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does he keep a carriage ? says another; will he take a hand at loo? says a third. A stockholder says, No, he is an old soldier” of the Revolution, and therefore poor, and not to have accommodation at bank. These public censors said further, that no discount would be granted, unless the maker or endorser of the note lived in Richmond; that the Bank was despised, hated, cursed. “Excepting the murders in cold blood which have been perpetrated on the defenceless inhabitants of India, the rapacity of that monstrous mass of aristocracy, the East India Company, has been fully equalled by the management of the corporation of the bank.”
We have reason to believe that all of these complaints were founded either in ignorance or malice. It has long been conceded, that the salaries of the bank officers are meagre rather than exorbitant, when compared with the responsibility endured, and the services rendered ; and that if these salaries contrasted disproportionately with those of judges, the remedy was in raising the latter, rather than reducing the first. And experience has farther proved, that there will always be found a certain class in society, ready to rail at a moneyed institution. No bank properly conducted, will lend its funds, unless upon the security of at least one man, whose unincumbered property will more than repay the loan. To act otherwise, would be a departure from the only principles on which banking operations can be safely managed. But the industrious poor man will always obtain by his character, the aid of a name representing property, and will thus secure a loan. Men who have neither property nor character, neither deserve nor obtain loans; and hence complaints, slanders, and dark hints of intrigue, and pride, partiality and corruption.
Finances of the State.—Like the other States of the Union, Virginia came out of the Revolutionary War embarrassed by a huge debt for unredeemed paper money. She was gradually relieved by her own exertions, and by the working of the funding system, established during the first presidential term. Since that time, though she has experienced financial vicissitudes, she has never suffered under the imputation of bad faith in her monetary duties. She has never repudiated. She looks upon such conduct with unmingled abhorrence. She has even verged to the other extreme. She has thought it better to remain poor and inactive, rather than endanger her credit by contracting enormous debts for purposes of internal development.
On the 30th September, 1845, the State had productive stocks and funds amounting to 6,595,844 dollars, and nearly the same amount in stocks and funds unproductive, because generally invested in improvements not completed, or complete but not profitable. The whole amount of State debt was 7,384,794 dollars, requiring provision for an annual interest of 451,746 dollars. Besides this interest, which is regularly paid, a sinking fund of nearly 6,000 dollars, is annually applied to the principal.
CANAL BANK OF ALBANY.
REPORT OF THE COMMITTEE UPON The FAILURE OF THE CANAL
BANK OF ALBANY — Continued from page 199.]
Examination of J. L. Crew, Teller, continued. Q. Have you ever taken any money from the bank and substituted for that money your father's check ?-A. I have.
Q. How much ?-A. I do not know the exact amount.
Mr. White presented him a check for $4,280, dated July 1st, 1849, and asked, Did you give your father the money, or what was equivalent to money,
and substitute this check for it as cash ? A. The check is a renewal of an old check for a similar amount which has been in the drawer for about a year. I don't know what was given for that old check, it was the money or its equivalent, the property of the bank.
Q. Had you power, and from whom, to make substitution?
A. I had such power from the Cashier, he sanctioned it, he told me I might do it. R. I want to know where the account is, of the interest received for
If the bank ever received any interest from it. A. The bank has received interest, the account is on a book that is in the vault, called a book of “Incidental Expenses.” Witness produced a small book bound in Russia sheepskin, and says there is the book upon which the receipts of interest are entered as received, but nothing said about items. This book comes down to August, 1847; another similar one is produced commencing July 11, 1848. He says there was one book which he cannot find; the last I saw of that book I placed it in the cupboard. The key is always in the cupboard. (Mr. McMullen says the cupboard has been barricaded with books ever since the 11th, and has not been open.)
Q. What was the amount of the balance of incidental expenses on the book up to 1st March last, and when was it charged to profit and loss?
A. Amount $36,612 08, and it was charged to profit and loss July 10, 1848.
Q. Has the balance on the last book accrued since last March? A. Yes. The balance charged to profit and loss Ist of March, of $36,612 08, the items are not charged on any book except that which is lost.
Q. Did you ever discount notes for William Monteath at different times, and receive premiums of five dollars and ten dollars ?
A. No Sir. I never did to the best of my recollection.
Q. How is a check signed by J. L. Crew, yourself, for $7,319, dated January 1, 1848—the January erased and July inserted, with the sand
yet on the July. Explain what was given for that check; and I want to know why it was changed from January to July, and when ?
A. I could not specify for what it was given. The value was given, either money or some indebtedness I have at the bank. It was altered from January to July for renewal, and to save writing a new check; when it was done I don't know.
Q. When was the interest paid, or did you not pay interest?
A. I can't tell when the interest was entered, or whether it was entered.
Q. Then there was none?
Q. How is a check of George Jones, dated the 15th of August, 1848, for $500, payable to J. L. Crew; what was that for?
A. For renewal of an old check; my father had the money of the Canal Bank for this $500 check, for which the Canal Bank held this check of George Jones', which my father is to pay. I think the transaction was sanctioned by the Cashier. I think he was aware of it and did not object to it.
Q. There are two checks-one signed by J. L. Crew, dated 1st December, 1848, for $1,500; another signed J. L. Crew, for $525, dated January 7, 1848; what was given for those checks?
A. My father received through me, the $1,500, for which I deposited those checks; and I received the other and deposited my own check in the same way.
Q. How is a note drawn by A. Newburgh, for $100, dated June 19, 1848, payable 45 days, endorsed by J. L. Crew; was that note discounted by you?
A. That note, with, I think, the interest, and $155 07 was received for payment on the 19th of June, for J. Fridenheious' note for $255 07, payable on the 26th day of July. I received nothing for it. I discounted this note for that purpose. I don't think the Cashier knew of this. All my checks in the bank are for moneys I took, and deposited checks in lieu. I am ready to pay all I owe the bank, and pay father's also. The bank is indebted to me sufficient to pay all I owe. They owe me on checks and claims I have against them.
Q. Did you yesterday go to a number of the customers of the bank, and say to them that you would purchase their demands against the Canal Bank, as you wanted to make it an offset to a demand the bank had against you, and if you succeeded, then you would pay them for the demand so assigned ?
A. I went to them and desired to purchase their claims against the Canal Bank, for the purpose of an offset against my debt, due by me to the Canal Bank, and without any promise of any further remuneration.
Q. Did you buy any ?-A. I have; from Washburn & Co.,
$3,000 00—I gave only $1 00 Washburn & Co.,
5,000 00 do. 1 00 Washburn & Co.,
do. 1 00 Wm. Monteath & Co., the balance
do. 1 00 George Jones, 8 or 10, or
do. 1 00 Wilber & Selkirk, .
1 00 Adam Aldrich, about
S. M. Parke,
$327 93—1 gave only $ 1 00 William H. Bogart,
400 00 do. 1 00 Van Heusen & Charles, check on Canal Bank, 646 64 do. 1 00 Canal Bank check given same for $6,000, on Pe
poon, Hoffman & Co. John A. Sickles,
124 00 do. 1 00 M. Schunter,
375 38 do. 1 00 Joseph Eriek & Co.,
1 00 Daniel Cole,
1 00 I took assignments of these demands yesterday and to-day. Q. Is the Canal Bank insolvent ?--A. I do not know, sir.
Q. From what you know of its concerns do you believe it to be solvent or insolvent?
A. I should think the bank solvent to the best of my knowledge.
Q. Do you think it has available assets sufficient to pay all its debts, including the deposites, and the stock originally paid in, and the bills in circulation ?
A. No. But I believe it is able to pay its deposites and circulation. I do not know the amount of deposites. The circulation was stated yesterday at $196,000.
Q. Did you know as much about the bank affairs, as to its solvency, yesterday as you do to-day?
A. In making my estimates I count the amount due from Paige, Joy, Croswell, and my father, to be good.
Mr. White asks, 1 have the checks here, one of James Van Amee for $700, payable to the order of John T. Crew, on the 1st of October, 1818; one drawn by Ira Harris, payable January 1, 1849; one check $500 of M. S. Wadley & Co., dated July 1, 1848; did you count them as money?
A. I did; they are the same as the George Jones check; they are for money loaned to my father.
Q. What amount of checks had you in your drawer of the bank similar to those last mentioned ;—that is taken for money loaned to individuals, who deposited them?
A. I should think sixty or seventy thousand dollars.
Q. What amount of said checks were taken by you in that way as cash, without the knowledge of the board of directors except the Cashier ?
A. They were all so taken; I don't know that the board of directors knew it.
Q. Did the board of directors while you were in the bank make it a practice to examine the affairs of the bank previous to declaring the semi-annual dividend ?
A. They did not; they did make a few such examinations since I have been in the bank, which is 13 years ; I don't think they have made one within two or three years past.
Being asked by Mr. White, he says, there was a package of $8,000 of the Canal Bank bills sent to some one on the Erie Railroad; that was within ten days of the present time. The package was delivered to Mr. Marlett, a contractor on the Erie Railroad I believe, for which I received his check, which check is charged to him on the ledger; that must have been on the 5th of July.
Q. What credit had Marlett in the bank that you should charge him $8,000?
A. The check was erroneously charged. He was to remit drafts, as I understood, of the New York and Erie Railroad Company. This money was given to Marlett by the direction of the Cashier. I paid Mr. Plumb of the New York State Bank on the morning of the failure in Canal Bank bills, about $5,300, altogether by the direction of the Cashier.
On the afternoon of the 10th of July the circulation was $172,000, at about 3 o'clock and after 3 o'clock, I think I paid the Mechanics' Bank about $1,900, the whole then in circulation was about $179,000 or $180,000. Issued registered and unregistered, $248,972 00 Handed White & McMullen,
59,836 99–$189,135 01 Circulation Monday afternoon,
172,000 00 Plumb
5,300 00 Mechanics' Bank,
1,991 00—$ 179,291 00 $9,844 not accounted for.
But witness says he sent a package of $ 8,000 to Pepoon, Hoffman & Ten Broeck about the 14th or 15th of June, which was not charged to them till the 10th of July; he was directed to do so by the Cashier.
Recapitulation of the Resources and Liabilities of the Banks of Ohio, from official
Reports, May, 1847, and August, 1848.
1848. Notes and Bills Discounted,
$10,936,700 $12,128,300 Specie on hand,
2,026,500 2,732,400 Notes of other Banks,
1,081,600 1,268,300 Balances due by Banks and Bankers,
789,200 Eastern Deposiis, :
1,262,100 1,550,000 Bonds deposited with State Treasurer,
1,171,200 1,717,000 Other Resources,
955,200 Total Resources,
$5,071,700 $6,424,000 Circulation,
7,281,000 7,931,400 Balances due to other Banks, .
649,200 Individual Deposits,
3,356,800 4,200,000 Bonds with State Treasurer,
806,000 1,037,600 Other Liabilities, .
898,200 Total Liabilities,
$18,247,000 $21,140,400 The following Tables will show the condition of each of the fifty-five Banks of Ohio, in August, 1848.