Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-10-12


lars on each share in gold silver coin as aforesaid and
twentyhv dollars in coin aforesaid in fund
ed debt avs aforesaid; at the expiration of six calendar
months alter the time OF subscribing there shall be paid
the further sum OF ten dollars each share in gold
silver coin aforesaid, and twenty five dollars in
coin aforesaid or in funded debt aforesaid the
expiration OF twelve calendar months from the time OF
subscribing, there shall be paid the further sum Of
ten dollars each share in gold silver coin aforesaid
and twenty five dollars more, in coin Aforesaid ia
funded debt as aforesaid"
The first instoment was paid in July, 1876 and the
cond became the Odd january 1917. The specie
part oil the second ns,aent was ten dollars each share
and specie at that time at advance being in great
demand Tor the China trade, at about six per cent IL
obvious, that individuals aud companies
had taken from thousand shares each could not
without Inconvenience aud loss, raise the means TO pay
the second insiainent. They therefore hit upon the
table plan CT borrowing from the Bank itself, upon
pledge oil stock the money that to be paid into the
Bank as capital, 10 enable il TO commence operations
Having entire control of the Directory they found diff
hcuy IN accomplishing this sagacious design. Accord
ingly, the 18th December, 1916, they procured the
passage OF resolution, that the Sst inst the board
VIII proceed 10 discount notes bills having not more
than sixty days and made payable TO the Bank
the United States, secured by deposit of an equal
amount OF the stock of this bank, on AN equal
amount IA public debt at ninety per the par
value thereo with power to sell and transfer the said
stock cr debt in default Of payment, of the notes
which may be discounted aforesaid" sc. This
power was extended TO the branches at Baltimore New
ork and Boston. On the 9Th December an amendato-
y resolution was adopted declaring that these loans should
be made yer The accommodation IF The stockholders er-
cfus,ceiy and to the amount 0f their respective pro-
portions OF The payments ia coin, account Of The
second n'Stdtment efthe capital efhe Bank"
The plan OF making discounts was continued beyond
the uhe hNed Tor the payment of the second instancn
and The notes were authorized to be renewed In Nav
lsi1 discounts upon pledges of stock were authorized
pay the thrd Instanen for any other purpose. I'm
letter from the President Of the bank TO the branches
he says
t not intended from the subscribers the ac
ua payment OF the specie proportion i'm coin proyidel
ney tender you an equivalent the notes OF
bank or any OF its Offices, which may then he paya-
% any hank in Il,
known to pay its notes in specie demand
IN August 1917, discounts on stock authorized a,
Sl2o per share OF 800, with two endorsers who were
held responsible only for The excess OF S25
By these devices the Spectators evaded the payment
OF he specie proportion OF the second and third instruments
wch was cNacted from the less adroit and knowing
holders By granting discount pledge of stock the
oank became their debtor and placed the amount 10 their
credit Their checks then taken as equivalent IN
specie in payment of the instruments They no, only eva
ded the payment of the specie which the charter eour
ed them to pay, but actually drec out and probably sold
at PREMIUM portion OF that which had been paid in by
the other stockholders! The specie part of the first in
salmen paid i'll july 1916, was 81 400 900; the specie
part OF 'he second lnstamen which should have been
PAN w January, lSlI, was 2SO0,000 What amount of
specie was actually paid ill., be ascertaned he
cause he spectators checks given in payment of tho
second nsalment entered cash But by the do.
cuens appended TO the report OF Committee i'm
appears, that the last day OF july 1917 after the
etu ns,anen mad become due the specie on hand
ohy 81, aud the discounts OF pledged stock had
been SSOi6,932 At the time the public deposits
were 1Io6il 26 and the private deposits 50 o23, 1877
"
At this time the third nstament The spec;e
OF which $1,000 OOO was paid or ought 10 have been
nc specie portion OF the three instruments il paid i'm ac-
cordng TO law, would have furnished the Bank with spe
Gle capital OF seUeH millions IF dollars and that sum at
easI ought to have been in its vaults the 3Is JuIy
loio But the Third instament, like the second was chief
paid by the spectators checks drawn the discounts
made upon pledges OF STOCK and il is doubtful whether
more was not drawn out such discounts was paid
III by the other stockholders. Thus bank lett with
'co millions of specie, when ought have at least sepen
independent OF public deposits
ne spectators oresaw the consequences of thus evad-
ing TIE payment OF the specie nsamens and took stems
10 avert them As early the Goth November 1916 the
following resolution was reported the Board of Drcc-
tors, viz:
"RcS0iUed That this Bank will pursue prompt and eff
cent measures toimport into the United States from Eu.
rope sum in specie exceeding FIVE millions of dol
lars '-.NileS, XIV, 1856
John Sergeant then of the Board and now the
bank Candidate Tor the Vice Presidency, sent TO Eu
rope as their agent, and the 10Th March, 1917 by
pledge OF the United States six per stocks belonging
to the bank, contracted with the Earrings for loan of 81
i9ooo 10 he advanced in specie for importation int the
Ohlted STATES, for the OF the Bank In pursuance of
s ana other arrangements the Bank imported from the
goth OF july 1876 to the 9th December 1918 inclusive
the sum OF SILL $50 So at aggregate expense Of
1926, 29S SO. 90 r "
In this the spectators supplied the deficiency
CURED by the charter They only evaded the paw
menus Dut actually drew out portion of the specie paid
IN by the honest stockholders and threw upon all
me Sockhodeis The whole expense of those imports
specie which their own frauds had rendered
ne government owning of the stock had 10
bear one seventh of the expense, amounting TO SEVEN
lf-FlNE THOUSAND FORTY-TWO DOLLARS =
This was of the first drors rendered by the Bank to
the Government
In our next number we shall resume our history.