January, 1842, to November, 1845, the fourteen banks reduced their capital from $9.3 millions to $7.6 millions. The circulation went down from $2.3 millions to $2 millions in April, 1842, and then up to $4.1 millions at at the later date. Post-notes were reduced from $915,388 to 0. Specie and specie funds increased from $1.3 millions to $3.9 millions. This was the contraction to which Philadelphia was forced before she escaped from the trials and humiliations of this period. How much did she gain by not taking it as New York did in 1837? The student of finance will seek far for another experiment so exact, comprehensive, and conclusive.[1]
The Girard Bank was revived in 1845, its capital being reduced from $5 millions to $1.25 millions.
The administration of the trusts of the United States Bank received little public notice. The assignments were sustained in court.[2] In Shelby vs. Bacon, the trustees of the third assignment simply answered that they were performing the duties of the trust and making annual reports to the prothonotary.
The stockholders held a meeting June 5, 1848, in order to try to find out the situation of the various trusts and the chances that there might be any surplus for the residuary interest. They obtained some information, but were advised not to publish it, and the meeting ended with the appointment of a committee to guard their interests.
A movement in the stock occurred in December, 1851, with sales at from one dollar to two dollars per share. The cause of this was not known. Perhaps it was correctly ascribed to action of Dutch stockholders who started an attempt to pursue the assets.[3] Any hopes which may have been entertained were overthrown by the decision that the Bank was still liable for the annual bonus.[4]
In the following year, on account of this decision, the stockholders voted to apply for an act to wind up, and appointed five trustees in liquidation, to whom a general assignment was made. The president and directors had been trying for years to get the foreign bondholders to accept the collateral and divide it amongst themselves in settlement. As the State bonds increased in value, they became more willing to do this, and a distribution was reached in 1853.[5]
The act to "close finally the trusts of the late Bank of the United States," February 3, 1855, provided that the claimants might divide the assets of the third trust under the supervision of, and an appraisement by, auditors. The trustees were then to be discharged and claims cut off. In the following August the final dividend of the third trust was advertised.[6]
- ↑ See page 286.
- ↑ United States vs. Bank of the United States. 8 Robinson's Louisiana Reports, 262. Dana vs. the United States Bank, 5 Watts and Sargeant; Shelby vs. Bacon, 51 United States, 56.
- ↑ 6 Bank. Mag., 498, 502.
- ↑ 5 Harris, 400.
- ↑ Answer of the Respondent in Batard vs. Bayard.
- ↑ 10 Bank. Mag., 153.
