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Charges against Judge Johnson, of Arkansas.

(22d Cong. 2d Sess.

mineral investigations in the various territories of the The judge whose conduct in the present instance is al. United States, and then, when important developments leged to be

such as to call for the exercise of the impeachof mineral wealth are effected, to cause such efficient sur- ing power of the House, holds his office for a term of seys to be made as may give the most beneficial direction four years only, and may, by the express provision of the to their transportation.

act of Congress establishing his office, be removed at The committee is of opinion that all can be effectually any time within that term by the President. The trial done without any increase of the annual appropriation by impeachment is the higbest and most solemn in its naunder the act of April 30, 1824, and by simply adding túre, known in the administration of public justice. It this important object to the duties of the Topographical is established for high political purposes, and would seem Bureau.

to be proper only against judges who bold their offices It also appears highly deserving the attention of Con- during good behaviour, and other high officers of the gress, that among the results attending the execution of Government, for such crimes or misdemeanors as the this proposition, would be the construction of a national public service and interest require to be punished by remap, containing all the metallic and mineral deposites of moval from office. the United States, based upon actual survey. The in. But, as the House may not concur with the committee trinsic value of such an extraordinary delineation of our in these opinions, they have thought it their duty to look mineral resources, and of such a monument of the en-into the evidence before them in support of the charges couragement given to science, no man can appreciate made against Judge Johnson, and also into the evidence until some progress has been made in its execution. It referred to them in his vindication. As they believe that, is in this manner, also, that, without injuring any other upon an examination of all the proofs before them, there branches of the service, we shall introduce among the can be but one opinion as to the question whether a sufengineers of the army a correct knowledge of the true ficient ground for an impeachment is made out or not, principles of geology.

the committee have not supposed it necessary or import. For these reasons, the Committee on Military Affairs ant to report to the House, in detail, either the charges have instructed their chairman to move the following re- or the evidence on the one side or the other. solution:

Judge Johnson appears to have filled the office of judge Resolved, that the chairman of the Committee of Ways of the superior court of Arkansas Territory, under seand Means be requested to amend the bill making the veral appointments, during a period of twelve years. appropriation on this subject, so as to give the power to The general charges against him are, favoritism or parembrace this subject.

tiality to particular counsel in the trial of causes; irritability of temper, and rudeness on the bench towards his

brother judges and the bar; incapacity, manifested by a CHARGES AGAINST JUDGE JOHNSON.

vacillating and inconsistent course of judicial decision, House of REPRESENTATIVES, February 8, 1833.

and habitual intemperance. Mr. BELL, from the Committee on the Judiciary, to the memorialist does not confine himself to the term of

In making out specifications under these several heads, which was referred the memorial of William Cum- the judge's office which is just expired, but the whole min, setting forth certain charges of official and other period of his judicial administration in Arkansas is re. misconduct against Benjamin Johnson, one of the viewed; and, after all, it may be stated, that four cases Judges of the Superior Court of the Territory of Ar. only are brought to the notice of the House by the evikansas, have had the same under consideration, and dence-the trial of Herod, House, and Woods, for the make the following report:

murder of Melborne, being regarded as one case in A preliminary question presented for the decision of which favoritism or partiality is alleged to have influencthe committee, by the nature and object of the investiga- ed him. taon in which they find themselves engaged, was, whether There are facts stated in the case of Herod, House,

judge of a territorial court is such an officer as may be and Woods, and in the case of Embree, which are no impeached before the Senate, under the provisions of the doubt true, as they are stated by members of the bar of constitution prescribing and regulating the mode of bring- character for veracity; but the inferences from those facts ing official offenders to justice. A majority of the com- appear to the committee to be strained, being generally mittee are strongly inclined to the opinion that such an those of unsuccessful counsel; and, upon looking into officer is not a proper subject of trial by impeachment. the explanatory evidence furnished in behalf of Judge Some of the reasons upon which that opinion may be Johnson, not to be warranted by the circumstances of the supported will be stated.

whole case.

For example, the discharge of the first jury The constitution, in article 11, section 4, provides that empannelled to try Herod, after they had had the case "all civil officers of the United States shall be removed submitted them, and held it under consideration for one from office by impeachment,” &c. The institution by night only, without any charge of improper conduct in Congress of those political corporations, denominated, in the jury, was supposed to furnish evidence of a desire the language of our legislation upon that subject, territo- to oblige the counsel for Herod; but no such inference rial Governments, is only authorized by a very liberal appears to be justified upon an examination of all the construction of the general power given by the constitu- facts of the case. The discharge of one jury, and the tion to Congress over the public domain. But, admitting empannelling of a second, for capital offences, appears to that exercise of power to be well enough founded, still, be considered no irregularity in the practice of the courts can a judge of such a Government be said to be an offi- of Arkansas, when the jury cannot agree; and, in this cer of the United States within the meaning of the clause case, it is not alleged that thiey could have agreed. The already quoted? Should the doubt thrown out by the just empannelling of the second jury, and the prompt committee upon this point appear to the House to be discharge of the prisoner at the same term of the court, without reasonable foundation, they think they will be are, in the opinion of the committee, in themselves, strong fully sustained in the opinion, that, whether liable to im- circumstances in favor of the innocence of the judge. peachment or not, the practice of impeaching subordi- In the cases of Embree and Dunlop, the explanatory nate officers, and especially such as hold their offices by evidence appears to the committee, in like manner, to å tenure not more firm and durable than the judge of a overthrow the inference of improper motives of the te teritorial court, would soon be found highly inconvenio judge. ent, and injurious to the public interest.

His refusal to sign a bill of exceptions, until he was re

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peatedly pressed by counsel so to do, is made a serious ance, since it involves not only the question of the safety charge against him. The evidence furnished by the judge of the public deposites, but the value of the large amount under this charge, makes it probable that the whole of stock held by Government, and the still more momencharge is founded in mistake; but, as the bill is admitted tous considerations of the soundness of a large portion of by both parties to have been signed, the charge does not our currency, and the consequent security or insecurity appear worthy of the importance attached to it.

of the domestic exchanges and commerce of the country. As to the general charge of incapacity, and an incon- The President, in his message to Congress, at the opensistency in judicial decision, rendering the court of jus- ing of the present session, informed them, “ that such tice wholly uncertain; the general testimony borne by so measures as were within the reach of the Secretary of the many persons of respectability to the legal learning and Treasury had been taken to enable him to judge whether ability of Judge Johnson; and the specific fact, which is the public deposites in the Bank of the United States stated by several, that in no case has a decision of Judge were entirely safe; but, as his limited power might prove Johnson, in the circuit court, been reversed in the supe insufficient to that object,” the President recommended rior court, appear to be a sufficient refutation.

the subject to Congress, as particularly worthy of their The charge of intemperance, although supported by investigation. proof of excessive indulgence upon a few.occasions, does Since that period, the report of the agent appointed by not appear to be well founded, to the extent alleged by Government for this examination, has been communicated the memorialist. The testimony upon this point, as well to Congress, and referred to that committee. The Comas in relation to the general integrity, impartiality, and mittee of Ways and Means have also received from the ability of Judge Johnson, is ample, and, in the opinion of directors of the bank a report on the principal points of the committee, conclusive. The Governor of the Terri- its administration and its present state, prepared by the tory, a large portion of the bar, the clerks of all his exchange committee of the bank, and adopted by the courts in his circuit--clerks holding their offices by the board of directors. suffrages of the people in their respective counties, toge- The importance of the statements and results, containther with many others in public stations, furnish the most ed in that report, induced the Committee of Ways and decided and unequivocal testimony in favor of the gene-Means, in the course of the examination of the directors ral uprightness and propriety of Judge Johnson's con- composing the exchange committee, to require their at: duct, both as a judge and a private citizen.

testation, under oath, to the facts and statements of that paper, as distinguished from its opinions and arguments.

This was done very fully. The same, and other direc UNITED STATES BANK.

tors, (two of wliom had heretofore been Gorernment diReport of the majority on the subject of the Bank of the rectors, one under the present, and one under two forUnited States. mer administrations,) in reply to various interrogatories

, stated, as will be seen in the evidence herewith submitHOUSE OF REPRESENTATIVES, March 1, 1833. ted, the means at the command of the board of directors, Mr. VERPLANCK, under instruction from the Com- or any member of it, for distinctly knowing the operamittee of Ways and Means, made the following report: tions of the several branches, and the character of the The Committee of Ways and Means report: That, paper discounted at them, together with their own opin

; among the subjects referred to the Committee of Ways ion, drawn from these sources, of the general safety of and Means, at an early period of the session, were the such paper. transactions of the Bank of the United States, in relation The Committee of Ways and Means have to regret that to the payment of a portion of the public debt; and the the constant and daily pressure of the various duties which inquiry into the present pecuniary and financial state and have devolved upon them, during this short and laborior: management of the institution.

session, did not permit a more full examination of the coldThe arrangement made by the bank for a temporary cerns of the institution. If, bowever, in the entire as postponement, with the consent of the holders, of the sence of any evidence calculated to refute, or in any way payment of five millions of the tlıree per cent. debt, being impeach, that which is before the committce, the state

. now substantially closed by the surrender to the Gorernments and opinions of the treasury agent, selected by ment of the certificates of stock, except for a small the treasury to examine the condition of the bank; those amount, and the whole debt itself having been liquidated, of several of the present directors, men of character and so far as respects the Government, at an earlier period intelligence, long conversant with accounts and banking than it is probable it would otherwise have been, this business; the official returns of the bank itself

, and the question seems no longer to present any important or report of its principal committee, attested to under oathi practical object of inquiry, or to call for or admit any ac. if all these can be relied upon, as furnishing satisfactory tion of Congress upon it.

information on the present state and pecuniary means of The committee have examined several of the direc- the institution, the following results will appear: tors on this subject, as well as upon other points con- First. The directors of the bank at Philadelphia renected with the management of the institution. Their ceive from the boards of their branches frequent, regu testimony is herewith submitted; and the committee lar, and minute returns of the paper discounted by them. specially refer to the evidence of Mr. Bevan and Mr. These returns, logether with the separate correspondence Eyre, as explanatory of the history and motives of this of the cashiers of the several branches, afford such infortransaction.

mation of all the business of those branches as to enable It is due, lowever, to the Government, to express the the board of the mother bank, or any single director who opinion, that in the arrangement made by the bank agent may wish to inquire into it, to ascertain the character of in England, for the purchase of the three per cent stock, the business of those branches; as, for instance, whether and the detention of the certificates, (which measures the mass of paper discounted be founded on ordinary were afterwards disclained by the bank,) the bank ex. commercial transactions, and to be paid from their pro ceeded its legitimate authority, and that this proceeding ceeds when at maturity, or whether any considerable porn had no sufficient warrant in the correspondence of the portion of it consists of what is called accommodation. Secretary of the Treasury.

The inquiry into the present condition of the bank, the her, whether the domestic bills of exchange, purchased general ch"racter of its business, and the soundness of its at the branches, arise out of business transactions, and is capital, is a subject of much greater interest and import-I be paid when at maturity, or whether they are mere ac

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commodation paper in another form, to be repeatedly paid before the stockholders, the whole capital and the renewed by drawing and redrawing between distant of. surplus must be considered as a pledge for the debts due fices.

to individuals and the Government. As the capital conSecond. These returns, together with the reports of the sists of thirty-five millions of dollars, it would appear, boards of the several branches, upon whose character and from this statement, that the bank had earned, and then judgment they place great reliance, form the ground possessed, a surplus of twenty-two per cent. above the upon which the directors have stated under oath their amount of its capital. Whether that surplus could or full confidence that the mass of paper discounted by the could not be realized, at a final winding up of the bank, barmok and its branches, and detailed as active debt in their is a subject only interesting to the buyers, sellers, and stabement, is safe. On this, they believe, no serious loss holders of stock. The single point of view in which it need be apprehended. The dishonored paper held by is important to the nation, is in regard to its bearing on the bank is stated to be returned as doubtful or suspend the healthy state of the bank, and the consequent safety ed paper, and to be estimated, not at its nominal, but at of the public deposites, and the sound state of the currenits presumed actual value. The real estate of the bank cy. For these objects, it is sufficient to inquire whether is , in like manner, valued, not at cost, but on estimates this surplus does or does not afford a sufficient guaranty founded on frequently renewed appraisals of the probable that the original capital of $35,000,000 is unimpaired. market value. They depose that, to the best of their The whole amount of bills and paper held by the bank, knowledge and belief, the whole amount, with inconside-on the 1st of January last, was $61,695,000; of which rable exceptions, if any, of domestic bills of exchange $8,246,000 is stated to be the local debt of the Western purchased by the bank and its officers, is regular busi- States, leaving $53,749,000 as the debt of the Atlantic hess paper, founded upon the agricultural exports and commercial cities; and that in the shape of domestic bills, commercial imports of the country; and that by far the between them and the interior. There seems no reason greatest portion (probably nine-tenths) of the notes dis- to doubt that the paper of the description last mentioned counted is of the same character. They also assert, with is of the same general character as that of other city banks, much confidence, that most of their accommodation notes managed with ordinary discretion. Now, it is well are well secured, and form, in fact, the safest investment known that, in our great cities, business paper is conof the bank.

stantly guarantied by commercial houses of prudence The inquiries respecting the amount of accommodation stability, and wealth, for a del credere commission of two paper were made to ascertain the character of the general and a half per cent. On much of the better class of business transactions of the bank; and not because the paper, and in some of our Northern cities, upon most of committee believed that accommodation paper, discount- it, the ordinary charge is much less: but a greater pro. d to a great extent, would necessarily endanger the so- portion of loss than this ought certainly not to occur in a idity of any moneyed institution. Such paper may fre well managed city bank, where the judgment and inforfuently be as safe, such loans as useful, as any. But it mation of a board of directors is combined with that of Icertain, that, when moneyed institutions are in a hollow its officers. In point of fact, it is believed that two and nd unsound state, it commonly arises from the capital a half per cent. on their discounted paper actually exaving been invested in doubtful paper of this description. ceeds the losses of prudently managed institutions in our The very fact, therefore, of the discounts of a bank being cities. But allowing the loss on the Atlantic and comfincipally applied to the ordinary business paper of an mercial debt to reach four times that amount, say ten per ctive commercial community, will show that, allowing cent., then $5,370,000 of the surplus would be an ample I only ordinary judgment and integrity in the selection guaranty against such loss. This would leave $2,680,000

such paper, nothing short of some general overthrow as a surplus, which would meet the loss of about one-third fmercantile credit will produce material loss. of the local Western debt, without impairing the original Third. In general corroboration of their statements on capital of the bank. his point, as well as of their opinions of the security of The committee do not mean to be understood as assertle bank debt, the directors appeal-1st. To the fact of ing their belief that the Western debt is more hazardous e great fluctuation of the exchange business, at the than that in any other part of the Union. The bank diime points, at different periods, corresponding with the rectors express their conviction that it is not so; and the eriods of the shipments of agricultural produce in the agent appointed by the treasury does not hesitate to say, Vest; as, for instance, at Nashville, within three months that he considers that debt in a safe and wholesome 11831, from $366,000 to $1,062,000. And again, at the state, and that a greater amount of loss need not be aphe place, in 1832, within about balf a year, from prehended from it than from a similar mass distributed in 2760,000 down to $503,000. 2d. That of the easy re- the cities of the Atlantic frontier.” But this estimate has action, during the last year, of about one-eighth of the been made, because the extent of the Western transactions hole amount of the bank debt throughout the Union, of the bank has been mentioned as one of the subjects id specially to the amount reduced in the Western of. peculiarly calling for investigation. tes., 3d. To the very small amount of losses which These general views of the situation of the bank, and Ive occurred for some time past in those offices, and to the consequent safety of its depositors and bill holders, de. le facility with which, in addition to the aggregate re-rive strong confirmation from the fact of the large pro. iction of loans there, a very considerable proportion of portion in the specie of the country, which is held by the le local debt, on promissory notes, has been converted bank. It appears, from official documents of unquestionto the more secure and manageable form of domestic able authority, that the specie actually in the vaults of Als of exchange.

the Bank of the United States is within one-tenth of the If these statements, and this evidence, can be relied amount held by all the other banks in the Union, whilst pon, the available and secure resources of the bank its circulation of paper is but one-fourth of the aggregate of mounted, on the 1st of January last, to eighty million theirs. In other words, the Bank of the United States has ght hundred and sixty-five thousand dollars, whilst all above nine millions of specie, with a circulation of notes le claims against it, for bills, debts, and deposites, includ. to the amount of seventeen millions and a half, whilst the & those of the Government, and for the redemption of aggregate of all the other banks, with specie in their epublic debt, were but thirty-seven million eight hun. vaults, but a little above ten millions, have a circulation of led thousand dollars, leaving above forty-three millions sixty-eight millions of bank paper. la guaranty to the nation against any losses. For as If, then, the evidence herewith submitted can be relied le whole amount of debts, bills, and deposites, must be upon, which it is for the House to judge of, there can be

VOL. IX.-1

22d Cong. 2d Sess.]

Bank of the United States. no doubt of the entire soundness of the whole bank capi. year." In letters dated the 20th and 21st of January, tal, after meeting all demands upon it, either by its bill 1832, to the cashiers of the branches at Cincinnati, Louholders or the Government; and such is the opinion of the isville, Pittsburg, Natchez, Mobile, Nashville, and Washcommittee, who feel great confidence in the well-known ington, is the following declaration: "The rapid redempcharacter and intelligence of the directors, whose testi- tion of the public debt will probably deprive the Atlantic mony supports the facts above stated.

offices, in a great degree, of the benefit of Government The committee conclude by respectfully recommend- deposites during the whole of the present year.". In ing the adoption of the following resolution:

March, negotiations were entered into by the president Resolved, That the Government deposites may, in the of the bank and the exchange committee, with the view opinion of the House, be safely continued in the Bank of of procuring a postponement of the payment of a portion the United States."

of the public debt beyond the period which might be

fixed by the Government for the payment, so as to enable IN THE House of REPRESENTATIVES, March 1, 1833. the bank to retain possession, and have the use of the

public funds which it held on deposite, during the period Mr. POLK, from the minority of the Committee of Ways of postponement. Prior to the 13th of March, a commu

and Means, consisting of three of its members, to which nication was opened by the president of the bank, with was referred so much of the message of the President Thomas W. Ludlow, Esq., of New York, the agent for of the United States, of the 4th of December last, as the foreign holders of about one million seven hundred relates to the Bank of the United States, and to which thousand dollars of the three per cent. stocks, with the was also referred the annual report of the Secretary of view of postponing its payment for one year beyond the the Treasury upon the same subject, have had the same time at which its payment might be directed by the Gounder consideration, and, not concurring in the report vernment. In a correspondence commencing on the of the majority, ask leave to report:

13th of March, and ending on the 23d of July, and which That the attention of the committee has been directed is herewith submitted, the

following proposition was made chiefly to the transactions of the bank in relation to the by the president of the bank in a letter dated the 19th of proposed payment, by the Government, of a large por- March: “When the three per cents., assumed by fotion of the

public debt, denominated the three per cent. reigners, whom you represent, shall be paid off, the back stocks, during the past year, and on the 1st of January will continue to pay the interest at the same rate, for one ultimo, whereby the payment of a portion of that debt year from the date of the payment by the Government. has been postponed by the bank beyond the period fixed At the expiration of that year, if you will give to the bank by the Government for its reimbursement. To ascertain three months' notice of your wish to receive reimbursethe true state of facts connected with this transaction, ment of the principal, either in whole or in part, the the committee deemed it proper to request the Govern- principal shall be so reimbursed. And if the bank will ment directors of the bank, and a part of the directors on give to you, or to whomsoever may then represent the for the part of the stockholders, to attend before them, and reign stockholders in this country, a like notice of three give information upon the subject. Several of the direct- months of their intention to make reimbursement, either ors, both on the part of the Government and of the stock-in whole or in part, the agent of such stockholders shall holders, accordingly attended before them, and gave tes- receive such reimbursement, and surrender the certibtimony upon the subject. Their testimony is herewith sub-cates.” About the same period, a similar negotiation mitted with this report. Sundry letters and documents, was opened with another representative of about a mila upon the same subject, numbered from 1 to -, inclusive, lion of stocks held abroad, but neither was brought to any are also herewith submitted. From all which the follow- satisfactory result, for the want of power in the agents of ing facts appear: That the bank, as early as the month of the foreign stockholders to make such an arrangement October, 1831, gave instructions to its offices, and parti- These propositions were concealed from the Government cularly to those in the western and southwestern portions On the 241h of March, the acting Secretary of the T'rez. of the country, to curtail their business, and furnish aid sury informed the president of the bank that it was po* to the principal bank and the Eastern offices, to enable posed to give notice of the purpose of the Government the institution to meet the large payments of the public to redeem one-half of the three per cent. stocks (about debt which were anticipated during the following year. six and a half millions of dollars) on the first day of the From the answers received from the offices in the West succeding July, remarking to him, if any objection occur and Southwest

, this effort to curtail its discounts seems red to bim, “either as to the amount or mode of para to have been unsuccessful

, as will be more particularly ment,” to suggest it. The president immediately visited stated in a subsequent part of this report.

Washington, and urged the Government to postpone Some inquiry has been made into the general condition intended payment for three months; and upon agreeing and management of the institution; but, from the want of on behalf of the bank, to pay the quarter's interest, pra means and time, a thorough investigation could not be had cured the postponement until the first of the succeering upon these points. They content themselves, therefore, October. Having failed, as we have seen, to effect a permis with submitting the facts of the case as they are disclosed ponement with the agents of foreign holders residing is by documents, and by the oral testimony of the directors, this country, but, by representations made to the Govert in relation to the payment of the public debt, adding such ment, having succeeded in obtaining a particulars upon the other points as they have been able, until the 1sť of October, the bank was temporarily res in the limited period allowed to them for the investiga- lieved; but, as the period approached for the payment in tion, to collect.

October, it found it necessary io seek further relief. F** It was anticipated by the bank, at an early period, that tween the 1st and 10th of July, the president and the the Government would, during the year 1832, draw from exchange committee determined to open a negotiale. it nearly the whole of the public deposite, to be applied in Europe for the postponement, for one year, of the pills in payment of the national debt. On the 24th of Decem- ment of five millions of the three per cent stocks tier ber, 1831, in a letter from the cashier of the principal abroad; but they carefully concealed their intention from bank to the cashier of the New Orleans branch, it is ob- the Government; and there is strong reason to believes served, " that such appears to be the anxiety of the Go- indeed it is certain, that it was concealed also from vernment for the early extinguishment of the public debt, Government directors and the board itself. This will that we are not likely to have the use of any considera- shown more clearly when we come to examine the one ble amount of treasury balances during the coming on this point. General Cadwalader, a director of the

postponement

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bank, was requested to undertake the mission. He re- red him to their agent in the United States, T. W. Ward, ceived his instructions on the 18th of July, and sailed for of Boston, to make an arrangement relative to the purchasEurope on the 20th. On the 22d of August, General, ed stock, expressing a desire to accommodate the bank. Cadwalader closed an arrangement with the house of On the 22d of November, the Barings received the Baring, Brothers, and Company, of London, providing for president's letter of the 31st of October, and, in relation the purchase or postponement of five millions of the Unit- to the deferred stock, say: "We have already mentioned States three per cent. stocks for one year from the 1sted to you that several of the holders of the three per cent. of October, 1832, the Barings retaining possession of the certificates made the retention of them the condition of certificates of that purchased, and the stockholders re- their postponing reimbursement. There can be but littaining the certificates of that postponed; and, in the tle ground, therefore, to expect that they would now event the amounts purchased and postponed should not accept less favorable terms, and we cannot express any equal five millions of dollars, then the Barings were to confidence in an attempt to persuade them to relieve the give the bank a credit for the deficiency, upon which the bank from the engagements we entered into with them bank might draw. In a letter, dated the 22d of August, on its behalf.” and received as early as the 1st of October, General Cad- The Barings, however, issued a circular, inviting the walader informed the president of the bank of the tenor holders to surrender the certificates, “engaging to oband substance of this agreement; and, in a letter dated tain for you (the holders) an acknowledgment from the the 25th of August, enclosed the agreement itself. The bank that the amount has been passed to your credit on Barings proceeded, under this contract, to make pur. its books, and will be either held at your disposal, or rechases of stock on account of the bank, and for the bank, mitted in a bill, at the usual time, on the 1st of October, to the amount of one million seven hundred and ninety: 1833; up to which period it engages to remit the interest, eight thousand five hundred and ninety-seven dollars and as before it was reimbursed. Should you, however, for fifty-seven cents, and procured the postponement of two any reason, prefer an immediate remittance, both of intemillion three hundred and seventy-six thousand four rest accrued and capital, the bank will, of course, comhundred and eighty-one dollars and forty-five cents; ply, on receiving your instructions to that effect.” To amounting, in all, to four million one hundred and se- the stockholders who desire it, the Barings agreed to venty-five thousand and seventy-nine dollars and two give the guaranty of their house for the faithful performcents—of which they apprised the president of the bank, ance of the mere agreement. from time to time.

There is no evidence to show what is the nature of the A supplemental agreement was made by General Cad- agreement finally made by the bank with the Barings, walader, on the 13th of September, with the Dutch hold through their agent, Mr. Ward, in relation to the purers of three per cents. who might consent to postpone the chased stock; nor is it shown, with precision, to what payment of their stock, stipulating to pay them, at the amount the holders of the deferred stock have agreed to close of the period of postponement, at the rate of forty give up their certificates, and receive a credit on the cents per guilder.

books of the bank, bearing interest until reimbursed in On the 15th of October, the president of the bank October, 1833. From the letters of the Barings to the wrote to the Barings, disavowing so much of General bank, dated the 29th of November, and the 6th, 14th, Cadwalader's arrangement as provided for the purchase 191h, and 22d of December, we collect various items of of stocks on account of the bank, on the ground that it the deferred stocks, for which the holders have agreed was a violation of the bank charter. In the same letter to wait for reimbursement until October, 1833, surrenhe proposes, as a substitute for General Cadwalader's ar- dering the certificates, and taking a credit on the books rangement, that all the certificates, both of the stock post.jof the bank, amounting in all to one million four hundred poned and purchased, that the portion which the stock and twenty-eight thousand nine hundred and seventy-four holders have consented to postpone should be passed dollars and fifty-four cents. There appears to be still to their credit on the books of the bank, and continue to outstanding of the stocks postponed under General Cadbear an interest of three per cent. per annum, payable walader's arrangement, nine hundred and eighteen thouquarterly, until the 1st of October next, when the princi- sand three hundred and eighty.one dollars and ninetypal will be reimbursed;" that “the portion purchased eight cents, most of which will probably not be called for by you (the Barings] will, in like manner, go to your until October next; so that the probable amount of those credit when it is paid by the Government. At that time stocks, which will not be paid until that time, exceeds it will be for you to determine whether it shall continue two millions of dollars. But the sum of one million four to draw an interest of four per cent., (if that be the rate,) hundred and twenty-eight thousand nine hundred and sepayable quarterly, or whether you would desire immedi- venty-four dollars and fifty-four cents is now known to ate payment.” In a letter dated the 19th of October, have been definitively postponed until October, 1833, acthe president proposes, in case of any difficulty with the cording to the proposition contained in the president's stockholders who have agreed to postpone their stock, letter to the Barings, of the 15th of October last. Although to let them retain the certificates, and adds, “we will the Government has probably been released from its reendeavor to accomplish the object of the bank without sponsibility, and in the accounts of the bank with the possession of the certificates.” In a third letter, dated the treasury the whole amount is represented as paid, yet, to 31st October, the president urges the surrender of all the amount thus postponed, nothing has, in fact, been the certificates, and says: “Should any difficulty occur, paid by the bank. it would be agreeable to the bank if you would obviate By the monthly statement of the bank of the 1st of Feit, either by causing the certificates to be sent to the bruary, 1833, it appears that there was then standing to bank for immediate reimbursement, or, if necessary, by the credit of redemption of public debt, assigned by the purchasing the certificates on your own account, in the Government to that object, but not yet applied by the ame manner as was done with those previously purchas- bank, the sum of

$5,163,075 40 ed, and taking your reimbursement in the mode most To this add the abore sum definitively igreeable to yourselves.”

postponed until October, 1833, but transOn the 6th of November, the Barings received the pre- ferred from Government to individual acsident's letter of the 15th of October, but took no imme-count,

1,428,974 54 liate steps to comply with his wishes. n the 14th November, the Barings received the pre- Giving a total of

$6,592,049 94 side nt's letter of the 19th of October, and, in reply, refer

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