Daily Richmond Whig. [volume] (Richmond, Va.) 1828-1831, 1829-06-13

~ bnoulu turn our 10 De the case, then will
be seen, that the capital stock Of the bank has been
gradually wasting. away; and If IL be not already
gone IL cannot last much longer under its present
prospects for profits. Allowing every debt due to
the bank TO be Pere fly good their statement viii
show that, ut the time Of making il, the bank would
be sraeiy able 10 meet oil it's dues; and now let us
sec whether these debts all good. In Norfolk il
has been well ascertaned that the bad debts Of that
branch only, land which is admitted to be the worst
amounts 60 the of Three hundred thousand dol.
tarsf and that the doubtful debts of the same branch
amount To a sum not much short of it. Doubtful
debts in Norfolk il is said is only another name for
bad debts so that may be said, with great proba-
bility that half mioni the amount of bad debts in
Nsrfolk. aAysis
Tbeother branches here admitted to be in bet
ter conditions but we have means of knowing what
estimate the mother bank has made of their bad
debts. think, however, that upon reasonable con-
lecture. the bad debts Of the mother bank and the
remaining branches cannot amount to sum short of
two hundred and fifty thousand dollars and flu.
ture Developments will probably shew, that this es-
innate is much too low. Independent of the bad
debts there 10 another class, which will produce
loss hereafter OF sum not easily ascertaned, but
by going into details, we may approach it. with
some degree ofprobability 1t will be remembered
that ABOUT the year 1879, when mercantile disasters
we're very heavy, the banks became alarmed. and in
this state of Alarm they obtained far they could
Pledges OF real estate in about the towns for
the purpose of securing their existing debts: and
VIII also be remembered, that this the precise
Nhe, Wheh fcui property nnQ reached It's highest
point OF value In this state of things it is beley-
ed thut pledges TO aB enormous amount were given
In the foI Of trust deeds, and these pledges were
made 10 secure debts which were about equal 10 he
then supposed rafue Of The real estate pledged. So
things have stood, very nearly So from that time
to this; and though it is known TO the Banks that the
real estate pledged is the only thing ont of which
their debts can be made,-yet, because the makers
and cndorsers OF these notes. able renew them
at the end OF each sixty days. and pay the discounts
the debts classed with the good ones cali the
attention Of the people 10 the rapid decline of real es
tate IN It's value since tia, time; and, then, if we
could but know the of the various debts thus
secured toerably correct estimate could be made
of the loss that must eiisue, whenever these debts
are brought to a close.
But we do not know 10 what extent these debts
CO. and are, therefore, left to conjecture; in doing
which, shall endeavor TO keep within the proper
limits The country debts too, in most cases ac-
coinpanied by pledge of land from the principal to
his endOrser indemnify him. which, in Inany cases
must also be the only of paying the Bank debt:
Putting u these estimates together, and comprchen-
ding, IN one vew all debts of this descriptions which
may be found at the Bank of Virginia. and all its
branches, think IL perfectly fair to put down the
whole amount at one million two hundred thousand
dollars and think it also fair 10 presume, that the
real Estate, which stands pledged to pay this sum- if
now brought into the market, would not sell for
more than three hundred thousand dollars leaving
probable loss arising from this class of debts of nine
hundred thousand dollars. Taking the difference
between the real value of the lands and lots belong
ing to the Bank, and the arbitrary value which they
have put down at si76 0@o Sc, and think the sum
of one hundred Thousand doars.will be found to be
the loss. II may be said that these estimates of
losses WRONG, because they are guessed at be it
so. But the writer of these numbers has mad rs
much opportunity oil knowing these things as any
other Individual who is not attached to the Bank
Besides, if they be i'll truth wrong, there is one way
and one way only to show the error; and that is TO
exhibit all these things in detail, the public and
let them be publicly scrutnzed. No other mode
will do, because other cai be satisfactory. Let
all these estimated losses De put together and the