Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-06-09

sixty days. and pay the discounts the debts are
ciassed with the good ones. call the attention Of
the people TO the rapid decline Of real estate in it,
value, since that time; and, then, if could bu,
know the extent OF the various debts thus secur-
ed, some toersbiy correct estimate could be made
OF the loss that must epsue, whenever these debts
are brought TO close.
| But, we do not know 70 what extent these debts
go, and we are, therefore, lett to conjecture; i'm
doing which, shall endeavor TO keep within the
proper limits. The country debts too are in mos,
cases accompanied by pledge Of land from the
principal to his eDdorser, 10 indemnify him; which,
| in many cases, must also be the only means OF
paying the Bank debt Putting all these estimates
| together, and comprehendiDg, In one view all
debts OF this description, which may be found at
the Bank OF Virginia, and all its branches, think
IT perfectly fair 10 put down the whole amount, al
one million two hundred thousand dollars; and
think it also fair TO presume, that the real Estate
, which stands pledged to pay this SUN, if now
brought into the market, would not sell for more
than three hundred thousand dollars leaving a pro-
babe loss arising from this class of debts of nine
| hundred thousand dollars. Taking the difference
between the real value Of the lands and lots be-
longing TO the Bank, and the arbitrary value
| which they have put down at SIG, OS0 90 and I
think the sum of hundred thousand dollars
will be found to be the loss. Ii may be said that
these estimates OF losses are many, because thew
| are guessed at be il 20. But the writer of these
ing these things, any other individual who is
| not attached to the Bank. Besides ii they be in
truth many, there is one way. and one way only
to show the error; and this is, exhibit all these
things in detail, TO the public, and let them be
publicly scrutiniZed. No other mode will do bel
! cause none other be satisfactory. Let al
these estimated losses be put together, and the fol-
lowing result will appear, viz:
Bad and doubtful debts in Norfolk $500 900
Bad debts at the Mother Bank, and 9TH
er branches, go 900
Probable los--in debts, received BY re-
al estate, 100000
Probable loss real estate held by the
Bank, los, 900
Annual expences of the Bank and
Branches, $4,000
Making altogether, probable loss of al soc 900
to the Bank, since it commenced operations: ex
ceeding the whole of the original stock by the
sum of 100000, and only $500, 900 short of its
present Capital, which was augmented in 1911, to
two million and half of dollars -Here, let the
reader pause and reflect upon the subject. Let
him ask himself whether, since the report OF 1922
II is probable that any gains have been accruing
TO the Bank, TO recover some OF this heavy
loss, or whether il is not probable that the Sc
losses have been increased. The state os the
commercial world, for the last seven wears does
not appear 10 me TO have been favorable for Bank
ing institutions; and though think il almost GER
tain, that m0rg harm than good has resulted to the
| Banks, within the time last mentioned, yet will
not venture upon any estimate of additional losses;
! these may appear in due season. without any un-
pleasant anticipation from me- So far as the Bank
may be the property of individuals, in proportion
TO the stock held by them, | shall not presume TO
offer any speculative opinions as to what they
ought, OF ought not 10 do; of this, they are the
| best judges. But, far the State is intended
as partner, |, rs 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
TO avert, as far as possible, the dreadful evil which
seems TO be in prospect. Who is it, that will take
the trouble 10 investigate this subject that does
not see the bubble: Who is it, that does not see
that this bubble, like all others is ready to burst
with the first harsh ouch' And il i.should burst,
who is it, that does not see the heavy calamity
which, al the same time, will be brought upon the
people, and upon the country?-These are solemn
questions, and all well worthy the attention Of all
who have any regard, either for the State or the
people. Let not be said, that this subject too
delicate Tor such an exposition | am now max
ing; the answer is, that the people ough, 10 know
The worst, and prepare for the consequences
! The State can bear any explosion which may fol
low, though her people may be incOmmoied. Ii
is better that they should be inconmoded than
ruined; and il seems TO me, that ruin must be the
consequence, if Banking Institutions shall conIin-
ne to exist in an tunsoWtd condition.
These reflections will be continued in my next
\ GEORGE CLINTON.