Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-11-13

condition; 10 ascertain the amount OF Its
losses. to designate The apparent causes oil
them; and to present their view OF The pre-
sent prospects of the institution.
The amount OF the losses at one OF the
branches of the bank, particularly des'gna-
ted. have been enormous, and have been &C.
! casioned in manner which, we are per-
suaded. would have been more satisfactorily
| eIucidated, but for certain prosecutions &C.
! pending in Baltimore, connected WIN lhese
transactions The other losses, estimated at
| 500. 900, sustained at the parent bank, and
| its numerous. branches, are, we venture 10
assert, of less amount than has been sustain
| I'd during the same period, by any Daha
south of the Hudson. in proportion to its ca
pital. Every bank calculates on some loss
from bad debts, &c. to he repaired out OF The
surplus of profits. 1t is the impression OF
some, moreover, that the general committee
has erred on the safe side in its estimate OF
the amount of loss, and that the reality VIII
probably fall short of the estimate. Even the
! less sustained at Baltimore. OF about twenty
per cent. on the total amount OF its discounts,
great as it is, is not without example in other
institutions: and, we suspect, there is now
MANY a bank in the full tide of business, the
officers of which would be glad 10 be able to
render 10 the stockholders as favorable an &C
| coun, of its debts.
We believe, that the effect OF the report on
the stock of the bank ought to be .taOora6le.
1t is evident, from what appears, that not
! withstanding the losse. sustained, the bank
is now in nearly as good condition as when
it commenced operations, and its stock ought
10 be as valuable. If its stock was then
worth, on calculation, $50, il is now worth
100. But in truth, the stock never was in
trinsicall, worth what ii has sold toF-say
$50 dollars per share of 100 dollars. 1t ne
yer can be 10 the power OF the Bank OF the
U. States, iettered as it is by restrictions,
and bur;hened with onerous impositions, to
make dividends to justify any such price
Upon very moderate estimate, comparing
it with the prauct of other investments OF
money, the intrinsic value Of this stock is
now estimated a, 10. Ii never was worth
much more in this country though, had no
the bank met with extraordinary losses, II
would probably have commanded higher
price in the European market.
When VIZ call lc mind the impossibiity o I
engaging the capital of the bank in business
otherwise than gradually, and Of course the
impracticabllity, Tor year or two after It's
organization, OF realizing profit on the whole
OF 1t; the expences ct putting the branches
into operation the great expense OF import
ing specie the cost of the bank building,
and of the purchase OF buildings tor the
branches; the Gems iderable bonus payable
10 The eminent and variety oil other
items OF expenditure, which might be ADDED
TO this account, We are almost led 10 believe,
that the bank began so early to divide It's
profits, that suspension OF dividend would
necessarily have taken place, had no losses
been sustained. = hen we add 10 thIs the
more recent lie cesslty, from tie Drain OF spe-
Gle Tor the East inuia trace, that the uis-
counts of the bank should be ouraileo, aud
! us business contracted, we sinai. hnd that, so
lar from the state OF the bank being worse, Il
/ is better ,nan could have been expected.
Ii is now apparent, that to the system OF
curtaliaent from which the community has
suTered, and OF which Il has loudly complain
ed, The bank is indebted Tor lis salvation =
4 ne breakers were already IN slgnt when
the sails were taken in. But, the shoals are
now passed the vessel is no longer III dan
ger anu, il the canvas be spread, there IS
no GouDt OF her speedily regaiDing her lost
ground. Ii it Is in tue power Vt the bank, 1t
will 5s its true policy, as " ell as 10 HE great
! advantage vi the community, 10 extend It's
business considerably beyond rs present
range. 1t is the opinion OF many, that the
I bank might be able, without danger, so tar
to enlarge the sphere OF its operations, as al
| this time 70 re able to discount ali the unques-
tionahiy good transaction paper offered TO it.,
and thus realize greater profit to The stock
holders. This is point, however. on which
there's much difference OF opinion.
We have made these few remarks on this
subject, because we regard itas OF great ma
tiona importance. We consider the bank as