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

ing with the natural OF the country, great suengs
TO the community would have been avoided.
In the year 1919 great abuses existed in the branches,
OF which Mp Chevcs speaks without reserve, his last
report the stockholders as well as in his corrcspon
dence with MIR Crawford, aud upon casting the eye
the monthly statements il is remarkable 10 observe what
losses have taken place at the branches compared with the
mother bank For instance: onthe lst OF January last
loss OF the mother bak, capital osixcen millions and
half was in round numbers. 32s, O00 that of the Ba-
more branch was, 81 622 600 on capital OF one million
and half so that it lost more than its capital That the
Norfolk branch Ss229. 0GO. ON capital of $500 600
losing nearly halt OF its capital and with all the rest
OF the branches their losses OF all proportion TO
their capital and ten times greater than the mother bank
according tothe amount OF their respective capitals These
losses, however, principally incurred prior TO 1919
The proper Inference 10 be drawn these facts is that
The worst OF nismanagcment has existed in the branches
The Contingent Fund has claimed the attention of The
committee The object for which il was originally crca-
ted and the original provided, together with the
additional appropriations which haze been made to it, and
The manner in which the have been applied Mt diff
erent periods, will all be explained in the following docu.
mcuts
The report of tic board of directors in Jnlv 1921 ph
shed the gazettes at that time marked No 2s the re-
port OF the stockholders at the ennia MEETING in Ocobn
ISIS The report OF the Dividend Committee on the 18th
January, 1915 Marked No 20; statement OF the partic-
lars othc debts ''cousdcred LOST marked No 30 stale
mcnt OF the suspended debt and real estate with the pro
bable loss thereon, marked No 81 the statement headed
Contingent Fund" marked No 20; the sales of the for
leed bank stock marked No SO; dividend rcports
for July, 1929, January aud July 1880 January and u
1871 marked NO 81 10 these the committee refer for
the particulars OF the subjects which they relate in
connection with the ''COnfingent Fund
The committee feel it their duty now TO oive ,bo;r
views as 10 TIE causes OF the present distress in the ira
ding community, and which they fear may greatly in
crease III Is an acknowledged principle that like causes
an al cases produces Ike effects; and as i'm 1910 con
traction followed The expansion of 1917 and ISIS so b
'o sam. RUE must contraction follow the immense expai-
sion oil 1881 and 1881, and like effects consequences
succeed To illustrate clearly the position and brine
nome 10 me minds OF every one, the following table Of
me state OF the Bank during of the months of ISIS
10, and 1881 and 'S2, here exhibited embrocng tc,
from which direct calls upon the i,,acord and o
immediate means which remain to meet them viz: The
alb
permanent loan. The second, the specie funded dcbi
and notes OF other banks the amount of each vim bc
toned ~ ~
The preceding table shows that, at no period in 1919
When The bank was very suSpcndng payment was
less able to extend relief suffering community than n
the present moment In April of that year. the month
IN Wch It's dncmcs the greatest its means of spe
Ge, notes oil oher banks, and funded debt (Which could
nave been turned into specie notes of other banks
amounted 10 upwards oil ten millions of dollars and the
MHoIe ueihahdS winch could come against it in the same
MONTH OF circulation, deposes, and debts owing abroad
amounted only to about fourteen millions. But the
committee ieel houhd, in candor, state, that this
was alter number OF months constant contraction NOT
only by the Bank OF the United States bat also bv most
OF the other banking institutions of the country where
general exhaustion had been produced II was the G
April, 1919, that Mr.. Crawford, then Secretary of The
Treasury, writes to Mr. Chevcs thus ..I - y ~ ,.e
u Whcthefl Is practcable with all the eXerons which
Il Is IN your power 10 make, continue specie pavments
through the year" Under the date he saws: CIV
impression l., that the safety of the bank can only he T
Icc'eI by Withdrawing nearly the whole of IFS p9pcr in
circulation II the bank does this all other solvent banks
pfIp oil
ana SILVER WA be introduced into the country and
make substantial part of the circulation and enable the
Dag institutions gradually to their accustomed
operation whist TINS is cfectng the community in all
lis relations will be greatly distressed Considering the
extent OF The suffering is greatly desired that Some
good may result from it,
The Committee believe that the course of operotions
by the bank, during the years 1880 and 1881 have been
nearly OF similar character TO those of b. years 1917
and 1918. Drafts and notes PAYABLE NJ distant No.,
hcn freely discounted at the Bank of the United States
anu me ai1eTent ohlees Bank issued by the
X. IN tl.e, q.
the effect upon the circulating medium which became
and until the reaction had operated cck them led 10
eNtravagant specuatens, which i'm ruin: and relief
was not obtained until the circulation thc Bank of Inc
States had been reduced TO about 1000 cTT 81 T7I
b fore ibis nPiisied the cTpc Vas ted
to- OF curailing loans and, while they were doing at
they continued the issue of bank notes thereby coninu
ing the evil which they were striving TO avert.
What is the state of the bank nowy
ON the LIST OF March (see monthly statement, marked
notes Of other banks, and of funded debt none making
aggregate OF $3.50 0O0 meet its circulation Of 23
III 900 dcposes SI7 $50 600 and ioeiqn debts oSyn
8 SF6OOO, making aggregate of l2 6i3 900: and this
ev exists while reaction contraction is operating TO
a considerable extent.
and Is evidenced by the following circular which indi
Gates, beyond all doubt that the bank had traded
CIRCULAR.
BGnb Qfthe United States Oct T. 1891
. SIR The unusually heavy rembursemcnts of six mill
hons oil funded debt which the st inst advertised
ny the Government to take place the st and I'd days of
January next but which, according subsequent notice
from The Treasury Department. under Yesterdays
may, II appears, be demanded Of r bank by the public
creditors at any period OF the present quarter calcuat
ed TO press very nconveneny upon the and
upon the Office at n ork; the more so from our
as to the Time when the necessary provision be made
and from the prevailing active demand for money. BE
pleased, therefore, 10 shape business immeate
rs taI without denying reasonable accommodation TO your
own customers, sacrificing the interest of your office
you may throw, early possible a large amount of
available means into our hands in Philadelphia and New
ok, and at the time abstain, as practicable
from drawing upon either of those points checks and short
drafts on the local banks, and individuals will prove
acceptable for months TO come and
whenever direct claims Of that kind on those two places
are not TO be procured You might materially aid us bv TAX
ing drafts upon Tie large cities TO them.
am, respectfully, your obedicnt servant,
w. McILYAINE, Cashier
Addressed to the Cashiers Of all the Offices
Since the 1st ofSeptenbcr last the bank has diminished
its means TO meet The demands which may come upon it
First. he whole OF the funded debt which
it then held, $3,107 ,6sI O6
II Then held, l1,5I5,116 81
And the amount il possessed on tbc lie,
April, 5799 1853 63
$I,745. 1862 SO
Making aggregate dimnuon Of its means 10
momentary demands since the 1st of Septcnher of
SS2i3,Oi" o. whilst during the same period those de-
mands have increased Stl07,S7l 5 viz: the circulation
dcpo,te5, and foreign debit The aggregate of which was
on the ls September $3S 1852 1853 g. and on the I April
Sl2G5O,63O IS. The aud the effect appa,r 10
counting of domestic bills and drafts payable at distant
branches, The amount being the of April per month
ly statement, S2O3ji7lS TO- The orders for curiailno
1 the western branches. aud the curiailing