ier, Mr. Romeyn, and Messrs. Murray and Griswold, directors^
were present — thieit Mr. Romeyn was present, I am cettain*
12. Answer to the twelfth iuterrogatory^^l answer, that Mr.
Rofneyn was present during the marking of the notes* and of
coarse knew tnat each note was stamped.
: IB. Answer to tlw thirteenth hUerrogeUory — I answer; thitt at
wvtime, either in Now York or elsewhere, did Theodoire R infi ey ^
draw a eheck in my Aivor on the Bank of Clinton for #IO/)iO|
bOt that in July lam Col. Murray, a director of the Morris canal
and banking company, with Norton, called on vae and preseiitod a
bheck drawn by Mr. Romeyn on the Bank of Clinton for #10,00^ ,
and accepted by Mr. McOlure, the cashier of said bank* OoL
Murray stated that he Was anxious to place the amount in New
York, and that if the state would ccjilect the check, he would take
a draft' at one year on the Morris canal and banking company,
I received the check and gave it to Mr. Norton for colleoiioQ cm
tfte part of tite state. At the same time Col. Murray gave me
an agreement that in the event any difficulty occurred in" the col*
lection of the check, the whole matter should be cancelled and
my draft ratumed. Some thne after, and before the check waa
paid, an iniunction was placed on the Bank of Clinton, and as the
check couid not be collecied, my draft was returned. My onlyt
object was to aid Col. Murray, who had been graatly ittstnimeii<
taf in assisting my negotiation in New York, and mora partien*
larly as this could be done without prcjudioo to the state. In fact
the state would have had the use of ten thousand dollara without
interest for one yeaf, had Mr. R's. check been coHected, and
therefora no objection existed in my mind to the arrangement
proposed by CoL Murray.
It will also be recollected by th^ committee that much has been
said concerning my unwitlingness to publish my contract with
the Morris canal and banking company. I did not feel authoriz-
ed to make public this contract without the authority of the com*
pany, and I have to leqiMst ef the committee that the aocompa*
Digitized by VjOOQ IC
Ttt aOGBB DOGUAfEHTS.
sgring leMorfroai oMof oor Sonatois in.Goi^giress may be
• purl of ihdr .proQeediogB, as an acft of justice, I will furibflr
•tate« to correct any erronooos impreifsion Uiat may exist, that no
amouott bv draft or otherwise, has been placed in the haoda of
Mr. Norton or the banhof whiqh he is Ge^ier» on account of the
five milfioa kan, beyond the W;300,000^ as stated by the Trca-
surer in his report to the legislature ; and that any arraBgement
Mr. Norton is now making in New Yprk for the benefit of hu
baok^ is unconnected in eviary respect with the credit of the state
or its loan^
S. T. MASON,
Sworn aad subscribed before me> this 27th day of Feb. 1839.
D. a BACON, CKnproUm.
Letter of JoHn NorveS.
Washington, Feb. 10. 1839.
. Mt Dbsk Soie Mn Southard having; resigned bis statioa as
mesident uf the Morris canal bank, and havioff been one of the
cMiailft^ of that institution to nsgotiate the Michigan kwa of
five milliona with you, I sought aa oppottanily, a few days i^
to; remark to him, that you had been censured by your polhical
eaemies at hornet firsts for having obtained the money or the loan
on terms less favorable to the state than might have been realised;
and, seoondt for having refused to make a public and official dis-
elosure of the terms until the legislaUire convened.
Mr. Southard answered, that he was cpgmzant of the progress
and ciroumstauees of the whole negotiation ; tiiat your conduct
Ihrooghout the negotiation was marked by a zeal and fidelity to
the interest of the state, Worthy of all praise ; that \ou could not
then have obtained better terms,. and by no means so good at this
tune 'f and that it was at the request of the ba^k, made with a
view, if po!«8ible, to dispose of the loan in Europe for the greater
advantage of the state, that you had forborne to make any official
discksure with regard to tlie conditions upon which you bad dis-
posed of it to the Morris canal bank.
Mr« Southard is a whig senator of the United States, and* of
course, not politically partial to you.
You are at liberty to make any use you think proper of this
I have the honor to be, >
/ Very respectfully,
Your most ob't serv't,
His£^ndlency Stbvkivs T. Mason,
€l0vemor rf Michigan.
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BUttement <^ Trecmwrer.
Statement &f the €miomU and denommation of e^
of the Morris Canal and Banking Company^ abstracts from
the trunk delivered to the State Treasurer by Gov. Mason, in
June, 1 838, purporting to have contained one hundred thousand
1 package of #%000 of 920 billa, short
do 2,460 of 20 do
22 do of the following amounts of $10 bills, viz :
1 of $500 short $70, 1 of 8500 short (30, 1 of $500 short $50,
1000 « ,
32 packages as follows, of #500 each, of $5 bills :
Amount short from each package, viz :
#475 #405 #335 #410 #415 #2,040 00
Total abstracted, #4,630 00
Deduct this amount returned to Morris canal bank-
ing company, #4,580 00
Leaving the sum of #50 deficient, which has been returned to
the treasury by Gov. Mason's check for that amount on Midiigan
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780 HOUSE DOCUMENTS.
State bank* See tny annual account with internal improveinent
fund, dated Dec. 31," 1839.
H. HOWARD, Treasurer.
State TfiEASuREk's Office,
Detroit, Feb. 16, 1339.
The package of $10,397 70, which also accompanied the
above, consisted of the following denominations of bills of the Mor-
ris canal and banking company, as near as I can now recollect,
103 bills of 8100 each, is 810,300 00
4 do of 20 do 80 00
1 do of 10 do 10 00
1 do of 5 do 5 00
1 do of 2 do and specie 70 cts, 2 70
H. HOWARD, Treastirer.
State Treasurer's Office, )
Detroit, Feb. 16, 1839. \
Sir — At your request I hand you the annexed statement,
shewing the amount and denominations of the bills of each pack-
age of the bills of the Morris canal and banking company, ab-
stracted from the trunk you delivered mc in June, 1838. Also a
statement of bills in the package of $10,397 70, accompanying
With great respect, your obedient servant,
H. HOWARD, JVeasurer.
His Excellency Gov. Mason, Detroit.
Cancelled receipt of John Norton, Jr. — State Bank.
Received of S. T. Mason, Theodore Romeyn's draft on the
Bank of Clinton, for ten thousand dollars, for collection for the ac-
count of James B. Murray, agent for the Morris canal and bank-
ing company. JOHN NORTON, Jr., Cashier.
Detroit, Srd Sept. \SB6.
Receipt of James B. Murray.
Detroit, August 2, 1839.
Received of His Excellency, S. T. Mason, his draft, payable
in twelve months after date, for ten thousand dollars, on the Mor-
ris canal and banking company, which draft I received as agent
of said company, in exchange for a check or draft of Theodore
Romeyn, dated 30th July, 1838, for $10,000, on the Bank of
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HOUSE DOCUMENTS. 731
Clinton, certified by " C. H. M'Clure," payable to bearer, which
said draft is placed in his hands for collection and disbursement
for the use of the state of Michigan, under the express under*
standing and agreement that he. or his agent, is to use their discre*
tion in the colleclion of the same, and in case of failure in collect-
ing the whole or any pari rif the said draft on the Bank of Clinton,
an equivalent amount of the draft now received by me, is to be
cancelled by the said Morris canal and banking company, and pla-
ced again to the credit of the state of Michigan, and no want of
notice for non-payment in part or whole of said draft on the Bank
of Clinton shall be plead in waiver of this receipt
JAMES B. MURRAY,
Agent of the Morris Canal and Banking Company.
Memorandum of sale of State Stock.
From the London Morning Chronicle, of November 24.
Ambbican Stocks. — Considerable business continues to be
transacted daily in American securities ; and during the week, in
addition to the new loans for the states of Mississippi and South
CaroKna, bona fide investments to the amount of upwards of
£300,000 have been effected, arising no doubt in a great measure
firom the abundance of money and the good rate of interest which
is received ; various stocks averaging n dividend of between five
and six per cent, nett in this country. Sales of the new Missis-
sippi loan have been made at . ninety-three ; Alabama, five per
cent., is quoted at ninety-four, and at which business has been
done; Illinois six per cent., ninety-six ; Indiana five pereenC«
eighty-five ; Louisiana five per cent., ninety-six ; ditto six per
cent., par to one hundred and two ; Massachusetts five per cent.^
one hundred and three; Maryland six per cent, par; buyers, no
sellers ; New York five per cent, in demand at ninety-three to
ninety-five ; Ohio six per cent, one hundred and two ; Pennsylva-
nia fiive diflferent five per cent stocks, varying as to the period of
redemption, ninety-two to tiinety-six: South Carolina five per
cent in demand at ninety-five, and Virginia six per cent state
slock, ninety-five and a half; New York city five per cent stock,
ninety ; and New Orieans city five per cent stock, eighty ; Uni-
ted States bank shares at twenty-five pounds five shuliii^, buy-
ers ; American Life and Trust Company shares, twelve pouods>
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7M HOUSE DOCUMENTS.
CorrespoDdoQoe of the New York Courier and Eoquirer.
London, November ZO; ISSS.
We continue wilhout arrivals from the United States, and so
tempestuous has been the wqather here for the last seven days*
that even the letters and iiles of newspapers have not been able
to be landed from the packet of the first. The Earl of Durham
has, however, arrived at Plymouth, and is expected in London iii
the course ot the present night.
The money market continues inactive, but American securities
are in general very firm in value, and some of the stocks have
manifested some tendency to a further advance. Of the Bank of
the United Spates, one thousand two hundred shares were sold this
morning, at twenty *five pounds seven shillings and six pence, and
further sales were declined, unless at an advance to twenty-five
pounds ten shillings. The Alabama loan, for which a contract
nad been taken by the house of Palmer, Macillop, Dent & Co., is
now, through the insufficiency of the powers of the agent, trans-
ferred to Messrs, Gowran and Marks, who have made a conside-
rable advance in silver upon the bonds, but who are not absolule
eontraetors ; and merely are to dispose of them in the market, up-
on a broker's commission, as circumstances may permit. The
other new stocks are going gradually into circulation ; the Messrs.
Baring and Brothers, having already disposed of about oaehiiD-
dred thousand pounds of the South Carolina loan. The prices of
stoeks, in which business took place this afternooo, were at the
ekwe, as follows :
New York 5 per cent 91a 94 ; Ohio per cent 1850^, 101
a 102 ; South Carolina 5 sterling, 95 ; Virginia 6's, 1B44, 95 ;
New York city 5's, 90, sellers. Discount on United States fatnk
bonds, 6 months, 3^ ; 3 months, 3 per cent.
Sale of Michigan stock to Morris canal and banking oonpany,
par less d^ per cent, commission, say 9125,000 loss.
Say sale in New York at par, the bonds in ster-
ung ; 1 1 per cent between a sterling and a dot-.
lar bond, (5,000,000. •550,000 00
Eight per cent exchange on $300,000 of interest
for 25 years. 600,000 00
Loss, $1,150,000 00
In addition one per cent commission at New York and Loo-
don* for remitting and paying.
Say sale in London at par, which is the highest quotation for
the bonds of the old and established states.
Stock, entire loan, $5,000,000 00
Eight per cent advanta^ on exchange,
In drawing on London, is cancelled we may say by the exchange
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HOUSE DOCUMBNT& 7OT
10 retnittinethe debt whctn paid. Tbis makes the stodi par at
home. We have then the exchange against us for twenty-five
years, on #300,000 of annual interest. Loss, $600,000.
In addition, you have throughout, the New York and London
charges, which are not less than two per cent, (say, $100,000,)
Say a sterling bond sold for six per cent premium at borne, the
exchange at 8 percent in remitting, would leave a loss to the state
of two per cent on the principal, $100,000 00
and eight per cent exchange on $300,000, an-
nual interest, at 25 years,' 600,000 00
Loss, $700,000 00
The behest offer from any other source was ninety-fii^e cents.
See sale of Arkansas stocks at less than par, one half the interest
payable in London. Alabama sterling bonds, one hundred and
two cents. New York. Loss, $600,000 on $5,000,000. Se9 sale
of our own stocks.
See Newberry's sale at ninety-three and ninety-five. Univer-
sity stock also with the interest, yielded about ninety-five. Seven
fer cent Palmyra railroad stock was offered at less than par.
6ntiac DO sale, but hypothecated for an advance.
London^ December 12.
Alabama, 5 per cent sterling,
Illinois,. 6 ** 1870
Indiana, 6 « 1861-6
Louisiana, 5 - 1844
95 a 96
Do 6 sterling, 1858
Massachusetts, 5 per cent,
Maryland, 6 per cent, par to
New York, 5 « 1^66
Pennsylvania, 6 ** 1860
95 a 96
South Carolina, 5 " 1866
Discount on bonds of the Bank of the United States, 3^ per
London^ DaC' 8.
American securities present no change, and are altogether very
firm. Alabama 5 per cent sterling is quoted at 94 to 95 ; Illinois
six per cent, 95 to 96 ; Indiana five per cent, 85 ; Lousiana five
per cent, 95 to 96 ; do six per cent, sterling, 102 ; Massachusetts
five per cent, 93 ; do sterling five per cent, 103 ; Maryland six
per cent, par to 102 ; Mississippi six per cent, 93 ; do five per
cent sterling, 93 ; New York five per cent, 94 ; Ohio six percent,
104 ; Pennsylvania five per cent stocks, varying as to the period
Digitized by VjOOQ IC
of redemption, 95 to 06: South Carolina five per cent sterlii^, (Ba-
ring's,) 95 to ^ ; Virginia six. per cent, 95 ; Florida six per cent,
90 ; New York city five per cent, 90 ; United States bank shares,
25Z7«. 6d. to25Z. 10*.
On the 14th, all American stocks were in demand, at improved
prices ; United States bank shares, £25 158.
The price current this morning gives the following table for fa-
cilitating the computations :
Exchange on England — One pound sterling.
At 5 per cent premium is
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HOUSE DOCUMENTS. 785'
Interrogatories and Answers — Gov. Mason.
Interrogatories propounded to Grov. Mason by the committee^
March 20, 1839.
Ut From what instalment is the commission of two and a half
per cent to be paid ?
2nd, When and how are the March and April instalments to
be drawn, and how are they to be applied ?
3d. What amount of bonds of the state have been executed,
and with whom deposited ?
4th. What security, if any, has been given by tho Morris canal
and banking company for the payment of the loan ?
5th. Has the arrangement been perfected with the Bank of the
United States, and if so, where is the amount to be paid ?
6th. What amount has been received from the Morris canal
and banking company 7
7th. ReSHved^ That he be requested to furnish authenticated
copies of all arrangements and modifications of the contract of
loan, which may have been made or assented to, since the date of
said original contract bf loan.
In answer to the interrogatories of the committee of this day, I
beg leave respectfully to state :
rirst. That under the original contract with the Morris canal
and banking company, the commission of two and a half per cent
was to have been paid whenever the whole amount of stock
should be sold by them, unless the stock brought more than par,
in which event, the excess was to be divided between the state of
Michigan and the company. In the event of no sale of the bonds,
the company were to make the advances as the instalments be-
came due, and in such case, the commission would be paid pro-
rata with thftir advances. In the sale to the Bank of the United
States, when consummated, it was agreed that the negotiation
under the agency had transpired, and as the bonds of that institu-
tion were to be received for the amount, the two and a half per
cent must be deducted from the par value of the bonds. This
opinion was concurred in by all the experienced bankers consulted
at the time.
Second, The March and April instalments, under the original
contract with the Morris canal and banking company, would
have been drawn for on the first of each respective month, but in
accepting the proposition of the Bank of the United States, it was
understood that the commission of two and a half per cent and
the interest on the loan, should be deducted from these instalments*
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7»6 HOUSE DOCUMENTS. .
The balance of the April instalment, after these deductions, is sub-
ject to a 90 days' draft from the first day of the ensuing month.
Third. The whole amount of bonds authorized by law, have
been issued, and were deposited with the Bank of the state of
New York, to be delivered on the consummation of the arrange-
ment with the Bank of the United States.
FourtK0 No security was required of the Morris canal and
banking company. The agency entrusted to them is based upon
the high standing and character of the officers and directors of the
institution. In the event of a s^le of the bonds, it was believed
that the company would in good faith, pay over the proceeds to
the state. At the time of the contract, the Morris canal and bank-
ing company were acting as the agents of other slates, and bad
deposited with them millions of their bonds.
Fifth, I atr» unable to say whether the arrangement with the
5ank of the United Stales lias as yet been perfected. Mr. With-
ers, the cashier of the Bank of the state of New York, forwarded
me a copy of the obligation prepared to be executed, for my appro-
val. The obligation was relumed to Mr. Withers, and I have
not since heard from him. Should it happen by any unforeseen
event, that the arrangement with the Bank of the United States
is not perfected, the original contract will be in force and the in-
stalments will be paid as therein required. The March and
April instalments will be received, less the interest due, and the
commission of two and a half per cent will only be deducted from
advances actually made by the company. If the arrangement
with the Bank of the United States is consummated, the obliga-
tions of that institution will be made payable at the Bank erf" the
state of New York.
Sixth. One million one hundred thousand dollars thus far, has
been received from the Morris canal and banking company.
Seventh, The cqmrnitlee are in possession of copies of all the
arrangements and modifications of the contract with the Morris
canal and banking company, as will appear by printe4 documents
of the Senate and House of Representatives.
STEVENS T. MASON.
Since writing the above, I have received a letter from Mr.
Withers, informing me that the arrangement with the Bank of the
United States has been consummated.
S. T. MASON.
March 30, 1839.
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HOUSE DOCUMENTS. 787
* . . . (D-) .
Interrogatories and Answers — Mr. Romeyn.
. InterroffaUny to- Mr. /Zomeyn.— Was you present at any time
during tbe pnigress of the negotiation between Governor Mason
aodtbe ^ orris canal and banking company* and if so> please to.
state fully what you Jcnow in t'ela^tion to said matter, whether )H>u
saw the money counted, stampede and put up ; what disposUioa
wa0 made of said money from the time it was cpunted until the
same was deix>sited in the state bank 7 Please state lully all cir^
c^HnstBQces connected with the negotiation of said loan.
In reply to the above interrogatory submitted to me by th#
coiQmittde» I answer* that I was in New York in April and May
aad June last, during the progress of the n^otiation between Go-
vernor Mason and the Morris canal and ba^itig company. Be-
ing a friend of Governor Mason and acquainted with several of
the dij^Qtors of the company^ I was repeatedly present during the
preliminary Degotiatioi>8^ and at the consummation of tiie contract*
Lwas lanMliar with t()e . legislation of the state on the subject of
the loan, not entirely ignorant of the public feeling and expecta-
tion in the matter, cind my opinion was asked as to this, and as to
the construction of the statutes, which had a bearing on it I be-
lieve that I perused and examined the contract before \i was ejie-
QUied, but in all the afiliir, I had no agency and no, other conneo-
tiofi than that which naturally resulted from my acquaintance
with the subject and the parties.
I was present when the money was paid to Governor Mason,
on the fourth day of June last. The circumstances are fully de-
tailed in Governor Mason's affidavit, to which I beg leave to refer.
The o^ney was not counted in my presence ; a portion of it was
counted, I believe, in Jersey City, and the remainder in the city
of New York, and all s'amped in New York. A part of it was
sCamped ia the presence of Governor Mason and myself. Seve-
ral of the officers and directors of the bank were there also.
Broad, distinct marks were stamped, in red cdort on eiu^ bill.
The (object of this was obvious. It was known that the money,
after it arrived at Detroit, would be paid to the Treasurer, who .
probably would count it ; that it would bo by him deposited in
the state< depositc bank, where, according to the usa^s of all
hanks, it would be re counted ; and that it would again, in all pro«
b^bility, be examined when paid to the Commissioners of internal
improvement, by whom it w/t>uld be disbursed ; consequently any
abstraction from it would be discovered, and the marks on it would
render it useless to the plunderer, and conduce to his detection. I
do not know from whom the suggestion as to the marking ori-
ginally came, but its propriety was so obvious that it was imme-
diately adopted ; and, as the result proves, it was a jbrtuni^Ce pre-
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788 HOUSE DOCOMENTS.
I saw that all the bills appeared to be marked, and in order to
have a copy with us, an impression of the marks or stamps was
made in the crown of my hat at the time, where H now rernauM.
The bills were put into packages of different amounts, and with
a slip of paper around them, of small width, so as to admit «f
their behng stamped in detail, without loosening the peokagoib
At Governor Mason's request, I had directed a servant to pot*
chase a tronk for the purpose of carrying the money, and sent it
by one of the porters of the Alitor house to the bank. I nevier
saw the trunk, until I saw it in the bank ; neither do I kiMiw
where it was bought. It was an ordinary cheap article, woirth
not m(>re than ^ix or seven dollars. Ttie packages of moMf
were put into the trunk, with no envelope round them. As sta-
ted by Goveruor Mason, he took the trunk and contents to the
This was about eight o'clock m the evenmg. He asked me ta
take charge of it, whicK I expressed an unwillingness to do^ e^
long ago, I bad made it i rule to decline to carry or keep mcsMy
for others. It w4s, however, agreed> that it noight go to my nam