capital in its vaults in specie.[1] This bank was pressed to sale because creditors enjoyed especial facility for attachments in Louisiana.[2]
In August the Bank of the United States at New York went into voluntary liquidation and redeemed all its notes. In order to secure its position as an independent ally and so avoid collision with the law of New York, it had been established on a relation of contract, and the two gentlemen in control of it had been guaranteed a yearly payment during the continuance of the charter of the Pennsylvania Bank. The latter now wished to wind up the New York institution as if it had been a dependency, but the managers stood on their contract for the remainder of the term for which the charter was to run. Arbitrators gave them $101,613; also $76,948 for the unexpired term of the lease of the banking house which they owned.
In April, 1842, the Legislature undertook an investigation of the proceedings of the United States Bank to influence legislation, in connection with the relief measures of 1840.[3] George Handy, a director of the Bank was summoned to testify, but refused and was imprisoned in the Capitol until he submitted. He surrendered letters from the lobbyists of the Bank, which contained expressions about dealing in "lumber." His examination was interrupted by his arrest at the order of the Governor, who caused criminal proceedings to be instituted against him, although he had turned State's evidence under a pledge of immunity. The Legislature, by joint resolution, March 29th, ordered the Attorney-General to enter a nolle in any criminal proceedings against him for conspiracy. According to Gouge's statement the Court discharged him, declaring that there was no evidence which would justify his being held in arrest, and the same of the lobbyists inculpated with him. The Governor, by his interference, had blocked the legislative investigation, which was developing the evidence, and the Court held that the evidence was not sufficient for a criminal prosecution. "The condition of that State is deplorable in which the people lose confidence in their legislative, judicial and executive authorities; yet such is the present condition of Pennsylvania, if the sentiments of the inhabitants of the rest ot the State are to be judged of by those of the citizens of Philadelphia. The general belief here seems to be that the banking interest exercises an improper influence in all the departments of government."[4]
The United States levied on assets of the Bank of the United State at New Orleans, in 1844, to try to recover outstanding claims, including the French bill and $89,606.12, due on the last bond for the stock of the United States in the Bank. The court sustained the assignments, and so cut off this claim.[5]
There were nine banks in Philadelphia which did not fail in 1841 or 1842. The Pennsylvania, Mechanics, Manufacturers and Mechanics, Penn Township, and Moyamensing (changed to Bank of Commerce) recovered. From
