17 MARCH 1838, Page 9

According to the American papers, the United States and Southern

State Banks were in the market us purchasers of cotton. It was cal- culated that up to the old of January the former bank alone had pur- chased, through its agents, to the enurrnous extent of 300,000 bales during the season, the value of which was reckoned at 12,0(10,000 dollars. In payment, as the papers remark, the banks " give their irredeemable currency ;" and so long, therefore, as no compulsory resumption of specie payments takes place, they can await their own time for realizing sales in Europe where the cotton has been sent.

This system of operations in produce with United States post-notes being extended, as is said to be the case, to other countries,—as, for Purlele, to Cuba, the West Indies, and Brazil, for sugar and coffee,— Is calculated to invest the banks in question with a controlling power excessively inconvenient to the mercantile community, over the supply Lid prices everywhere, exclusive of the facilities which will thus be possessed for forcing specie away from Europe to any amount and at eps moment. Such a state of things could, of course, last no longer than an irredeemable paper currency. in America was tolerated. On these grounds, therefore, is the hostility of the United States Bank to a return to specie payments aceounted tor by a portion of the American press. It would seem, however, that the irredeemable paper system as. not to be altogether monopolized by the barika. Individuals were °Volling to practise on their own account. Sonic " irredeemable " checks our is New Jersoy bank I ad been put into circulation in New York of the denomination of 1 dollar and 10 dollars, neatly engraved. On inspection, they were found to be private checks only payable at the bank.— Tines.

The report of the committee appointed by the Legislature of the State of Massachusetts to inquire into the affairs of the Franklin Batik, one of those which had failed, has been published, and contains some most extraordinary and nefarious disclosures. Of the total assets to meet liabilities, estimated in the bank books at 526,000 dollars, it does

not appear that a single dollar is available. The real estate, put down ati.'3,123 dollars, had been attached for a debt of 75,000 dollars, and, subject to this claim, assigned besides to the United States trea- sury as seem icy for a sum of 12,311 dollars more. One item of 82,000 dollars consisted of its own stock held by the bank, or rather trans- ferred to it by the directors, when the speculation had not answered, for their own account. Of course it was worth no more than so much waste paper. The next large item was for 169,000 dollars, of notes discormted, which were not likely to produce much, as the whole of the notes were overdue, and had not been paid on presentation. About one-half were, besides, payable in the liabilities of the Franklin Bank itself, according to a juggle betwixt the managers and other parties. Another portion of the assets put down to the amount of 120,815 dollars, was a balance claimed, and the greater part not disputed, against Benjamin F. Hathorne, a former cashier of the bank, dis- charged about the middle of 1837. It appears that the bank was founded in 1528 with a capital of 100,000 dollars, and was going on prosperously enough until 1834, when a conspiracy was hatched by this Hathorne with four persons, afterwards directors, to get the ma- nagement of the bank into their own Lands.—Times.