Daily Richmond Whig. [volume] (Richmond, Va.) 1828-1831, 1829-06-10

i. o.
mere snother consequence still more serious
Wrooyn which. IN the opinion of every Member of
your committee, great losses have accrued 10 the
S S The Couimittee alludo to loans made
tne DIRECTORS Tor each other II cannot be expec.
tea tnat competent of business will gratuitous-
serve IN the Responsible. difficult. and dissprceable
ONCE OF Director, without havinr some hank sc-
eemmodaton. Heach ono Of the Directory be en-.
.eo 70, ana receive even small accommodation,
the number OF those bodies win make an appreciate
Vi debt OF very large and inconycnient amount
AS such accommodations are regarded as perins-
nent, on which only interest without an ,si,lmcnt
Is paid inc DIRECTORS debt constitutes arc invest
ment, which Is wholly uncontro reliable by rho Rnnk in
even tho greatest emergency aud dcrfvcs ,bc N. nj
OF the power OF more extensively accommodation
other citizens. Besides this. Directors nre oR.1
men IN MODERATE circumstances, often men in trade
naoe 10 tue msiortunes aud rum incident 10 specu
ia.ohs' upon the failure of other debtors tho loss
OF tue whole debt seldom happens because the reu
uiai curtaiiments demanded from them tends frat,
10 lessen their debt, and secondly TO preye1t them
rom imPrudcntiy contracting debts beyond their
ao' u pay since Their inability must be early de-
tecfed; Whereas, the debt of a Director NAV he
Kept up by an arttul man, long as his means enable
nun TO meet the interest, although the whole pYin-
cipal be lost Your Committee find that the Iebt of
the Directors ut this time, amounts TO the sum of
SjS5,9i] ~ and TINT IL less than IL has been fur
many years; that it generally has been $500 900 or
more and often much more; that the present dni-
nution hath arisen partly um PAYMENTS partly from
tho death OF former Directors and still more from
recent changes IN the Directories by the removal of
former incumbeu'S. But thrrc is 4 constant tendon
ey towards increasing that debt thourb whom exis,
my, 1t be the most difficult of mana penrn,. and I'm
less some remedy be given by law there is ma reason
w cNPcct 'hc present Improvement in il to- last A
i s' mas come 10 the knowleye of you Committee
curing the present investigation, which inprcssiyeIy
proves the danger tn be apprehended from this do
scrpton OF debt IL is, that the larger mart of tho
iosSes heretofore sustained by the Bank consists Of
debts ofpersons, who Directors at the time of
their failure, had boon Directors nj the time NJ
contracting the debt.
these dangers and evils arc deemed nv NIL your
committee To DC very great and the more cspeclay
as tncy often betray the Directors into breach Of
good faith towards their EMPLOYERS by t.nn,;ng and
inducing them to use their official places solely for
,hcir personal advantages and they likewise tend 10
brns opprobriun upon the Institution nj lnrge which
is IN justice due to the defautinr ndiyi,unl onlv
FROM the facts here disclosed. and this course Of
.cdSorng' the gentlemen who represent the State
arc Oh opinion, that TO prevent recurrence of tho
eVlS heretofore experienced from the larue number
OF the Directors. the Legislature ought 10 MAKE il
condition of any privilege of any kind to the Corno
rati1n that the Boards of the Principal Bank and all
the Branches should be rcduccd.-,tbe fornsnr q, .o
10 five. N N' ''''oi
In TINS opinion the Committee from the Stockhol
dcrs entirely concur and in fairness to the tnnss of
the Stockholders, they feel themselves compelled 10
hnVp Tr0tn
time 10 time exerted themselves to restrain loans to
the Directors5and TO require curtaments from them.
iHiact the inconvcnenccs and losses now
were not unexpected by the Stockholders thosgl,
they exerted themselves to the utermost of their
power to obviate and avoid them Experieuce shaus
that nothing short ofa change 6v kip of the nnber
oil the Directors, will efectuaiiy remedy the evil THE
"hoie oil your Committee, therefore, feeling alike tho
necessity OF the measure, suppose that the Legsla
tu's "In' iot the protection of the public interests
pnfl,,o 6,
OF iavorltism among the Directors TO Themselves
pass, III their wisdom, law for that PURPOSE ~
1our COMMITTEE, in conclusion, are impressed with
the Dcet that, with Legislative support and aid in
ne POINTS nerein mentioned, ano such others as the
prudence OF the next meeting of Stockholders. md
tne intelligence of the Legislature may provide, the
anars OF the Bank may be managed (thouph without
the nope OF much profit, yeti without the danrer of
mucn further loss: and that, if the views here taken
shouId accord with those of the General Assemble
inc Bank could be finally closed as speedily and s,f
yto the debtors and creditors, as by any other inn
MEDIATE means which your Committee could de-
VlSe-and that too, without the danger of seriouslv
ana suddenly affecting the nature and amount Of
tne circulating medium, o: the value of propcrtv.
our committee, therefore, take the lbery of sub;t
ing TO the meeting, whether it be not proper TO defer
further proceedings this point until their neTt
meeting, and await the pleasure of the Leoslature
upon the poms here discussed, which 10 doubt will
ne brought to their notice by the Rcport oftbeir Re-
personalities in this Meeting. Audit is further sub
United, that, in the mean while, it be recommends
70 the President and Directors to proceed in the us.
a. regular and moderate collections Of old accommo
ia''on loans according to their sound discretion and
he ability of the customers to make pavmrnIs. and
% refrain from making further discounts or new Ioons
except upon paper to be discharged Mt short periods
ipon which Punctual payments will be expected and
'%acted. All which is submitted
THOMAS RUFFIN, Clin'n.
On motion,
10 rms report was unanimously concurred with; and
'oO copies thereof ordered to be printed
~ WILLIAM POLK
Cha'rndn q The General Meeting of SLockhoIder,. |
J. GALES, Secretary