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WASHINGTON, August 16.-The Directory of the Bank of St. Louis has given notice for a meeting of the Stockhold ers ON the 15th September next, to take into consideration the propriety of continuing or closing the concerns of that institution. The Farmers' and Mechanics' Bank of Cincinnatisuppendied specie payments on
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FROM THE FRANKFORT ARGUS. Bank of St. Lowe vs. Cols. James and R. M. Johnson. The Bank of St. Louis has again suspended specie payments, and among their reasons for so doing they set forth the following: " The Bank of St Louis, after a suspension of business for about twelve months, resumed operations on the third of March last, under the expectation on the part of the directors, of being able, if not to continue the operations of the bank successfully, at least to collect the debts due the bank, and pay the claims against it, more promptly than while in a state of suspension; the first object of the directors, therefore, was to acquire a fund on which to commence temporarily, until the bank could collect the debts due to it. This fund was raisedon the credit of individuals; which, together with the collections of debts, has enabled the bank to redeem upwards of fourteen thousand dollars of its bills issued, besides liquidating other claims amounting to about twelve thousand dollars. The receipts for debts due the bank during its last operations, have fallen short of what the directors had anticipated. Among these disappointments, the most prominent is the delinquency of the Colonels James and R. M. Johnson of Kentucky, in not paying the large sums of money (amounting to about fifty-six thousand dollars) lately awarded against them, The Colonel Johnsons had entered into the most honorable obligations to discharge the debt that should be found against them; and from the extraordinary assurances on the part of the colonel Johnsons, as well as from the legal obligations those gentlemen were under, the directors of the Bank of St. Louis placed a considerable degree of reliance on receiving a prompt payment of this debt; disappointed in every arrangement entered into by the colonel Johnsons, the only alternative left for the directors of the Bank of St. Louis to pursue, was to commence a suit at law on the award against them. This course has been taken, and the result will probably restore to the stockholders of the bank, the funds of which the institution has been so long unjustly deprived, and for the want of which, con-
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SPECTATOR EDWARDSVILLE, AUGUST 21, 1821. Another bubble bursted."-The President of the Bank of Missouri, inthe last Gazette, has given notice that the bank "finds itself obliged to suspend its operations, with a view to the dissolution of the institution, and the final close of its concerns." He subsequently assures the public, " that the business of the bank has been conducted on correct banking principles; that no loss whatever has been experienced by the bank," &c. On Friday morning, a handbill was issued from the office of the Enquirer, containing the statement of a committee appointed by the President to report the situation of the bank. From this statement it appears that the present directors have helped themselves to the comfortable sum of $248,655. It further appears that the sum of $11,622 has been overdrawn. Are these "correct banking principles?" In consequence of the failure of the Bank of Missouri, and the consternation it produced among all classes of people in St. Louis, a run was made by every holder of a dollar of the paper of the Bank of Edwardsville, from St. Louis and St. Charles. The news of the failure of the Missouri bank arrived at this place late on Tuesday evening, and on Wednesday morning the board of directors of the Edwardsville bank caused its doors to be opened at seven o'clock, and continued them open until several hours after the usual time of closing. The same liberal course was, we understand, pursued during the week, and still continues. The result has been, that not only have the holders had their notes redeemed with specie, and every possible facility afforded them to obtain it promptly, but whatever unfounded impression had been made against the credit of the Bank of Edwardsville, from the circumstance of the failure of the Missouri bank, and the evil reports of shavers and swindlers, has been entirely removed. We learn from an unquestional source, that the whole amount of notes which have been returned to this Bank since the failure of the one at St. Louis, does not exceed six thousand dollars, and that the runs upon it have entirely ceased. This amount, considering the great excitement produced by the explosion of the Bank of Missouri, shews that there can be but little of the Edwardsville paper in circulation. But be that as it may, we have the means of knowing that the Bank will sustain specie payments, and that the public can hazard nothing by continuing to receive its paper. The solvency and resources of the Bank are unquestionable. Be it remembered, that Col. THOMAS H. BENTON, who by his editorial labors in the St. Louis Enquirer, two years ago, prevented the Bank of Edwardsville from doing any mischief," is one of the present directors of the Bank of Missouri.
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Office of the St. Louis, Enquirer, Friday morning, August 17. BANK OF MISSOURI. This institution, as has been announced by the President, suspended its operations on Tuesday last, with a view to the surrender of its charter, and, as speedily as possible, to the final adjustment of its accounts. On Wednesday, a committee was appointed (composed of persons entirely disinterested, who were selected for their probity and intelligence,) to examine and report upon the condition of the bank. The following is the result of the investigation, &c. had at the banking house, which we hasten to lay before the citizens as early as possible.
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Committee. BANK OF MISSOURI. The following Is the official notice of the suspension of the operations of the Bank of Missouri: When the President speaks of "every cent of its debts being paid," it is presumed he refers only to its debts to individuals for notes in circulation and private deposites. These may possibly be eventually paid, but Uncle Sam, as the government of the United States is facetiously called, will surely be " left the bag to hold." FROM THE ST LOUIS ENQUIRER. Bank of Missouri, - The Bank of Mis soori finds itself obliged to suspend its operations, with a view to a dissolution of the Institution, and the final close of its concerns. At the same time it assures all those interested, that every cent of its debts will be paid. Any person, by applying at the bank, can be satisfied of its complete solven. cy. It is due to the public to state. that the business of the bank has been conducted on correct banking principles; that ro loss what ever has been experienced by the bank, but that its present embarragment is entirely owing to the relation in which this country stands with her sister states. who have sts. pended their banking or specie capital hence has arisen she great demand for specie from those states, which has been procured from us at any sacrifice of their produce sent to this market; also, the act of our last legis. lature in passing a redemption law, has caused the debtors of this bank to fail, in many instances, even in paying their dis. counts, not fearing the consequences of a su THOMAS F. & IDDICK. Pres't. August 18.
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by Mr. Edwards in its support shall also be noticed. He represents himself to have stated, in two letters written by him to the Secretary, in February, 1822, that he had made such a publication, that the Receiver had transmitted it, that the Receiver's letter containing it had been answered, and infers, from the Secretary's silence on the subject, an admission of the fact. That the Secretary did not reply to this, or to any of the other matters contained in those letters, resulted from his having declined any correspondence with Mr. Edwards on the subjects to which they referred, in consequence of a menace which the first of them contained. This will be seen by the Secretary's answer, which, together with Mr. Edwards's letters, are herewith transmitted. ### The next principal accusation to be examined, relates to the Secretary's transactions with the Bank of Missouri; and charges him with having, in the arrangements made with that Bank, in regard to the public deposites, allowed it advantages for which it rendered no equivalent, and with having received from it uncurrent bank notes, which he was neither bound nor authorized to receive. The direct connection between the Treasury and the Bank of Missouri began on the 1st of August, 1818. Before that time the Bank had acted as the agent of the Bank of the United States. It had fulfilled its engagements with that institution, with good faith; its condition was considered sound and prosperous; and its reputation stood high, as well in the Atlantic, as in the western states. The large amount of money to be received from the sale of public land in that quarter, rendered a connection with such a Bank not only convenient but necessary. In the first arrangement with the Bank, there was no stipulation as to what kinds of money it should receive or pay for the Treasury. The Receivers were instructed to receive the notes of such banks as paid specie on demand for their notes, and no others; and to deposite them in bank to the credit of the Treasurer. When public disbursements were to be made, the Treasurer issued his drafts, and the bank discharged them in such funds as it had received. On the 23d June, 1819, the Secretary, in the execution of a general system which had been adopted, with the approbation of the President, for the reasons stated in his report to the House of Representatives of the 14th February, 1822, and in his letter to the chairman of a select committee of the House, of the 13th February, 1823, proposed a new arrangement to the bank. By this arrangement, the bank was to receive the notes of such specie paying banks, as were in good credit, and in general circulation, and to account for them as cash: to transfer to the Bank of the U. States, or its branches, the surplus of the money which it might receive, that could not be disbursed at the Bank; and for the expense and risk of making those transfers, which were expected to amount to a very considerable sum, it was to have a standing deposite of $150,000 which standing deposite was always subject to be reduced by any disbursements that could be made at the bank. This arrangement was accepted by the bank on the 9th of August, 1819. It was modified in August, 1820, by limiting the local bank notes to be received, to those of the Atlantic cities, and of the state of Missouri, and thus it continued until the bank stopped payment, on the 14th of August, 1921. To estimate, justly, the advantages offered to the bank by the arrangement, it is necessary to examine what were the probable services to be rendered by the bank under it: About the time when the Secretary's proposition for allowing a standing deposite was made to this bank, there was a balance remaining in bank, over and above what could be expended there, of upwards of $640,000, and this, too, after the bank had transferred upwards of $100,000. This large balance had accumulated in rather less than a year. Taking into consideration the revival of credit among the western banks which had then taken place, it was reasonable to suppose that the payments into that bank would not decrease more than one half during the next year; upon this supposition, the amount to be transferred under the arrangement would be about $320,000 a year. The risk and cost of transferring money from St. Louis to Louisville, which was the nearest point to which it could be transferred has been stated by the President of the bank, in his letter of the 29th November, 1819, to be at least 3 per cent, which, upon that sum, would be $9,600; and that was reasonably to be looked to, at the time the arrangement was made, as the value of the service, probably, to be rendered under it, in this respect, by the bank, to the Treasury. [To be continued.]
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declined on any That of the the other from matters his having the subutters, resulted with Mr. Edwards in consequence referred, contained, menace which the letters, a will be seen by Mr. Edwards hich, transmitted. ects this f orrespondent to together which they with the first secretary's of them be answer, examin- are next the and charges to Missouris made erewith d, The relates Bank principal of accusation secretary's to transactions with him ith the in the arrangements public deposites having regard to the which it rendered it advantages with having he was llowed hat ith uncurrent bank, in authorized and notes, to for which receive. Treasury received The and neither direct from the connection sound t of nor Missouri between Before began the that 00 time the the the Bank first bank of of agust, as the " had fulfilled good tank acted 1818. States, agent institution of with its and ette agements he United condition with that was considered stood sound high as rona resperous; its: its in the Atlantic and its of reputation a$ money in the to Western be that received quarter states, connection the ell large the sale amount of public with land such in a bank not the there bank, endered convenient a bill necessary, with t only In the first arrangeme to what kinds of Treasury. money no stipulating as or pay for to the receive the vas should receive were instructed specie on deposite demand notes The or their receivers of such bank notes, banks to and the no as credit others paid of were : and the to to Treasurer. be made, bank When hein, lie Treasurer in public them disbursements. issued in such his funds as and it the had re+ in secretary, discharged eived. the 23d of June, general 1819, system, the which of had the On execution of with the approbation in his report for of letter to the resident, February, een , he the adopted House select 1823, the committee and Representatives reasons in his stated of the House, of a the new of chair- 14th the are of 1823, propose-Prangement paying circulation, and the to Bank of angement pecie an e 4th bank of general February, was to the banks to bank. receive as were By to the this in notes good account surplus of credit, such the for of as cash to its branches that States, it might and, for nited nd ot e em money in be disbursed which risk or transfer of at making the amount receive, bank those the 10: very transfers. could depo- con the spense and expected to have standing derable swin, which by any This hich te of $150,000, subject were to it was be made reduced to standing at the deposite bank. bank disburse on was All. the ent ways: that ment could was 1819. be accepted It was by the modified bank notes in th of limiting the Atlantic range ust, e received 1820, August, by to of those Missouri: of the local and payment thus it justly, on cities, coll- the to d of the state the bank stopped To estimate, this to it is services the to time when nued ere e this agement, advantage the of until August, probable soffered it. necessary 1821. About to the adlowing bank be examine rendered by a standing what the ar- by e bank under proposition for this bank there and was.,3 above cretary's eposite remaining was made in to bank, there, over of upwards bank had of 640,000; lance hat could upwards of be and expended this $100,000. after rather the less This revival than large a unsferred dance Taking into western in banks, the to which suppose had credit ar. among the it was reasonable bank would deentaken place, into that the next e ease at the more payments than supposition. one-half during the amount would of to upon this under the arrangement risk and cost a from St. to which ear: : transferred $320,000 money year The point Louis to Louise the it le, insferring which transferred, was the nearest has in been sletter stated of the by cent. 29th would at bild resident be of 1819, the bank, to be at least be $9,600.00 per and the nvember, that sum looked to, value hich at was upou reasonably arrangement to was be to made, be rendered as Treasury. the under me in the the this service, respect, probably by from the causes bank to not the then into to the be that, paymention reseey, It is true short the subsequent of the whole been of the ou stipu- hand, was posite the by on ted ink ut it standing fell is also true deposite been that stated was liable not that always this to be standing drawn of atement has already all times By the Treasurer's ince quarterly been that it had of at the six close in banks, Ferent quarters, had drawn and the that, whole not actually amount amount been jor of stipulated 20,000. nding ed, which was deposite, draughts less than accompany by the an average of the the 30th letter of of ten June, from sucappears whole sum the e a President statement of the that, Bank, at the close in of stipulated bauk was tually ssive 21, it months, less than an average "the the amount of two $20,000; of years: and continue were at the arrang of the would en other ce posite, of times by average during ment, the the period, full sum amount actually observed have in simuting the whole is to be depoy ink, bank, but during Si40,000 the the But valye it of such a
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IS several year takenup with other place been so much correctly some matters it relative that has I may to of this. not 1819 recollect So the well Knoxville as I remember, the Bank substance received was of the Crawford a to give the from that he Bank of Msseuri in Mr. full proposed letter, Bank at for in whole amount of Bank, and of the United States. Knoxville the which hands was, a draft Missouri on Tennessee the the paper which then which had in been the be ceived payable by it at for Louisville and that, in Kentucky, upon the reshould ceipt Tennessee should of place such bank to draft, the a paper like credit the State ; sam of the Bank as Treasurer specie, at Knoxville which might of the United States as the Government of occasion to use of that would have be drawa the for receipt it, in that quarter letter, to such be was the an country. answered that On we that, could as to the not amount agree state of of Tenues- Tenaesand paper its upon branches, we were Bank upon the letter: arrangement; such see see draft on the the Missoari bank that, of the as willing to other the to accept terms Ten- state proposed paper, in his that did we not could belong not to agree to renessee bank or its branches, of this rrangement, March or ceive it. In pursuance 1820, I think the in Treasury early in a draft the was year received Bank from of Missouri, pay40,156 dollars & on in the descriptions to greedupon. the I Treasurer think of the We U. had S. no after Bank for April, credit able at receiving of the place the the draft. the amount of Missouri, was placed immediately of but far notes corres- only as the a- 1 pondence the Secretary with the of time; the Treasury, and upon so this point Af with remember, at this not mistaken can I feel pretty certain supposed am a reasonable the money time, I ter to allow waiting the what Missouri we the Bank draft to was have to be paid, Louisville, where man with me, to receive was at and took young sake, the draft place in was to be paid,) transferred went, no the particular money. to For inc. form's the Lwent Louisville money to Louisville, being I found specified (and no I in the to the Branch Bank the draft; and after went draft where there. hear wait any ing a few which days induced me to think draft protested, a longer a thing be useful, I had to the drawer, would funds provided without to forwarded meet the being able to delay with and copy of the protest as would make Some him time responsible. afterwards, think in the same the United sach returned notice to Knoxville. year, a letter States' was received 40,156 Bank, from I the Cashier of said to contain the by stating that had a been bundle, forwarded, purpose and left of lifting there this dollars, Bank, for the troubie and but, as we receive it, we ice of this at our own place, at !raft: lic Missouri singance had to had the wished ook to nono- have We ex- the hence lie money of andrisk communication, sent to of us the Missouri and and ready Bank. to reexpense with the paper, matters stood, il we heard Bank ceive were content it, at that any that the time. the Knoxville Missouri Thus Bank was should in had the winter failed. again unto get could make end advised this mosey. they the the mo- arof 1821. As soon as on and received unangement, at Louisville they sent early in amount the year of 1322. $10,156, and was that the Knoxville Bank !erstand hey received in notes the whole of the meanwhile, the Bank, Treasery and, its continued to I directed the current branches draw on the Knoxville Cashier, not money to pay the is President, drafts, but, if though money cash would for be was taken, these not ultimately, vet to inkeadvance received the for Secretary thedraft, in it paid to would under our a belief that, the amount of the draft to be bank. cause the Missomei My impression was, these that, notes, when the banks the bran- were thes ill Bank paying had had ceased specie, received to but do Mr. that so. afterwards Cochran, The first Cashier informawe got was of the United and Branch that the Bank money was of ready 1820, for as us, I ion be from States at believe, Louis- was of a Fille, n the same summer, viz. I never exchanged a with the to my best from it, our transaction only to Knoxville ine line ut considered cannot be ccording certain. Missouri from St. Bank, Louis nor with recollection. received the Trea- I was am ury. that time The tedious, mail and not why very the regular. money was of the I had no ready for as 1 now, that the all doubt, nor have towards notifying not o I et that ignorant was reasonable at Louisville. reason the Treasury draft. reason par- The did concerned notes of on the principal its Bank branches. ies il of having given itself, was in comparison to draft for $10,150 I understood that from enc bank to credit of the amount mode mall of transfer the placed that to the another. was for of having deposite this he United purpose States as Bank cash or of general Missouri States. could We not um which the the Bank of the United who presenpaid transfer creditors to in current of the United bills, though States at not the in time, specie, We of ed drafts there were no complaints recollection. which and J have at present any because the fund had not lid been not pay received the specie, upon the it; and foundation if any blame of which the is we had agreed to to myself pay in preference specie, to as lue, Cashier; it is as due I forbade transaction, him to until pay the the fund for to us. which : related we had to this agreed to pay it should be paid Mr. Edwards. I want to know is in be Question character by of Mr. Lee, whose report is hand? that report. Mr. Lee report a man my A. of I the have utinost seen integrity; as to and this if transaction. that aries from ray statement on than my own statement, of which is from Mr. Lee had. i is more correct to be memory. relied which without the deposited same means to be being Was a part of the Bank money suffered a. The to remain treasury in was the to draw government out the ma- rehey quired A. only : so:nething as the wants may in have of the the bank been said : but as I to have the time " was to remain of any positive agreement on
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state what amount of bills deposited on account of the government was in the Bank of Missouri at the time the suspension of cash payments took place. A. I was not expressly understood, if it was supposed that I said that the government funds in bank at the time of the suspension consisted of bills. Although a credit then stood on the books of the bank to the United States, the money corresponding with that credit was not actually in the bank. The amount due the government, as appeared on the books of the bank, was very near the amount allowed as a permanent deposite, which was payable six months after the bank ceased to be employed as an office of public deposite. Q. What sum did then remain in bank, of bills which had been entered to the credit of the U. States? A. A very small amount, perhaps about five thousand dollars. Q. When the arrangement was made with the Bank of Missouri, under which it was to retain a permanent deposite, what was the amount first understood it should se retain? A. One hundred and fifty thousand dollars. Q. Was there not an arrangement made with the Secretary of the Treasury by letters of August and Sept. 1819, by which the same moneys were to have been received by the government, or a considerable portion of them, as were received under the subsequent arrangement of March, 1820? And did not the bank fail to comply with the first arrangement alluded to? A. The letter of the bank of the 9th Aug. 1819, and the arrangement made by me, in March 1820, will answer that question. Whatever paper, under the first arrangement was not transferred, the Bank, of course, was accountable for, in cash. Q. Was not a part of the same paper which was to have been transferred under the first arrangement, afterwards received under the second, in a depreciated state? A. No. I believe that all the paper transferred to the government was of the same value at the time it was agreed to be transferred by letter of the 9th of August. Q. Was not a consideable part of the paper transferred under the arrangement contained in the letter of the 20th of March, 1820, greatly below par? A. It was. Q. What amount of it, as nearly as you can recollect, was below par? A. Something more than one hundred thousand dollars. Q. Did the Bank of Missouri ever receive an answer from the Secretary of the Treasury, to the following clause in a letter signed by Aug. Chouteau, President, and dated 9th August, 1819 viz: "As to the Bank of Edwardsville, the only one near us, we cannot give it our confidence. Their paper is received with distrust, even in their own neighbourhood, and passed from hand to hand as soon as possible. Owing to the intimate connection which it had with the Bank of St. Louis, which cannot pay its debts, and has entirely discontinued business, the capital stock of that bank has been taken for the most part, and is now owned by five or six individuals, some of them living out of the state, and the direction secured to such persons as they may choose to appoint. There are other objections, which we forbear to mention." A. I never saw any answer to this clause, & believe that none was ever received by this bank. Q. Was the opinion here expressed by the Bank of Missouri, concerning the Bank of Edwardsville, continued to be entertained by the former, for any length of time after the date of that letter, and how long? A. I cannot positively say, as to any other person but myself; but my impressions were changed, after I understood from common report, that the Bank of Edwardsville had determined to forfeit the stook of those persons who should not pay the requisitions of the bank. I understood that General Payne, of Kentucky, and others, were stockholders to a large amount, and I believed that they would fail to pay for the stock subscribed, if demanded in cash. This, I think, was my impreseion at the time, but it was derived merely froin report then prevailing. THOS. F. RIDDICK.
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Thomas F. Ricch, Edwards. of two Missouri a capital which SUID hundred The Bank and fifty of thousand in an office dollars, of of discount otlice was and $10,000 at was St. placed Genevieve, control of which the principal said direc- bank, deposite entirely respects; under the the cashier appointed and by all the the general mother in all and officers were pleasure. Their tors bank and removed were also at The directed office; at by St. the principal operations bank, at St. Louis. on personal Stockholders security, residing Genevieve but never at if more on loaned Genevieve pledge money pledged of stock. their stock security at St. Louis, not to borrow on that such 80 per considered only as considered they which than wished was cent. was allowed always collateral on I pledge, believe securi- safe, These loans were security. than any fallen below 80 ty. and better personal accumu- perct. that the stock ainout has of never public 9th moneys August, had 1819, but A large in bank prior to most the part, in notes land of the oflated it consisted, which for had the been received used by the by Treasury the in ficers, West, and could not due be by the government.discharge of debts at its own expense been and The Bank of which Missouri, they have not converted as yet those no allowed funds such risk, (and funds to any a for as large compensation,) would amount, the pay government the say, Treasurer's $598,000 having drafts into St. Louis. But considerable amount made occasion at St. Louis, to disburse (as the bank any to were transfer informed,) its funds of its to a at proposition to the United bank States, and certain this serthe Bank of and, the as a compensation should for remain in branches; that $150,000 but which might, permanent when disbursments made at St. Louis; agreeing be made if the could nevertheless, vice. bank agreed as be a be drawn deposite, should on also, the ser- that defurther compensation not be found adequate This for was acposite vice proposed should to the be rendered. 6th August, 1819, before and and a in part on $150,000, U: that time, or funds cepted sum, amounting was to near paid to the worth Bank 4 of per the after States and branches, bank. The permanent to deposite an cent. apremium to the drawn on, and reduced The bank was frequently considerably below $150,000. as yet for this of mount allowed no compensation uncertain benefit service has been deposite beyond might what have the been ought worth to to be them, esti- the this under circumstances, sum. Moreover, which, mated at a very had small to encounter the hostility from Bank of Missouri all the institutions of had the to West make deof nearly the bank of Missouri such other funds al- as whom mand for specie the funds Treasurer's or drafts; those and banks. would satisfy connected reference with to the so from gentlemen seen by a Sec letThis fact correspondence will be with of the banks. Bank of Kenprinted from the President of the Treasury, May ters to the Secretary 1829; letter from hon. September of the Crawford to also, letters July 30, 1819 of the 25, tucky W. Kentucky, 1819, H. Edwards, President 20, a Senator directed Bank United from to of Thomas States, hon. Ninian May F. Riddick, 10th and one 12th, said of the 1819, letters Directors last named of the Bank of with Missouri, the Committee which of Ways by Thomas & Means, F. are filed of a petition presented in for the to the Riddick, support asageut by bank. a reference It will, also, be seen, by the Bank with the Treasury the original certificates several pondeace agreements Department, also, made and the general became corres- of de- O the Bank of Missouri never to pay posite, that the 9th of August, or better bound, until any other 1319, the funds land to the should receive before the such as it in their power, kind of to direct what lands this offices, than ver of having August, Treasury they for from paper said 9th be received in payment by a list furshould before that date, regulated. by the Treasury the different Receivers, at par or not, their by this Bank of the nished was, received Department, from and, whether issued by Missouri, Cashier, was & of deposite, in funds, the in such paper as stating certificates amount received received Department. par had been The and amount the Treasury to therefore, by them ; and the authorised Bank, such-funds by was clearly received had a right is bound pay over the in- to as in common justice, and loss government, compensation for the risk those funds make curred by the Bank, in converting could be used by the into such other in payment funds as of demands of the against bank them. shall Treasury, these demands that will and settled, States will be Whenever liquidated United the amount been be found due the that has be then and the amount transfered by the to bank satisfy every States. cent justly The much sufficient lessoned, United ample, and greatly more due aby the bank stands charged on the the that now the nominal amount of bank mount than of the books mo- by of the Treasury, is paid into been of every description without any deduction having risk the neys land made offices, for services rendered, and for and loss in exchange. reports also be seen, by referring to committee the of It will bank, and the report of the the Bank of Misof the the Missouri all Legislature, times conduct that its operations having with souri did at and circumspection, never on pledges great care discount including notes deposite of an average (with the exception of the stock, and of stock, greater than the capital for circulation having its paper $204,938 29 of greater never $150,000, amount than signed within which the my to (if the books of the Bank be were found that average reach,) sum. I amount am satisfied in circulation, it would of the capital from the stock, com- to the plet day of of the suspension, payment did not appears exceed ever $80,000; to have greatest amount that 50; of which the in circulation, was 153,89 was specially been near that amount, th United $25,000, or the Branch Bank of to the Bank deposited Lexington, in and belonged suspended States at the time the bank in of payment, Missouri; only at $86,000, or thereabouts, was cannot, circulation. The suspension, attributed in August. either 1821, to excessive western therefore, be exc ssive issue of the for the
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ilis deposited on account of the government was in the Bank of Missouri at the time the suspension of cash payments took place. A. I was not correctly understood, if it was supposed that i said that the government funds in bank at the time of the suspension consisted of bills. Although a credit then stood on the books of the bank to the U. States, the money corresponding with that credit was not actually in the bank. The amount due the government, as appeared on the books of the bank, was very near the amount allowed as a permanent deposite, which was payable six months after the bank ceased to be employed as an office of public deposite. Q. What sum did then remain in bank of bills winch had been entered to the credit of the United States? A. A very small amount, perhaps about five thousand dollars. Q. When the arrangement was made with the Bank of Missouri, under which it was to retain a permanent deposue, what was the amount first understood it should so retain? A. One hundred and fifty thousand dollars. Q. Was there not an arrangement made with the Secretary of the Treasury by letters of August and Sept. 1819, by which the same moneys were to have been received by the government, or a considerable portion of them, as were received under the subsequent arrangement of March, 1820? And did not the bank fail to comply with the first arrangement allud-ed to? A. The letter of the bank of the 9th of Aug. 1819, and the arrangement made by me, in March 1820, will answer that question. Whatever paper, under the fist arrangentent, was not transferred, the bank, of course, was accountable for, in cash. Q. Was not a part of the same paper which was to have been transtetted under the first arrangement, afterwards received under the second, in a depreciated state? A. No. I believe that all the paper transferred to the government was of tite same value at the time of the transfer, as it was at the time it was agreed to be transferred by letter of the 9th of August. Q. Was nor a considerable part of the paper trans-fened under the arrangement contained in the letter of the 20th of March, 1820, greatly below par? A. It was. Q. What amount of it, as nearly as you can recollect, was betow par ? A. Sometinng more than one hundred thousand doitars. Q. Did the Bank of Missouri ever receive an answer from the Secretary of the Treasury, to the following clause in a letter signed by Aug. Chouteau, President, and dated 9th August, 1819. voz: "As to the Bank of Edwardsville, the only one near us, we cannot give it our confidence. Their paper is received with distrust, even in their owa neighbourhood, and passed from hand to hand as soon as possible. Owing to the intimate connection which it had with the Bank of St. Louis, which cannot pay its debts,and has entirely discontinued business, the cap-tai stock of that bank has been taken for the most part and is now owned by five or six individuals, some of them living out of the state, aud the direction secur-ed to such persons as they may choose to appoint.-There are other objections, which we forbear to men-tion." A. I never saw any answer to this clause, and be-lieve that neae was ever received by this bauk. QWas the opinion here expressed by the Bank of Missouri, concerning the Bank of Edwardsville, continued to be entertained by the former, for any ie gth of time after the date of that letter, and how long? A. I cannot positively say, as to any other person but myself; bat my impressions were changed, after I understood, from common report, that the Back of Edwardsvilie had determined to forfeit the stock of those persons who should not pay the requisitions of the bank. I understood that General Payne, of Kentucky, and others, were stockholders to a large amount, and I believed that they would fail to pay for the stock subscribed, it demanded in cash. This, I think, was my impression at the time, but it was denved merely from report then prevailing. THOS. F. RIDDICK.