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

The above statement, embraces every thing be-
longing 10 the mother bank and its branches, as
the report OF the Committee afirms and, that the
statement itself, was furnished by the Bank will
not be denied. With complete view of the
condition of the Bank before us, proceed to ana
lie the statement, to lift the veil which shades it,
and to expose its real condition.
The first thing which strikes the eye Of every
one who knows any thing of accounts is, the re-
markable fact that, from the statement m ade by
the bank, both sides Of the account are precisely
equal Ifit be said that this must necessarily be
the at the end of every six months, because
the dipidendS are paid to the stockholders, | re-
ply that, though this may be, yet the statement
should shew, what had been the gain OF the Bank
in the course Of the six preceding months by its
operations; and then, all would have known that
the balance, in favor of the bank, If, indeed
there any such balance, would be the pro-
per sum 10 dispose of. in the form of dividends to
the stockholders II il be said that there was no
gain that year, then say that that fact ought to
appear in the statement exhibited by the Bank,
because, IL Is no less important 10 the people, that
the losses should he known, than that the gains
should; more especially when it is known that the
stock of these banks, constitute the basis for all
improvements in The State. The statement ought
10 have embraced all the discounts and other pro-
fits OF the side and all the expenses OF the in
situations, the other, after which, the difference
between the two sides ofthe account, would shew'
the proper aggregate amount of dividends TO be
made. But, both OF these items omitted, and
for what object remains TO be explained; vet be
the object what it may. it is perfectly certain that
until they are shewB, the trae condition of the
bank cannot be known. Again, il will be seen
by examination of the statement, that the diff
ference between the two sides of the account,
leaving out the Real Estate, is $l76,0S0 ST. and
in order 10 make the balance even, or rather to
make both sides balance the Real Estate is put
down at arbitrary sum, far exceeding, no doubt
its true value as every one may see, who will
take the pains to look at the different banking hous
es belonging to the institution. To shew that this
must be true, it is only necessary TO examine both
sides OF the statement, il will be found, that all the
other items, both sides, definite and certain,
in their amounts; and, therefore, il is doubtless
true that the even balance is produced by the item
OF Real Estate, put down at an arbitrary value.
These facts mean something, and perhaps that
something may be hereafter seen. The object
have in view, in making critical examination of
this statements to shew that the banks in no
condition TO make dividends, and that for many
ears past, the capital stock has furnished the sums
which have been called dividends. If this should
turn out 10 be the case, then il will be seen, that
the capital stock of the bank has been gradually
wasting away; and if ii be not already gone, il
cannot last much longer, under its present pros
poets for profits. Allowing every debt due TO the
bank 10 be perfectly good, their own statement
will shew that, at the time OF making it, the hank
would be exactly able 10 meet all its dues and
now, let us whether these debts are all good.
In Norfolk, il has been well ascertaned that the
bad debts OF that branch only, (aDd which is adj
mitted to be the worst,) amounts to the sum of
Three hundred thousand dollars, and that the
doubtful debts Of the same branch amount to a
sum not much short of it, Doubtful debts in Nor
folk, il is said, is only another name for bad debts
so that il may be said, with great probability that
halt a million is the amount Of bad debts in Nor
folk.
The other branches are here admitted 10 be in
n haff bnf .uo q
knowing what estimate the mother bank has made
Of their bad debts. think, however, that upon
reasonable conjecture, the bad debt Of the mother
bank, and the remaining branches cannot amount
TO sum short Of two hundred and fifty thousand
dollars, and future Developments will probably
shew that this estimate is much too low. indie
pendent Of the bad debs, there is another class
which will produce a loss hereafter, OF sum NOT
easily aseerisned, but by going into some details,
we may approach it, with some degree of proba-
billy. Ii will be remembered that about the year
1919, when mercantile disasters were very heavy,
the banks became alarmed & in this state Of alarm
they obtained as far they could pledges oresl
tate in and about the towns for the purpose Of Sc
curing their existing debts and II will also be
membered, that this was the precise time, when
real property had reached its highest point OF val
ne. In this state OF things, II Is believed that
pledges 10 an enormous amount were given, in
the form Of trust deeds and these pledges were
made 10 secure debts, which were about equal to
the then supposed uolUe Of the real estate p'edg,
ed. SO things hav stood, or very nearly 50, from
That time to this; and though it is known to the
Benks, that the real estate, pledged Is the only
thing, out Of which their debts be made
yet, because the makers and endorsers Of these
notes, are able to renew them at the end OF each
can get access 10 he report Of This wear on
W, but the principle and form Of all the reports u.s.
believe, the same; and perhaps this is favora-
bic 10 the Bank as any other
The President and Directors Of the mother
fank typi mt Iopv ftfs