Alexandria gazette & advertiser. [volume] (Alexandria [D.C.]) 1822-1824, 1822-10-17


rent paper, of this bank and its Offices
is probably as good, or better, than the
current paper of other banks, in the
places respectively where it is due
There is, however, unfortunately hea.
w mass Of suspended paper on which
interest is continually accruing, great
part of which will, no doubt, in time be
recovered, but which adds little or no.
thing at the present time. to the fund
from which the bank is to divide. -
There is one portion of this which IN
dependent of the losses already sustaln-
ed by it, and which are included in the
estimates, consider as very good and
productive. ] mean the forfeited stock
consisting of 81 ,954 shares which may
be considered as reduction OF ca.
pital quite too large to the extent OF
their par value.
9, The funded debt held by the bank.
This now consists, with the exception
of a very uncomfortable sum, { ofse-
ven millions of five per cent, stock SUBJ
scribed by the goyernmens-t2) OF two
millions Of six per cent stock, purcha-
sed in 1920, redeemableI at the pleasure
of the government-(3) of four mil
lions of five per cent stock purchased
in 1921, and redeemable on the 3!st of
Dec. 1885. Thet millions ofsix per
cent stock, of the loan Of 1920, will, in
all likelihood be speedily redeemed
The four millions of five per cents, are
longer irredeenable than any other
stock of the government of the United
States, and hence probably this stock
is more valuable than any other stock
ofthe government of the o. States. 1t
is quoted higher in the London market
than the average of the six per cent.
stocks. When the bank obtained this
stock it was deemed great bargain
1t is now unusually depressed, from
causes which probably cannot be per-
manent, e. some stockholders who urg.
ed the bank to endeavor to take it at
any price, begin now to doubt whether
the institution were not better without
it. Ifit were now sold at profitable
rate, as it may be, the same persons, if
it rise, would condemn the sale of it
Leaving these persons then to the in-
diligence of their opinions, it may be
remarked that the more the bank can
retain of this stock the better for the
institution. 1t wants active funds but
for two purposes: firstly, to pay the
loan of 900, 900 due in London. And,
secondly, to give additional capital to
it's offices. All the Offices south of Phil>
adelphia, venture to say, have as much
capital as they can use adyantageously.
Icannot stop to give my reasons for
this opinion. 1t is doubtful whether
more than halfa million in addition to
it's present funds could be proftdhy
employed at the parent bank: more
than an additional million am satisfied
cannot under any circumstances be pro.
ftabIy employed at New York, "a great
many crude suggestions TO the contra
~ Notwithstanding: and / doubt whe-
Their at this moment dollar more ought
to be added-thougb ] am of opinion
that million ought to be added to the
capital of that Office at proper time,
making the capital 100000 dollars
Half million added to the capital of
the Office at Boston, making the capital
100000, will be enough for that of
fee. All this will be supplied by the
redemption of the two millions per
cent loan, and if little more be neces-
sary, it will soon be supplied from the
suspended debt. think therefore, if
the bank fnd it necessary to part with
million and halfof this loan, it ought
to do ir with regret; but it should on no
account, part with more. The unex
tinguished part of the premium of this
loan is about Al per cent, and the last
London quotations, are IS SO. and the
exchange in favor of London 10 to lO1
per cent. 1t is obvious, therefore, that
at the lowest quotations now or at any
other time of this stock, it would realize
the cost, in connection with the rate of
exchange, the rise of which against this
country, lie supposed to be the principal
cause of the depression of this stock
There is one error in relation TO this
subject which it may be worth explain
ing.
ii is supposed By some, that because the
government OF the United States have not
been enabled to convert their six per cent.
stocks into iiyes, that five per cent. stock
is deemed undesirable abroad but the
government has never offered stock like
that which the bank holds in exchange for
the SKIES. Il has offered stock redeema-