Standard history of Pittsburg, Pennsylvania, Part 39

Author: Wilson, Erasmus, 1842-1922; Goodspeed, Weston Arthur, 1852-1926. cn
Publication date: 1898
Publisher: Chicago : H.R. Cornell & Co.
Number of Pages: 1192

USA > Pennsylvania > Allegheny County > Pittsburgh > Standard history of Pittsburg, Pennsylvania > Part 39

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"Resolved, That we attribute the pressure solely to the removal of the deposits, as we know of no other cause which has impaired public confidence in the ability of our moneyed institutions, and has produced this great change in four short months, from a state of great prosperity to one of great distress, and that our Representatives and Senators in Congress be requested, as the best means of adverting the consequences of the evil that we now suffer, to vote to have all future deposits made in the Bank of the United States.

"Resolved, That although we have, for some time, felt the pressure produced by the removal of the deposits, we were unwilling to memorialize Congress on the subject until we were yesterday informed that out Senator had stated, in his place, that he had not been informed of any pressure in this city" (h).

As a result of this public meeting there was sent to Harmar Denny, Con- gressman, then in Washington, on January 22, a memorial, signed by about two thousand citizens of Pittsburg, Allegheny and the surburban boroughs, declar- ing that great distress in financial affairs existed here, and praying, among other things, for the restoration of the deposits to the Bank of the United States (i).

Mr. Wilkins, in presenting the memorial to the Senate, addressed that body at considerable length in explanation of his statement that there was no pressure in Pittsburg. He was answered by Mr. Webster, who insisted that a memorial signed by several thousand citizens, as this one was, could not be mistaken in a statement of fact so obviously true, not only to Congressmen, who were aware of the distress prevalent throughout the country generally, but to the citizens of Pittsburg particularly, who were suffering from the stringency and hard times (j). "The present is a moment of spasm and agony. The whole social and political system is violently convulsed. This, if no relief comes must be succeeded by a lethargy which will strike dead the commerce, manufac-

(h) Gazette, January 21, 1834.

(i) Gazette, February 24, 1834.

(j) Proceedings of Congress, 1834.

A Fruch

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tures and labors of the community. This, I think, sir, is the real prospect before us" (k).

To offset the effect 011 Congress of this action of the friends of the bank, the supporters of the administration here prepared and circulated a counter-memorial, to which 336 signatures were secured, and forwarded the same to Harmar Denny, at Washington. In this document it was stated that (1): "We, the sub- scribers, do therefore most earnestly and strenuously deny every and all the positions assumed in said petition, and fearlessly assert that there is no pressure here, and that no sound man is embarrassed in his business." The entire ques- tion had thus become a dispute of the partisans. All of the leading citizens took part in the controversy, which became acrimonious and personal in the extreme. Leaving the politicians to fight it out in their own way, the banks continued their policy of caution, curtailment and partial inaction, while the real blow fell upon inexperienced borrowers and incautious business men. The fact remained, regardless of partisan claims, that there was an intense stringency here, which all clans and factions suffered alike. But the adherents of the two parties con- tinued to wage a still hotter war.

Pursuant to the call of over six hundred citizens, "the largest meeting ever held in Pittsburg" convened at the courthouse, February 6, 1834, to consider the financial situation. On motion of Neville B. Craig, Thomas Fairman was made president, and on motion of George W. Jackson, Samuel P. Darlington and Samuel B. Mckenzie werc appointed secretaries. On motion of John B. Butler, Isaac Lightner and John Arthurs were chosen vice-presidents. The principal speaker was W. W. Fetterman, who, after a spirited address, offered a long set of resolutions, which was "carried by an overwhelming majority." He was supported by an able speech from Robert Burke. The anti-bank people were represented at this meeting by Charles Shaler, who opposed the adoption of the bank resolutions and sustained the action of President Jackson in removing the deposits, in "an eloquent address." He likewise offered a set of anti-bank resolutions, and moved their adoption, which motion was seconded by John M. Snowden, Sr. W. B. Conway also addressed the assemblage in support of the action of the President. This meeting was held in daytime, the discussion lasting from 10 o'cock a. m. to 1:30 o'clock p. m., two speakers of each party being per- mitted, by mutual consent, to address the gathering. As the enemies of the administration were in the majority, their resolutions were adopted, while the others were tabled (m).

The resolutions adopted declared that it was the opinion of the citizens of Pittsburg that Congress, in chartering the Bank of the United States, had entered into a contract with that institution; that a provision of such contract required that the public moneys should remain in the custody of the bank; that the bank had paid to the Government the sum of $1,500,000 for such privilege and for its charter; that, therefore, "the late removal of the deposits, whether done by the President of the United States or by the Secretary, was an arbitrary, . unjust and illegal act;" that the removal of the public treasures "to various local banks of unknown solvency was an unwise and hazardous measure;" that the existence of a severe pecuniary pressure here was not a matter of opinion, but a painful reality, which all knew and felt; that the pressure was the result of a combined operation of the removal of the deposits and the vindictive and hostile spirit which accompanied and followed that act; that such pressure could only be relieved by replacing the deposits in the bank; that the distress here was con- stantly increasing, "and that, in our opinion, we are approaching an awful and

(k) Speech of Daniel Webster in the Senate, 1834.

(1) Gazette, February 17, 1834.

(m) Gazette, February 28, 1834.

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eventful crisis in the history of our country." The resolutions, presented by Judge Shaler, and which failed to pass, were as follows:

"Whereas, The approaching period for the expiration of the charter of the Bank of the United States renders it necessary that some means should be adopted to secure the public against the too sudden withdrawal of the currency created by that institution; and

"Whereas, It appears by sundry public acts of the present Executive of the Union that submitting himself to what he believes to be the will of the people, made manifest in his recent election, he has come to the determination not to give his official sanction to the renewal of the charter of the present bank; and

"Whereas, It likewise appears that there is no prospect of the said charter being renewed by the constitutional majority in Congress before the period to which the existence of the present charter is limited has expired, and no new bank can be created during the existence of the present Bank of the United States without an infringement of the charter; therefore,

"Resolved, That the act of the President of the United States authorizing and directing the removal of the Government deposits from the vaults of the Bank of the United States and its Branches was a measure of public policy essential to the general and individual prosperity; was a judicious exercise of powers vested in him by the constitution; was entirely consistent with the national faith, and in accordance with that political firmness and moral integrity which have ever characterized the present Chief Magistrate, whether in the field or in the cabinet" (n).

On the IIth of February, 1834, the Jacksonians and enemies of the Bank of the United States held a large meeting in Concert Hall to counteract the effects of the meeting of February 6th and to promulgate their views and plan their future course of action. In the call for this meeting the language used was as follows: "A meeting of the citizens of Pittsburg and vicinity opposed to the domination of the Bank of the United States and friendly to the measures of the Administra- tion in relation to that institution are requested to meet at Concert Hall on Tuesday evening at 6 o'clock." Thomas Hazleton was called to the chair. The leading speakers were Charles Shaler, John M. Snowden and Mr. Hazleton. They delivered vigorous addresses and the citizens assembled adopted a strong set of resolutions, declaring their loyalty to the administration and their hostility to the Bank of the United States.

On February 15, 1834, a large meeting was held in Mr. Sample's Long Room in Allegheny, to take action concerning the removal of the deposits. John Irwin was elected chairman, James Riddle and James Brown vice-presidents, and D. C. Stockton and John E. Park secretaries. This meeting declared that great distress existed here owing to the removal of the deposits; that the same should be restored to the Bank of the United States; that the act of the President in removing them was illegal and unjustifiable, etc. A set of the resolutions adopted, signed by 342 citizens, was forwarded to Messrs. Wilkins and Denny in Wash- ington (o).

At the large public meeting held on February 6, 1834, by the friends of the Bank of the United States, it was determined to send'a delegation of citizens East to call upon Governor Wolf and President Jackson to secure, if possible, the restoration of the deposits, or, at least, some action that would relieve the monetary crisis; and accordingly the following gentlemen were appointed and sent upon that mission: Isaac Lightner, Alba Fisk, William Leckey, John Sampson, Thomas Fairman, Hugh Davis, Samuel Fahenstock, Thomas Williams and J. H. Shoenberger (p).

(n) Gazette, February 7, 1834.

(o) Gazette, February 17, 1834.

(p) Gazette, March 6, 1834.

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HISTORY OF PITTSBURG.

At 2 o'clock p. m., March 6th, pursuant to call, a large meeting gathered at the courthouse and formally received the report of this delegation. Benjamin Bakewell was made president; William Ebbs, John Lloyd, George Darsie and John Graham, vice-presidents, and Richard Hughes and Samuel P. Darlington, secretaries. The delegation delivered a written report, of which the following were the principal particulars: That only an informal expression was secured from Governor Wolf, to the effect that he had already made known his views on the subject in his message and otherwise; that Mr. Wilkins expressed regret at some declarations which had fallen from him in the Senate on the presentation of the memorial from Pittsburg, but insisted on the purity and disinterestedness of his motives, and stated that he considered the delegation and the citizens of : Pittsburg wrong in ascribing the cause of the distress to the removal of the deposits. The delegation were treated with much consideration by Mr. Wilkins and Mr. Denny, both of whom accompanied them to the White House and intro- duced them to President Jackson. The interview was both long and stormy. The President took no pains to conceal his hostility to the Bank. It appeared from his remarks that he had ordered the removal of the deposits from the Bank of the United States to the State banks to protect the latter, which were threat- ened with ruin by the too rapid curtailment of the discounts and circulation of the former. Both Mr. Wilkins and Mr. Denny participated in the conversation, the former siding strongly with the President and the latter, in several hot verbal encounters, sustaining the delegation and the Bank. The President asked: "How do I know the true state of public opinion with you? You tell me of great distress, and I hear of large memorials on one side; and on the other side I have received an account of a very large meeting, approving of the removal of the deposits. How am I to judge?"

The chairman of the delegation answered that, out of the 336 names signed to the counter-memorial, upward of two hundred were not on the tax lists, nor known to the committee, and that "they must be either names of strangers, of persons under age, or fictitious;" that the reason why there was no great cry of distress before Mr. Wilkins left home was owing to the introduction in the city of what was considered foreign, or outside capital, in the stock of a new bank (q), the principal part of which had been taken in Philadelphia, and in the increase of the capital of the Bank of Pittsburg. The delegation took the position that the restoration of the deposits to the Bank, even though that institution should not be rechartered, would restore immediate confidence and relieve dis- tress. But the President denied this conclusion, was not to be moved from his purpose, and declared:

"I will never return the deposits to the Bank of the United States, to the bank having the whole of her capital, thirty-five millions, at the disposal of one man, for corrupt purposes. I will protect the morals of the people. See the large amount of the funds of the Government applied to corrupt the press! It was my duty to take the deposits from such a corrupt institution. I can't bow down and worship the golden calf; the Spanish Inquisition could not compel me to worship the monster. .

"Why, would you believe it, gentlemen? the Bank wanted to bribe me; wanted to bribe Andrew Jackson. They agreed to pay off the national debt; if I would give them a charter-a bonus that would pay off the national debt; but Andrew Jackson was incorruptible; I would not bow down to the golden calf" (r).

"The experiment shall be tried with the State banks. I will protect the State

(q) Merchants' and Manufacturers' Bank.

(r) Gazette, March 6, 1834.

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banks. They would have been destroyed by the vile'monster before this time if I had not sustained them. Go home, gentlemen, and tell your Branch to act harmoniously with the State banks and relieve the people. I will not molest the Bank of the United States or its branches, but I will support the State banks."

"General, we are sorry that your old friend and acquaintance, Mr. Bake-

· well, was unable to accompany us in consequence of the illness of his son-in-law, Mr. Campbell."

"Yes, yes! I know Mr. Bakewell; he is a very good man, a very good man, but a worshiper of the great idol-a worshiper of the Bank; but I can't wor- ship the golden calf. Andrew Jackson is not to be corrupted and will take care of the morals of the people" (r).

DIALOGUE (s).

Committee.

May its please the President, we have come

To tell you the trouble there is at home.

Our City of Pittsburg is silent and sad, No longer 'tis filled with happy and glad;

The hum of business and bustle is o'er,

And we pray you the Bank deposits restore."

President.

"And why do you come with your grumblings to me? No peace do I have in this land you call free;

You should go to Nick Biddle (t), he sits in his chair, Undisturbed by complaints and unruffled by care;

He views his ten millions, he pockets his pay, And cares not a groat what the Government say.

The people may cry or the people may laugh, I will not bow down to the great golden calf."

The meeting passed resolutions approving the conduct of the delegation and reaffirming the views previously expressed of the cause of the distress. They were read by John D. Mahlon, who supported them in an eloquent address, as did also Joseph Patterson. Neville. B. Craig, W. W. Fetterman, James Brown, Cornelius Darragh, Joseph Patterson and S. P. Darlington were appointed dele- gates to attend a convention to be held at Harrisburg "for the purpose of devis- ing measures to restore the prosperity of the country." Walter Forward, Robert Burke, W. W. Fetterman, John Morrison, John Irwin, John P. Bakewell, George R. White, John McGill, Thomas Scott, James H. McClelland, William Mackey, R. C. Townsend, George W. Jackson, John B. Butler, Jacob Painter, Robert Galway and Reese R. Jones were appointed a committee of correspondence, to assist in relieving the public distress. Harmar Denny was publicly thanked for his course in defense of the interests of his immediate constituents (u).

The chairman of the delegation and Mr. Denny, during the interview with the President, were the spokesmen in behalf of the Bank and the distressed business men of Pittsburg and Allegheny. Not only did the friends of the Bank memorialize Congress, but they also addressed one to the State Legis- lature, to which, it was reported, there were signed 1,792 names, the document in double lines measuring more than forty-three feet in length. There was an intense fear in this city that the distress would increase unless something

(r) Gazette, March 6, 1834.

(t) President of the Bank of the United States.

(s) Boston Independent Chronicle.

(u) Gazette, March 14, 1834.

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HISTORY OF PITTSBURG.

was done by Congress to restore confidence. The thought of the Whigs was that the distress would end if the deposits were replaced in the Bank of the United States. The Jacksonians here wisely declared that the distress was not caused by the removal of the deposits, was only a scare, not real, and that the Bank should be crushed before it gained any greater power. The city slowly recovered from the panic of 1834 as froin the effects of an opiate. During 1835 business enterprises of all kinds wearily dragged themselves along, with little profit and little hope. However, there was quite a monetary revival early in the autumn of 1836, as times had become better, regardless of the banking law. One writer in the Gazette said: "We are getting along very well just now in spite of the law. I never knew prices so fair and money so plenty" (v). It seemed to the stricken city then as if the sunlight of sound money and prosperity was about to illuminate the gloom; but the hope was crushed the following year, when values of all kinds were shattered and pandemonium took charge of business and finance.

In 1836 William Robinson, Jr., Samuel Roseberg, David Fitzsimmons, John Gallagher, John Willock, John M. Snowden, Jr., William Bagaley, James Mar- shall, William W. Irwin, Robert Galway, Watterman Palmer, Sylvanus Lothrop, Washington W. Fetterman, John Morrison, Robert Knox, John Grier, David Leech, Joseph Long, E. J. Higby, John Hays, A. Leech, John F. Wrenshall, Samuel R. Johnson, Peter Peterson, Tobias Myers, Andrew Watson, Samuel Walker, Samuel Cooper, William Howard, James Thompson, Foster Graham, William G. Alexander, Christopher L. Magee, Edward Simpson, Alexander McN. Semple, George Wallace, William Daily, William Stewart, Daniel McCurdy, Henry Olmstead, Samuel Smith, of the county of Allegheny; David Dick and John McFarland, merchants, of Meadville, Crawford County, were appointed commissioners to carry into effect the act establishing a bank, to be called and known as the "Exchange Bank of Pittsburg," agreeably to the acts of March 21, 1814, March 25, 1824, and April 1, 1835 (w). It was provided that the stock of the bank should not exceed $1,000,000, and that the shares should be $50 each. The first meeting of the board of directors was held May 18th, the board consisting of William Robinson, Jr. (through whose efforts principally the Bank secured its charter), B. A. Fahnestock, Samuel P. Darlington, John Free- man, James E. Ledlie, Sylvanus Lothrop, Tobias Myers, James W. Brown, George Wallace, Harvey Childs, Samuel Baird, John Grier and W. G. Alex- ander. The first president was William Robinson, Jr., and the first cashier John Forster, Jr. (x). Stockholders in the Exchange Bank of Pittsburg were called upon in June, 1836, to pay $5 on each share held by them, on the first Monday in August, September and October respectively. In November, 1836, they were called upon to pay $10 on each share. At this time the bank had decided to establish a branch at Holidaysburg, with W. W. Williams as cashier, in conformity to the enactment of 1836. This bank since its commencement has at all times been closely identified with the prosperity of the "twin cities" and Allegheny County. In early years particularly it was the institution prin- cipally relied upon for temporary loans to carry on local corporate expenses.

It was stated in January, 1837, that "Pittsburg, with its immense manu- facturing, mercantile and commercial facilities and business industry," was labor- ing under serious drawbacks for want of suitable banking capital, on which account much of her enterprise was paralyzed; and that the city had less than half the banking capital of Louisville, less than Cincinnati, and that all of Western Pennsylvania from Chambersburg to the Virginia line had less than the Girard

(v) Gazette, September 27, 1836.

(w) Act of March 2, 1836.

(x) George H. Thurston, in "Allegheny County's Hundred Years."

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Bank in Philadelphia. The paper gave the following as the paid-in capital of the local banks (y):

Bank of Pittsburg $1,005,690

Merchants' and Manufacturers' Bank. 600,000

Exchange Bank 451,673

Discounted by the Branch 1,282,III

Savings Fund Bank.

25,554

Total. $3,365,028

Late in January, 1837, a severe stringency in the money market began to manifest itself in Pittsburg. To investigate this state of affairs and report upon it, the Board of Trade appointed a committee consisting of Lewis Peterson, Samuel P. Darlington and Thomas M. Howe, who, on January 31, 1837, declared that there was too great disparity between the banking capital invested and the business operations of the city; that owing to this fact the system of credit had been too extensively relied on, thus greatly endangering enterprises in times of monetary agitation; that the business of Pittsburg per annum amounted to $45,000,000 while the banking capital was less than $5,000,000; that the Branch of the Pennsylvania Bank of the United States had proved a "broken reed," though great benefits had been expected from it by reason of the representations of its directors; and that, as a measure of relief, they (the committee) would recommend that another representation of the needs of the community for greater banking capital should be made to the Pennsylvania Bank of the United States, with the request that the Branch here should be capitalized for $3,000,000. The committee thought this course preferable to the mooted one of chartering new banks (z).

"It was with these impressions (of the importance of the business of Pitts- burg) that they (the directors) declined collecting the debts of the office of the late Branch at Pittsburg, but transferred them all on long credits to a bank at Pittsburg, in order that the latter institution might give a similar indulgence to its debtors. It was in the same spirit that, although a new bank was estab- lished in Pittsburg at the same time that this institution (Pennsylvania Bank of the United States) was chartered, the board of directors contributed a still further addition to its capital by fixing there its present Branch. From these two sources the banking facilities of Pittsburg have, within the last year, been increased about two millions of dollars. That there is still ample employment for more capital in the prosecution of the vigorous improvements and occu- pations of your city is a source of pleasure, and they (the directors) would be happy to supply it were it in their power" (a).

This letter, which was signed by Nicholas Biddle, president, further stated that the bank was unable to increase the capital of the Branch at Pittsburg to $3,000,000, as had been requested by the Pittsburg Board of Trade.

Late in February, 1837, a large public meeting was held at the house of George Beale to memorialize the Legislature for a new bank. Of this meeting John Anderson was president, William Porter and William Ebbs vice-presidents, and Messrs. Miltenberger and McCandless secretaries. James S. Craft stated the object of the meeting, and on motion a committee of five (John D. Baird, J. W. Brown, John McGill, B. P. Hartshorn and James S. Craft) was appointed to prepare the memorial. This was at once done. The memorial stated that the interests of Pittsburg would be promoted by the incorporation of a bank

(y) Harris' Intelligencer. (z) Gazette, February II, 1837.

(a) Letter of the directors of the Pennsylvania Bank of the United States to the Pittsburg Board of Trade.

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HISTORY OF PITTSBURG.

to be called the "Mechanics' Bank," with a capital of not less than $3,000,000; that the citizens had been disappointed in the Branch; that the present banking capital was inadequate to meet the requirements of business; that enterprises already in existence were checked and those projected delayed for this reason; that assistance from the present banks to a beginner was not to be expected; that many small dealers could not get a dollar from the banks on any pretext; that all business was cramped and embarrassed, and that many investments giving employment to poor people must be closed. This memorial was exten- sively signed and sent to the Legislature (b).

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Standard history of Pittsburg, Pennsylvania, Part 39

Author: Wilson, Erasmus, 1842-1922; Goodspeed, Weston Arthur, 1852-1926. cn Publication date: 1898 Publisher: Chicago : H.R. Cornell & Co. Number of Pages: 1192

Author: Wilson, Erasmus, 1842-1922; Goodspeed, Weston Arthur, 1852-1926. cn
Publication date: 1898
Publisher: Chicago : H.R. Cornell & Co.
Number of Pages: 1192