The Virginian. [volume] (Lynchburg [Va.]) 1822-1829, 1822-12-27

The Bdnk Of TirgiHia end Idrmtfs Bank.
In January pext general meeting OF the
stockholders will la convened in Richmond.
Ii Is very important that the members gene
rally be represented. The situation of the
banks is not hattering one. The stock has
become very much depressed in IFS value; and
the diyidendsare 50 small as 10 be hardly worth
receiving. The price of the stock in the mar
ket does not exceed 81, and1he dividends for
the last two years have not exceeded per ct.
per ann. To those stockholders who pnrchas-
ed at par, or above, this is a most grlevons loss
aud seriously alarming. Ii remedy for il
can be found, no time ought 10 be lost in ap-
plying IL.
II is true that the embarrassments of COM
merce, aud the general stagnation OF business
thro' the country, have in a great measure
operated TO produce this state but there are
other causes which have likewise co-operated,
and which can in some measure be removed.
These causes are the enormous, and, in many
cases, unnecessary Expenses OF these nstitu-
tions. Ii these expenditures could be reduced
10 fair aud reasonable scale, an addition
would be made TO the annual dividends: aud
consequently an advanced value to the stock.
ihnt these expenses are too great, the facts
which will be mentioned hereafter will most
clearly prove; and il will be equally clear
that "A most salutary and considerable reduc-
ton can be made without impeding the ope-
rations of the Institutions
The general distresses of the country have
necessarily introduced economy and retrench-
ment into every branch of pn)fic and private
expenditure and in these banks the state and
individuals hold such deep interest ms renders
il indispensable that the principle should be
acted on, aud that, too, rs soon and as efEec-
tually as possible. The example of the l. g.
RanI te #
clear ind honest expose of its sitnation, by the
enlightened and di,intercsied Mr.. Cheyes,
most clearly shows that it was saved from ru-
in, aud has finally regained lis credit and cha
racter by a course of conduct of which econ
omy and retrcnchme Mt instituted n most promi-
nent feature. Mr.. Cheves voluntarily recon-
mendel reduction OF his own salary, and
the general expenses OF the institution. twas
adopted. The consequence has been safety
solvency, and value 10 the stock II the prin-
cipe could he acted on in relation 10 the two
hunks OF virginia, the same beneficial effects
would result. 1t can be done, and the stock
holders must do it.
The Farmers Bank consists of a capital of
two millions of dollars, of which $500 900 are
located AT Richmond and Norfolk each and
100000 AT Fredericksburg, Winchester, Lynch
burg and Petersburg each The annual e pen
scs oilhcse banks, exclusive otthe rent or value
OF The banking houses, are SIS, 4S6, nearly %
pr. CT. on the capital and of this, $40, 300 are
paid as salaries to the officers. The salary of
the president at Richmond is $500, and that
Of the branch presidents SEQ each, making a
sum paid to the presidents alone of $4,000: e.
quai TO one-tenth of the whole annual div-
dend The balance is paid TO cashiers clerks
and in many cases TO unnecessary officers OF
the banks.
These salaries are most unreasonable. The
services rendered are out OF all proportion to
the compensation. The duties of president
of the bank are well known. lie keeps no
books, he conducts no general respondence,
he performs 40 responsible duty. He gives no
bond in security. lie is not compelled to be
in daily attendance: his sole businessis TO sign
notes, and preside at the board OF directors
and this last duty can be done by proxy. For
this $3.50 is given equal TO the employment
OF S15,UOo vi the capital of the bank at the
present rate OF dividends. Must not every
,tockhoder at once pronounce it is too inuch2
The salaries of the branch presidents are lite
rally siHecures. Their labors in fact are not
so great rs those OF the directors, for by Gus
tom or etiquette, they are exempted froin the
drudgery OF examining md counting the funds
of The bank. These last salaries ought to be
abolished II eau only be done by the stock
holders.
The number of officers is too great. In the
bank of Richmond, there are exclusive OF the
president eight persons employed. II IS really
inexcusahle that capital OF $4,000, which
yields only 3 per cent should require 80 ma
ny. Ono would suppose that in such hume
rous c0rtoge, no loss To the bank coald have
escaped their vigilance Yet the bank lost
upwards OF 100000 by one of its clerks aud
the loss as have heard kas not found ont
for long period OF time, and then by 6cci-
dent.
The situation of the Bank of Virginia in re-
ation to its expenditures, is nearly the same
with that OF the Farmers Bank and on the
same eXtravagant scale. The chief difference
is that the salaries are higher That of the
President at Richmond being $1,000, and those
of the branch presidents $1,000 each per an
mum. The capital OF this bank rs two millisns
five hundred and thirty thousand dollars, and
consists of mother bank at Richmond with
one million and fifteen thousand dollars a
branch nj Norfolk of $500 Uhl, at Petersburg
of 24s0,0o0, at Fredericksburg of $300,00o,
and at Lynchburg of S275,oOO. The annual
expenses of these banks exclusive OF the rent
value of the banking houses, are 1861,
being nearly two PER cent. on the whole cspi-
al.
All the objects of retrenehment as stated in
relation 20 the Farmers Bank, apply with G.
quail force 10 this institution and the means
of eAectnS them ure the same.
Tic above statements of expenditure are cor
rect being furnished by the officers OF the
banks, during the last winter.
To shew by way OF contrast, the expend-
tTes OF similar Institutions in other states,
read the TO lowing.
The Bank OF Washington. Whole expenses
$3.50 per annum.
Patriotic Bank of Washington. Whole ex-
penses S2650 per annum.
Bank of the Metropolis. Whole expenses
$fl25 per annum.
Tho capitals of each of the above banks are
greater than those OF the branches of either of
the Virginia Banks. And thus economically
MANAGED piXa an anDuol J;viJocJ ,f ., -,