Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1821-07-10
DOMESTIC.
BANK OF THE UNITED sTAr,E

" ""y, 1871, TIE ionoWlnS report was adopt
ed;
| The committee appointed ON Tie g7th ulti-
mo to consider the state of the bank, and to
report whether any, and if any, what dividend
should be made of the profits which have ac-
crned during the last six months, respectfully
REPORT,
That on examining the accounts of the
bank, 1t appears that the amount received ON
account of discounts, exchange and interest
since the LIST of january last, is I,O11,SO5 dol
lars IL cents. Ofthis sum, however, S54,7S9
81 has been received on account of interest
which had previously accrued, leaving $685.
800 40 as the sum which has accrued and been
received during the last six months. But, to
give accurately the current profits of the half
year, to this sum must be added the seminar
nual dividend about to be declared, which the
bank is entitled to retain, on 57,513 shares of
us own capital stock, which ii holds as a
pledge, and which have been transferred, ac-
cordlng to the instrument of hypothecation, to
the President Directors s. Co.
| The expenses of the bank and the Offices
during the same period, the usual allowance
Tor the extingulshment Of the bonus and 9th
er semI-annual appropriations, amount to the
sum of two hundred and eighty thousand,
eight hundred and twenty nine dollars, sixty
| one cents l28O,829 81 cents which being de-
Quoted, will leave balance that would au,
thorise dividend of two per cent. and give
surplus of S50,761 46.
| Inc committee are, however, decidedly Of
| opinion, after very mature deliberation, that il
Is the duty of the board and the soundest policy
OF the bank, to make, at this particular time,
a smaller dividend than two per cent The
first great pointin the management ofthe bank
is to remove all doubts as to the re-establish-
ment of the capital. 1t is not enough that il be
made whole. The stockholders and the pub
lie must be satisfied of the fact for otherwise
the one will not hold and the other will not
acquire with confidence, and like all uncertain
interests, the value of the stock must be dimin-
shed IN the estimation fboth buyer and sell
Ter. The committee therefore proceed to
exhibit brief view of the situation of the
bank, and their reasons for tire opinion that
less dividend should now be declared than
would be authorised by the net profits of the
last six months,i abstractedly considered.
The committee have had before them es-
Inmates of losses furnished by the respective
offices of the bank, except four Of the western
offices, brought down to the LIST ultmo, and
some of them to later date, which tliey have
attcntively examined, and where they have
not been satisfied with the sulficency of the
allowances made blythe Offices, the committee
have made additions, but in no instance have
they diminished these allowances.
II These estimates are in some instances n
little more, and in others little less, than those
which were relied upon in January last. I'm
the aggregate they exceed the estimates then
made ofthe losses of the same Offices Sa5. S62
81, and In this near coincidence perhaps is dis
coVerable probable proof of the fidelity and
1 accuracy of the estimates of both periods
With respect to the four western Offices a
boye excepted, the committee have thought it
safest rnIy at. al.
cashier, Mr.. Wilson, particularly referred to in
the report of the committee on the state of the
bank, which was agreed to by the board on
; the Esd ofJanuary last and published in the
Gazettes.
, According, then, to these premises, the es.
| hmated losses the bank to the 1st instant
: are S3,547,G38 so. But although great pains
have been taken to examine thoroughly, and
! no hesitation has been INDUCED in stating full
ly the losses which have probably been sus-
tanned, the committee are nevertheless ofopm-
ION, that it is the duty of the board and the
policy of the bank to ensure, if possible, by adj.
eqlate sustaining means, the certainty of that
, result which the estimates now acted upor
: render probable.
The shares [97;513l which have beer
transferred to the Bank, are; with very few ex.
ceptons, pledged to the bank to an amount
including interest, over and above any diyi
, dends which the bank may be able to retain
r equal to the highest price which they ar,
T likely to bring, though in the estimate ofiosse
( they have only beenyalucdat par: the excess
therefore, over par of any price they MAJ
/ bring, may be made applicable to the extin
/ gulshment of the actual losses, should they b.
!. found to exceed the estimated amount
ii There are also very considerable sums nov
, due to the bank for interest which hats alread,
! accrued on suspended debts oSher than thos
! secured by pledges of stock. The amour
now estimated to be due on debts of this de
: scrption, which have been estimated as good
! is upwards of 100000, exclusive of the inter
/ est due on doubtful and bad debts, the princi
= pal part of which, as well as the intcres
II which shall accrue on the same debts i'm fiitur,
% may also be made applicable in like manner,
. the extinguishment ofthe losses, should the
e exceed the estimated amount and it is tn,
ID opinion ofthe committee that these resour
:. ces, or the greater part OF them, should b
!, pledged, in addition to the immediate appl
cation of the past profits of the bank, to tn
full amount ofthe estimates, for the ex tinguist
as ment of the eventual loss.
D The committee are also Of opinion that So,
n eral temporary charges Upon the profits ,
e the bank, which have been under process ,
n gradual extinguiishment by semi-aHnual Apr,
IN prlations, ought to be Immediately extinguisl
o. ed. They therefore propose,
y I. That the estimate oflosses be increase
to the even sum of S3,55O,OO and BE deduc
ed from the actual profits of the bank ,yhic
= have heretofore accrued
~ 9. That,there be now declared semi-annr
ed al dividend ofon and one half per cent.
~ o. That the whole premium paid the go
~ eminent for the two millions loan Of iGs
AZ be now eXtingrlished, that the balance Of Il
commissions on the loan obtained by Il
- bank in Europe in 1919 be now exiinguis
cd ard lhnt nf