Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-08

The Attn case b. selling sook obnedffom Gov mt
their duty to present the subject TO the consideration of
Congress.
Ills necessary here to observe that The charter mus,
nave Intended some meaning in prohibiting the Bank
dealing in stocks. There is perhaps no subject so fruit
uI in speculatons stocks and which Is so uctua
ing and liable TO be influenced by the slightest causes
ten producing ruin or immense fortunes in the sud-
den manner. To prevent such great moned institution
en' IA The Bank, from dealing in this article which its
vast means could raise and depress at pleasure,
have been wise provision in the charter The RIG hit of
the Bank to acquire sell stocks special one il must
be done by virtue Of law OF Congress The charter IL
sell provided that part of its capital might be paid i'm the
stock OF the Government and such stock pariculary
might be disposed Oh But the committee suggests whe-
Their this will apply TO other stocks obtained by virtue of
subsequent law OF Congress- unless that law con-
ers the power TO dispose of it, In important loans OBJ
tanned from the Government since the charter was grant
cd the Bank has parted with valuable stock these
cases viii illustrate the point submitted to Congress
:" lille the committee refer 10 the transactions OF the Bank
in the funded debt OF the United States, Tor the purpose
above mentioned, they also have view the presentation
oil the subject TO show not only the of dsposing
of that stock but whether it not contrary to the cx
press understanding with the Government at the time of
obtaining the stocks. For the loan of 81 600 of per
cents made in 1921, and the S5,000O00 of 4I-2 per
cents made in December 1924, there strong nyi-
dual competition at premium for part or the whole
against the Bank yet the Bank had over the
advantageous TO give it TO the Bank a reduced rate and
participate as partner than TO give to individuals at
a premium This was confirmed at the Treasury
Inc President OF the Bank, in letter. dated 18th of
December, 1924, which will be found among the Docu-
menary testimony after saying he had taken the whole of
the $4,000 900 loan at par says sand since we have ia
ken the loan at the distinct ground of our having
The means oil doing IT, il would be advisable in every pen
OF view, not to sell any OF the Florida loan in Boston,
by statement OF the amount of funded debt sold by the
bank, marked No 6, II will be seen that as early "a
June and July, 1925 the year after il was taken the
bank began TO sell this stock, and continued to do So
sometimes at premium, and sometimes at loss, up
TO the 9th day OF November 1929, which day they
had disposed of all but $93925 go, and that too at
loss OF Si,4l 81, notwithstanding offers were made by
cted
by the Government, upon the principle before stated
The document shows that there was between F.
bruary, lS29 and October Of the year. sold of the
S5o0000 Florida loan $l742 26 at loss of SI7 66l 90
For this loan the Committee of there being
any offers by individuals at premium The docu-
ment shows, that between February 1926 and Februa
ry, 1892 the whole OF the 900 900 loan of per cents
0fls2l has been disposed OF OF sl56 7s9 25
Inc premium paid for which, at the time il was taken
was provided for in senannua appropriation Of 500 600
in the report OF the LIST OF July, 1921 before adverted TO-
by these operations vii! be obviously perceived that
IL the bank is allowed to sell stocks acquired by special
agreements with the government secure by specn
laons, all the advantage which the government mpoLt
possess in putting up lis loaBs to tie highest bidder
II not only destroys competitions but takes the loan of the
government from other Individuals who would have given
premium Tor il, and which the government refuses he
cause expects 10 derive greater profit in another way,
but in which it may be defeated by an Immediate sale ri
the Loan and which, the right to sell by the bank ac-
know ledged might have been made directly TO those very
individuals who had jus! offered premium In relation to
The tour million loan OF per cents. of 1921 Mr. Cheves
In his report the LIST Oct 1922 saws sThe our million
loan OF per cents arc longer than any other
stock oil the government the United States and hence
probably this stock valuable than any other stock
oil the United Siaes He also says s'ihc more the bank
can retanoi this stock, the better for the institution In
the whole of which, the committee most fully concur: for
may be mentioned with feelings OF PRIDE that such is
the high credit OF the government lis better than
specie, and would be TO the bank, in any emergency
| precisely the
The committee proceed to mention the 5,b case which
is making donations Tor roads, canals and objects the
amount Of whichis 4,6200O will appear by document
No. Z. Two of the largest these items amounting 10
three thousand dollars for turnpike roads made too al
the General Government had declined TO make appro
prations for s.'ilsr objects.
A question would naturally arise, whether the public
funds in the banfor that institution is expressly founded
upon the principle that il is necessary o and constitutes
pated objects indirectly the officers OF nstit,i-
ton, when the government directly refuses to expend its
revenues on the very same objects The committee have
looked IN vain Tor any authority in the charter TO give
away the money of the stockholders If tie charter
tains the powers by which the bank is act and they
to be strictly pursued there is then grant to make
gratuities for any object whatever
The consequences OF the exercise of such right,
might be iraught with very great injury the s;ockol-
dcrs certainly OF dangerous interference in the rival
tiade OF different sections OF the country perncou,
influence upon the operations of Government.
The committee approach the last ground, hch is the
oudng houses 10 rent or SELL and erecting other
lures in aid OF that object They will merely present the
fact and the law and leave the House place their own
construction upon the
BY an extract from the minutes of the board OF directors
co nmuncated TO the Senate the 18th day OF March
last, the following facts appear, viz:
''Ihc committee the Offices TO whom was This day
referred letter 10 the President from George w Jones
agent dated May 23d, recommending the bank the con-
strucon OF two canal basins and the erection of warehous
es around one q them according the plan submitted nv
him, recommended to the board the adoption OF the follow
ing resolution
"Resoced, That the board approve of the formation of
two canal basins at Cincinnati proposed by Mr. jones' one
oil them 20 be on square number fifty five, (550 and The
other to be en- the square of ground between Walnut and
Vine streets, and Canal and ST. Clair on Court streets
and that he be authorized 10 erect forthwith warehouses
on the margin OF this aforementioned BASIN not exceeding
SIX in number, either in block separately as be
NAV deem most expeden for the interest of the bank
These SIN warehouses built. tits also understand
says the same extract that several other houses have beer
built by the agent at Cncnna but they were
inpart by contributions i'll labor and materials by debtors
10 the bank who had no other OF payment and i'm
part, by direct disbursements accurate statement
OF either their number cost is file The agent has
been Instructed 10 specify these Details in order 10 COM
plctc this return.
In reference to the foregoing the committee boeyo !,
enough, merely TO quote the following provision OF the
charter, to witt "The land tenements and
which shall be lawful for the said corporation to hold
shall be only such shall be requisite for its immediate
accommodation, in relation TO the convenient
its business, and such shall have been bona fde mort
gagged TO it, by way of security, conveyed TO il in
satisfaction Of debts previously in the course of
its dealings purchased at sales upon judgments which
shall have been obtained for such debts.'
IL is possible that the Improvements were in the neigh
borhood OF the real estate of the bank and are made non
the ground that said donations would increase value
that real estate.
This closes the view OF the committee on the subject or
the violations of the charter.