Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1828-09-12
2,9GI,sto ~
22a,lct-23

Nhc ieaVi'lg 0eEc!eh-
c. 2se, les %
1his deficiency viii he faI.y provided for nv
lst. Ehc progressive increase III the value OF
she real estate at CINCINNATI, where there is eve
ry TO believe that the whole estimated loss
new amounting 10 more than St20,000 and inc.i-
ded ia the above sum of 50, 1872 O6l i3 cents will
he fully repaired oat q the property belong.
ing to tlc Bank.
2nd. by the arrears of interest at the four wes-
tern Offices, winch Tor years past furnished
an average annual income OF 81 IL 900.
3D. by what may yet be obtained out OF tho
sum ct Si,N.i HeH interest Oh the bad & doubtful
debts ana on the large mass OF bad debts, which
though for greater caution considered ailablc,
arc III train oi fInasetliencnt and are still yo,A
Ing siderable suIns.
! e'mdvr view OF thcse circumstances, it wac
not deemed advisable by Tie Board of Directors in
July last, In add any thing from the surpi,,s
fund to provide for these loses, considering the
funds already assigned sufficient repair them
in which opinion, this committee entirely concur
lie surplus fund OF reserved profits according
ly stands ~ & ,5iS 29S Gi
From these statements it will be perceived, TIA,
within the last few years, there has been very
large addition to the resources the opcratiors ant
the profits OF e Bank; aud which, ia the opinion
OF tins Committee Il sssegjbabc principally 10 two
measures OF the Board of Directors winch have
given an entirely new aspect 10 lis aiIairs; and
which are intimately connected with the adj
/ ii proper and useful TO notice them particularly
lst ihc frst-the conversion OF a large pro-
portion OF the Stock loans OF tie Bank in,o irfyest-
HIents OF more active character. The loans had
! been for the most part made TO individuals wfo
we're not able 10 pay, and whose stock being
/ therefore forfeited 10 The Bank, became in lac, a
diminuiion OF its efficient capital This stock be-
ing sold produced direct profit uf 81 GOO per an
nuin--the difference between the employment OF
! the proceeds, and the highest dividends on the
stock while it remained part of the capital--be-
sides enabling the Bank 20 multiply aud extend
ais connexions in business and give greater aciiv-
ity 20 its operations
/ ID. Eut the second measure alluded TO rv
the committee which wrought the most inpoi taIt
change in The situation Of the Bank--that whicr.
may he considered decisive OF s usefulness
and prospeTity-relotcs 10 The nature and exte,i.
OF the ciIculaoE of its notes. The issue and Gig
culatiOn OF its notes BY bank is among the most
natural and legitimate sources OF its profits. IT,,
The Bank Of the United States established for ihe,
purpose OF supplying and sustaining u sound cur
reucy, The inability 20 maintain u circulation II,
any degree corresponding with its capital WIS
therefore both injurious to IFS interests and fatal n,
its usefulness This inability was sunn,s.d g,
arise from the provision in the chartcrImak;u,r-
the notes OF the Bank universally receivable for d,i
tes 10 the CoVernmcnt--whishi i, was presumed
would obligg the bank TO provide funds ia many
places TO pay the same note and couseoue,,s
ly require greater luui OF specie than of mote
thus causing the BaUl, dninisi, rather h,n a.,
crease the amount OF tlIc sound currcncy Tho
consequence was, that the Bank was appfcicf,,;ve
OF Issuing its notes freely, particularly in, the sn,tr
~
20 resort 10 the issue 81 the notes OF the STATE
Bduas. Tie whole amount OF its owl notes i'm cir-
rularlon OH tIe first OF Jdnnuy, iS23 wa al
5e9,HGD. ~ thc meeting Of the stOe klioi,e,s on
the first Of October, 1922, this subject was prs
scnisd for considc .ation AID il Wa recommended
thai i"pllicaticn should DO made TO Congress, fny
an Alteration oil the chatter IN that particular la
compliance With ,hc wish OF the Stockholders az.
plicaiiOp was uadc TO Cungtcss and the reuttcst
was declined. as it lad previously been. Obliged
ny lhis refusal TO rely their own resources ana
ltlicir own responsibility. the Board Of Directors a.
dOpted course, tie success al which has, ii, Che
view Ol tlis Committee, Lid tho foundation az
ibc present prOpciiiy Of th, Institution. IL wou!d
I'D tie Committee beyond the proper limits OF u
report 90 state w deat,ii tc rcdon Ol tli, course
but hc principle 90 which it was founded was bticf
~ thi.
That t'ic uni-cfeal rccciy1bility Of the noics Of
iha Bank wat ri diradv antaec II tl,e local ctr
4 reuey o.! The rltce where tic notes wcrosissecd
vas sound, and t was de duty C thc Bank 10 frsr
! United States, sad within its rowcf, 10 mako il
! t'uoi Accordingly they pursued ti,e eysrtn a.,
! i.suihr Heciy and exclusively their own uol1 g.
o. i"cc'tUg generally the notes Of solvent are
'innH9, and ""lttne frequent settlements " "a them,
] N.us Improving thc currency. ~ Introducing The
notes ~ ilie ,iAnl 0'the r. SIS pr.,cnlng lhe Owe.
o iiic state i'anks n, cradUoi ana Judi iot.
secuuou so tia plan ;he cT.ct f,goySd i,,. viii.