Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-11-19
BANK OF THE UNITED STATES,

OF the late meeting of the Stockholders
in this Institution has been properly
made public, contrary TO the usage of
Banks because il is ont. in which no,
only very many individuals (sav from
three TO five thousanti,) are personally in
teresled, but in which the community is
[ deeply conce. -, by the pervading in
fiucnce which fh transactions of thai
Institution must have on the trade aud
business Of the whole community. TWAS
| due TO the government also. which is no,
at all represented in the General Meet
ings of the Stockholders. Ohough i, is
sufficiently represented in the direction
OF the Bank that the means should be
afforded TO the Representatives of the
| people, OF Judging how far lis affairs had
been administered with view to the
| public interest. In such an Institution.
noiliing should be concealed aud no
thing has been withheld which il was
important TO know. There are many
particulars not disclosed, the publication
OF which might have gratitied curiosity :;
but the results of the investigation are
fully and fairly before the public.
| The General Committee, in their report,
appear carefully TO have avoided ,et,o-
speet'on, even so far as to give historical
view of the operations of Tie Bank.
Their object seems 10 have been, not 10
| lnnane Jealousles or animosiies, by
making comparisons ofihe past and pre-
sent administrations of the affairs of the
Bank; but to examine into It's presen,
coGdiiion 10 ascertain Tie amount of
IFS losses TO designate The apparent
causes of them; and TO present their
view OF The present prospects OF Tie In
stitution.
The amount of the losses at one of the
Branches OF the Bank, particularly desie
| laled, nave been enormous and lave
been occasloued in manner which, we
are persuaded, would have been more
satisfactorily, calculated, but for certain
prosecutions depending in Baltimore,
connected with these transactions. The
other losses, estimated at S 500 GOO.
sustained al The Parent Bank, and its
numerous Branches, are, we venture to
assert. OF less amount than has been
sustained, during the sameperiod, byany
bank South Of the Hudson, in proportion
TO It's capital. Every bank calculates on
some loss from bad debts, &c. TO he
repaired out of the surplus of profits. Ii
Is the impression of some, moreover.
that the General Committee has erred
on the safe side i'm lis estimate of the
amount of loss, and that the reality
will probably fall short of the estimate
Even the loss sustained AT Baltimore. of
about twenty per cent. On iIe total a.
mount OF lis discounts, great as ii is, is
not without examplein oiherInstituiions :
and, we suspect, there is now MANY bank
IN the full tide of business, the officers OF
WHICH would be glad to be able TO render
otbe stockholders as favorable an account
of lis debts.
No lkul,n fl,.,4 al,
on The Stock ofthe Bank ought TO be
farorabie. Ii is evident from What sppears.
that, notwithstanding the losses Sustained
the Bank is now in nearly as good a con,
dltlon as when IL commenced oDera,ious.
and IFS Stock ought 10 he as valuable. ii
Ms Stock was then worth, on calculation.
1870, II lsp bow worth 100. But, in truth.
the Stock never was iDirinsicaIly worth
~liat II has sold for, 100 dollars per share
OF 100 dollars, Ii never can be in the
power OF the Bank of the United Staies.
feiiered as IL Is by restrictions, and bur
ihened with onerous imposltions, TO make
dividends toJusiiiy any such price. Upon
a very moderate estimate, comparing !,
with The product of other investments OF
money, The intrinsic value of this stock is
now estimated al ITO. Ii never was wortI,
much more in this country though, had
theBank not met with extraordinary losses
would probably have commanded a
higher price in the European market.
When we call 10 mind the impossible
~ OF engaging the capital of the Bank III
business otherwise than gradually, and
OF course The imprac,cabiliiy, for "a yeal
or two alter lis organization, of realizing
profit OH the whole oft The expenses
OF putting The branches into operation
the great expense of importing specie
The cost OF The Bank building, and of the
purchase OF buildings for the branches
Tie considerable bOnus payable 10 the
government and variety OF other items
OF expenditure, which might be added 10
HIS account, we are almost led TO believe
that The bank began so early TO divide il.
: profits, that a suspension of dividend
would necessarily have taken place, hac
nolosses been sustained. When We ado
10 this The more recent necessity, from
The drain of specie for the East IudI,
trade, that tie discounts Of the Banl
should be curtalled, and lis business con.
tracled, We shall find that, so far from the
state OF lhe Bank being worse, il is better
than could have been expected.
IL is now apparent, that 10 The system
OF curtailment from which the communit,
has suffered, and OF which il has loudl,
complained, the Bank is indebted for ii.
salvation. The breakers were already II
sight when The sails were taken in. But
The shoals are now passed The vessel i
no longer IN danger ; and, If The canvas b,
spread, there is 40 doubt Of her speedil,
regaiDIng her lost ground. II it is i'm I'm,
. power Of the Bank, il will be IFS tru,
policy, as well as 10 the great advaniag,
OF The community, TO extend lis bushes
considerably beyond IFS present range. |
is the opinion of many, that the BanI
might be able, without danger, so FAR {,