Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-01-20

Savannah, within few days of each other
at very different rates ; on one day at one
per centaand on another day at Eve per
cent on the same office. II would be IN
yainto attempt to account forthese auctaa-
tons. -
However dangerous to the community
may be the power Of selling drafts, in the
hands OF an institution whose resources may
be adequate to the control of domestic ex-
change, according to its interest or caprice,
yet the committee cannot entertain doubt
that the bank possesses the power. Except
ing the fluctuations before noticed, the rate
OF premium has not hitherto been extortion-
ate, in any instance which has come TO the
knowledge Of the committee. The pro-
ceedings of the bank and its offices, and the
reasons and views entertained by them, are
exhibited in the report XVIII, in the letter
of the President, XIX, and in extracts from
bis correspondence, Xxx.
Various opinions are entertained on the
expediency of the banks selling its drafts.
While many suppose that it would co suit
its own dignity and interest, in retaining
from the practice, and, would receive an e.
quivalent for the loss of premium in the
confidence and support OF the commercial
community, by delivering its drafts gratui-
tously, when it was convenient to draw at
all; others contend that the system ofgratui-
tous drafts would open an avenue to tavo-
riteism, and, at all events, would expose
the bank to the charge in greater degree
than if it sold its drafts. Without express
sing any opinion upon these subjects, upon
which the community is much divided, and
to which the attention of the committee has
rot been particularly directed, they content
themselves with Observing, that, il drafts
are sold. they ought to be- at fixed, known
and permanent prices, moi exceeding the
price OF transportation Of specie, on the fair
AGIo of business the Mart of these fixed
prices in the bank and its Offices, appears
to your committee Censurable.
Connected with the subject OF exchange,
is that of dealing in the notes of the state
banks. In letter of the president to the
Charleston Office, which received he sane
ton of the board of directors, marked XXI,
an opinion in favor Of the legality and pro-
priety Of such purchases is expressed. No
evidence, however, has been obtained, that
they have actually been made. The prac-
tice, in the opinion ofthe committee, would
be highly improper and dangerous, and
contrary to the spirit, it not the words, Of
the 9th fundamental article.
Among the resolutions Of the directors,
are two on the subject of discounts, on a
pledge of stock. XXI and XIII, passed
the 18th and 9th Dec. 1916. These re-
solutions obviously contemplate only dis
counts to the stockholders, and one avow-
ed object was to facilitate the payment of
the specie part of the second ins;alnent,
which was ten dollars on a share, and to
be paid by the sed Jan. 1917. The loans
were to be confined to the proportions of
the coin part Of the second instalment on
the shares which had been subscribed at
the places where Offices were then in ope-
ration-New-Y ork, Boston, and Baltimore.
The total amount of these loans 10 pay the
specie part of the said insta.ment on the
goth of February, 1917, at Philadelphia,
was 1921 81, dolls. and al Baltimore,
at that date, was 1873, 1920 90 dolls.
The committee have not obtained infor-
nation of the amount at New York and
Boston, but they are informed by the Off
GERS of the bank, that the discounts atthose
places were to very trihing amount, if "a
ny. The committee Can see no reason 20
justify these premature efforts, to aid the
payment of the second instalment, before
it fell due, and before the experiment was
made to ascertain how much could be paid
in specie. Those efforts do not appear to
have been very successful, for 839, 0S5 dol
lars only were paid during the month Of
January, 1917, while l,078, 3l9 was paid
after that period. the greatest proportion in
May and June, as will appear from an abb
stract prepared by the committee, and Low
submitted marked XIV.
The amount paid by checks, also, ap-
pears from abstracts, the most, if not the
whole, of which were to draw the proceeds
| of n,toe discounted for the purnose And