Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-11

ed
OF which there was,
. american gOid, SSf,73i IL
British French and Spanish As POI 80
Silver, 5O5I ssi 40
80 -, -$5 lSi $40 30
9th. The amount of specie drawn from each of the
southern and western Offices since 1920 TO the Bank of
the U. States and Work, marked No 25 shows the
OF which, S2O,925 800 OF has been %
drawn drawn TO those places since the first of
9th The amount of specie, Gin the same statement
sine: since 1919, is $780, 72 10
The premium received on the specie sold is 97it0 5S
The premium paid the specie purchased is 1911
g., S77,o6s II
What profits made on the specie exported the
committee did not call for documents enable Them TO as
certain; it must, however, from the great quantity sent
away, have been considerable.
The committee called for statement of all the specie
imported by the Bank from abroad, since 1915 but
none was returned, they presume none was imported
What proportion of the gold exported, was American
COIN the committee have not before them the means TO de-
termne IT was expected TO have been given the state
mcni; butt in looking into them the gold exported with
out designatory name; it is believed, however, the
amount is considerable.
In examining this subject minutely the committee find
that large amounts oil the specie have been drawn iro
plan II Is the principle depot for goods shin
ped 20 Mexico which almost exclusively pad for in
specie and cannot be expected that will remain there
But the committee suggest whether the withdrawal of
the specie from most OF the other parts of the country
and substituting paper in its stead might not be hpbiv
ton. r
The subject Of the banks furnishing bills of exchange
,o' me T'Ie OF lndia, Chna and South America, has
Occ oIouSht TO he attention OF the committee by doc-
ment marked No. 20; and having been so strongly de-
scoed as aioding great adv antages the country in
inc lehhal report OF September last, as "economSno
the specie OF the country. The committee have el; il &
ty to examine and present the subject to the consideration
oil Congress and the commercial commuuiiv believina &c
uey do that there is something deusve in the operiion
Inc result OF their examination has led them TO The con-
victon that his method OF dealing in bills Of c
Of
all 1t is universal law drawing that funds met
either go before or follow after the draft 10 bopo mus
tuHy; and whether goes directly circuiloisv .,
funds TO discharge 1t must, later arrive at the
place oil payment These bills to be paid in EngIand
but they so round the Cape of Good Hope before hcy
reach their place OF destination. Instead therefore Of
endng the specie directy India and China as former
Goes no, perceive ma! sent TO Eng
land, -9l4 rch these bills arc drawn there
tomeet them upon their arrival the place where thev
are TO be paid! The bank consequently becomes the ship
per OF the specie TO pay lis bills in place of the merchant
TO purchase his merchandise in the East Indies II is
simply and purely nothing but change of the destination
OF the specie with only the advantage Of its going Lon
don.
The mode in which these bills are drawn and disposed
OF to the purchasers, having twelve months rum will
be by copy OF the obligation taken by the bank
marked No. %, the committee consider of doubtful utility
to the country. The legitimate object OF banks the COM
mee believe to be, the granting facilities oanng
ral The supplying OF bills appears even objec.
honable than loaning capial for encourages opera
ton which commences and ends without the employment
oil any capital Whatever and Is similar in their character
to rcspondena securities. The buyer is enabled within
the term oil credit 10 make the voyage dispose OF his goods
and obtain from the proceeds the TO meet his olipa
ton, and the bank 10 transmit the the place upon
which their bills drawn, (Which six months
sigh) long before they become due. II would seem
produce greater export of specie eventually would
otherwise take place il the operations commenced
with specie and not with bills purchased i'm tIe manner
described for the merchant relying upon his immediate
resources would not engage to such extent in tie bust
ness and would combine in the operation much of the
produce of the country; whereas relying upon
sive credit he hazards every ding the the
enterprise. 1t is species Of speculation in trade leading
TO great risks and certainly terminating in oycrtrading
the evils OF which the country is solely experiencing
by loans OF similar character by insurance companies
providing funds for traders China Government has sts
tanned more loss than In any other branches of trade
The increase Of the number Of branches established
since 1892 cannot be passed in silence by the
mee, and deserves, of extended influence Of
the bank the most serious consideration.
In few instances where new branches have been
established perhaps they may have been called for by
the community, and may have been useful TO them and
profitable to the bank but, IN most OF the the
mtee doubt whether they were called for from public
utility, and their establishment will in the end, only
prove Improbable TO the bank but very injurious the
communities among which they are located. Mr. Chcvcs
in letter Of the 9th May, 1919 MIR. Crawford, then
Secretary the Treasury says 81 am perfectly satisfied
that, with the present organization Of the bank
be managed we'll ne haUe t0O MANI branches, and
the directors are frequently governed by iadvidai and
local interests and feelings. For time bear with
the branches, but thope they will be reduced"
Again, in The same letter he observes, "the real and
original evil ander which the country is suffering over
banking This leads to excess in trading, manufacturing
building and the history Of the III Judged enterprises bicli
have been undertaken in these several concerns would
give fall history Of al The distrcsscs Of This country ex-
ccping little agricultural distress growing Of the
ordinate expectations which the others excited" These
opinions fully accord with tie views Of the committee and
they consider them peculiarly applicable the present
time as exhibiting similar operating with ex
tended force from which similar effects must follow aug
menied in proportion TO the increase Of iis branches
The stockholders at The tiennia meeting ON the Let Of
october 1872 recommended Withdrawal Of some Of the
branches hen existing, in those words '1n taking into
view The business OF the bank, connected with is Off
ces The committee Nnk fright TO recommend TO the con-
tnucd attention Of The President and Directors The ncccs-
sy Withdrawing those branches which are found 10 he
unprobable and transferring their funds 10 ic Offices
which shall seem 70 require additional capital" Since
ths PERIOD ire have been DISCONTINUED nine others
have been established, per cnual report Of 1881
Ihcse opinions OF Mr.. Chcvos in which the committee
have concured, approved by the stockholders IA
VIII appear by the following extract from This report
~ l6z2 They say "hcy take great pleasure in unsni.
mousiy declaring that ihe circumstances Of the bank fully
realize their antcipaons expressed az their last meet
ing regard to the President (Mr. ChoycsJ who by his
tacne dntere7cdness, and assiduy, has placed s at
ts ne an attitude safe and prosperous that The bur
Zen Of duty deyoFng upon bis successor will be cOmpa-
''Neiy light"