Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1817-01-18


list. The bank has not been in state 70
| receive deposits from individuals. and ii
IT had been, individuals would not make
such deposits in specie for general use
and the government has not the funds 10.
place in it, except in deprecated state
bank paper, which the bank of the United
States could only reissue, TO the order of
the government without benefit, or be obi
ged To replace. at a heavy loss, by its own
paper, which never can be other than the
representative the precious metals. at
the rates which make them the only law
iul currency oithc country.
mus situated and Invested of external
aid, attention was naturall, turned TO the
receipt OF the second insialmcnt, Us the
principal means OF strengthening the re-
sources ct the bank, when twas perceiv-
ed that from the unfortunate state Of the
money market, and the deranged bank
| Calculations of the country, and the light
| penalty incurred BY an omission duly to
make the second instaimcnf, instead of
| inducements being offered for punciual-
| NY, a premium was, in fact, proffered to
/ delinquentS.
by the provisions of the charter the on
| ly penalty attached TO a non-paymcnt of
the second instalment, prior to the decla-
ration of the first dividend, is the for
FIXTURE of that dividend, which must of
necessity from the heavy expresses OF the
institution, and the circumstances in
which 1t has been placed at It's com
mencement, be an extremely small one,
| perhaps not exceeding tif the interven-
ing charges are deducted, as they ought
| 10 beD two per cent. OH the first install
ment, thus leaving, if specie maintained
the rate 1T was at i'll Philadelphia, at the
| 49,
advance, (and ifany excitement mad been
| produced, by large increased demand,
II would have risen to i0or ID per Gently
! and 1t should also fall 10 lis par value in
| July, as II must do, If the banks then re-
sumo Their specie payments, Il gain 10
| stakeholder who refused To meet the pay
ment OF the first ins;alment, of at least
33 l-3 per cent on the amount of The di-
| vldend, more than would be received by
hun who honorably paid it,
| Thus circumstanccd, il if were practi-
cable 10 offer an inducement or facility
tor the payment of this instalment, with
out an Infringement of statutory pro-
visions. il would seem 10 have been desi-
| rable TO doit
| A large part of the stock is, undoubfed-
| ~, III the hands of real capitalists, who
| have embarked their funds in tile institu-
| ton, and intend TO share lis fate but il
ought not To be concealed, that some part
| OF the stock, and that not Il small one, is
| IN the possession of those who very far
| ~ mean to make an advantageous use of
the confidence they reposed In the good
faith and resources of The country, over
that manifested by others of their fellow
| citizens. But, whether the stock be held
by one class or the other, experience has
verified to the conviction ofmost persons,
who have had occasion TO remark ii, that
any strong reliance upon the construc-
| tive Obligations of monied men, in opposi-
ton to their pccuniary interest, and III
the, absence ofanv special agreement on
their part, would form most fragile de
pendanee fora great banking institution
TO bottom It's operations upon.
If have succeeded at all in nv object,
Sir, IT will be perceived-first, that it was
important to secure to the Bank tho re-
ceipt of the second instaiment lis CAPT
tai and next, that the Bank possessed
no eitectual means 10 enforce that pay
ment III opposition TO the wishes of The
stockholders. The question then fairly
arises, have the Directors of the Bank a.
dopted any measures, violating the provi-
slons ofthe act of incorporation, by Gre
ating that inducement
The Bank undoubtedly is authorised
to conduct its business, on accustomed
or usual banking principles. No restric-
tons exist in the law, restraining the com
mencIng discounts To- an appointed day.
This part of the operations of the Bank
rested, therefore, in the discretion of the
directors.
Nearl ifnot all the banks in the Uni
ted States, it is believed, begin their dis
counts on the payment of the first install
ment y; it was done by the former United
States Bank. The present bank has re-
ccived some months past this instalment,
amounting to 80 per cent. OF its capital,
exclusive of that portion belonging 10 the
government, and by the resolution before
referred TO, it has authorised discounts to
the extent of 10 per cent. on its Individual
subscriptions. This would seem TO be fully
within the authorised powers of the Bank,
and if the resolution does not, as pre-
sumo it does not, interdict stakeholder
who had before paid his instaIment, from
obtaining discount, the proceeds oftliat
discount may be applied 10 any object TO
which he may choose 10 appropriated
here then is no violation of ihe charter
1t is true, stockholders may and will OBJ
tain discounts, and with tile funds procu-
red for such discounts pay their install
ments; but the question then recms, if
the provisions of tile law have moi been
violated, will the bank be benefited or in
jured by the measure that has been adOp-
ted consideration perhaps more di-
rectly applying to the stockholders on the
ore part, and tlie directors oil the other
but for the reasons before stated,