Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1829-06-26

mony, the Committee made the following report nbon
Tue cto OF The session, which was LAID on the tah!,
Tor wantof time to act upon it'll
~ REPORTS.
1nc select committee appointed to enquire into
te power OF the Directors of the Banks of this Com
linonweaith with regard to ves,ing in their Presi-
bills OF exchange; and whet her that mower no xnn
dent or not; uso If any abuse has grown out of the
eAeieSe VI tna power; and Ii any abuse, To what en-
tent respectfully submit the following report
our conimttee, III the examination of This subject
have confined their attention To the Bank ri,
bcng OF opinion that the session is too far u6yancrl
~ "oW teh 'iic TO enter into any other iuvestisa-
Ion And supposiug from the nature of tho CHARGES
preferred against that institution, THAT the affairs f
Tue bank oi Virginia referred 20 this co,nn,if
Tee, as the subject Of it's particular cousilarati,n
An Relation To The ,irs, subject of endni,v yYiet
or the Directors OF the Bank Of Virnina have Tho
power To delegate to- the President and Cashier Inc
authority to discount drafts or bills Of exciapue
Your committees would remark that ir the Board nj
,HeCtors possess TINS power, it must be derived Ell
taer from the charter from the baje-ians Of the
Institution Ind first, can this power b.. derived
from he charter OF the institutions? In the tenth
on o. Sne CHARTER II is provided that the corpora
' su'' no. trade III any tiiimg except bills OF ex-
change, gold and silver bullion or in the sale of ooos
really anu truly pledged for money len, and mot re
deeined IN due time. and in goods which shall no tho
pfoauac ut Its lands From this Clause OF the char
,Sr alone II is inferred, that the Directors of the
hank possess the power to delegate 10 the President
ana Casler authority to purchase bills of EXCHANGE
inland and foreign. The counsel who j,nve sven -
opinions 10 the Bank i'll favor of>tie exercise of this
power cqnteId that tie Directors do not possess
the right To Delegate the power of PURCHASING bills OF
eSchaiiSe, tfry ou not possess the right 10 fiecuate
'e power Vi purchasing bullion or OF selling .yoods
p'eose't 20 me Bank, or which the produce Of
he iahS Oh me corporation: and that it cu,.id nos be
cph'tmpIated by the charter that when it sonld be
'nina necessary III purchase bullion tho whole Boa I'd
o. Directors should repair to foreign market, &c
Your committee confess that they cannon nerceiy.
ffasD Nn,
sider the Directors OF the Bank oi: VIRGINIA
C. agents in iiducary character I'lsi ms
such' they lave the power 10 delegate autho--
rty to inferior agents to per!DrIl mere ,,;,;sjs
rial acts, but that they cannot dcleoate the tI tl
Is vested III them, authorize another to tt
act that necessariy implies the exercise oil that t,s
ihe purchase 81 bullion or the sale of goods may be
aided as mere i,isLeria! act involving 10 trusf
further than the exercise Of all ordinary disrretion
mo peculiar functions oftfe Directors are presumed
to haze been exercised in determining uvon the mr.
eessty or policy OF purchasing bullion OF of selling
TING goods, and IN aScertaining in what market and at
what price the bullion is 10 be procured and the
goods sold. Inc authority CT the agent extends no
iaither than to the ministerial act Of purcha-
shs ana sei!Hg, which authority 1t is no doubt COM
potent lot th directors to delegate. But the power
TO purchase bills OF exchanges rcised by the Pre-
sideAt and Cashier involves YeIy delicate discra
ION ID relation TO the soivency of the parties to tie
oi'i, the c0pdon OF the funds OF the instit uon and
the right OF discrimination between different hills
Al OF which import clearly, that the power to uur.
chase bill OF exchange involves ihe-excrcise of the
2ecutta'' tT.st reposc in the Directors and which
iromliS nature, Cannot be tIansierre,. So far youi
committee haze made distinction between bills 81
erehanse properly so called, and domestic drat1s be-
ing OF opinion that all instruments in the nature
| OF bill of exchange, are co,npreI,endrd under
that generic term But they fully aware of the
Naus oljy winch the argument in favor of the eXer-
cse oi tiiis power derives from the necessity OF dc
gathig the authority OF purchasing foreign and nor
hcTh bills, to the President and Cashier TO enable the
q a an
such necessity, however, exists in relation to the dis
count or domestic drafts, which your committee re-
saFG III no otDer ight Than as substitute for ncgo
idOic Notes, and as of obtaining Bank
accommodation without the application to the Direc
tors All the arguments, therefore, urred apains the
authority 10 delegate the general power to purchase
o'eS " efchaase, apply with double force 10 the poy-
or to discount domestic fits. IF the Board of D
rcctors can delegate the power TO dsrnunt domestic
drafts; and thereby substitute the discretion Of the
PRESIDENT and Cashier for their own Judgment your
committee can soc no why they cannot also
delegate The power Of dlscountiDg notes They ar q
both acts performed in their fduciary character and
imply the exercise Of exactly the same 1eprec of dis
cretion yet no one will contend that they can dele
gate the power OF discouning Mates. Your commit
tee therefore conclude that the right to deerate tho
power of discountng bills of exchange and drifts
IS not conferred the Directors of the Bunk of Vr.
gina, ny the cha'ter of that institution.
SECONDLY. Is this power conferred on the nirec-
tors by the bye-laws? The officers of the Bank RELY
on the 9Th section Of the Lye-Iaws as conferrinG
thls authority. This section provides, "tiat the
board OF Directors authorised to ascertain and
mark out the various duties and employment of the
officers, clerks and servants of the Bank, and direct
them accordingly; TO assign to the President suci
additional Functions as not designated by law
II Is inferred from this, that the Board of Directors
have authority to delegate TO the President and Cash
Ter, the power to purchase bills, or to discount doncs-
TIC drafts BY this construction the directors have
authority to assign TO the President or any other
officer or even serUat oftb1 Bank ua,i,aed po,Ccr
by ths construction authority is given the Direc-
tors, by transferring NIL their powers to all j,espo-
sbe agent, 10 supcrscdc the necessity of their own
existence. 1t cannot be presumed that powers so
unlimited were intended to be conveyed by terms so
vague and indefinite The proper construction of the
section, will coninc its operation to the various min
lsteroI duties to beperformcd by these several Off
GERS ofthe Bank. Surely so important function
as that claimed by The president, would not have been