Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1819-12-11

UIduCllCo3 WHICH HCIC Clut1udtCtly WhCl Z
necessary, by verbal explanations, it APP
pears, that the losses ascertained to have
accrued, and which may be expected to
accrue at the branch in Baltimore,
amount to about 5 100000, estimating
the stock of the bank pledged in Balti-
more to the parent bank, for the security
of loans upon it, at 800 share. In
forming their judgment of the losses at
Baltimore, little more was necessary for
the committee than to collate the facts
and to digest the evidence which was
before them. After having done SO, the
conclusion above stated almost necessa-
rily followed.
The consideration of the other losses
which have been sustained by the insti-
tuition, was involved in greater difficulty,
nor can the committee decide upon
them with the same degree of certainty
as upon those which occurred at Balti-
more. From many of the western
branches no returns of losses have been
received by the parent bank since June
last. Subsequently to that period, there
fore, no information respecting 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 enormous pri-
ces, and when speculation was very
prevalent-and when they combine these
facts with the commercial and monied
situation of the country, and give the
weight which is due to respectable COM
munications made by gentlemen examin-
ed 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, II
at all short of Sl,3oo,o0o. These two
sums make together 100000 dollars,
from which, deducting 100000 dollars,
the balance of profit and loss of the bank
to the first of July, 1919, the remainder
will be Sl,9oo,ooo, which ought, there
fore, to be regarded as constituting de-
duction, fro tanto, from the capital in
July last; when it was expected that a
dividend would have been made among
the stockholders. The profit of the
bank since that period, added to what
upon fair and moderate calculation
will be received by July next, will then
be more than sufficient to replace its los
ses. Under these circumstances, the
committee would not think themselves
justified in holding out to the stock
holders the prospect of dividend be-
fore the first of January, 1921. With
out some extraordinary calamity, the
condition of the institution must then be
such as to render its stock valuable and
productive.
AS the enormous loss at Baltimore
has created great excitements and appre-
hension in the public mind, the commit
tee deem it proper to state the causes
which contributed largely towards swell
ling its amount. These causes are
LIST. The practice of permitting GER
tain individuals to overdraw.
Cd. Discounts granted by officers OF
that branch without the knowledge OF
the board of directors.
Sd. Granting discounts upon stock for
amounts above its par value, without
authority.
The committee beg leave to express
their opinion, that the interests of the
institution would be materially promoted,
by alterations being made in the charter,
SO that every share should be entitled to
one vote in elections for directors, that
no votes should be receivable, at any
meeting of the stockholders upon stock
pledged to the bank as security for
monies loaned and by striking out of the
I'd and 10th fundamental articles of the
llth section of the charter the words
8 and no director shall hold his office
more than three years out of four in sue
cession,' by which the same directors
might be re-eligible for longer period
of time than is allowed by the existing
law, although the same proportion OF
them would be obliged to vacate their
seats. The committee likewise recon-
mend, that the president and directors of
the institution should be requested to
apply to congress to enact a law subject
ing to criminal punishment any cashier
or subordinate officer guilty of fraudu-
lent conduct towards the bank or any
of its branches, at the same time not in
terfering with the civil remedies against
such delinqucnts.
The committee crave leave further to
submit, that, in their Judgment, no
cashier or subordinate officer OF the bank
or its branches ought to be permitted to
speculate upon or to traffic in the stock /;
and as great many persons have placed
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