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DIFFICULTIES OF THE BANK OF MARYLAND. 177
It had, up to the 24th of March, 1834, enjoyed an uncommon degree of public
confidence, and had an extraordinary circulation, growing out of the fact,
perhaps, that its stock, the par value of which being only $300, was steadily
quoted in the newspapers at $500. The stock of the bank consisted of one
thousand shares, on which $300,000, the par value, was originally paid in,
but by bad debts, etc., it was reduced in 1824, to $200,000. This reduction,
however, did not affect the credit of the bank, which appears to have been
more than counterbalanced by the increased estimate of its charter, its standing, etc. From August, 1831, (the time when Mr. Evan Poultney was chosen
president of the bank, and Reverdy Johnson and John Glenn, his counsel,
and two of the directors) to May, 1832, the business of the bank seems to
have progressed satisfactorily; its deposits were much increased, and it
appeared to be doing an active and profitable business. About this time it
seems that Evan Poultney, Reverdy Johnson, John Glenn, Evan T. Ellicott,
David M. Perine and Hugh McElderry, agreed to form a stock association
and hold between them nine hundred shares of the stock of the Bank of
Maryland,* thus securing control of the bank. The stock was purchased and
paid for out of the funds belonging to the bank, at the market price of $500
per share from the 22d of May, 1832, to 22d January, 1833. On the 10th of
March, the president and directors transferred these nine hundred shares of
stock to the aforementioned members of the stock association, and the bank
afterwards received through its discount book their notes for the amount,
payable on demand to the president and directors, thus discounting
$450,000 of their paper to purchase the stock out of the funds of the bank.
This stock association having thus secured the management and direction of
the Bank of Maryland, soon after connected with it a General Insurance
Company, and for this purpose individually subscribed for a controlling
interest of its stock, also out of the funds of the bank, and elected Reverdy
Johnson its president, and the other members of the stock association its managers. In May the bank purchased from the Union Bank of Tennessee, bonds
to the amount of $500,000, and in June, John Glenn purchased in his
individual name, six thousand shares of Union Bank stock and gave his
individual note for the amount, $510,000, depositing as security for his note
these Tennessee bonds belonging to the bank. In a few months a panic in
the money market commenced, and it was soon evident that the Bank
of Maryland would require assistance; and early in October two of the
members of the association made application to the Secretary of the Treasury,
at Washington, and on the 9th of October the bank received an accommodation of about $300,000. At or about this time, it appears that the stock
association, without paying their individual balances due the bank, and their
subscriptions to the General Insurance Company stock, and making good
their proportion of losses from the various speculations which they had
entered into, cancelled and destroyed the written agreement which subsisted
between them, and by powers of attorney, conveyed the stock they had held
12—v. iii.
| Title | History of Maryland - 3 |
| Creator | Scharf, J. Thomas (John Thomas) |
| Publisher | J. B. Piet |
| Place of Publication | Baltimore |
| Date | 1879 |
| Language | eng |
| Type | Books/Pamphlets |
| Title | 00000208 |
| Type | Books/Pamphlets |
| Transcript | DIFFICULTIES OF THE BANK OF MARYLAND. 177 It had, up to the 24th of March, 1834, enjoyed an uncommon degree of public confidence, and had an extraordinary circulation, growing out of the fact, perhaps, that its stock, the par value of which being only $300, was steadily quoted in the newspapers at $500. The stock of the bank consisted of one thousand shares, on which $300,000, the par value, was originally paid in, but by bad debts, etc., it was reduced in 1824, to $200,000. This reduction, however, did not affect the credit of the bank, which appears to have been more than counterbalanced by the increased estimate of its charter, its standing, etc. From August, 1831, (the time when Mr. Evan Poultney was chosen president of the bank, and Reverdy Johnson and John Glenn, his counsel, and two of the directors) to May, 1832, the business of the bank seems to have progressed satisfactorily; its deposits were much increased, and it appeared to be doing an active and profitable business. About this time it seems that Evan Poultney, Reverdy Johnson, John Glenn, Evan T. Ellicott, David M. Perine and Hugh McElderry, agreed to form a stock association and hold between them nine hundred shares of the stock of the Bank of Maryland,* thus securing control of the bank. The stock was purchased and paid for out of the funds belonging to the bank, at the market price of $500 per share from the 22d of May, 1832, to 22d January, 1833. On the 10th of March, the president and directors transferred these nine hundred shares of stock to the aforementioned members of the stock association, and the bank afterwards received through its discount book their notes for the amount, payable on demand to the president and directors, thus discounting $450,000 of their paper to purchase the stock out of the funds of the bank. This stock association having thus secured the management and direction of the Bank of Maryland, soon after connected with it a General Insurance Company, and for this purpose individually subscribed for a controlling interest of its stock, also out of the funds of the bank, and elected Reverdy Johnson its president, and the other members of the stock association its managers. In May the bank purchased from the Union Bank of Tennessee, bonds to the amount of $500,000, and in June, John Glenn purchased in his individual name, six thousand shares of Union Bank stock and gave his individual note for the amount, $510,000, depositing as security for his note these Tennessee bonds belonging to the bank. In a few months a panic in the money market commenced, and it was soon evident that the Bank of Maryland would require assistance; and early in October two of the members of the association made application to the Secretary of the Treasury, at Washington, and on the 9th of October the bank received an accommodation of about $300,000. At or about this time, it appears that the stock association, without paying their individual balances due the bank, and their subscriptions to the General Insurance Company stock, and making good their proportion of losses from the various speculations which they had entered into, cancelled and destroyed the written agreement which subsisted between them, and by powers of attorney, conveyed the stock they had held 12—v. iii. |
