Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1828-09-10

mounting TO 8Oos72 C3
Making an aggregate of 2.oGi,9a0 60
And leaving dcticicncy OF o3o,124 IS
| Illus Efficiency VII be fully provided for by
ISL. Inc progressive increase in the value % the
rcai estate at Cincinnati where there is every reason
20 believe that the whole estimated loss amount
ing to mere than 10000 and included IN the above
sum Of Ssa2 061 - cents, will be fully repaired out
OF the property now belonging to The Bank.
md ly the arrears OF interest the four western
oiiceS, winch Cor years past furnished an aver
age annual income Of 81 ,Oi0.
81. i]y what may YET be obtained out of the sum
OF Sl57i 600 interest the had and doubtful debts
End on the large mass of bal debts which, though
Tor greater caution considered ulavailahc are in \
trom OF final settlement and are still yielding ccEsd
cradle Sims.
Under Il view of these circumstances, it was not
deemed advisable by the Board OF directors in July
last, TO ndd any thing rom the surplus fund to pro
VIDE tor these losses, considering thu; funds already
assigned ms sufficient To repair them i'll which opinion
THE. committee entirely concur.
| The surplus fund of reserved profits nccoriinrI;
stands ut 81 3l8 ,2a3 81.
From these statements. it will be perceived that
within the aa few years there has been u very lsrg,
addition TO the resources the operations ard the pre-
fits OF the Bank; and which, in the opinion of this
Commit tee Is ascrbahe principally to two measures
OF the BOARD ot Directors which have :.iven entire
~ new aspect to lis affairs and which are SO int innate
| ly connected with The administration Of the Bank
tiat the Connlitce deem it proper ami useful
| ticC them particularly
ISL. ne 'lrSt'Ii;t CONVERSION 81 large proportion
of the Stock loans Of ;he Bank into investments of
more active character The leans mad bee II for the
most part made to intN idnais WHO not able TO
pay and whose stock being therefore forfeited the
BANK, became III fact Ginntion ot its efficient cap
ltaf This stock being sold produced a direct profit
! ct ST. 600 per anniln--thc difference between the
employment OF the proceeds and the highest dYi-
dends the stock while remained mart Of the can
!tal-besides enabling the Bank multiply and ey-
tend ,ts connexions III business and give greater
| tvlty to Its operations.
2l. Bat the second measure alluded to by the
ilttcn winch wrought the most important change
the situation otthe i}Hnk-tnt wciI m1v be co,sid-
cred "a decisive of It's usefulness and prospcryle
ates 10 the nature and extent Of the circuar ION Of its
notes. The issla and circulation OF is notes by
bank : among tho most natural and Ultimate sour
cos of it's profits To the EGnl Of the United States
established for the purpose Of supplying and siata
ing sound currency, the inability to maiutun cir
caiatcn III any degree corresponding with liz capital.
was therefore boh injurious 10 its interests and fatal
- It's usefulness. THIS inability was supposed to a.
rise from the provision in the charter-ll.akng the
notes of tc Ba; universally receivable for duties to
| the Govcrnnant--whcl it was presumed would OBJ
lgc the Bank 10 provide funds in many places to pay
the Same roe, AMI consequently require greater
l OF Sp"cle than oi n"tes thus causing the Bank to
iTnnish rather than increase the amount of the sound
currency. Tho consequence was, that the Bank was
nuprecn2iVe OF issuing lis notes freely particularly in
the southern al western States but often felt itself
obliged 10 resort 10 the issue of the notes Of the State
Banks Tie wliol" arnnnt Of its notes in circu-
ltlon tIin lst of January 1928, was Si,539 600.
At The meeting of the stockholders OF the first Of Oc-
cber, 30 this subject presented for consdera-
ton. and it recommended that application should
BE made 80 Congress for alteration of the charter
III that particular. In compliance with the wish of
the Stockholders, application made to Congress
ana the request declined, as ii had previously
been Obliged hy this refusal to rely their own
refources and their responsibility, the Board of
Directors adopted course. the success Of which has
lii the view of this Committee, laid the foundation of
the present prosperity OF the institution. 4 would
tool Limits ff'o
Report TO state III detail the of this course but
the pilnclpc which it was founded briefly this:
nut the universal rCc@ivahlty of the notes of the
Bank was OF no isadyantH 90 if the local II
the place where the notes were issued WIS round;
and 1t the duty OF he Esnk to the United States
ana within lts power, 70 mako il sound. Accordingly
they pursued the system Of issuing freely and exciu-
SiYely their own notCs-of receiving generally the
notes Of solvent State Banks, and makiun frequent
settlements with them, thus improving the currency
by introducing The notes Of The Bank Of the United
States, ind by preventing the issues of the State
Banks. BY gradual and iu5cious execution of this
plan the effect followed that without private or zen
nra suitCrlnV-Nithout causing the failure of any
Bank, OF any indivl'lua; and without Inconvenience
ID The Bank of the United 5atcs the Banking opc-
rationg of tho country have been brought under ar
efficient cou;rol md = 9rrn amount Of the notes o
tn Bank of the United States have been gradually
substituted for the deprecated or doubtful currency
which was so iniuriot. to The Southern and Western
'@tdtcs. This signal triumph the Great est Of all
;hc dl1icnl,i's o. tic Bank! for the achievement
which debt OF lasting gratitude IS duo to the able
officer who preal's over the Institution, has dissipu
led all the doubts entertained of It's power supply
The necessary amount Of notes and has permanently
fixed tlie basis Of widc, extended and profitable use
lrIic.s.
The means tllus derived from the Increase Of notes
and tie sale of stock wore devoted to discounts ant
loans ard particularly 90 that class of loans which
81 TIE safest and the most uscfu--thc discoun
VI bills of exchange With these means the BanI
has been enabled to extend It's operations in both for
leigh and domestic exchange, in suCh manner n;
greatly 10 enhance the profits Of its business at tn,
same time that it has afforded facility and security t,
the commercial transactions of the country. As al
illustration Of the progress of this branch of busincs
tic most valuable to tho Bank as being the grca
auxiliary of its circuation-thc Committee remark
ltat The amount of aomnstic eXchanoc purchased b.