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

} Upon the next subject OF enquiry, whether it he
e2pedent or np that the Directors should vest this
power ~ the President and Cashier of the Bank
your coi9attee wouldobserye that us general rule
1t canrotNe expedeQt for corporation to transcend
the limits OF its chartered authority. One of the
greatest evils arising from the existence of corporo
TONS IS the accumulation of power in the hands of
individuals To obviate this evil the powers of the
corporation should be distributed that no one Of
icer sland exercise an undue influence. Your com
Ilttce are nut aware that the power vested in the
fresittent anu Cashier of the Bank of Virginia of dis.
i counting bills has been improperly used. but thew
deem 1t Inconsistent with the character Of our lava
3ud stltutlons tHet power capable of eSertinS So
textensivean influence society, should be entrusted
to any enc individual. They haye no hesifation nov
eyer III saying that the exercise of this power bv
tile President GQd Cashier OF the Bank has been :,
source or great profit to the Institution. And that its
restriction to the BOARD of Directors would have a
tendency to drive the trade III bills Of eccage (prop
eriy so called from this, to other banking ins
tatioa The merchants who principally deal in bills
OF exchange, are engaged in some bIancn Of eofA.
MERGE In which many of the El.rcctors oil the Rane
are also employed. 1t would be hiuiy i,,iurious tf
their interest to expose to their competitors in trade
the course of their business, which must necessarv
he done II bills OF exchange drawn BY them are laid
before the Directors for discount. This is the prin.
clpai reason rhY is thought eXpedieRt to vest the
power OF purchasing bills Of exchange in the Presi
dent and Cashier OF the Bank. You. committee
would, however, observe that this appiies only II,
'eas cormeIria bulls OF exchange, drawn in the &C.
nas course of business; and mas not the most reInot
bearing upon do3aestic they are sometimes an
proprlatey called, ead dTatts which your commit.
tee regard mere shifts to obtain bank accommodate
ton through the President aud Cashier. Your com
mittee therefore conclude that, though it may h,
espedient for the President aud Casino. 10 possess
the power of purchasng bona de commercial 6ilis
Of errhan.e, 1t is higy inexpedent that they should
possess the power Of discountLss drafts. -
ihe last SUBJECT OF enquiry submitted TO the con-
Shesation OF your committee, is whether any abuse
las grown out OF the exercise of this power and IL
any, 10 what extent. Upon this, the most delicate
branch OF this investigation, your committee havo
pleasure IN observing that, IN their opinion, the Pre-
ssidcnt aid Cashier of the Bank OF VIRGINIA have
heen iniu need the exercise of tnis power hv N,
other motives than sncese. but pc. haps over anx
ous desire to promote the interests of the institution
But your cemlnlttee cannot consistently with tlle.
duty, Iorbear to State that they could DOT hut regard
the e1feat, to which the exercise of -s power has,
Decn Carried, rs abuse, If the power to MIR
chase 6sy erchange had been originally, iegimatee
~ conferred Within the year eudilg CD the SIst
day of December last, negotiations have been esec-
ted with the President and Cashier OF the Bank OF
Virginia to the enorrsous amount OF TWO millions
seventeen thousand dnliaFs, through the means eS
bills OF exchange and dTG)fs purpor,ng to be such,
It is nevertheless obvious from the course of the h.
slncss o! the bank, that but comparatively small
portion O. this sum might nave heen due at any on.
times most ofjhe bills, being drawn parab!e at stors
sight and all OF them ii is presumed in sixty DAYS
1t may very readily he perceived, that if the Presi-
dent and Cashier possess this Unlimited power oY
{ discounting drafts bills, they may soon spperceda
the Necessity of Board of Directors by taking iipor
themselves authority 10 lead IN this mode, the
incidental
has grown out OF the exercise of this power, yyh1,l
your committee deem it proper TO notice. 1t has
been The practice Of the President and CASHIER whei,
bills OF exchange have not hseu paid i'll cash wheI.
DUE to accept other bills IN payment aud in some In
stances 10 discount notes in payment OF them withot
submitting the notes To the Directory. But yoiI
committee deem it proper to state, that they have
hecn informed by the Preside MT that notes haze,
never been discounted by him. except ryhcn it .ya
considered as necessary to secure doubtful debt
This circumstance in the opinion OF your committees
though it may exteTuate cannot justify palpabl,g
violation Of the bye-iaws Of the institution In the
18th section Of the byeaws it is provided that no
discounts shall be made without the consent of thYee
fourt3s of the Directors present IF ihe Presidents
ana Caster can violate this rule, by oscounne noses
N some cases, and under special circumstances yonr
committee cannot perceive why they may not subst-
tutc their discretion for that OF the Directors in ali
cases, and under all circumstances. Your commit.
tee, therefore, view the exercise Of the power on
discounting bills, and that Of discounting notes
; which has grown out Of IL incident, by the
, President and Cashier OF the Bank of Virginia. nI,.
authorised by the charter and forbidden by the bye.
laws of the institution, and cannot but regad them
as abuses of the legitimate powers Of the corporation.
is not competent for the Board Of Directors Of The Bsnk
Virginia to invest tue President and Cashu per.
son. With general and unDited powers 10 purchase Bills II
RsoTecf also, he caio1, IF this oonvscc, THAT IT "a
lexPedcn that the President and Cashier the Bank Of viz
gnia should possess the unlimited power Of dcounng bills or
eSShange and drafts, as at present exercised by them.
incidental power OF dScounpg noies which has arisen from
eXicc 0 the general power of purchasing bills exchange
and dTcountins drafts abuse Of that power even t
, power be legitunaicIy conferred 80
Resolred ao os The opinion Of Nis COMMITTEE That 5o
reasoning the foregoing report applies 10 the
charter Of the Farmers Bank Of Virginia the Bank Of Viz
GINA although this committee lavns examined into the
course OF business in uat Bank is prepared express an
opinion as TO tue prjpricly of its proceedings ~
Tue new crop Of wheat is represented 10 be good
average one in both quantity and quality. We havo
taken some pains to ascertain the opening price here
and from the information obtained, believe that 81 90
may now be obtained for rcd and 81 % for white,
deliverable by the 18th goth July 4 crop wos
contracted for by miller yesterday, that price who
had within three days contracted for two other crops