Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-10-12
~. SOM.
POLITICAL.
TFIonr the GIol,e


THE VETO AND THE BANK.-No VI
To appreciate the character the Bank Of the United
States IS necessary 10 revert TO its origin, and recapitu-
late portion of its history
The act o incorporate the subscribers the Bank OF
the United States became law the 10th April 1916
The second section OF the act enacted that
should be opened at twenty different places under the
charge Of Commissioners and il provided, that in
case more than the twenty eight millions required pr
vae stock should lie subscribed, the of such ex
should be deducted from the largest subscriptions
IN such manner that no subscription shall be reduced in
amount while any remains larger
by the Sh section il enacted, that there shall be
twenty-five Directors five to be appointed by the Pres-
dent aud Senate, and twenty by the stockholders and the
Directors appointed and elected shall choose one oil their
number TO be President.
The il section fixes the scale of for Directors
follows, viz;-"Fer one share aud not than two
shares, one vote; for every two shares above two end
not exceeding ten, vote; for every four shares above
ten and exceeding thirty one vote; for everv six
shares above thirty aud exceeding sixty one vote
TOR every eight shares above sixty and exceeding one
hundrea one vote for every ten shares above hun.
drei, one vote; but person., co-parnershp or body
polite, shall be entitled greater number Than br-
'ty votes Foreign stockholders have vote Noper-
can he director than three years out of four i'm
succession, except the President, who may always be
elected.
Subscription Books opened according 10 law Up
on concentrating all The subscriptions AT Philadelphia
found that there upwards of 80 900 stockho
dcrs the Books but deficiency of 50 OBS 800 in the
amount subscribed The whole of this was taken by
Stephen Grard.
Ia November, 1916, the first election of Directors wa,
held, and in January, 1917, the second
BY adverting TO the manner in which he Stock was
subscribed for and the first elections of Directors
made, and the ohiectsfor which the first discounts were
granted, shall learn the character of this Bank
aud all similar institutions.
The number of original Stockholders, as stated in Pre-
deHt Blddes Report, at the trienraI meeting of Stock
holder: in September, 1881 page s. $3.50 In three
years, appears by the documcn was reduced
10 272o The Mr. Bidle gives Tor this as fol-
lows, viz:
1T will be here perceived, that the original subscriptions
were divided among great number of persons IN order
ito the nj stock desired; but became after
wards n T. me of he
Mr. Bdde here tells the truth but not the tchoie truth
We shall find it in the Report of the Committee of
House OF Representatives, appointed to investigate the a
fairs OF the Bank iii 1919 and the accompanying dOc-
ments.
In our last number made quotations from the tes,i-
mony oil George Williams, Esq showing that he bad sub
scrihed for li72 shares many Names which
he mad purchased al eteUen pence apiece Ichch The
prGchce; and that he had voted the whole l72 shares
sngy at the election of Directors We add several other
extracts establishing similar facts:
Mr.. Thomas Leiper testified as follows, viz:
"At the time OF the subscription he took 100 shares ten
shares in his and the residue in other names
1t generally divided in small parcels by the .ubsc
bers They dirided ia this t0ay 10 affect tie election
See Niles vol XVI, page g.
Mr.. Coulter testified lhlt--
"Jbc Stock subscribed by him was divided as was pe-
morally the case toGfre Hera election but has since
been cOnsoldaed."-B
Mr.. Dennis H. Smith testified that
"He subscribed in his name, aud az Attorney for
snndry persons, but for his sole account for shares at
Baltimore Subscriptions also made by other persons
Tor his use chiefly IN Baltimore and Philadelphia, for up
wards OF 5000 shares. The stock subscribed both by
himself and his agent, was divided from two twenty
shares to The motives for using so many names
TO The stock, and To obtain an Influence at
the election If DiectorS."-D
j. W. NJ CioiiOch testified, that
Gle subscribed for 1000 shares iouily with his bro
Their, Attorney for about 20OO persons and 100 shares
jointly with Smith and Buchanan, as attorney for 1000
persons; these shares actually belonged to himself and
brother and Smith and BucanaD they Uofed upon those
shares by virtue of the power given by the individuals
whose names used; those shares were consolidated
prior to The first dividend, and after The second election
10. page o.
These extracts prove that the original subscriptions to
the stock Of the Bank were chiefly fictitious The use nj
many thousand names purchased 'eeuen pence a.
piece, and by such the is of stockholders wa
made to embrace 81 900 names the real owners of
the STOCK were less han 5000 The fictitious subscribers
At least IS 900 in number.
What were the objects of this stupendous imposition?
They clearly exhibited by the evidence quoted Those
who desired to secure large amounts Of stock for purposes
OF speculation, feared the subscription would exceed the
S2SOoO0OO and that they took all they wanted in their
own ndines they would lose part OF it under That section
OF the charter which provided that excess should be
deducted "hom the largest subscriptions" BY sntscril-
ing for thousands of shares MANY names thev might
avoid This result, all the stock hey wanted and
throw the deduction upon those who subscribed moi for
speculation but Tor the expected profit Of the concern I'm
that respect, however, their precaio was rendered
less by deficiency 10 the subscription.
The second object Of the pecuitors 10 control The
election NJ DWeetors ami form BOdrd Which tCOud be
entirety sU6serUieut their uierrs This uev eaectns
ly accomplished by voting their % 900 fictitious stoc
derS whose names had been bought for eleven pence
piece ny virtue o. pretended powers OF attorney prox-
les. Thus Geo. Williams gave l172 votes on his 'II72
shares subscribed IN as many names when according 10
the charter, he could not lawfully give more Than 30 voe
however great might be his interest in the stock Dennis
A. Smith on bis 1000 shares, probably gave 1000 votes
when he was lawfully entitled 10 but 80. IN the same
inanner Mr. M'Cuuoh gave his 5000 others of
the speculating stockholders their hundreds thousands
ny these votes given iu direct violation Of the charter
were The elections Of Directors November 1916 Janua-
~ 1917, and probably 10 January 1915 decided and
Hoard made To 7it the views Of those who had subcr
Tor TIE Stock 10 ntnes, the OF which was bought at
eleven pence apiece. Let see how the power thus
andulently monopolized by the spectators was used
Tho cinrter Of 'iie bank section 3D. provided fb,t nav
menu" NE f"bscnpion shoud be made follows viz