Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-11-09


the facts and to digest the evidence which
was before them. Alter having done so, the
conclusion above stated almost necessarily
followed.
Tile consideration OF the other losses which
have been sustained by the institution, was
involved IN greater difficulty, nor can the
committee decide upon them with the same
degree of certainty as>hpon those which
occurred at Baltimore. From many OF the
western branches no returns OF losses have
been received by the parent bank since June
last. Subsequently 10 that period therefore,
no information re- pecting the losses in those
branches can be obtained through official
channels; but when the committee reflect
that many Of the debts due to The institution
were contracted when lands and produce,
which have since deprecated were at enor-
nous prices, and when speculation was very
prevaIent-and when they combine these
facts with the commercial and moned silua-
ton of the country, and give the weight
which is due TO respectable communications
made by gentlemen examined before them,
they are convinced, that the ascertained and
probable losses in the parent bank, in the
western, and in all the other branches, will
fall little, if at all short of 1900 900 dollars.
These two sums make together 5000, 200 DIS.
from which, deductins I loo, 900 dollars, the
balance Of profit and loss of the bank TO the
first of July, 1919, the remainder will be
1000 900, which ought, therefore, 10 be re-
garded as constituting deduction, pro tanto,
from the capital in July last; when it was
expected that dividend would have been
made among the stockholders. The profit OF
tie bank since that period, added to what
upon fair and moderate calculation will he
received by July next, will then he more than
sufficient to replace its losses. Under these
circumstances, the committee would not think
themselves justified in holding out to the
stockholders tie prospect Of dividend be-
tore The first OF January 1921. Without some
extraordinary calamity, the condition OF the
institution mus; then be such as 10 render lis
stock valuable and productive.
As the enormous loss at Baltimore has Gre
ated great excilements and apprehension in
tie public mind, the committee deem it pro-
per to state the causes which contributed
largely towards swelling lis amount. These
causes are
lst. The practice Of permitting certain in
d.riduals 10 overdraw.
Cd. Discounts granted by officers OF that
Branch without the knowledge OF the Board
of Dire ctors.
Sd. Granting discounts upon stock for a
amounts above lis par value, without autho-
rity.
The committee beg leave to express their
opinion, that the interests oi the institution
would be materially promoted, by alterations
being made III the charter, so that every
share should be entitled 10 one vote in cleo
tons Tor directors, that no votes should he re-
al any meeting OF the stockholders,
upon stock pledged 10 the bank as a security
for moles loaned and by striking on, of the
2d aud 10Th fundamental articles OF the 18th
section ot the chatter the words and no d.
rector shall hold his Office more than years
out OF four in succession, by which the same
directors might be re eligible Tor longer
period Of time than is allowed by Tie exist
ing law, although the same proportion oil
item would be obliged TO vacate their seats.
The committee likewise recommend, that
the president and directors OF the institution
Should be requested to apply to congress TO
enact law subjecling 10 criminal punish
ment any cashier or subordinate officer gull
~ Of fraudueu, conduct towards the bank or
any OF its branches at the same time not in
terlerins with the ciri! remedies 2gains, such
dclineuea,s.
The committee crave leave further 10 SUBJ
nit that, in their Judgmen, no cashier or sub
ordinate officer OF the bank or its branches,
ought TO be permitted 10 speculate upon or to
traffic in the stock; and as great many per-
sons have placed their al! in tie Bank of the
/. States, toe committee suggest, that The d.
rectors, upon the application Of such indvi-
dualS, should grant to them loans upon their
shares, 10 such an amount and upon such con-
dir:"ns as the Directors may think proper !;
and, alter mature elaboration, the committee