any farther experimental expenditure, I rely on them with still greater confidence. Let me explain what I mean when I speak of a new state of things. If my memory does not deceive me, every Legislature, with a single accidental exception, since 1825, has made large appropriations for new public works. The State has been able to borrow, and of course has been willing to spend. Even at the session of 1839-40, when the banks had suspended, and the rapid decline of all State credit had developed itself, liberal appropriations were made to the unfinished lines of the public works. The Legislature of 184041, the first for sixteen years, has had the firmness or appreciated the necessity, to refuse to make any appropriation to the unfinished lines, and has confined itself strictly to the discharge of pressing and well ascertained debts. Surely there is a novelty in this refusal which deserves attention. Nor can this policy undergo any material change hereafter. I have written much more than I intended in reply to your friendly note, and trust you will appreciate the spirit in which I have answered your inquiries. If any word that I have written has invigorated confidence in the credit of the Commonwealth, I shall be fully rewarded. I have the honor to be very respectfully, A community may be unable to borrow more money and yet be able to pay all it owes. The inability to borrow, the exhaustion of credit may cause the failure of many an experiment on which large calculations in the hour of prosperity may have been formed, but this very exhaustion of credit may be and in the case of this great Commonwealth must be its best security. Another session of the Legislature will not pass by without such action in relation to the public improvements, finished and unfinished, as will make them the source of certain revenue to the Commonwealth. No one now doubts that the main line of finished Improvement from Pittsburg to Columbia, and the Delaware division of To Charles Chauncey, Henry C. Carey, John Welsh, Jr., the Canal, under an honest and economical administration can be made to yield revenue. Few are sanguine enough to suppose that the works in progress but not completed will ever pay under any State supervision. This is fully realized by the Legislature and the time has arrived when private enterprise will necessarily be invoked, and companies be created to complete and conduct the unfinished works. Measures tending to this result were in progress before the Leg F. Frayley, and John White, Esqs. P. S. May 21, 1841. I am under the impression that the estimate in my first letter, of the tax on the salaries of corporate officers is too high. A careful revision satisfies me it should not be estimated higher than $50,000. The estimates of several of the other taxes are low in proportion. No material difference need be anticipated in the general result. W. B. R. Adjourned Meeting of Stockholders of nor of the Commonwealth of Pennsylvania, according to the United States Bank. the provision of the said section. At an adjourned meeting of the Stockholders of the United States Bank, held in the Banking House on Tuesday, May 18, 1841 SAMUEL BRECK, Esq., took the chair at 10 o'clock, A. M., and called the meeting to order. JOSHUA LIPPINCOTT, Chairman. Bank United States, May 18, 1841. Josiah Randall, Esq., then called up for consideration the following resolution, which he presented to the former meetThe journal of the previous meeting was read, and ap-ing with a request that it should lie upon the table for future proved by the meeting. Mr. Lippincott, from a Committee, presented the following report, which, after much discussion and explanation of the act of Assembly, was accepted, and the resolutions adopted by the meeting. action. After some discussion upon the nature of the resolution, but chiefly upon irrelevant matters, the resolution was adopted, with little or no opposition, as follows: Resolved, That the Board be directed to give public notice, agreeably to the Constitution and laws of the Commonwealth, of an intended application to the next Legislature, to alter the name and reduce the capital of the Bank, together with such other alterations as may be deemed ex The Committee appointed at an adjourned meeting of the Stockholders of the Bank of the United States, held on the 5th of April last, and which was instructed by a resolution adopted at an adjourned meeting, held on the 4th of May, instant, to take into consideration the condition and pros-pedient. pects of the Bank, and also any laws passed by the General - Assembly of Pennsylvania, touching its interests, and to report such measures as the Committee might deem expedient, respectfully report: That an act of the General Assembly of Pennsylvania, at the last session of that body, was passed, entitled “An Act to provide Revenue to meet the demands of the Treasury, and for other purposes," which presents two distinct propositions for consideration. The first proposition is under the seventeenth section, which contemplates the continued corporate existence of the Bank, and provides for its relief from the penalty of twelve per cent., and from the liability of forfeiture of its charter, for the non-payment of its circulation and deposits in gold or silver on demand, upon the condition that the Stockholders shall consent to be subject to any general laws hereafter to be passed for the regulation of the Banks of the Commonwealth. The second proposition is under the eighteenth, and subsequent sections, which provide for a general assignment of the property of the Bank, with a view to the final settlement of its affairs. After taking into consideration, the condition and prospects of the Bank, which requires time only to render its ample means available, the Committee do not hesitate to recommend the adoption of the first proposition. They, therefore, respectfully report the following resolution :-- Whereas, by the seventeenth section of an act of the General Assembly of the Commonwealth of Pennsylvania, passed at the last session of the Assembly, one thousand eight hundred and forty-one, entitled “An Act to provide Revenue to meet the demands of the Treasury, and for other purposes," it is provided," that before the Bank of the United States shall be entitled to the benefits of that section, the Stockholders of the said Bank shall, by a resolution adopted at any general or adjourned meeting, held in pursuance of the charter, and duly certified to the Governor under their corporate seal, consent to be subject to any general laws to be hereafter passed for the regulation of the Banks of the Commonwealth;" and whereas, it is deemed expedient by the Stockholders of the Bank of the United States, duly convened at an adjourned meeting held in pursuance of the charter, to avail themselves of the benefits of the said seventeenth section; therefore, Mr. Drayton, the President of the Bank, then, in reply to some remarks from Mr. Finch, made reference to the State of the institution, remarking that it was a subject definitively referred to a Committee, who were actively engaged in the duties devolved upon them. Mr. Drayton added, that the Directors had found it difficult to carry into effect a resolution of the Stockholders, authorizing an assignment in favor of bill holders and depositors, as Trustees could not be found to labor without compensation, which had not been provided for. After some explanation, Mr. Randall offered the following resolution: Resolved, That the Board of Directors be, and they are hereby authorized to exercise their own discretion as to the expediency, as well as to the time and manner of carrying into effect the resolution adopted at the last meeting, for pledging certain assets in trust for the payment of the circulation of and deposits in the Bank. Mr. J. B. English proposed the following as a substitute: Resolved, That the Directors be hereby requested to sell either at public or private sale, sufficient of the assets of the Bank to pay the circulation and deposits. Mr. E. sustained his resolution with some remarks. It was, however, lost; and on the question being put, Mr. Randall's resolution was carried. Mr. Lippincott presented to the meeting a report from the Committee of Investigation, which he requested should be read. Mr. Duane prefaced with some remarks, the following preamble and resolutions, which, with the exception of the last resolution, were adopted, after much discussion, and some modification. Whereas, the Stockholders of the United States Bank of Pennsylvania, at their meeting in January last, referred to a Committee, the reports made to them, and the Committee have reported that large sums of money belonging to the Stockholders had been expended by their agents for purposes which the Committee could not ascertain the nature of: and whereas, no explanation on this subject has been subsequently obtained, and color is thus given to imputations cast upon the late and existing Bank of the United States that its funds had been used corruptly: And whereas, under such circumstances, entire silence on the part of the Stockholders would be inconsistent with their regard for the reputation of their country, and with their own self-respect-therefore, Resolved, That the stake which we have in the honor and welfare of our country, now and hereafter, is far more precious than any personal interest which we can have in any char Be it Resolved, and it is hereby Resolved by the Stockholders of the Bank of the United States, convened at an adjourned meeting held in pursuance of the charter, that, for the purpose of obtaining the benefits of the seventeenth section of the act of the General Assembly of the Com-tered institution. monwealth of Pennsylvania, entitled "An Act to provide Revenue to meet the demands on the Treasury, and for other purposes," passed at the last session of the General Assembly; the said Stockholders do hereby consent to be subject to any general laws to be hereafter passed by the General Assembly of the Commonwealth of Pennsylvania for the regulation of the Banks of this Commonwealth; and that the President of the Bank be, and he is hereby authorized and requested to make known this resolution to the Gover Resolved, That we denounce and condemn as hostile to liberty and subversive of virtue, any expenditure or loan, if any such has been made by the late or existing Bank of the United States, under a former administration, for the purpose of influencing the public press, operating upon the public suffrage, or securing the aid of Legislators or other public agents for any object whatever. Resolved, That for the sake of the public example, we regret that the Committee appointed by the Stockholders in January last, failed to obtain a knowledge of the particulars of the expenditures to which they have referred in their report, and that public thanks will be merited by those who, possessing the knowledge shall disclose it. [Resolved, That in such an inquiry as that which was instituted in January, affecting the fame of the country and the safety of its institutions, a full development of truth was a higher consideration than the ephemeral interests of individuals or Stockholders, and that for this and other reasons we do not concur with the majority of the Investigating Committee in suppressing the particulars of the active and suspended debt.] Ön motion, the meeting adjourned. Further Report of the Committee on the Bank United States. To the Stockholders of the Bank of the United States. It is with considerable reluctance that the members of the Committee of Investigation, appointed at the meeting of the 4th of January last, request the attention of the Stockholders to a few remarks on certain statements made by Mr. Nicholas Biddle, in his letters to "the Hon. John M. Clayton," lately published in the newspapers. In submitting their report; they performed a duty which was to them as unexpected as painful; yet, having assumed the office imposed upon them, it was a duty from which they could not shrink. Information of the causes which had occasioned the prostration of a Bank of so large a capital, and which had been declared by its President, but two years before, to be in a state of great prosperity, was demanded by the almost unanimous voice of those interested; and it was due to the Stockholders, due to the community, and due to the character of the members of the Committee themselves, that the answer should be an honest and candid one. That answer was given in the style of a simple narrative of facts, which had occurred in its history since it became a State Institution. To all who could think and calculate, these facts were amply sufficient to account for its actual situation. If the inferences fairly deduced from them were unfavorable to any of those who had been theretofore entrusted with its management, it was for them to exculpate themselves before the Stockholders or the public. The Committee were not a judicial tribunal, and it was not for them to arraign at their bar the officers and Directors as persons accused. They therefore confined their examination to the books, and when explanation on any particular subject was needed, sought it from those who were supposed to be able to furnish it. A vindication of the measures and policy of his administration was certainly to be expected from the former President, and had his publications been limited to this, the Committee would have remained silent. But a personal attack having been made upon them, their motives having been directly impeached, and some of the facts presented in their report having been formally denied to be true, some notice of charges grave as these seems absolutely necessary. It will be remembered that the Committee were appointed not only to verify, but to examine the details of the report of the Directors, December 21, 1840. We did proceed both to verify and examine those details. We conceived that we had an undoubted right to inquire how the immense mass of stocks on hand had come into the possession of the Bank; an inquiry which at once conducted us back to the authority originally granted to the Exchange Committee, to the loans and settlements which had been made by and with officers, to the cotton operations, and to the causes which had led to the hypothecation of so large and valuable a part of these securities for debts abroad. No doubt was entertained that the Stockholders intended such an examination to be made, and the public expectation in regard to the forthcoming report showed that the community in general looked for something more than a mere verification of the assets. The Com mittee were further confirmed in these views by the resolution of the Board of Directors, inviting them to investigate "the affairs and transactions" of the Bank, and "the causes of its actual situation," and expressing the wish that such an investigation should be made, in order that the results might be laid before the meeting of the Stockholders of April following. It has been asserted that this resolution is to be attributed to the "alarm and confusion" which followed the last suspension, and was meant by the Directors as an appeal to the committee for the purpose of "relieving themselves by throwing the blame on their predecessors." Whether this were so or not, it is enough at present explicitly to deny that it was received with any understanding such as that referred to. Nor is it necessary to add after what has already been said, that it made no difference in the course which the Committee had before determined to pursue. If no such resolution had been passed, a full and thorough examination of the affairs and transactions of the Bank would have been attempted; and if access to the books and papers for that purpose had been refused, the fact would have been reported to the stockholders, and they would have been left to adopt such measures as they might have deemed proper under the circumstances. It has also been asserted that the investigation was "a conspiracy got up by the Managers of the Schuylkill Navigation Company aided by a few weak persons who did not see that they were the dupes of their selfish associates," and that the report was "the vengeance of the Schuylkill Navigation Company against the Bank of the United States for lending money to the Reading Railroad." The Stockholders have already been informed that four of the six members of which the Committee was composed did not, and do not, own a single share of Schuylkill Navigation Stock or Loan, nor have the interest of a single dollar in that improvement. As additional evidence it would seem, of these assertions, it is stated that Mr. Lippincott, the Chairman of the Committee, was the owner of only five shares of stock in the Bank, and Mr. Massey of but two. The important fact, which the very books from which this information was obtained would have furnished, is not noticed, that the remaining members were the proprietors together of five hundred and fifty-five shares, while the whole Board of twenty Directors, elected in January last, (in which election, it is understood Mr. Biddle had a considerable agency) owned in all but one hundred and fifty-four shares. Nor ought Mr. Biddle to have been so incautious, by adverting to this sub. ject, as to invite the remark that Mr. Massey's interest of two shares was just double his own. Much pains have been taken to inspire the belief, that the labors of the Committee have been, or are likely to be, injurious to the interests of the Stockholder. Now the facts are, that the stock of the Bank had fallen upon the publication of the statement of December 21st, 1840, from 64 to 50, and upon the suspension of February last, to 16, and the notes to a depreciation of 16 per cent. Whether the losses of the Stockholders are to be ascribed to the policy and measures which caused prostration, as the Committee thought, or to the occurrences which made that prostration known to the world, as Mr. Biddle contends-in either case, the mischief had all been done before the Committee made their report. But it was evidently one of their leading objects to reassure the Stockholders, by attempting to present them with a fair and honest estimate, not of the present availability, but of the probable future worth of their assets in better times, and under more favorable circumstances, and thus encourage them to hold on to their stock. This was a prominent feature of the Report, utterly inconsistent with any intention "to break down the Bank, carry down the Reading Railroad, and thus increase the profits of the (Schuylkill Navigation) Company." A single observation may be here appropriately made on the subject of the condition in which Mr. Biddle left the Bank. The reports of Dividend Committees, and the published resolutions and statements of the Directors have been referred to, and much relied on by him. The readers of the report may be safely left to examine pages 41 and 58 of the appendix, and form a judgment on this question for themselves. |