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

PIyTVUIs on NVVOUnI oil Inc Governments; and they
gradually approach that period they also shorten the
period which the business paper has TO run until ev ar
rive at the time the call from Government is made upon
them, when the business paper will have paid Off the
bank then pays the Government and the Government
Immediately again c culates it among the community
me operations as thus described, appears 10 the
mittec too plain and simple require any further iusra
on and II the principle is sound and has been acted up.
by the bank they cannot discover in what manner the
operations OF commerce could have been disturbed or the
Nue OF pceuary investments have been affected by the
payment Of the public debt by the Government.
Du the bank has, as the public revenue has
mulated TO the credit of the Treasury Departments gone
ON discounting upon it, loaning out srcgarne the
period when they would be called reimburse it, the
committee readily perceive that when that order ar
rived, they would be found only deficient i'm prepara
non but In a state OF surprise, and that the payments
would first ombaraSs the bank, and then lead il press
ana embarrass the commercial community.
From the observations made, aud the examination of
documents during the course of this investigation, the
committee have strong appehend that the course
pursued NY e oahN has been upon this latter principle.
Ii So the bank has incurred high responsibility
Inc committee believing the subject of the late post
ponemcnt oil apor,en of the per cent stocks intended
as they understood, TO have been paid ON the s of July
Oy The Government, TO be within the province their in
quies; and believing, ALSO that il had strong connectio
WIN Tie present state and situation of the affairs of the
oak and for the purpose of enabling them TO form cor
rect ana true opinion upon that subject they made call
upon The President OF the bank for the correspondence i'm
relation 10 The postponement OF that ymen the follow
ing words; ""il you please give a copy of the cores
pondence connected with your application in March last
requesting suspension by the Government of the pay
mcnt OF portion of its debt intended have been made
on INC LIST July next or statement of the arrangement
made IN relation TO that subject" Which
was communicated by the President OF bank with the
following remarks; 81 have made application the Co
vernmeut, have requested any SUSPENSION of the
payment OF any portion OF the public debt"
Inc inquiry suppose, relates to this circumstance,
received letter from the acting Secretary of the Trea-
sury dated the 2lth March, 1892 informing me that Co
vernment was about TO issue notice ON the lst of Apr
OF her Intention to pay on the LIST of July next, oncha
oil The three per cent stock, and by paving TO each
ocN-ho!der one hall OF the amount OF his certificate
He added,
IL any objection occurs to you either to the amount
or mode OF payment, will thank you to suggest it,
Thus invited by the Government TO a communication
marked confidential, TO give my opinions on a measure
contemplated by the Government felt it my duty TO cx-
press my views of its probable operation; in nv reply
therefore, dated 29th of March, stated hat SO far az
has HSeG nece 20 s a 6e%
oil funds in the bank to make the contemplated payments
hen proceeded to observe, that in te present situation
OF ue commercial community, and with very large
amount OF revenue, (amountng TO nine Millions to be
paid before the ls of july the debtors of the Government
would require all the forbearnnce, all the aid that
could be given them and that the payment proposed by
creating demand for the remittance several millions
oil dollars TO European stockholders, would tend 10 dmin
ISM the usual facilities afforded to the debtors the Govern
men and might endanger the punctual payment. For
TINS reason thought it for the interest of the Government
TO postpone the payment till the sxt quarter further
stated that the plan OF paying each stakeholder only
hall OF his loan would be acceptable as if his whole
loan were repaid at
"Having thus performed nv duty in irving the oninion
aAcu' eH H. OF course, 10 the Government decide On
the part OF the bank sought nothing; requested moth
i'S' weighing the circumstances the
TIe ucsfous oil adopting the measures but the difficulty
understood 10 be his that the sinking fund would lose
Tie quarter interest from July October of the sum
intended TO be paid in July and that the Government did
not feel itself justified in making the posponemen un-
less thatnerest could be saved but that would be made
provided the bank would make the sinking fund whole On
the Isl October To this said, that as the bank would
have the use OF the fund during the three months would
consent 10 the sinking fund harmless bv navin The
three months interest ITSELF and the matter stands
Now, 1t will be seen, that the bank, in all this has had
ou 'ne le1st agency except to offer its opinion, when
was asked IN regard 10 measure proposed by the Co
sure into operation
The Committee cannot discover any ability which the
% possesses or va" possess, 90 give increased aid 10 pub
nc debtors ia the pay of the fine millions of collars
iIE oue Gas IS s4iJ - Inc quarter ending with the LIST
of9u4 bulsen The contrary, they believe that such is
the situation Of the bank now and such will be The de-
quire the aid of all the accumulated collections for the Co
Vernment, TO sustain itself The nmiitee fully of
oplnon that though the bank neither Sought for nor
'requesed," pogponemen of the payment bv the Co
vernment, as stated in the declaration of the Presidents
yet such postponement had been made the bank
would not on the LIST of July, have possessed the ability
have met the demand without causing scene of great
distress in the commercial community
The committee unable TO discover i'm what manner
the bank could afford aid TO the Government carrying
mo effect Inc measure they proposed which the President
OF the bank, in his remarks speaks of having procred TO
them All that the Government could ask OF the bank on
st oil July, or at any other me would be- pay over TO
them the amount it had collected for their account when
they wished TO employ 1.-THE a principal would
can upon ms agent TO pay to him moneys which lie had col
lccted for his benefit.
by document marked No. 3d. it would appear that on
on the 18th day OF March last the bank aware of the
intention OF the Government 10 pay OIL during the YEAR
great portion of the per cent stocks; and the subject of
making an arrangement with the holders, that day,
referred by resolution of the board as follows:
ReSOiUed That the subject OF the communication inst
made by the President, be referred TO the committee of
exchange, with authority TO make behalf of the bank
whatever arrangements with the holders of the pcr cent
Stock oil The United States may, in their opinion best
promote the convenience of the public and the interests
OF this institution.
This proceeding the part of the board uenrIy f,co
UeehS before they officially informed of the intention
the list of july demonstrates fully to the minds of the
committee, an acknowledgment the part of the admins
raton OF the bank of its inability to meet the demands
which the contemplated payments Of the government
per cents would bring upon it, without producing the dis
ress before alluded TO-
In lcterto the Secretary of the Treasury from f,e
President of the bank dated the 10Th March 1892
No. 40 is the following:
"Owing TO variety of causes but mainly TO tho great
amount OF duties payable for the last few months there has
been pressure upon the mercantile classes who have
been oDged TO make very great efforts to comply with
her engagements tothc government That pressure still
continues and may be prolonged bv the same cause
inc amount oil dates still payable during the next three
mon'hs ms state OF things to recommend all the
Orbeardnce and indulgence the debtors which can he
safely conceded. The Inconvenience then of the pro-
posed measure Is, that the repayment of six or seven mill
lions OF dollars more than half OF which is held i'm Furone
may create demand for the remittance OF these funds
which would operate njuriously the community and
by abridgng the facilities which the debtors of the
meh are IN the habt Of receiving from the bank NAV
endanger tie punctual payment of The revenue "a the
bank would necessarily he Obliged 10 commence early s
of public debt.