-.:.- d.dnc,ing the amount Of de-
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- md e1oensss. 2li,l4i -
,oosd the surpus funds OF the institution 'o;'2so .
s winch il will be recollected. was strongly uieo
ION the stockholders main argument n iavo oi ac
epng the charter then offered that after making he mos
h-r allowance for probable losses on the suspended ceo
and real estate the entire bonus cora be PAID ~Aou' N
the least degree mpalring the capital
The origin of the course OF policy which mas condqc'ed
n The r=ent situation OF the affairs OF The institution dates
however bevond tn. period OF The .echerer ~ ne
Wb,n !, was Dercsved that h- chare! OF the ale DdnA "
the United States would not be renewed OF e1.el47I :!
Congress- the President and Directors commenced -1s
uo il concerns and among the t1-t measures 1h 70 NJ
end was 10 sell dispose Of as lar and Is speecE a @
be effected the of !is several branches 1H!s
generally done 10 Banks. who gave Tor tnen 'he.s
liqation- PAYABLE by nstanents a distant perocs - W
SANE time the policy adopted OF converting the ace
DEB; INTO loans upon the security OF stocks py wich
manen; investments might be provided tor ;he capita o i
Bank during the long perod OF lis anticipated -.41Aua0H
ON the 9th OF March, lo3j " the President supli'su
the Board general vlew OF the situation 9 'lls pH'
means and liabilities lis circulation and deposits ana inc
nrobsbe future demands upon II, showing : ample r.
sources and power OF expansion "nereupon iA- Cou
mite. Of Exchange which composed Of tn'ee IIeT
or appointed by the President were auhoTzed oy t'.e
Board to make loans the security Of the STOCK OF nis
Rank or other approved secnrity and Il necessary d


r ra;s ban six but not less them five per cent per an
nun This delegation Of power 10 the Exchange Com
niitee, never expressly and iofnaA! !sne"sG uie
the new charter zness be considered as included nnde


general resolution OF The Board adopting IN bye
Laws, Rules and Regulations" Of ihe former BANK b?
the statement OF the condition Of the Bank upon e % o


Mach 1885, the whole amount OF loans upon Bank siocS
and other than personal security, was S797930 % Will
v that of March : 1896 these oeps had increased 10 nc
sum of S20il6.367 S.. Under such circumstances the
active means OF the Bank comparatively small TO pay
the immediate demand Of the S1te tor the oonui 10 se'e
with the government o the United States or lis stock ana
10 meet lis circulation OF 500 ,zz7 56 which, contrary
to the anticpaon expressed the period OF us Fecharte
soon began to be rapidly presented for redemption The
Bank was OF necessity driven INFO the market a boFfowe
and yery soon the step taken obtain loans abroad
by sendnq the Cashier 10 Europe for that purpose Two
loans were accordingly negotiated by him. one IN Lsgano
OF e 0J) 900, and another IN France, OF 49JV irdnc
favorable terms.


In order to provide 70. the payment of these oans and TO
negotiate others and in general superniend the Interests
of the institution abroad determined oY the Board
to have a General Agent residing in London ana on Inc
22d of September Nh Samuel Jaudon, then Cashier was
elected to that post and has agency there conehceo "
cordingly November :, 1881


Al The same time the Bank entered the foreign and do
mec markets borrowers upon their ana oohoS
payable Europe the whole amount obtained IN ms way
at different periods up July lSi0 being mofe than S
00000Qy


From these causes as well from the general derange
men Of affairs the suspension OF specie payments ana he
discredit consequently threwn upon American securities
and particularly from the course CT ihe BANK dealing
in Foreign Exchange, by drawing bills 10 large amount
without having previously provided The funds Tor iheF pay


enl and thus subecns their agent IN London 10 the ne
cessty OF obtaining money n haste IN oTdef 10 MAINTAIN 1
credit of the Bank IL longer found possible 10 com
nand funds there upon the favorable terms as before
And accordingly upon Mr. Jandons subsequent nesoua
oas for loans, the amount altogether ol 40
there is chargcable 10 losses the sum oi - is'o ' o
ing for discount commissions foreign bankers and other
charges not including Mr. Jaudons own commissions, and
the expenses the agency London amounting up 10 Jan
uarv J. 1911 TO the of t69,3i lis 3D. which at nine
per exchange is equal 20 s333,g5i 81


|, NAV be proper TO explain, passing, how this large
g. ~ III AT onGOn
Mr. Jaudon was elected 10 the place OF foreign agent ne
was the principal cashier, at salary o 5000 per annhm
The Bank paid the loss the sale OF MS furniture Soo
and the passage of himself and family 20 London iuf'her
sum of S0l5 He was 10 devote himself exclusively 10
the of the Bank negotiate an uncovered credit
in England provide for the then existing debt IN Europe
receive funds, pay il. bills and dividends, to erect
sales OF stocks and generally to protect the interests OF M
Bank and 'the country al large For these services ne
was the commission heretofore charged ana al
lowed 10 Barring Brothers. Company equal TO about SIS
00y per annum In addition TO which, the expenses OF the
agency were allowed him. including salary OF tlUY0 to
his brother Mr. Charles &. Jaudon his principal clerk
From the of money operations arising from aclI-
afforded by the agency the amount upon "ich COM
missions charged greatly augmented, so that the
sans paid him his ordinary services up January ISL
amounted per exchange Sl7Sp4l II, and the
expenses the agency loo 90 In addition 10 these
sums he was allowed By the Exchange Committee an extra
commission per cent upon loan effected IN Oco
ber 1899 of cSQOOJO say SIS, ,5J st. and upon his claim





and Holland 10 the amount of IS 357, 4 90, the Board OF
Directors under sanction OF legal opinion, from counsel
Of high standing and the views OF the former President oy
whom the agreement, with Mr. Jaudon made, that the
case extraordinary loans not anticipated nor meant
be included in the original arrangement allowed the iur
iher charge of $500 81 These several sums amount 10
S335,937 SO. as before stated.


Such of the results OF the resolution OF March
1885, though il cannot be questioned that much may be
fairly attributed to the unhappy situation ct the business and
exchanges OF the country concurng with the unfortunate
policy pursued by the administration of the Bank Thus
the institution has gone increase lis indebtedness
abroad until has money borr-wed IN Europe
than it has on loan list of Active Debt in America
To this has been superadded extensive dealing IN stocks
and continuation of the policy OF oaning upon stock
cures though evidently proper upon the rechaer
that such policy should be and entirely abandoned
Such indeed was awowed purpose year after
wards March 1887 sloans upon stocks ana ether Than
personal security had increased Ss2l oil while the biS
discounted on personal security and domestic exchange,
mad suffered dminution Of s95l6,i63 - 1t seems 10
have been sufficient obtain money loan, pledge the


