Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-04-16

IN payment stocks back lands and other fragments OF
the estates Of great spectators.
The loose and irregular manner in which the hu
siness Of loaning money conducted, tended
greatly TO produce this result, and deserves parcu
lar notice and explanation. From March, 1885, the
period of the passage of the resolution above refer
red to, the chief control and management of the af
iars OF the Institution, appears to have passed from
the hands of the Directors. The mode in which tho
Committee of Exchange transacted their business,
shows that there really existed check whatever
upon the officers, and that the funds of the Bank
were almost entirely at their disposition That
Committee met daily, and attended by the
Cashier and at times by the President. They exer-
csed the power of making loans and settlements, TO
full as great extent the Board itself They kept
no minutes OF their Proceedngs-no book in which
loans made and business DONE entered, but their
decisions and directions given verbally TO the Of
hcers, TO be by them carried into execution The
tabished of business have been for the
First Teller to pay presentation at the counter, all
checks notes, or due bills having Endorsed the order
the initials OF of the cashiers, and 10 place
these vouchers in his drawer, for SO much cash,
where they remained Until jus; before the regular pc
rodical counting of the cash, by the Standing Com
mittee OF Inc Board on the state of the Bank These
vouchers were then taken out, and entered as "BIlls
Receivable, IN a small memorandum book, under the
charge OF one of the Clerks. These bills not
discounted, but bore interest payable semi-annuay,
and were secured By pledge % stock or some other
kind Of properly. II is evidently impossible, under
such circumstances to ascertain he assured IN re-
gard to any particular loan settlement that il was
sanctioned by majority OF the Exchange Committee.
1t can be said however, with entire certainty, that the
very large business transacted tins way does APP
pear upon the face of the Discount Books, never
submitted 10 the examination OF the members Of the
Bnard at ITS regular meetings. nor IS II any where
tered on the minutes, having been reported TO that
body, for their information appreciation. AS Illus
tatve of the extent of these transactions, It may be
Ia that the total OF aBllS Receiy-
able -
On the 4th March, lc36, was S6,22l 600 CD
On the 4th March, 1887, S,lc3,4i5 vi
On the 9TH Of March, le3S, BOB %
On the 18th of March, $780, G,77a,13l 90
On the 4th of March, lc40, 4,0il ,7U3 81
The amount outstanding on the books Of this Depart
ment, the 4th Of March, 1871, had become reduced
10 the of 1864 dollars, l2 cents The accounts
have been settled in various ways, transferred 10
other heads the Directors having resolved to abolish
altogether course of proceeding, pregnant with
mischief and loss, and to prohibit entirely all loans,
except by the Board itself
There stands now upon the books of the Suspended
Debt Department, transferred thereto from "Bls Re-
cevabe, still unsettled, 47065l dollars, 20 cents.
portion is the list of Active Debt, having been
changed into Bills Discounted, at deferred periods Of
maturity.
These loans were generally in large amounts. In
the List of Debtors "}ls Receivable of the first
of January 1887, twenty one individuals, firms and
hundred thousand dollars and upwards. One firm OF
this City received accommodations of this kind between
August, 1885, and November 1857 10 the extent of
,2l3o1o dollars 30 cents, than half ofwhch
obtained in 1897. The officers of the Bank themselves
received in this way, loans TO a large amount. In
March, 1885, when the Bank went into operation, un-
der its new charter MIR. Samuel Jaudon, then elected
its Principal Cashier indebted TO It, 100000 dol
lars. When he resigned the situation of Cashier, and
was appointed Foreign Agent, he in debt 40S,3-9
~ .,aE FAN nr.h - In
still stood charged with an Indebtedness of 1880
dollars. Mr.. John Andrews First Assistant Cashier,
was indebted to the Bank in March, 1876, 100000 dol
lars. BY subsequent loans and advances made during
Second Assistant Cashier, was in uept 70 y
March, 1896, 49, 900 dollars when he was appointed
Cashier in September 1897, 3S2 dollars 90 cents
when he resigned, and was elected Director BY the
Board in June, ls40 72,960 dollars, and ne stands
charged March g. lS4l on the books with the sum OF
GS dollars % cents. 1t appears on the books OF The
Bank that these three gentlemen, were engaged IN
making investments their JOINT account, IN the Stock
and Loan of the Camden and Woodbury. Railroad Co.,
PHILADELPHIA, Wilmington and Baltimore Railroad Co.,
Dauphn and Lycoming Coal Lands, and Grand Gull
Railroad and Banking Co.
The various settlements effected with the officers
and other debtors for these irregular loans, must not
be suffered TO pass without notice. These settlements
were without the knowledge or appreciation OF the
Board al least SO far appears from their minutes
The large loan TO firm in this city, before advered TO-
was settled by the receipt in payment OF various STOCKS
and real estate except 2i7 POI dollars, ID cents IN cash
Another large amount of loans TO single individual
of OJ g77 dollars so cents, was settled IN ike man
ner There was taken in settlement of debt from
Messrs Bevan Il Humphreys, (Alr Joseph Cabot, one
of that firm, being at the tune director oil the BanK)
one thousand one hundred and fifty shares of w. States
Bank Stock, in 1888 viz On the I'd Of August, two
hundred and fifty shares at l23 dollars, the Bank sell
ing on the same day 100 dollars less brokerage, on the
22d Of August five hundred shares, and on The 23d oil
August four hundred shares At 10 dollars the mafnet
price on those two days being I23 dollars % cents the
bank selling the day after at l23 less brokerage set
Elements OF similar character with debtors Tor smaller
amounts, were Of frequent recurrence
The frs, instance in which officer paid his debt
to the bank in other than money, winch the Commit,
ice can find, was in March, 1885, when Mr. Samuel
Jaudon then in London as the agent OF the Bank,)
Mr. Joseph Cowperthwaite, uhen casbier,) and Mr.
John Andrews, hen first assistant casher,) paid debt
Of 2G9 500 dollars which they owed the Bank on JOINT
account in Danville and Pottsvlle Railroad Company
five per cent loan, Io,ooo
/ mon Canal & per cent loan, 10000
Philadelphia and Reading r. r. Co. stock,
1890 shares, l.3r'Oo
West F.lciana r r. Co stock 100 shares, 10000
$500
OF course, the Committee cannot say that the Ex-
change Committee did or did not nuthorise or sane
ton this settlement The paper which constitutes
the only evidence OF IL, ahu Which ''e So"'"
have seen exhibits sign OF such authority or ap-
probation other than the initials Of Mr. Andrews HIM
self
OF the residue of the large debt of Mr. Andrews OF
@ l0i dollars, % cents, which includes his one-tirh
proportion of the foregoing Of 2693O0 dollars, all
except dollars, cents was settled by the trans
fer OF stocks and loans.
Anaccount of the settlements with Nlessrs Jauooh,
and Andrews, accompanies report
made by The Exchange Committee to the Board, on the
2lst Of August 1910. That Committee s, remark IN n
their report "Y our Committee are unable to say, u
,u,bor;iv was eiven by the Board under the char
ter from Congress but very certain that the Boards,
under the present charter have never sanctioned such
or settlements and they cannot too strongly con-
IT,, sucb acts The power of making loans and set
Elements must be reserved TO the Board, while the Of
sars must be content with being the executive of its
decisions. .
,cd together with some others. (Appendx G)
In order to inform the Stockholders, not only of the
character of the Assets but Of the mode by which they
tbaD ,pI thara I'D