Counsel for plaintiff, Mont. P. Young; for defendant, John Cadwallader.

From the "Globe." City of Washington, Friday, Dec. 15, 1837.

His (Biddle's) new charter, imposed as a penalty for the failure to redeem the notes authorised to be issued by the bank, twelve 'per cent. per annum. By issuing the notes of the old bank as the currency of the new, Mr. Biddle supposes that he has effectually evaded this provision. Indeed, Mr. Eyre, the representative of Mr. Biddle's bank, in the late New York convention, had the hardihood expressly to avow this as the motive for the violation of the old bank's charter, and the breach of the deed of trust. He said it was to escape the embarrassment and vexation of suits prosecuted under this clause on the new notes, if issued; and he might have added, the damages which it was intended the people should recover to indemnify them for the wrong they suffer under the offence now perpetrated by the bank with impunity, in issuing an irredeemable currency.

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This vast amount of twenty-seven millions and a half is illegally, immorally, and fraudulently converted to its own use by the new bank, and becomes an inexhaustible fund for plundering the States of their specie, and accumulating demands on other banks. For these two purposes, this vast fund is now notoriously used. These dead notes are sent all over the south and west, to be sold at a discount for specie, or for bills of exchange on other banks; and as soon as the solvent banks resume specie payments, these dead notes will also be sold at a discount for their notes to draw the specie from them, and to compel them to suspend payment again. The vast amount of these notes in her hands, viz., twenty-seven and a half millions of dollars, makes them an inexhaustible fund for raising specie, and plundering other banks; as they are neither payable nor paid by the present bank of the United States, she is safe in the indefinite and perpetual re-issue of them. The twenty-seven and a half millions may be issued ten times over, or a hundred times over: it is all one to the lawless monster which now has them in her clutches, and uses them for her own purposes without limit, without shame, without law, and without responsibility.

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An army of deputy agents is, at this moment, engaged in this work; and there is not a town of any note south or west of Philadelphia in which they may not be seen.

ROBERT RANTOUL'S ORATION, JULY 4th, 1837.

In 1830, the bank capital of the United States was one hundred and forty-five millions; in 1836, it had risen to three hundred and seventyeight millions; it is now probably about treble its amount seven years ago. The paper circulation in 1830, was sixty-one millions; in 1836, it was one hundred and forty millions; the highest point it reached was probably about one hundred and eighty-six millions. In 1830, the loans and discounts of the banks amounted to about two hundred millions; in 1836, they were four hundred and fifty-seven millions; they have

since exceeded five hundred and ninety millions. The bank capital, circulation, and discounts, having more than doubled, and indeed nearly trebled, in less than seven years' time, the immense and unparalleled speculations we have witnessed have been the necessary result. Sales of public lands rose from less than two and a half millions in 1830, to more than twenty-four millions in 1836. Lands in Maine were purchased in vast quantities at ten times their former prices. House lots enough were laid out to accommodate two or three times the present population of the nation. The land immediately about New York, and within ten miles of that city, which in 1830 was valued at ten millions of dollars, changed hands at prices which would have made the whole amount to over one hundred millions.

But in taking into account the losses which grow out of these revulsions, we must not stop at the mere rise and fall of prices. The bankruptcies at every revulsion tax the community heavily; the banks are generally secured on account of the endorsers, for if these institutions bore their share of the losses in proportion with other creditors, the business must have been abandoned long ago. It is impossible to measure this tax. In New York, where overtrading has been pushed to a great excess, the imports last year amounting to 118,885,194 dollars, the failures have been more numerous than ever before known. Two hundred and fifty large houses failed in two months. In New Orleans, where the banking mania had gone to the wildest extremity, the capital of the banks in that city being 54,554,000 dollars, of which the sum of 36,769,455 dollars is paid up, the failures were for the most tremendous amounts, such as were never before heard of in the United States. The New Orleans True American, of the thirteenth of April, says-“ On Wednesday, the largest cotton-house in the southern country went by the board for fifteen millions of dollars. * The other houses that have suspended are estimated at about twelve millions." These houses had all large assets; yet the cotton monopoly, fostered by the immense banking capital of the city, was not only injurious to the public at large, and to all smaller cotton traders, but having inflicted severe losses on their creditors, it ended in the ruin of the monopolists themselves. They fell blasted before it, like the magician before the demon he has conjured up. In Boston, before the stoppage of specie payments, out of thirteen hundred and seven wholesale and retail establishments, there had been one hundred and sixty-eight failures: but the citizens of this State have suffered by failures in other States as well as their own, to an enormous extent. The losses to the people of Massachusetts, from bankruptcies growing out of our paper money system cannot be less than six millions of dollars a year.

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In addition to all the losses by the fluctuations of our mixed currency, there is now to be reckoned an actual depreciation of the best bank paper below the specie standard. On the tenth of May last, the banks in New York stopped specie payment; those of Philadelphia and Baltimore stopped the next day, those of Boston on the twelfth, and those of New Orleans on the thirteenth. The country banks were of course compelled to stop, however much they might regret the necessity. On the eleventh of May, one hundred dollars in specie were worth in New York city bills of the nominal value of one hundred and six dollars. On the first

of June bills of one hundred and nine dollars, and on the twenty-fourth of June, one hundred and twelve dollars were required to purchase one hundred dollars in hard money—a depreciation more rapid than that of continental paper during the first year it was issued. On the third of July bills were one hundred and twelve for one hundred.

By the last bank returns of this state, their circulation and deposits together exceeded twenty-six millions. By a depreciation of twelve per cent., bill-holders and depositors would lose three millions on that sum. Those who pay their debts in bad paper gain the amount of the depre ciation, and by paying off creditors at ninety cents or less on a dollar, may be preserved from bankruptcy: but those who receive the paper for debts, or are obliged to make purchases with it, lose to the same amount. This is already allowed for in speaking of the losses by the fluctuation of the currency, except the loss in the hands of holders while it falls.

These then are the pecuniary results of a paper money monopoly system, not that we have made exact estimates, but the sums assumed are below the reality, and yet quite large enough to illustrate the subject fully.

From the New York Journal of Commerce. ·

DISAGREEABLE INTERRUPTION TO THE BUSINESS OF A NEW BANK. WITHIN the last fortnight four gentlemen took up their residence on different days at a boarding-house in Courtland Street, and within the last two or three days occupied themselves so busily in striking off bank notes, that the women of the house suspected that they were counterfeiters, and gave information of it to the police office; in consequence of which three of the police officers went to the house yesterday morning, and having cautiously reconnoitred the premises, and peeped through a small window, they perceived the four men occupied in cutting and signing bank bills. As the officers knew that none of the banks of this city, or any where else that they were aware of, had located a branch bank in an upper story in Courtland Street, they coincided in the suspicions which had been imparted to them by the lady of the house, and without further ceremony entered the room and arrested the whole banking concern, and conveyed the persons and papers belonging to it to the police office. Here a large roll of new bank bills were opened, which were very elegantly executed, and purported to be bills on the Ottawa Bank of Montreal, for various sums from 10 to 1000 dollars. The gentlemen in whose possession they were found were then called upon to give an account of themselves, which they did by saying that they lately formed themselves into a new banking company to carry on business, and issue bills under the above designation; and that as they get their bills printed in this city cheaper than in Canada, they thought proper to do so. being further examined, one of the gentlemen stated that he had been appointed president of the bank, and as the profits were expected to be considerable, his copartners had fixed his salary at the munificent sum of 35 dollars per month. Another of the gentlemen said he was the cashier; another, that he was secretary; and the fourth gentleman stated that he was a director and stockholder to a large amount. They had about 20,000 dollars' worth of bills ready signed and prepared for circulation, and between 2 and 300,000 more nearly so. There were also

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found amongst their effects about 700 dollars in specie, which was to have been kept in their vaults, in order to meet with due promptitude any and every demand which might be made on them for specie payments. The president and cashier were rather decently dressed, but the badness of the times seemed to have greatly affected the stockholder's pantaloons, in which there were one or two very unseemly rents; and the secretary's shirt was a little too much soiled, and his coat rather too shabby for the officer of a new banking establishment. Notwithstanding, however, that appearances were so much against them, as there is no such bank in Canada as the Ottawa Bank, nor any law against their establishing a bank so designated, they had consequently done nothing illegal, and the magistrates were obliged to set them at liberty.

From the Buffalo Commercial Advertiser.

INFAMOUS FRAUD.

THE Detroit Daily Advertiser contains a summary of the report of the bank commissioners of Michigan, exhibiting the condition of the "Farmers' Bank of Gennessee County," by which a development of rascality is made, absolutely astounding. The bank seems to have been purposely established as a regular swindling-shop on a large scale.

The commissioners entered into an examination of the affairs of the bank on the 16th ultimo. They found no officer in charge, and no set of books had ever been kept. It appears that the first election of directors took place on the 30th of December, 1837, on which day H. R. Jerome was elected president, and R. M. Morrison, cashier. The security of the bank, a bond of 250,000 dollars, was filed and approved by the treasurer and clerk, and the bank commenced operations.

On the 4th of January last, Robert J. S. Page was elected cashier. The commissioners found a file of notes designated "stock notes," a file of receipts of the several subscribers to stock, and unendorsed notes to the amount of 168,653 dollars and 50 cents! Two of these notes, amounting to upwards of 60,000 dollars, were given by H. R. Jerome, the presi dent, payable five years after date! Two others, for 53,000 dollars and odd, were given by Delos Davis, payable also five years after date! Two others, for upwards of 52,000 dollars, given by Rufus Brown, junior, were also made payable five years after date!

The bills found in the bank, signed by Jerome as president, and Page as cashier, amounted to 3455 dollars. No specie or foreign bills of any description were found! Copies only of the bonds and mortgages, given as securities, could be found. The whole amount of specie which appears at any time the bonâ fide property of the bank was only 1500 dollars. Instead of the ten per cent. specie payment, the stock subscribers gave to the treasurer their individual notes for the amount of the instalment, payable in specie, for which the treasurer gave specie receipts. The commissioners further say there is no evidence that any instalments of the capital stock were ever paid according to law.

A statement of the condition of the bank in January exhibited 20,000 dollars in specie, which specie consisted of two certificates of deposit, one from the Bank of Oakland for 10,000 dollars, and one from the Clinton Canal Bank for 10,000 dollars. No deposit was made in either case,

the certificates having been loaned for the purpose, and returned the same day!

As there are no entries in any bank book designating the issues, it was impossible to ascertain the number. To meet the liabilities of the bank, there are discounted endorsed notes amounting to 10,965 dollars, individual receipts for exchange purposes for 1170 dollars, and the notes of Jerome, Davis, and Brown, amounting to the sum of 168,653 dollars and 50 cents.

The Detroit Free Press endeavours to escape the odium attaching to the dominant Van Buren party of Michigan, from the rascally management of these bantlings of their own creation, by alleging that the president of this infamous concern was a whig. The Daily Advertiser states in reply, that this Jerome was but a short time ago appointed by Governor Mason one of the associate judges of the Circuit Court of St. Clair. His Excellency was never in the habit of appointing whigs to office.

These are the institutions which the Jackson-Van-Buren-Bentonian legislators of Michigan devised to give the community a better currency. They are the praters about irredeemable bank issues.

The notes of this "Farmers' Bank," we suppose, are what the people in that region call "wild-cat money." "Pole-cat money " would be a more appropriate name—and “skunk money" better still.

Extract from a Letter from the Secretary of State to the Boston Chamber of Commerce, dated May 21st, 1837, in reply to a Letter from them, begging to be allowed to pay their duties in unredeemable Bank

notes.

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"The many millions of unavailable paper, which would probably be thus placed in the treasury for duties and other debts it would be difficult to compute; as, besides twenty-six or seven millions now due from individuals and banks, most if not all of the future revenue, accruing from customs or the increased sales of public land in consequence of such a system, would be paid to the United States in notes of the same depreciated character. It deserves consideration likewise what could legally be done with such funds when collected." "In connexion with this, and merely in justification of the Treasury, it may be proper to notice further, that besides near thirty millions elsewhere, something like three-quarters of a million of dollars were due in your city alone, from merchants, and institutions of which many of them are members, and payable to the United States in specie and on demand, at the time your memorial was forwarded, setting forth the omission of our fiscal agents to pay in that currency some small demand held by a portion of the mercantile community."

From the New York Times, May, 1837.

NEW YORK BANKS.

THE stoppage of the Dry Dock bank, and various other causes, led to a run for specie yesterday on the whole of our banks. Depositors became alarmed, and the panic extended to all classes. Money was drawn