Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-05-22


Tor the safety of the bank property and against which it
not pretended that any objection Eirlv raised
The last ground of impu,aon, touching the violation
oil the charter, is "buildng houses or SELL and
erecting other structures in aid Of that object"
The bank is expressly authorized to purchase real CO.
ae winch has been norgaged 20 secure debts previous
~ contracted and also such may be sold under idg
mens and executions ia it, iavor In the exercise OF
this right the debtors OF the bank much interested
as the bank itself. For il be apparent that if the
bank were not permitted TO bid az these Ncs the property
oil its debtors would be frequently sacrificed, at sum
greatly below It's value 1t has been only for the purpose
saving sel from loss, and the property of its debtors
from being thus Sacrificed that bank has ever purchas
cd any real estate except what has been necessary for lis
banking houses. There description OF property which
banking institution is unwilling own ~ real estate
Such am institution is entirely unsui,ed the manage
mcnt of such property as much % as farmer yyoulJ m
70 manage the discounts of u hank.
Owing 10 the extensive failures Of tie persons indebted
10 INC bank m The western country prior TO 1917, the d
rcclorS we're unavodably compelled take very LARGE
quany OF rca estate, as the only means OF avoiding sill
greater losses than they have actually sustancN They
nave disposed oil Tins estate rapidly they could
slstcny win ne interests OF the institution. On por
tcn OF H. they have erected improvements to prepare
Tor SALE andby means Of which they will save the stock.
holders from great portion of the loss which would have
the debts which years ago set down as despe
rate. IT. for this course Of conduct Tho dircc,ors ,I
Gcred obnoxious 10 censure then will they be condemned
for the very iilhiuncss OF their stewardship IL is too
obvious TO require, TO Justify the OF argument that
the right OF the bank 10 improve its real estate is insepa
MY connected with the right to purchasclo hold or TO
own it, On this subject, the House referred TO The OK
position OF the President, marked A. The subject TO
whlch me report oil The majority adveyS is the loan 10
James Watson Webb & Co. Ii is proper 10 remark, In
the first place, that the only ever loaned to this CO.
partnership, the sums of twenty and of fifteen to
sand dollars the former in August aud the latter in De-
ceinhcr 1881 lii also proper remark that the first
sum was reduced TO SIS 900, the maturity of the note
given Tor IT. and that the latter was entirely paid on
in March last by Mr. Webb; and "a he EXPRESSLY states
on oath, without being requested by the bank to do so
he whole amount OF the Accommodations ever obtained
from the bank by Messr Webb s Noah, was SS5 GOO:
and the whole amount now due by them is SIs 900
me grounds and securities upon which these accomo-
daons were granted will now be stated Mr. Webb pro-
duced 10 the directors full statement of the affairs of the
copartnership setting forth the value of their propertv
and the annual income derived from thqiFpaper From
this statement, which authenticated bv the oatb of
their bookkeepers 1t appeared that the nett annual in
come OF the paper from advertisements and subscriptions
was $25 $50, after deducng per Ct for bad debts and
delmyng all the expenses OF their establishments Upon
the whole it appeared that this one of the most pota
bic ash certainly the largest commercial newspaper in
the Union, with an immense advertising patronage and
large and rapidly increasing subscription list.
With these exhibits, MIR. Webb produced the letter Of
Mr. Walter Bovine, Mayor of the CITY of Now York and
formerly directors of the Bank of the United States man
ofwealth any high character enclosing the application for
the loan and stating that che did with pleasure and saw
no reason against this being treated as Gt, business
frdnsdch0n Several of the directors as well as c pre-
Sen OF the bank. were examined OATH in relation to
this transaction and as the ceares mode of exhibiting its
true character 10 the House, extracts from these examine
lions will be given.
The following is the testimony of Mr. Bddc relative to
these loans
r2aes.-"Dd you consider the loans made to James
a'Son cAh, = Co. lair business ansac tons such rs
you could not refuse without Subecin the bank to no
mputaon of INDUCING political partiality State G,ll c
views ana considerations which You voted in favor Of
those loans"
.9ns-"I certainly considered tlcn NO rir t,;o.,
transactions, should have consented TO them a,
me requisite the committee will explain the reasons Of
that opinion.
of in making loans every tran action ,y,, nc,C,cy f
and every borrower perfectly good banking would be nm
easy olhce but as men generally borrow 10 employ the
funds in some profitable pursuit, subject Of course 10 vi
i'm IL
hir and reasonable caution 10 the situation ana
OF the borrower Tried by these the oly trs,s hint
the loans n question uncVccponabc The FIRST WIS
done by board OF directors consisting besides the nresl-
ing officer OF six gentlemen, Mr.. Lppncott Mr. Fisher
Mr. B"hen Mr.. Nef. Mr.. Plat, and Mr. Willing mcr.
ChahS ana men OF business with par,aIiics towards
the applicants, with whom none OF them had the jc,s, oc
quMn'ance The ground OF their judgment may be thus
stated In making ordinary loans the board Judge by the
general standing OF parties without ANY examination OF
their affairs But in this tho parties began hy an ey
position OF their whole situation This was FORK 3rcd ,
Walter Bovine, Esq the Mayer of the CITY of New YORK
where the applicant resided, who i'm addition To his bcinn
personally known and respected by all tho members had
anu Tor many years sat at The board around which
me directors were Then assembled. In this letter he says
! - checnuy forward 'the papers and no reason
against ms application being treated fair business
Transaction lie does expressly saw il o,ohf to bc
granted, because lac transmits the same time some of
the materials which the directors were TO form tcir
own Judgment, 10 which others were added Inv Mr. Wcbi
But when an old director OF the bank forwards cbeoriI
W an application to his ancient colleagues which he
I
Implies certainly no responyhily may he well re-
Corded as declaration, that he still member Of the
board, he would sanction il. Under these auspccs ,e
board proceed 10 conslerit
One Of the parties had hcen appointed bv ,e President
ana Senate oil the Quilted States confidential and Icr
1--WE post under The Government; tire other had already
Invested S33O0O In the paper, and his fathcr-u Mr.
stewart, whoc letter accompanied the application was
known to be wealthy man. Both were considered mon
OF talents and peculiar aptitude for Tire business i'm which
they were engaged. Then what was that business?
10 was tho conducting Of lie largest nc,yepoper in tho
country requiring Of course considerable means aud Civ
ing employment to n great mass Of active industry IFS
situation was represented 10 be this:
Mr. Webb declared that there were then $500 day sub.
scribcrs at $40, si33 600
230o others at an average Of 81 80, l025O
20 yearly advertisers al $50 $3.50
8lo days advertising, at sos per dag. II C5O
Making, $3.50
Dcductng from tis 10 per cent on tic daily
subscriptions and advertisements COT which
about onc-sixtl is paid in advance) say
$3.50
and 20 per cent. on tho other sub.
scribcrs, say 2.07O---7 900
There romans gross income Of 6075O
Inc annual expenses arc stated at $4,000
Leaving nett annual income Of $3.50
This statement is confirmed by the aflid7vitz of the
boot-kcepers AMI pressmcn Of The establishment
The total value Of the paper was thus statcd:-Jamcs
Watson Webb had invested in IL $3} 600, for which
$4,000 had been offered, provided TIC other half could
be bad Tor $4,000 This he declined but mentioned
to prove hot the whole might have been sold for S65 600
Then 1t was an improving establishment.
II had owed debt 10 81. banks Of 1900
tyitf hsI mid off IN A I.r1N 4.