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

Ase "hSeher - PfosErons " kno c1ntter nad cecn
violated.
I'd Whether there have been any Circumstance Of mis-.
management against which future legislation might
guard, which should destroy its claims 10 further con-
hdence.
On the first point following the example of former Com
mi,tee, making similar investigation without expressing
any opinion such have been subjects mputa
ton against the bank.
These they conceive to six in number and arc
follows:
ls In relation to usury.
ID. In relation to the issuing ofbranch ORDERS as cir
culaiion.
3d. The selling coin, and particularly American coin
18th. The sale OF stock obtained from Government nj u,-
der special acts Of Congress.
9th Making donations Tor roads and canals and other
9th. Building houses 10 SELL and erecting other
structures in aid OF that object.
On the first ground, the President Of the bank refers us
toa satcmcn, marked g. and saysit will cxplan the only
cases to which this description nigh, he considered ap
picabe, two OF them being in which til board re-
PAID the Hmount considered ovccharge and in regard TO
the third application has been made Tor any change in
the form of the original lean" See said statement mark
ed No. I.
disguised loans, and domestic hills of exchange had come
to the knowledge OF the parent bank in whichhe branch
es had received usurers INTEREST," He replied he had
er heard OF any; but made further statement, marked
No. in which he states that the usual custom is to charge
upon domestic bills OF exchange the Of interest and
rate exchange, and 1.-THE united should exceed six
per cent 1t is not usury; and gives explanation said
statement.
On the second ground, the committee will submit
document Number 3, and lis Enclosures in which the
cause and origin Of branch drafts will be fully seen.
The president states, "he inability of the bank
nish the amount OF circulating medium whchit was
tea 10 supply, became apparent at carly period In
year alter its organzaou the directors presented me-
mortal TO Congress, dated 9th January, iSIS requesting
that an alteration might be made in the charter
authorize the presidents and cashiers If
TO sign the notes issued by those branches" Sec COPY OF
the memorial marked in which stated that
much as the 'act incorporate the subscribers of the bank
OF the United States, requires that the bills or notes which
may De issued by order OF the said corporation, shall be
signed by tho President, and councrsgned by the prncj.
pal cashier il has been found 10 SUNNY In
any reasonable degree, the required circulation from the
bank aud its numerous offices OF discount and depoc il
Is therefore, asked Of Congress permit the presidents and
cashiers OF branch banks sign and issue bills The pre-
silent states ihe subject resumed by another memo.
rial, dated November 9th 1920 sSee copv of the meme
rial marked g. 6, in which is stated u,or the charts,
IT has been doubted whether the bank has power TO au.
hozc the issuing OF notes not signed by the president
and counersigned by the cashier. The labor and the
time necessary 10 notes for the bank and all s branch
es much greater than either of those officers can bc
STOW upon that object and hence the bank has una
bic TO put circulation sufficient amount of notes of IN,
Smaller denominations which the public most want and
which IRE best calculated 10 the interest of the
bank. - then requests that power be given tn the ma
rent bank 10 appoint one persons sign notes
the smaller denomination, which acted upon
The President states the appication again rene
ed and select committee OF the House of Representa-
lives, reported in favor OF allowing the appontment OF
gncrs, the 27t Of February 1923 but there was No
action of the House upon H." he refers us TO spam
phet, vol. viii. No. Ia.
On tho first of December, 1926, the President was in
ucted TO endcavor 10 procure the necessary change
He says, she reported on the 9Th Of February 1927 thai
no action on The subject would take place at that session
OF Congress- and accordingly, the referred Ia
The committee on the Offices" See Doc. Sc.
lie adds, 'thc opinion OF Mr. Bnney Dir. Webster and
MT writ, the Attorney General taken the subjec
of issuing branch drafts" See Doc. g.
On the 9th OF April, 1927, the following communicates
was made TO the board Of directors "Ihe committee on
me oiccs to whom referred, the 23d of February
last the report OF the President of the bank stating The
unsuccessful result of the application 10 Congress- 70,
/ wi icl n,,lI
nature OF notes by other persons than the President and
cashier report that, in various parts the Union but
more especially in the Southern and Western sections
ere Is constant and unceasing demand the Offices for
the smaller denominations of notes. which il is impossiblc
TO supply They therefore suggest that the ssdscount Of
hcers should be instructed 10 draw checks
OF The bank Tor smaller than they hitherto
in the habit OF furnishing In order TO save the labor of
preparing such checks the Offices as well for the greater
security oil the bank and the community il has been
deemed best TO prepare the blank forms of uniform an
pedrdnce and to distribute them from the parent bank
such forms have been accordingly revised, and are now
submitted TO the board with the Recommendation of the
committee, that the experiment be tried and if found use
u 10 the community, be permanently adopted See Doc
g. c..
The document marked4 d. lisa correspondence between
the President OF the bank and the Secretary the Treasu
ry,on lie character OF these bank drafts which has already
| been printed and submitted to Congress-
The paper marked 5, T., contains instruction. n t,e
banks as 10 the issue OF branch orders. On the 2lst
oil Api, 1927 the cashier Of the parent bank writes
circular 10 the respective brancbe informing them among
other things that the directors have "deened it best thai
vi "H UHDOJm appearance should be
WIN s6H and care at the parent bank, and thence ds
puted such OF the southern and western Offices As seem
stand most in need OF Them be able best 10 employ
them useully. Enclosed send you specimen of the
and $40 blank drafts adopted. After being numbered
reGised and appropriated here certain Offices supply
oil them will be forwarded as possible with instrnc
tons 10 the cashier OF each office have every four hun
dred drafts IN succession and they may be wanted fill
lea III the order oil some officer of the branch by
whom they must be endorsed cnghwse and about The
middle oil the draft payable bearer before thew be sign
ed by the president and cashier. When completed thew
are 10 be furnished to the customers of the bank or other
persons VINO may wish 10 procure them The entries
speeding them, both here and the branches are ne
Io e0Teence SAKE TO be analogous TO those of branch
notes Iheirreccip denomination of branch drafts
Isl he similarly acknow lodged by the cashier and in d
pcde through the respective presidents They are be-
sides 10 be reported OH the weekly of The office az
| branch draft paper received. used, and on hand
And whenever they may be transfer between the Off
ces, must he noticed the foot OF the statement like
other packages" ~
On the 9Th of January, 1884, resolution passed the
board 10 issue drafts of the denomination of 20 oarrs
these branch orders, when discharged by the parent bank
are again re-issued by that bank when it has no small
notes oil It's own The paper marked 6, +, contains a
statement OF the amount Of branch drafts issued nm hand
This table 1t viii be perceived that $40 7S 635 have H.
sued $3,371 5l4 hand and S74O OSO are in cir
culaion " -
The foregoing is succinct history of the issue of
branch drafts Wheher be justified under the char
ter oil the bank, the committee will the better
Judgment or Congress
The third is the selling COIN and particu,arIv
American coin. The attention of the committee was
drawn 10 this by the fact that the General Govern