Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1829-06-16

ture developments will probably silcw that this cs-
inmate Is much too low. independent of the bad
acpts there Is another class, which viii produce u
loss hereafter OF not easily ascertained but
ny gong into some details, we may approach it. ,.ith
some degree OF probability. 1t will be remembered
that about the year 1919, when mercunie disasters
were very heavy the banks became alarmed. and in
this state OF alarm, they obtained, far rs hcy could
pledges OF real estate III about the towns, for
the purpose of securing their existing; debts and it
viii also be remembered that this was the precise
time, when real property had reached lis highest
ipolut OF value. In this state o: things, it is boev-
cd that pledges TO enormous amount were ;ver
IN the !o IN OF trust dceGs, and these pledrcs were
made 10 secure debts which about equal 20 The
taen supposed rl!ue Of the real eStttc pie4med So
things have Stood vc.y nearly So, from tina, tirc
to t!S and thought is known the Banks that the
real estate pledged is the Only thing ont Of which
their debts can be nadc,yet, because the lnakers
and endorsers OF these notes able to renew them
at the end OF each sixty days, and pay the DISCOUNTS
the debts arc cl0sscd with the good ones. call the
attention Of the people the rapid decline OF real rs
tate IN Its value, since that riric and, them if VIC
could ont know the extent OF the various debts thus
secured some tocrably correct estimate could be made
or tie loss that must csue, whenever these debts
ale brought to close.
| 'But, VIC do not know to what cxen. these debt,
60, and we are, therefore, LETT conjecture; in donna
which, shall cudcayor To keep within the proper
ilalts. The country debts too are in irost cases a,
conpa med by pledge OF land from the principal to
ms endorser, to indemnify hinl which, in many cass
Putting all these estimates together and corlprehen
ding view all debts Of tn scriutic ,,I,ich
may DC tou,d at the Bank OF Virginia. and al its
branches think it perfectly fair 10 put down the
Whole amount, at million hundred Thousand
dollars; and think II also lfr TO presume that the
real Estate, which stands pledged 70 ray this sum Il
now brought into Tie MARKET would not sell for
more than three hundred tioGsad dollars leaving a
pfeoae scss tro! tbs class Of debts, Of nine
hundred Thousand dollars. Taking tie difference
bctWeeIi the feat value Of the lands and lots hclon-
ing TO tie Bank, and the arbitrary e;lo WHICH tey
h0ye put down at $!76,o@s Sc, and thinl: the sum
OF one hundred thousand dollars will he found 70 b,
the loss. II may Ire said, that these estimates O:
losses are wrong, because they guessed at; bo il
So But the writer OF these numbers, has Lad Is
much opportunity OF knowing these things, a any
i other individual who is not attached TO the Bank
Resides, If they be in truth wrcng, there is one way
add one way only, 20 show the error; and that is 10
exhibit all these things i'll detail, 10 the public, and
et them be publicly scrutinizcd. No other mode
will DO, because other pe satisfactory Let
al these estimated losses be put together and ti,e,
following result will appear, viz:
Bad and doubtful debts in Noriok 500 900
Bad debts at the Mother Bank, and
! other branches, 10000
!, Probable loss IL debts, secured ~ zeal
| estate eco 900
Probable loss on real estate held ~
the Bank 100 coo
Annual cEpetccs Of the Bank ard
Branches, so 600
Making, altogether probable loss of <! 500 600
10 the bank, since II commenced operations; exceed
ing the whole OF the original stock, by the sum OF
100000, aud only S70O,oO0, short Of It's present
Capital, which was augmented in 1914 30 tw y.?i-
! ion and half of dollars Here, Let the reader pause
and reflect upon the subject. Let him ask himself
WHETHER since the report Of 1894 it is probable that
any gains have been accruiDg the bank, so as 20
recover some Of this heavy loss or whether it is not
more probable, that these losses have been Increased
The state OF thc commercial world, for the last
ven years does not appear to me to have been ia
voTable Tor BanknG Institutions; and though think Il
almost certain, that harm than rood has resulted
to the Banks. within the time last mentioned vet
VIII noJ venture upon any estimate Of additional los
scs these nay appear IL due season, without any M
pleasant anticipation from So far as the Bank
may be the property OF individuals in proportion to
the stock heldby them, shall not presume to offer
any speculative opinions to what they ought, or
ought not to do; OF this, they the best Judges
But so tar as the state interested as partner l.
as one Of the people, who may hereafter be deeply
Implicated in the value OF the stock feel that it is
the common duty of ALL to give serious attention to
this subject, and endeavor avert rs far as posi-
- bic, the dreadful evil which seems to be in prospect
I WHO'S it, that will take the trouble to investigate
this subject, that does not sec tho bubbco Who is
IT, that docs not see that this bubble ike all others,
is ready TO burst with the first harsh touch? ind if
it should burst who is H. that docs not see tho hea-
Wy calamity which, at the time, will be brought
upon the people, and upon the country? These are
solemn questions, and well worthy the attention
Of all who have any regard, either for the State or
I the people Let not be said, that this subject Is
too delicate for such exposition as am now ma
king; the is, that the people ought to know
the worst, and prepare for the consequences. The
/ State can bear any explosion which may follow
though her people may be ucommodcd It is bet
ter that they should DC incomnodcd than ruined;
! and 1t seems to me, that ruin must be the conse-
qucnce, if Banking Institutions shall continue to ex
list in an ursound condition.
These reflections will be continued IN my next.
! GEORGE CLINTON
can get access the report Of this year only but tne prn
cpe and form Of all the reports is, believe, toe same; aud
perhaps TINS Us as favorable to the Bank any other
Inc President and Directors Of the mother bank viii not
deny this.
! Trouble IN The Wigwans.-,-Mr. Van Buren's situa-