The Register of Pennsylvania : devoted to the preservation of facts and documents and every other kind of useful information respecting the state of Pennsylvania, Vol. IX, Part 107

Author: Hazard, Samuel, 1784-1870
Publication date: 1828
Publisher: Philadelphia : Printed by W.F. Geddes ;
Number of Pages: 440

USA > Pennsylvania > The Register of Pennsylvania : devoted to the preservation of facts and documents and every other kind of useful information respecting the state of Pennsylvania, Vol. IX > Part 107

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"It was impossible to do justice to the conduct of the national bank-at least for the first year of its opera- tions, without attending to the new obligations in which this compact involved them. Proposed by the execu- tive government, and sanctioned by it-required by the interests of the people, and necessary to the credit of the local institutions, there could be no other objec- tion to the act, than it accorded better with the public interest, than with that of the stockholders. Under this compact the bank became bound to discount six millions (exclusive of revenue bonds) before the 20th of April, and to sustain with its unbroken credit, and its whole capital, every bank which joined in the ar- rangement. The effect of this arrangement was not only to force the bank into earlier operation than a self- ish policy might have recommended, but to oblige it to renounce the resource which the state banks might have afforded, for the supply of specie. South of New England there was no specie in circulation."

31. Was not such an administration of the bank cal- culated to produce agitation and disorder in the cur- rency-to disturb the business of other banks, and to convulse trade?

32. If you think an institution thus administered was

an efficient agent in restoring or sustaining specie pay- ments, will you explain in what manner it contributed its aid?

I have already expressed my opinion that the bank not only contributed to restore specie payments, but ac- tually caused the restoration.

Of the first administration of the bank I had no per- sonal knowledge, and have little information beyond what has long been published. But as they who ad- ministered the affairs of the bank have passed away, and are no longer in a situation to vindicate them- selves, it is the more fit that historical justice should be done to them. The situation of the first administration of the bank was extremely difficult and delicate. They had to achieve the most critical of all financial opera- tions, the passage from a vitiated to a sound currency. Mistakes they may have committed-but I think their misfortunes proceeded mainly from two circumstances, first the impatience of the government and the country, which urged the bank to so early an increase of its bu- siness-and secondly, the rapid payments of the public debt. This last is of itself a great misfortune. No country has ever yet been fortunate enough to pay its debts, and none therefore, has felt the great inconve- nience of suddenly throwing back on the community the accumulation of capital composing a national debt.

Thus, on the 29th of July, 1817, the government had in the bank of deposits 24,746,641 26, consisting, in a great degree, of the notes of distant banks pro- fessing to pay specie, the whole of which was assumed by the bank. With this fund the government paid the bank itself 13 millions of the stock belonging to its capital, and paid out the remainder so as to reduce the deposit to 1,478,526 74. Such an operation was in it- self calculated to disturb all the relations of trade, and the mere vibrations of the government deposits, re- ceived as much of it was in distant and unavailable pa- per, and paid as they were in the notes of the bank, could not fail seriously to derange its operations.

But whatever may have been its embarrassments, or even its errors, it cannot I think be denied, that it sub- stantially accomplished all the great purposes of its creation.

33. Did the bank import, between the 30th July 1817, and the 5th November 1818, $7,311,750 53, in specie?

The bank did import that amount of specie, the first arrival being on the 30th of July 1817, the last on the 5th of December, not November 1818.

34. Had not the banks resumed specie payments near six months before the arrival of any of these importa- tions?

The banks agreed to resume specie payments on the 20th February 1817. They did this in consequence of the aid of the Bank of the United States, who in order to sustain them as well as itself, ordered this importa- tion, which it was known would arrive, as it actually did arrive, in time for that purpose. For all the ob- jects of sustaining specie payments, it was as effectual as if it had been actually in the vaults of the bank in February 1817.

35. Did not the difficulties of the bank commence in July 1818, and were they not at their crisis in March and April 1819, four months after the bank had com- pleted its specie importations?

I do not know what its difficulties were in July 1818, nor what is to be considered the crisis of them.

36. What is your opinion of the policy of using ex- traordinary means to import seven millions of specie, while effectual measures are at the same time taken to drive it out of the country faster, by increasing the loans of the bank and its notes in circulation, upwards of fifty millions of dollars?

My opinion is, that to force in specie and at the same time to force it out, would be extremely bad policy. But if it be intended to convey the impression that the bank followed such a policy, nothing can be more er- roneous. It is here said, that the bank at the same time

1832.]

SKETCH OF SINKING VALLEY.

375

it was importing specie, increased its loans and its notes in circulation, upwards of fifty millions of dollars. Now the fact is, that the highest amount of loans, public deht, and circulation, on the 6th of July 1818, amounted to $59,935,127 50,936,322

On the 30th of July 1817, the same objectswere

The largest increase therefore, from 30th July 1817, to 6th July 1818, was

If the first and last periods of impor- tation are compared, it would stand thus :-

5th December 1818, loans, public funds, and circulation, On 30th July 1817, they were

$54,488,984

50,936,322

Actual increase of loans on 5th De- cember 1818,

But on the 31st July 1817, the Bank of the United States held claims on sundry banks to the amount of And on the 1st December, these ob- jects were

$12,953,436

3,782,603

In this time the state banks had paid 9,170,833

This increase of means by the conversion of claims on the state banks into active funds, are nearly three times the amount of the actual increase of loans and circulation of the Bank of the United States.

37. Had not the parent bank less specie in its vaults after it had finished its importations than before it com- menced importing specie?

No-not merely the parent bank, but the whole in- stitution had more specie after than before the import- ation.

38. Did not the bank at the commencement of its dif- ficulties in July 1818, and again on the 9th of April 1819, adopt resolutions to collect the balances due from the local banks, and did these measures aid the state banks in sustaining specie payments?

Supposing this to have been the case I should think it would. If specie payments were to be sustained by limiting the issues of all the banks, and the Bank of the United States was diminishing its own business, the only effectual way of inducing the state banks to follow its example would be by calling for what was due from them, instead of suffering them to discount on the ba- lances due to it.

39. Was not the bank of the United States compel- led to curtail its loans ten millions, its circulation five millions-to incur a foreign debt of a million and a half, besides a loan of two millions at three years credit-to apply to government for relief in various forms and to acknowledge to the secretary of the treasury its utter inability to pay the Louisiana debt of three millions, without a loan in Europe?

No time is mentioned, but if this question refers to that stated in the preceding interrogatory, the answer is best given by reference to the actual state of the bank in July 1818, and April 1819.

The 6th July 1818, the loans of the bank amounted to 41,458,984

On the 1st April 1819, they were 34,080,025

The 6th July 1818, the circulation

9,045,216

was The 1st April 1819, 6,045,428

The 2d July 1818, the bank owed in England

1,884,513

The 8th April 1819, it only owed 992,865

rope in October 1819, that part of the Louisiana debt reimbursable there-but the only real relief it asked was what it claimed as a right, the payment of its own notes only where they were payable. Even this was denied; and the bank then relieved itself out of its own resources.

40. Was not the bank indebted to Stephen Girard, $130,000, which it could not pay, and did it not owe on the 12th of April 1819, to the Philadelphia banks $196,418 66, with but $71,522 47 in its vaults?

The bank was perfectly able to pay its debt to Mr. Girard. Mr. Cheves writing on the 20th of March, says-"Mr. Girard alone has a balance of near $130,000, the others also about $46,000," but he does not say a word about not being able to pay it. On the contrary, upon the very day when this sum of $176,000 was due, if all these banks had come for payment, the bank was able to pay them all, for on that very day it had,

In the vaults, $187,764 89 215,768 48

At the mint,

---- 403,533 37

Then on the 12th of April it owed 196,418 66

It had in the vaults, 71,522 47 At the mint, 267,978 09

Within a few miles, which arrived the next day, 250,000 00

589,500 56

State bank notes, 93,675 68 -- $683,176 24

A sum of $683,176 24 to pay $196,418 66, if all the banks had chosen to do, what all the banks never did do, call at the same moment for all their balances. Three days afterwards the debt

to the city banks was $169,104 51

And there was in the vaults,

5301,549 70

At the mint,

285,187 18

making 586,736 88

41. Ilas not the president of the bank in his exposition in 1822, stated that the bank was saved by the fortunate arrival of 250,000 in specie from Ohio and Kentucky?

He does not state this, nor any thing resembling it. He states only that this $250,000 "arrived seasonably on the next day, or a day or two after." It arrived "seasonably," but it was expected, for it had been or- dered for some time before; but not a word is said about saving the bank by it.

42. Isit your opinion that a bank thus managed from January 1817, to April 1819, could have essentially con- tributed to aid the state banks in resuming and sustain- Ing specie payments?

I have already given my opinion that the bank of the United States not only contributed to the resumption of specie payments, but caused it.

SKETCH OF SINKING VALLEY.

BLAIRSVILLE, INDIANA CO. 2 June 5, 1832. S

Mr. Hazard:

I am much pleased with the plan of your work, and the mode of execution, so much so, that I feel inclined to attempt a description of the Bald Eagle valley, and Ju- niata river, in conformity to the suggestion contained in the remarks which precede the introduction of the arti- cles on these subjects, from the Columbian Magazine of 1788. [Sec Register, Vol. 8, page 36. ]

From this it appears that its loans were curtailed only 7,378,959, and not 10 millions; its circulation 2,999,788, About the year 1800, perhaps in November, 1799, my family moved into this valley, and settled about six and not 5 milions, and its debt in Europe was reduced 992,865 29. At a subsequent period the bank did ne- gociate a loan in England for 2,040,000 to pay in Eu-| miles below the fort, called the Lead-mine Fort, near

8,998,805

3,552,662

376

SKETCII OF SINKING VALLEY.

the foot of the Bald Eagle mountain, or ridge, as it is now called. I continued to reside either in the valley or the neighborhood ;- seldom further off than Hunt- ingdon, until 1820, with the exception of one or two excursions, the longest, short of six month. I was a lo- ver of nature from my boyhood; and in no part of our happy state did she more freely exhibit her beauteous freshness than in Sinking valley; for it is by that nanie that the region described by B. is now known. It con- stituted Tyrone township, in Huntingdon county, for many years. I believe it was divided into two election dis- tricts, in the session of 1819-20. The census for Ty- rone township, for 1830, I have not seen, but it will compare to advantage with the "sixty or seventy fa_ milies living in log-houses," which B. gives as the popu- lation in 1779.

In 1820, the following manufactories were in opera- tion in this valley, viz:

One forge, four fires and two hammers.

Four grist-mills.

Five saw-mills.

A furnace had been carried on for some time, but operations were suspended in 1817 or '18.

Across the river was a rolling and slitting-mill, paper- mill, oil-mill, and three nailing machines-water power. A very extensive flouring-mill, a large stone barn, stone dwelling-house, and numerous out-houses, have been built of beautiful blue limestone, near where the Arch spring " throws out" its water, "with some degree of violence," on a rich and well cultivated farm.

The lead mines have been long since abandoned. The upper lead mine, as it is called, on the lands now belonging to a German family of the name of Crissman, exhibits but the traces of former excavation, and trifling indications of ore. The lower one, about a mile in di- rect distance from the little Juniata, was worked within my remembrance, under the superintendence of a Mr. Sinclair, a Scotch miner from the neighborhood of Car- ron Iron-works, in the land of cakes. The mine then was owned by two gentlemen-named Musser and Wells. The former, I think, lived and died in Lancas- ter county. Mr. Wells was, probably, a Philadelphian.

Three shafts were sunk to a great depth on the side of a limestone hill, A drift was worked into the bow- els of the hill, possibly a hundred yards ;- six feet high and about the same width. This was expensive. No furnace or other device for melting the ore was ever erected at this mine. Considerable quantities of the mineral still lie about the pit's mouth. The late Mr. H-, of Montgomery county, who had read much, and practised some in mining, (so far as to sink some thou- sand dollars, ) visited this mine in 1821,in company with another gentleman and myself,and expressed an opinion, that the indications were favorable for a good vein of the mineral. But the vast mines of lead in the west, such as Mine a Burton, and the Galena, where the manufacture of lead can be so much more cheaply car- ried on, must forever prevent a resumption of the busi- ness in Sinking valley, unless indeed, some disinterested patriot shall procure the adoption of a tariff of protec- tion, for the lead manufacturer of the happy valley.

B. speaks in his third paragraph, of "the people of the valley" having " made the first attempt," at open- ing the earth on a small hill on the road to Huntingdon, &c. I am informed by ancient letters, that the "peo- ple" were looking for silver.

A remarkable, irregular trench, the vestiges of which can yet be seen, with occasional interruptions, runs from the upper lead mines to the neighborhood of the lower-it is at least six miles in length. It was found there by the earliest emigrants, and thirty years ago, stout trees grew on the banks of earth thrown out in excavating it. It was there, it is said, and ancient in its appearance, when Roberdeau erected or commanded the fort at the upper lead mines. Conjecture has attri- buted it to the French, whose exploring parties search- ed extensively for minerals in Ligonier valley, while that nation held Fort Du Quesne. So great a labor, it was supposed, would only have been commenced in search of a precious metal, and could only have been encouraged to perseverance, by success. Not Black Beard's guarded hoards have been more se- dulously sought after on the sea-board, than have those unknown, and uncomeatable ores, supposed to lie buried somewhere, either in Sinking valley, or on the bank of the little Juniata, the eastern boundary of that valley.

The delusion passed off in proportion as the early settlers and their progeny died away, or removed to the "Great West." But it was current in my young days. Now, however, Sinking valley is not torn with the pick, the crow-bar, and the shovel, as formerly; but subjected to the fertilizing influences of the plough, the hoe, and the harrow. The change of implements has been every way beneficial; it is the richest body of land; shows the best agriculture; and contains the best and wealthiest farmers in Huntingdon county.

It is true, as stated by B., "forty-three years since," that iron ore is found in many places in that valley. I know of but one mine however, that in my opinion, can be said to be of value. It is on the land of Alexander Dysart, Esq. formerly a member of the senate. Seve- ral places elsewhere have been tried without permanent success. This valley having been one of Penn's ma- nors, all mines and minerals are reserved (by their deeds to purchasers) to themselves and their heirs; with free right of "ingress, egress, and regress, with work-men, cattle, and carriages," &c. &c. It is possible that this reservation has damped the ardor of discovery, or prompted to concealment.

In the year 1811, I passed a winter in the city of Richmond, with a relation. I there met with the ma- gazine you extract from, and well recollect the plate representing a man, with a book in his hand, I believe, on the arch or hill through which the spring flows. The representations, so far as the hill and stream are concerned, are pretty correct.

On my return to Pennsylvania, or rather to Sinking valley, in the spring of 1812, I determined to search for the iron mine described in B.'s seventh paragraph, which I had never heard of before, though I had been clerk at Union Furnace, erected two years before by Messrs. Dorsey and Evans, in the valley, for about

1832.]

SKETCH OF SINKING VALLEY.

377

eighteen months, and had made frequent inquiries and searches for a "mine-bank," in iron works phrase, in the valley. I copied the whole paragraph before I left Richmond, and on my return went to the house of an old friend, who by the description, I knew must live within two miles of the mine. I showed him my ex- tract, but he knew of no such place. When he came to that part of the description which speaks of the cat- tle some times swamping in the spring of the year, he at once identified the place, and calling for his horse, we instantaneously went to the spot. I communicated the information to Messrs. D. and E. They procured permission from the land-holder, and I believe, continu- ed to use of the ore as long as their furnace was carried on.

As to copper ore and copperas, there never has been any body of cither found. Indications of copper ore are said to have been found helow Huntingdon, at Drake's ferry, or near it. So also of copperas.

In November last, I observed copperas on a slate- rock about a mile below Huntingdon. Myself and Mr. M'C. innkeeper in Huntingdon, and well known to Judge M. and others of your city, who frequent, or have been much in Huntingdon, tasted it. No doubt could remain that it was copperas. It is likely alum may be found in the same way, as both copperas and al- um are at every pit of bituminous coal in this country, but not in such quantities or combinations as to justify the attempt to manufacture those articles for sale.

I have entirely wandered from the description intend- ed, so far indeed, that, like Macbeth, my almost name- sake, I find it easier to proceed than to return. Permit me then, as an attempt at propitiating your patience, so justly offended, to relate a very remarkable fact in re- lation to this silver-hunting business in the olden time, which never has appeared in print, or been committed to letters, that I know. For the purpose of precluding suspicion as to the narrations made to me, or in my presence, I shall give names at full length which you may, or need not publish, at discretion.

The Arch Spring at ordinary stages of its water, pours its whole volume into a "sink-hole," as termed in this valley, where there are many, at the base of the Canoe mountain. When swollen, however, by thaws or rains, it has ready access to the little Juniata river, by a channel never used but on such occasions; and flows in a rapid stream down a deep and narrow dell between the Canoe mountain and the high table land of the val- ley, which here assumes the appearance of a limestone ridge. The tract of land on which it debouches into the little Juniata, was purchased by Messrs. Dorsey and Evans, from a Mr. J. I. who now owns the Arch Spring itself, and the farm on which it arises. While the fur- nace and works appurtenant were in progress of erec- tion, Mr. I. called one day at our boarding-house, an old log building in which he had himself resided, on his first settling on that tract of land. The day was wet and much desultory conversation passed. Among other things, some one inquired why he had dug a mill-race which was spoken of, in a place where, to a very superficial judgment a good scite could not be had, VOL. IX. 48

and neglected an excellent one a very few perches lower down the river, both quite near the house. I do not pretend to give the words of his answer, but in the sub- stance I am not mistaken.

"About years ago, (I forget how many, ) a man came here," said Mr. I. "from one of the cities, who said, he had received a letter from Amsterdam, setting forth, that many years before, two men in descending the little Juniata in a bark canoe, in which they had a quantity of silver bullion, met with an accident, by which their canoe was broken. Being fatigued and unable to carry their burden on foot through a wilder- ness, they buried it near the mouth of a run, to the description of which this place answers well. 'With your permission,' said the stranger, 'but not else, I will make some examination.' To this," said MIT.I. "I at once agreed. Ile then went on to tell me," continued Mr. I. "that on the south side of the run such a dis- tance from its mouth, was a' spring; on the east side of the spring grew a white oak tree, within a yard or two of the spring. IIc had found all these marks combined at my spring, and now wanted permission from me to cut into that tree on the side next the spring. If he was right in his conjecture as to the place and tree, a whet-stone and iron wedge would be found in the tree: so many feet in a south east direction from its root, the bullion lay buried. There was no scar on the bark by which you might suspect that ever an axe had marked it. I told him to cut in and try it. Ile did so, and to my utter astonishment, a few chips being taken out, an axe-mark was seen; and as I am a living man, the whet- stone was there. The iron wedge was not found; but some years after, one was found by accident in splitting a tree for mails about a mile lower down the river, al- most in the heart of the tree.

"The stranger dug first in the proposed direction, and then in every other, he was not successful, and at length went away. Because I soon after began this un- finished mill-race, people in the neigbourhood have al- ways suspected that I found the silver, but, " said Mr. 1. pleasantly, " I wish I had." He was right, it was early, and generally believed that he had found it, and that belief was encouraged by the statements of a la- boring man, who worked in the mill-race all day, and heard I. at work there, all hours in the night. The Ia- bourer added, that one night unusual movements in the lower story, such as whispering, between Mr. I. and his wife, and the attempt to remove the puncheons of the floor, led him to believe the treasure was found, for soon after the mill-race was abandoned.

Mr. I. is a wealthy man. He was poor when he lived first in the log cabin by the mouth of Arch Spring run.

I remember having seen one of the miners who had been employed at the upper lead mines. Ile was a Highlander, and when animated by a "highland gill," could box, dance, or sing in Gaclic, without a competitor. He said, that an English man named Gibbon, was very fortunate in refining the ore, and extracting silver. Ile further stated, that he saw a mass of silver which Gib- bon had procured about the size of a lin-bucket. Honest John McL. was a man of integrity, and I have no doubt

378

PHILADELPHIA, GERMANTOWN, AND NORRISTOWN RAIL-ROAD.

[JUNE

that he meant to speak the truth. He did not say the tin-bucket, of which he made a standard, was of any particular size.

R. B. McC- -.

PIIILADELPIIIA, GERMANTOWN, AND NORRIS- TOWN RAIL-ROAD.

We have the gratification of laying before our read- ers, the address delivered by E. H. BONSALL, Esq. the president of the company, at Germantown on the 5th inst. at the celebration uf the opening of the road, with a copy of which we have been politely furnished. It will be read, with pleasure, by our fellow citizens, a large number of whom will doubtless be benefited by the completion of this improvement.

GENTLEMEN :- The occasion on which we have met, is peculiarly interesting to many of us, and is no doubt productive of gratification to all who are now present. It is to celebrate the first realization of hopes long cher- ished; the first recompense for large capital invested, and untiring efforts zealously directed to the completion of a work which is destined richly to reward the stock- holders, and extensively to promote the interests of the community. The epoch appears to be sufficiently im- portant to claim a short address, principally with a view to giving a hasty sketch of the origin of the project of constructing a Rail-road from Philadelphia to Norris- town by way of Germantown, and also of the progress of our operations to the present period.

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The Register of Pennsylvania : devoted to the preservation of facts and documents and every other kind of useful information respecting the state of Pennsylvania, Vol. IX, Part 107

Author: Hazard, Samuel, 1784-1870 Publication date: 1828 Publisher: Philadelphia : Printed by W.F. Geddes ; Number of Pages: 440

Author: Hazard, Samuel, 1784-1870
Publication date: 1828
Publisher: Philadelphia : Printed by W.F. Geddes ;
Number of Pages: 440