American watchman and Delaware advertiser. [volume] (Wilmington, Del.) 1822-1828, 1822-10-18
planned and has so far executed it. The additional

planned and has so far executed it. The additional
expense will be small 10y
II was expected by the stockholders at their last
meeting, that the Bank would have been enabled to
have repaired the losses which had been sustained,
and to have made dividend in January, 1920. ms
the increased estimates OF the losses and the stag
nation of trade concurred to prevent, while the
same causes have diminished the amount OF the
dividends which have since been made. 1t will be
seen, however, on reference TO the accompanying
statement, hoy that the Bank would have been able
to have made dividends which would, no doubt,
have been satisfactory TO the Stockholders during
the whole period of this adminisI alton, had l. not
been incumbered as we'll with the losses as the va
rous embarrassments which belonged, in their ori-
gin, to previous period.
The expenses Of the Institution very soon attrac-
ted the attention of the present administration but
liz was practicable to reduce them Immediately.
An accompanying statement q u however viii shew
that much has been done iowa DIS the accomplish
ment of tins object. The amount is still enormous
compared with the profits growing out OF the pro-
PEE operations oil Banking that Is TO say the pro-
fits OF the Bank, exclusive OF the dividends received
lon the funded debt which it holds and which require
no manage ment or expense IN the receipt OF them.
The monthly statements OF the Bank exhibit an
analysis OF the state and current business OF the
la * and the several offices AS perfect as the ma
ture OF the subjects will permit: but II taken with
out explanations they are often likely to mlsead.
No attempt at this time and IN this form TO give
such explanations IN a gen, al way would be admis
slble practicable, but all such will be Cheriuy
and promptly given IN reply to every inquiry on
par icular points which may be presented.
You will probably desire 10 have some notices OF
the condition oil the principal funds in which the
capital is invested. THIS viii bIetiy attempt:
/. The Discounted Paper. The Current paper
of this Bank and its Offices is probably as good, or
better, than the current paper OF Other Banks, ~
the places respectively where 1t is due. There is,
however, unfortunately heavy mass Of suspended
paper on which interest is continually accruIng, a
great part OF which VIII, no doubt, IN time be
covered, but which adds lite or nothing at the
presen, time, to the fund from which the Bank is
to divide. There IS portion Of this which. IN
dependent OF the losses already sustained oy it, and
which are included in the estimates, consider as
very good and productive. mean the forfeited
stock consisting of 1884 shares which may be
as reduction of capital quite too large,
to the extent of their par value.
H. The funded Debt held by the Bank. This
now consists, with the exception OF very incons
deraole sum, II OF seven millions of five per cent.
STOCK subscribed by the Government; ~ of twoI
millions OF six per cent stock purchased in 1920,
al the pleasure oil the Government; (5)I
Of four mlllIons oil tive per cent. stock purchased in
1921, and redeema0e on the Slst December 855.
The two millions OF six per cent stock oil the loan
81 1890, will, in all Likelihood, be speedily redeem
ed. The four millions OF Ave per cent are longer
rredeemabe than any Other stock OF the Govern
nent OF the United States, and hence probably this
stock s more valuable than any other stock Of the
Government OF the United States. Ii is quoted
higher IN the London market than the average OF
he six per cent. stocks. When the Bank OBTAINED
ms stock 1t was deemed great bargain. 1t is now
oppressed, from causes which probably I
cannot be permanent, and some stockholders VIII
Urged the Bank to endeavor take il at any prIceJ
1egin now To doubt whether the Institution were
iot better without it. Ii it were now sold at pro.
ltaoie rate as 1t may be, the same persons, 1t II
Use, would condemn the sic of il. Leaving these
persons then to the Indulgence al their opinions,
| may be remarked that the more the Bank can
etain OF this stock the better Cor the Institution. 1t
wants active funds but for two purposes Firstly
o pay the loan of S 100000, due London. And,l
secondly, to give additional capital to Its Offices
All the offices south oil Philadelphia, | venture To-
'ay' have as much capital as they can use advanta
seously.
cannot stop TO give my reasons for this opinion.
II Is doubtful whether more than half million in
addition to It's present funds could be proftabLy en-
>loyed at the Parent Bank: more than an addition
II million l am satisfied cannot under any circum-
tances be probably employed at New York, Ia
great many crude suggestions to the contrary not
and doubt whether at this moment
! dollar more ought 10 be added though | am of
opinion that million ought to be added to the ca
'ital OF that office at proper time, making the ca
>ital 100000 dollars. Half a million aided to the
capital Of the office at Boston, maang the capital
100000 dollars, will be enough Tor that Office
All this will be supplied by the redemption oil The
wo millions six per cent loan, and if a little more
BE necessary, It will soon be supplied from the sus-
pended debt think, therefore, ii the Bank 6nd Il
necessary to part with million and half of this {
Dan, 1T ought TO do 1t with regret but 1t should on
no account, part with more. The unextlnguished {