securities.

In order to carry on its operations, it exchanged in Europe a portion of
its funded debt for gold and silver, and bought specie in the West
Indies. From July, 1817, to July, 1818, it imported $6,000,000, of
specie, at an expense of $500,000, but the excessive issue of paper
drained away the cash more rapidly than the Bank could import it. In the
face of this hopeless struggle, in July, 1818, it entirely changed its
course and reduced its discounts, and 10 per cent. premium was then paid
for cash, and the reduction of nearly $5,000,000, in the discount line
in three months only had a disastrous effect, while at the same time
they would only receive for redemption the notes issued by each Branch
Bank: hence general embarrassment arose, and as the Bank of the United
States was withdrawing cash from the local banks, Congress wished to
forbid the exportation of gold and silver. The committee appointed on
the 30th of November, 1818, to examine the affairs of the Bank concluded
that it had violated its charter:

1. In buying $2,000,000, of the Public Debt.

2. In not requiring from the purchasers of its stock the payment of the
second and third instalments in cash, and in the Public Debt of the
United States.

3. In paying dividends to purchasers of its stock who had not entirely
paid up.

4. In allowing voting by proxy to a greater extent than the charter
permitted.