Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-22

And the property owned by the applicants AMOUNT
cd 10 5000.
Making asOoo
" hiie TIC whole amount II the debt was $4,000
Leaving an excess of 10000
That hey had been deemed worthy of credit in ~ York,
appeared from two facts.
l. That the BANKS of New Fork had lent them Si5 900
which they had repaid
? That the respectable mercantile house of J. L. s. j.
Joseph & Co, firm well known 10 the directors had
lent them 100000, which had been repaid out of the pro-
hts o. The establishments those gentlemen themselves
certuy IN document accompanying the papers.
Finally they had no accommodation, direct indirect,
out o.; any bank.
The stood thus: Here erc two person, Of skill
Her profession, engaged ia establishment of which
The capital is 65 GOO
The gross income, GO75D
The expenditures, az O0o
And the nett i;comc % 100
In conducting such business, where The receipts are
semi annual tie payments daily and ecklv they naturally
require, like other menin business credit They ac-
corlingly apply 10 borrow $4,000 They wish to bor-
row IT, not 10 pay previous debts not TO spend objects
nnconnecied with their business, but for the purpose OF
employing it all in way increase profits of the con-
Germ Itself BY procuring press aud charging their
means ct obtainins early commercial nonaon and thus
make the paper more valuable.
Now the statements may be presumed to present the
favorable aspect of The case from the sau,uno lem
per in which prone TO estimate their own profcs
sons and prospects and yet unless they were wholly E
further justified by the event. for when the note fell due
g GOO were paid OF 1T time when tie demand for money
induced many other debtors to ask for removal Of their
notes.
80 much for tie loan Of $4,000
The other loan rested on the same principles the
irSt, with this addition The parties stated that owing To
me part which they had taken in regard to the Bank they
had been deprived Of their usual accommodation in their
business Whatever might be the reason the fact OF an
ahdenent eli these facilities furnished for
ding the loan in addition the belief Of its saetywhcls
was that by doing, any hazard TO the original loan might
be prevenied and the best evidence OF its security is that
The parties hare since Tepa;d the loan.
In regard TO the other loans, which appear in their
names they rcfs S,een 1eiuoW any knOtciedge Of their
n IlaaNrt
request Of person of undoubed sody which has been
proved in the most decisive wayby The actual payment OF
the notes That they intended 10 aid Mr. Noah the drawer
we notes. IN purchasing share IN newspaper,
ted ut the fine. But that formed objection to them
He borrowed money thousands borrow money every
day. 20 employ In ms active business If Mr.. Noah him
self applied to the bank for loan buy share in news
paper and the security was satisfactory the purpose of
ihe loan have made no diercDce.-Nnc tenths of the
loans made OF the bank, probably, to persons 10
buy something or to pay for something already bought
Men borrow money 10 buy a share in a ship-a share in
carCo-a share in ban:--a share in n ca,al-yhy not
share in a newspaper? The bank had no difficulty about
the Loan because il was thought secure, nor about the OH
ject, because that not the OF bank IL
does Inquire and does not where its money goes
rs only anxiety is, that should safely back; and
whether IN the interval il is employed By merchant or
takes cOgnizance.'
In respect to loans, gueraly 10 editors Of newspa
PsiS tlc bank proceeds Oh the principle of knowing
class oil citizens and prescribing Even with this
rule, it, situation in regard 10 such loans little peculiar
FROM the nature oil their occupations, editors engaged
me discussion of matters of national concern have gene
rally expressed opinions il regard to The bank and tLcr
dealings with the bank render it difficult 10 eecapc-
When editor friendly the bank APPLIES for loan if
IT IS granted is asc5ed 10 avor7m; il is refused the
party naturally thinks il ingra;ilule VIXEN an editor ON,
posed 10 the bank applies for loan, il is granted il ID
deemed an attempt 70 influence him; while if it is refused
IT'S called persecution Of his free opinions
hc bank has cndeayorod in these matters rather not to
deserve rcproach than 10 escape il.
in reply TO hat part OF the question which relates 10
ponies believe That il in granting the loans in question:
there was nsemhly blended with the mere business con
sidcIaons any political feeling. was probably dis tlat
charged, as the bank h2bi;ualy is, with hostility TO tho
present administration, II due the interest of the
stockholders TO correct so unouuded Impression when
lar opportunity occurred Of giving accommodation 10
those who considered as the mos, slrrnuou and on
Gent supporters of that administration Tho directors If
the bank understand too Exile CT the subject TO atcnpt TO
a9ust me balance OF accommodation 10 political parties
nor have myself had curiosity sufficient 10 no
lice IT. until the inquiry OF the committee had suggested
H. But undoubtedly, The committee cannot fail 10 per-
cvc ny lar The greatest of loans editors is the
trends OF the present administration and large portion of
mat 10 me decided opponents Of Tie bank"
All The directors wh no examined testified That tIcv
granted these loans under The full belief t1i tbrv ,ycr
sale loans; and Mr. Cope gentleman of intelligence and
high character gave the following explanation of tho
views ana motives by which he was governed in voting for
the second loan of &l5 900.
"Documcnts" said he "wcrc exhibited 10 the commit
zee containing tacmcn OF the names OF the parties TO
G note ny Which hcy appeared TO be worth about $780,
WOV %i'h prosperous business, and large subscription
h' The loan made, other loans a re made with
ont any regard 10 the politics business of the parties
but solely because the business the bank 10 lend
on adequate security
81 was well aware az The time that they verc parisan
printers, and knew thati we made the loan it night ho
a'crihcd 10 improper motives, and that IL we rejected it, il
might he said prosecuted the individuals on account of
their politics."
Such are tic grounds upon which the directors granted
these loans to James Watson Webb & Co.
u will be readily perceived hat the directors Of the
bank were placed in very peculiar circumstances by uis
application They bad been accused in various quarters
oi having brought ihe power Of the institution TO boar upon
me PoIcs Of ie country, aad particularly with having
'Hcn s1cs aGainst itc present administrations Having
"N"Ilaly P rsucd course in their transactions Which
recognised no distinction Of political parties il was very
natural mat while lahorng under Inc mpuaon lust STA
cd they should have been sclupuou 10 avoid giving INV
color of foundation for IT,
As the evidence and recommendation produced sails
ned oil ihc directors OF the safety Of the loan they could
not hut ieci ha ID they refused grant IT, they would
give counenancc 10 an iupuaton which they were lsu.
dIbly anNious TO avoid.
II is proper { add tha James Walton Webb & Co. in
their paper the Courier and Enquirer had declared them
selves u favor Of renewing the charter Of the bank some
months before TIC application for their first oan and that
they stated 90 the directors, making application for tho
FIRST loan, that tho bank of New York had cut them Off
from their accustomed facilities, they believed I'm CON
sequence OF their cpou>ng the Of the Bank Of tho
United States.
II is 1iso proper 10 add in this place that the loan of
SlI975 which made in March 1881 ,y5 no, loan
70 webb and Moab 70 either Of them The money va.
borrowed by Sas Burrows Of great fortune upon
hs own responsibility, without the knouyedro Of either
webb OF Noah They both testify that they had mover
been apprtscd that Mr.. Burrows bad obtancd This loan
from the bank until lima