Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-01-18
Congress.--Ist Scss.
IN SEN ALE.
Monday, January 6.

Monday, Jdnuayy6.
REMOVAL OF PUBLIC DEPosITEs
Mr. Benton continueG-
The supersedeas of the Board by devoIyng their pow
on the Committees on Exchange and Offices was the
of the assigned by the Secretary which
examined by Mr.. b. He remarked upon the mode Of APP.
pointing these Committees, which by the President
Directors served the Committees by turns and in
taon The present mode Of appointment virtually threw
all into the hands OF the Presidents; for the power
the Committee was supreme over the funds OF the Bank
Mr. b. then quoted part OF the examination Of Mr.. Bid
die before the investigating ComWee, two years ago, tc
show the extent oil power possessed by the Committee
Finance. appeared from his testimony that they made
leans and discounts at discretion and bound
70 report their proceedings the Board For the fact that
the Board superseded in its proper duties by
Committees, Mr. b. read extracts from the report Of
Government Directors:
"Nor it in regard to the public directors alone that
the management OF this institution presented serious
of objection. The whole system is which is calcu.
lated TO exclude the board Of directors from proper
knowledge OF its situation, Of the conduct Of it's officers
and of its policy great financial and commercial ins
tuition The plan OF iransactng much Of the business
secret committees, has already been referred in many
remarkable instances but, far limited expert
Of the committees has enabled Judge,
very many objects which ought TO be submitted to the
inspection and appreciation OF the directors
even before the standing committees, much less before
the board"
Mr.. b. could quote many other passages prove che
same thing but the fact occurred so frequently in almost
any that he read, that he held be
to repeat them He held it to be established, that the
committees and especially the Committee Exchange
invested with full power to make loans and discounts,
which was the great business which the Bank had
transact, and which put into the power three direct
and those three selected by the President do what
they pleased with the money of the Stockholders. By
the terms of the charter board OF directors
whom the President his deputy should be one, could
alone transact BUSINESS less han mat number, even six,
were incompetent to do the business of the institution
butt by the pursued less than half the number
quired by the charter, invested with full power
the moneys oil the stockholders without Limitation of time
amount. On former occasions il had been shown that
they made loans for hundreds oousands of dollars and
for than million, for indefinite periods-as
long the charter had to run, and that the loans
made by considered TO be privileged not to be
touched by the curtailment which heavily fall
Ing upon others.
Mr. b. deped, as he hal done before, that the board
could delegate its authority to committee. II could
authorize committee to transact its proper bust.
that of making loans than the Congress Of the Uni
ted States could devolve the power of legislation upon
committees.
Mr. b. conceived this conduct of the Board in devoly.
ing their powers upon subaterD committees appoiH
cd by the Presden; alone, TO be fagran that he must
be excused for quoting another copious from the
Government Directors report in relation to il. The
powerfully stated by them, that would supersede
the necessity OF any remarks from him:
"The Committee Exchange, we observed, was APP
pointed by the President aione and evident that
gsnzed it and assuming the power il did, the Di.
rectors became in great degree, useless and the
ess of the institution and the money of the stockholders
were so far placed beyond their control Its forma oD
too, in direct opposition to the bylaws, which prOv
ded that the committee having the business of exchange
under It's well that Of attending daily at the
Bank should be selected from the Board in rotation
just arrangement, acted until within few years. and
enabling all the Directors from time time, to partici
pate in the action matters which they had all been
lected to superineBd Being satisfied that this arrange
men was altogether the proper boh in regard to the
safe disposal OF the funds OF the stockholders and the
legitimate performance OF their duties by the Directors
DESTROYS of restoring il in practice We there
fore, offered the following resolutions:
Where's, ii is proper bat the ordinary business Of the
Board should not be transacted by smaller nuRber of
Directors than that required by the charter and the bust
ness OF discounts can be conveniently transacted here
toorc il has been, az the meeting of the BoarJ
Resolved That the duties oil the Committee on Ex-
change shall not extend to the business OF discouns that
the present month"; consist OF three Directors, residing in
Philadelphia, to be selected, prescribed by the existing
bylaws, monthly, from the Board, in roaloD that
the President and Cashier shall be united with them
These resolutions at laid upon the table by
vote Of the majority, and could not obtan their adop
ton.
"But this mode of appointment by the President alepe
and this assumption OF power by the Committee Ex-
change, not merely contrary ,othe spirit Of the char
ter and the letter OF the bylaws. I'm assuming TO dis.
count notes on days intervening between the meetings
the Board, and not uequenhy days when did meet,
the Committee on Exchange acted in direct opposition
two recorded decisions OF the Board, by the last Of
which no longer since than in 1880, spplica-
ton IRON the offfce at Charleston, to give these
powers 10 committee, the inc pediency OF doing so
was declared In the most explicit terms When the app
cation was made it was referred 10 the Standing Commit
tee on the Offices. They reported against without he
STATION, and on general principles, applicable TO the
whole Institution The subject they say, of dis.
counts by committees has frequently engaged the AZ
tenton oil the Board who have always felt and expressed
great rePugnance 10 such practice TO which, in fact
much OF the losses Of the Board may be ascrbed The
I'D.
they think that the better TO be pursued regard
to The present suggestion is that adopted on the Bis Of
October, 1929 on similar application from the Office al
Boston. They accordingly recommend the adoption Of
the following resolution That the President be reuues
ed 10 communicate TO The President Of the Office At
Charleston the unwngDess Of this Board TO adopt the
plan Of making discounts Of notes by committee that
being the proper business Of the Board organized suc
but 30 order 10 give every proper facility TO business the
Board perceves objection 10 frequent, and even
daily meetings Of the Board which could take place for
short time at particular hour Of every day. To this
correct decsiSn the reasoning OF which appears TO
uDsnswera0le, made nearly ten years age and deber-
aey re-consdered and renewed six years afterwards
referred We pointed II out still Standing on the ,nstes
and we asked thatits principles be sdheredt TO- An
however' was without effect Finally, thst de subject
might be brought fully the consideration o the
Directors, we offered the following resolution.
ResotUed, That the cashier be instructed 10 Law before
the Board any resolution resembling that passed on the
"a OF February 1880, which declares the nexpediencv
oi discounts being done by committees; and any resolo.
non altering the rule Of The by laws which directs the
sPpo'n,men, OF the committee attending at the Bank
monthly 70 rotation, and which, sppesrs BY tho minutes
was complied with up to 1929 ''''
"This resolution, Also was at once laid upon the t,bl