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

the committee fear for the expansion has been so Great
that the contraction which is in operation cannot i'm
the opinion OF the committee, be eectually checked or
controlled, without necessary cuaimen of discounts
The bank possessed the ability sustain itself without
curtaing lis discounts the falling due he pre-
sent quarter might be collected aud facilities grant ed du
ring the time upon the principle before pointed out TO the
commercial community, and disbused again by the Co
verhneht without any Inconvenience being caused by
the operation But such ability committee are well
saSeu me bank does not possess, it present
command Besides the diminished means of the bank pre
Vosy auded TO- through the loss of five millions of its
specie ITS foreign exchange and other resources one of the
great difficulties under which il now labor i'm paving tho
public debt is its being compelled to receive The pnbc
revenue in the Atlantic ports in a currency TO wit branch
notes and drafts of the western offices moi nr3n ,;
Die, ana TO pay the public debt in current money
without a large abidgement of the usual accommola-
IONS winch Wi Oh course, greatly distress the
W me committee are under the strongest conviction that
1t Will be little better able meet the pressure the Co
vernmcn payments will cause, the of October than
they would have been the LIST of July The words or
AR. Crawford in letter dated 9th of April 1872 to the
President oil the bank the committee consider peculiarly
appropriate here TO introduce. Civilizations may prolonS-
he existing embarrassmcnts, and by exciting the hopes
ana Tears OF the community, aggravate the existing evils
but cannot influence the final result
In another letter, dated the 9th April TO the Same
gentleman he says: Banks in order TO secure specie nav
nehts must approximate their circulation and individual
deposi'es to sum justly proporoned to the amount of
mem IN precarou state and postpone the period hen
banking operations can be safely pio,ecuted non
principles.
When an institution with investments amounting to IL
millions, commanding the foreign and domestic Exchange
Vi e country monopoiizing the Government deposites
cannot at the moment when exporting our annual
crop oil cotton, amouning by the admission of the Pre
dent OF the Bank TO 20 millions dollars (ut really near
oo) transfer lew millions OF its funds abroad to pay the
Government debt without emblrra ssn its operations and
seriously distressing traders, not reason to believe
l Its business has been too much and too rapidly extend
cd.
In the late letter of the president the bank to the Sc
cTetay oil the Treasury of the 18th March last there is
inc following postscript 'As Illustration the effect of
the measures have suggested, | may mention that i'm
the month of February last the collector OF New York
with aaudable anxiety TO protect the public revenue APP
Peu 10 e Dahk 10 authorize extension of loans in that
city, in order TO assist the debtors the governentThs
was promptly done; this slaeuld desire do again. as
the payment TO the government during the next quarter
will be very large
0Pon reference to the weekly statement of the office
fS so Ap ss Of a."
but on the contrary, they find that there has been re-
ducuon in the amount, viz the the 10Th Feb
rary being less than on the I'd, and the Sh DAYS of the
same month and 1000 less the 18th day of March
than on the 29h of February previous.
BY examining the statement No So it will be seen that
inc total amount discounts at the New York branch
tween the 4th OF October, 1881, and the 18th of March,
1857 were actually diminished $685. All IL, while during
The same ne the bonds paid that port amounted to be-
tween nine and ten millions of dollars
The committee in order to ascertain the precise manner
IN which the annual election of directors has been
ducted called at an early period of the investigations for
the following document, viz: ga statement of the mum
her OF votes given at each annual election of directors
since that of 1929 the whole number of votes given the
number given in person. and the given by proxy
and in the latter by whom;' which statement was
not furnished the committee, but the statement marked
No Al, furnished. This shows the whole number of
proxies TO be 1888 of which the president holds, exclu
svey i36, and trustee ia conjunction with Others
l,oSl winch gives him, without intending 10 impugn the
exercise oil the power decidedly preponerang control
IN the election oil directors power which
.einPiaed by the charter; so far from it, that instru
ment as well as subsequent laws passed by Congress-
nave sudousy endeavored 10 prevent the very mischief
"hich us accumulation OF proxies in the hands o
one person is most obviously calculated TO produce
le charter has limited the othe largest stockold
er no matter what may be the number OF shares to the
number OF thirty, clearly with view prevent the whole
affairs OF the bank from falling into the in
dividuals Its power an engine TO be controlled bv
one man alone and this must be apparent the good sense
oil every one yet Notwithstanding this restrictions by the
use OF proxies individuals, with little immediate
teres can perform what those possessing direct and
deep interest are prohibited from doing. Connected with
rms subject there is one which ought so unnotied
some years past appears by the list OF tors
NO ~ there have been but twentyfour the president
oil the bank holding the appointment from the Government
and the stockholders at the time.
he committee cannot pass mentioning the subject
OF the sums paid for printing BY reference statement
furnished Inc senate, In March last it will be seen, that,
tromhe period of the establishment of the Bank after the
year l9 up to the year 1929, the paid for printing
III any one year. has not exceeded 1857 49, and in
years, IT has been reduced low 1924 and S65 80.
But IN 1880 the amount ssweed 10 the of $6,762
and in 1881, TO 9S7 81 In the wear 1917 the wear in
which the Bank established and went into operation
and consequently greater expense Incurred the
pcnse Tor printing was 1929 Is.
What circumstances occurred or existed during the
years 1880 and 81 TO require such unusual increase in
tins branch OF expense over the preceding years. in the
''"'y 'o"sV vi us BUSINESS, the committee have been
unable TO discover though they called for the accounts un
der this head OF expenditure hut have not vet receiv
them In the same document is contained the sums paid
TO Attorneys annually since the establishment of the
BANK ms subject, owing 10 their limited time the com
mlitee were unable 10 investigate. Sufficient however,
came to their knowledge 10 justify the belief the sums
returned, as having been paid to ''Attorneys, embrace
only what paid them in that distinct character;
that the sums paid TO solicitors and c0uSeorS for the
Bank, are not in the amount given.
The committee addressed the following enquiry TO the
President Oh the bank believing that involved fact
which will be useful TO Congress in lis future on
the subject of its charter:
"Did Mr. Ellsworth, any else of the State of Con-
neccu as assessors OF taxes of that State write TO request
you 10 give him list OF stockholders belonging TO that State
for the purpose of taxing them, according to law there
of"
The President REPLIED ''In December, 1920, Henry l..
Ellsworth of Hartford in Connecticut addressed letter
TO me- requesting be furnished with list of stockholders
oil the bank residing in Connecticut for the purpose
ing the stock The request declined, for reasons
winch WIN appear in the correspondence heTeuno annex
| cd" to which the committee refer, marked No. 40.
The committee, in calling for various statements have
collected number Of useful documents reerable to
any particular head but containing mass of useful in
formation; they present them the House. subject TO their
future ORDER and, II found necessary be appended 10
this report when it, together with the papers to which
refers, shall be published.
The majority Of the committee feel authorised TO state
that hey have not been able TO give the parent bank
that investigation which its extensive operations deserve
much less the branches-n some of which there have
been subjects OF complaint, but which they have been
compelled TO abandon for the want of time.
ne committee That investigated the affairs of the bank
IN lSl9, when II had been but two years operation with
Its business much less extended than at present. were en-
engaged asi would seem from the records Of that days