Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1829-06-12

Leu Onafter, the Committee could not recommends
Tor reasons already given. The only valuable: pow
ers which ought to be continued TO the Corporation.
are those which are necessary to keep units exis.
tence to answer the demands oftts creditors and to
enable to make good the demands upon its debtors
All abuses of those powers may be guarded aoa,pst
by two provisiuhsein the act the first, that the ey
itcnsion should be fora limited term the second that
the Corporation shall be restrained from iss,np or
ressaing any OF It's own notes after the expiration OF
] the present Charter ~.
In investigating the course of the business or th;s
Institution hercto!ore and the causes of the scred
and depreciation of It's paper and the heavy losses
aireaty incurred, your Committee have been strong
ly impressed with the belief that rnst of thos. evils
have arisen from the multitude of the Branches and
of the Directors, according to the Charter. From
the former circumStance, the expenses are much
enlarged, and to- cover them the Directors are I'M
der strong Temptations to extend their business i'm
prudentiv From the latter circunsi ance grow niay
eys The great number of Directors, naaAey nine
ityeigat prevents unity of counsel and concert OF
actun, and the gdoption and perscyefihg execution
of any Systens, however prudent. Besides these
there issanother consequence still more serious
through which; In the opinion of every Member of
i your Committee, great losses have accrued to TIE
Stockholders. The COMMITTEE allude to loans made
Fly the Directors for each other 1t cannot be expec-
ted that competent MEN of business will eratutoIs
serve In the responsible. difficult. and agreeable
office ofa Director, without haying seine Bank ac-
COMMUNICATION. If each one of the Directory be en-.
Titled to, and receive even a small accommodation
!
OF debt OF very large and inconvenient ainount-s
AS such, accommodations are regarded us berrna-
tnent on which only interest without an instalnent
lis paid, tho Directors debt constitutes LARGE invest
ment winch Is wholly uncomfortable BY the Sank in
even the greatest emergency, and deprves the Bank
lef the power of more extensively acconiniotating
other citizens Besides this, Directors are often
men in moderate circumstances often men In tra,fa
liable to tie msfortlpes aud incident to specu-
1latiors. Upon the failure of other debtors the loss
Lot the whe debt seldom happens, because the reg
uiar cnrtallnenss demanded from them, tends rst
to lessen their debt and secondly to prevent them
from Tnprudentiy contracting debts beyond their
liability to pay. since their inability must be early de-
4 tectel: Whereas, the debt of Z Director NAV be
Kept IN by an ar,t m long Us his means enable
nun to nteeI the interest, athou h the whole prii-
cPal ne iosf our Ccinmlttce ind that the ebt of
! the Directors at this time, amounts to the sun of
s323,9i4 A., and that Is less than it has been for
marty years; that it generally has been $500 900 or
more ana often rane. more that the present DIM
mutton hath 0rIsei partly from payments partly from
the death of arie. Directors and still more rny,
recent changes in the Directories by the removal of
former icninbents Rnt there is constant tendcl,-
! cy towards increasing TINT debt though when exist
ing, it be the most difficult OF management; and nm.
j less Some remedy be given by law thereis no reason
80 expect the present Improvement init to last A
tact has conre to the Knowledge Of You, COMMITTEE
during the present investigation, which mpressiyeiy
proves the danger to be unprecedented from this de-
serlpto of debt. 1T is, that the larger part Of the
losses qeSetDfsre srSaie b. the Bank consists If
ldebts ofpersohs who were Directors at the time 81,
their a'iure or had been Directors at the time OF
contracting the debt.
Il These dangers and evils are deemed b, al, vour
! committee to be very great aud the moro especially
as they often betray the Directors into a breach of
good taith towards their employers by tempting and
inducing them to use their official places solely for
their personal advantage: and they Likewise tend to
0rng oPprobrIum upon the INSTITUTION at large vic..
I ID in Justice due TO the dciautinc individual only
From the iacss here disclosed, and THIS course OF
! reasoning me gentlemen who represent the Stale
ure OF opinlon, that to prevent recurrence of the
lewis heretofore experienced from the large number
of the Directors the Legislature ought to make il
eonalon OF ms privilege Of any kind to the Corpo-
= ration that the boards OF The Principal Bank and all
the Branches, shud be- reduced the former to- saw
4 ten including the Public Treasurer, and the latter
= to frye.
i In this opinion the Committee from the Stockho-
sefs entirely c6ncnr; and in fairness the pass of
4 the Stockholders, they feel themselves comuaed to
state, that many OF the General Meetings. have from
Tune to time, exered themselves restrain loans
the Directors, ara to require curtailnents from them
I IN fact the and losses now
y were not unexpected by the Stockholders
they cxerted themselves to the uttermost of their
power to obviate and avoid tiIen Experience shows
thaf NOTHING short ofa change BY IntD Of the number
Oh the Directors will e6ectuaily remedy the evil The
:. whole of your Committee therefore feeling alike the
Necessity OF the measure, suppose that the Iersla
tufe Will tor the protection of the public interests
and to suppress ndne, unfair and injurious practices
7 OF fayorItlsIn among the Directors to themselves
! pass, in their wisdom, law for that purpose.
Your COMMITTEE, IN conclusion, are impressed with
the belief that, with Legislative support and aid in
the points herein mentioned, ana such others as the
prudence of the next meeting of Stockholders, and
the intelligence of thcsLegisature may provide the
affairs of The Bank may be managed Though without
the hope of much profit yeti without the danger of
much further loss: aud that If The views here taken
should acc1rd with those of the General Assembly,
we sank could finally closed, speedily and safe
~ To- the debtors and creditors by any other i'm
tIneniate means which your Committee could de-
viseand that, too without the dancer Of seriously
and suddenly affecting the nature and amount of
the circulating MEDIUM the value of property
Your committee therefore, take the liberty Of submit
ting 10 the meeting whether it be not proper to defer
further proceedings this point, until their next
Injecting, and await the pleasure of the Legislature
-Mpon The nontsers dscllssed ,yhich dnnht ..;ll