Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1833-12-31


sion and action by the Board aud suggested to him the
proprie'y oil an official into its proceedings
necessary, IL desirable that the officers OF the GO
vernmen, should longer participate ill., be acquain
ed with the most important acts OF the institution.
Srengthencdby the changes in the bylaws, TO which
we have referred. the Committee Exchange has con.
nnued 70 assume the most nporian, powers OF the Board
and control whatever can be ei,hsr to n event
or to remedy What they CT 10 do On the 10th
August. we perceived striking instance OF The extent of
authority they assumed We observed that, week be-
nr- single loan OF no less than 800 900 was made by
e. IHa p' 70 one person, without any authority
from the boaralthoug had beeu in session that very
S'y-a"ho"Sn The ptopositioO Tor the loan must have
ueeh "sue before the citing OF the Boud, Tor
was subni,ted 10 the Committee by lis Chairman im.
ne.'"e'y on the adlournmen-aml although The Board
pail on the same day. refused good mercantile paper.
When we made inquiry, ascerained that the loan
not In fact done Tor the person whose entered
the books but Tor Bank OF which he was Dir.c,or
and account of large debt then due frotn il to tue
Bank Of the United States the regular OF which
was thus postponed We cannot doubt that the Board
would have refused this proposal had IL been submitted
10 them--bnt however that hav, been-,he as.ump
ton oil such power. exerci.ed in such manner by the
not to be sanctioned unless the other mem'
oefs oi tue Board have become utterly useless
another Instance was lately exhibited Of the injustice
Ss'os from This unlimited and irresponsible power OF the
Son'niitec on Exchange Tho policy adopted by the
Board has caused curamens in the loans to the
ny 10 great extent These ought at least to be general
In their ops, alton. Yet a loan for very large sum
secured Stock being offered rene al on the of
November, all reduction refused, the ground that
II had been originally made by the Committee Ex-
that the faith OF the Bank therefore pledge its
contnuanre These three since,
. authorized The Committee on Exchange to loan large
sums on approved collateral securities" Assuming, by
virtue oil these, power which we believe the Board
yer intended TO consr, they have thus ed seems
into contracts which i'll to termination of tn.
charter IL not beyond it, These contracts too, far
We can learn, reduced to wiiting-in fact the
notes themselves were drawn at the usual short periods
ITS now al least apparent that these proce
variance with the true policy OF the institution and that
ta H.
ests ought to be impsr,iaiiy consulted.
ie however Objectionable may be this disposal of funds
anu exercise OF power without the knowledge and
OF The boan IL has not been limited to The committee
exchange-Wlien. at the end OF the month Of July last
aas dividend committee met one Of u', being member
OF IT, observed accidentally amidst the other that
tor the expenses Of the institution Among the charges
were several to large amount, stated make il i'm
possible Tor him to understand the character Of the expen
ure, but he thought il such to render il our duy 10
Institute an inquiry, and necessary to call the
OF the board to the subject. In this opinion
strengthened by request, ceved from the President
oil the United States, that should estate TO him all
the Information and knowledge in regard to these ac.
our duty Directors We stated TO the President
oil the Bank cur wish, directors, examine the
counts squesiion and at his suggestion did the
OF me Cashier We found the accounts kept in such
manner, that was altogether impo ascertain from
them the particulars OF many large expenditures. The
book in which they entered, never, within our
knowledge, exhibited the board and their nature was
probably unknown to most, ALL the directors They
embraced, especially under the head of stationary
printing, payments the character Of which
In the account, but which, when examined found
10 be for very large disbursements printers and publish
ers OF newspapers. Nor this a-there charges
TO large amount stated 10 be for payments orders
the President, and Tor these there no vouchers but
the orders themselves The authority on which these
extraordinary expenditures were alleged TO be made,
was resolution OF The board, the so OF November
1880, authorizing the President take such measures
IN regard 10 the circulation of the OF article
on Banks and Currency published n the American Quar-
terIy Review, either in whole part, as he might
deem interest OF the Bank" and another ON
lhprzin h
prepared and circulated such documents papers as
may communicate to the people information in regard to
the nature anu operations OF the Bauk.'
The existence of these resolutions had been unknown
10 us, and probably to many other members OF the be-,
yet large sum had been expended Under them during
the very six months eapsed-trhiie IRE mere mem
bers Of the board ,chout our concurrence or epen The
shghest knotcedge on our part, that such expenditure
tcere made.
Having ascer'ained, FAR the manner of keeping th
account enabled US 10 do the extent 10 which these
penditures had been carried, called the serious
lion OF the board TO the subject the very
We stated 10 them the had and Tie
unexpected result that had arisen from it, limited a, il
However general the expressions of the resolutions
might be- could have been contemplated by In.
directors, that such and unusual expenditures
should be made for an indefinite peod-and, above ALL
that they should be made in such manner, pre-
cude any knowledge the part Of the board of their
real nature and extent, until long after they incur
red Besides this, there nothing conceived in
the words OF the resolutions, that justified the disbu
ments by the president of the bank, TO the oil
about twenty thousand dollars without exhibiting receipts
and accounts thereof Such system entirely unau.
horizcd by the stockholders, and ought, we believed
TO be Immediately discontinued by express OF
the board,ii was conceived that it allowed by the
resolutions in question. However much might DESTROY
the rights OF the directors, to confer upon committee
exchange, selected by the president the most importaD
powers OF the board, lately done by the asra
tons OF the byawsit seemed TO infinitely more dan.
gerous TO the interests OF the institution, thus allow the
president to expend their money for indefinite time aud
unlimited amoun-and in manner which virtually
Guided the board from knowledge of the object and
the extent OF the Disbursements not aog certain
Iy until long alter they had been made. We believed,
and still believe, that to permit such system pass u.
~ as representative agentsif sustained it ought at
TO be sanctioned by the stockholders aud the pubcno
10 depend OH the votes Of board oil directors
But il was not only the character of this expenditure Il
which we called the attention of the board It's amount
when the avowed object taken into consideration
was, as we believed alogetb excessive. The expen.
dture during the last six months of the year 1920 under
3,765 81; in the first six months of $780, il had
S7l3l u; and in the last six months the same
$3.50 20 making total, during the whole of that peri.
od OF $l7Si7 Al and average expenditure for
half year, OF $500 49, The expenditures of the ne
TWO years under The same head, appeared TO be- during
the first half year OF 1881, $39,979 OF
the last half year Of 1881, 1924 81
the first half year of 1882, I2I3l I6
the last half year Of 1882, 26543 IL
making total, during the whole OF that period OF ISL
Se2 81 and average expenditure for each half wear of
S20,470 &C. 1t was impossible for us to imagine that
such an enormous difference in under sin.
gle head Of the expenses OF the institution prolonged too
femplacd, to be justified by the resolutions passed
in such vague terms, so long before. II they were II
certainly time that disbursements large and for pur.
poses so unusual should be brought daeIy be-