Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-04-22


tina, man ever went into that Bank with more
sincere disposition seek the truth, and TO expose
what he should find wrong; but then his enquiry,
though thorough and severe was conducted in a
tone so decided, and at the same time gentleman
ly, that IL was pleasure to give HIN every inior
nation he sought. One OF the objects Of his enqu-
~ was the history and formation of the Exchange
Committee. He traced it from its beginning in
lsi1 TO It's more regular form, in 1871. and he
cludes with this: "The Committee on Exchange
was created at the same time with the committee
on the offices and o.her committees, has continued
ever since, and exists rs your committee believes
not only IN strict conformity with the charter, but
with advantages to the Bank and convenience TO the
public"
2d. As to the power heretofore conferred on such
committees,-On the 9Th OF July, 1880, on motion
of MIR Alexander Henry,
Rssoired, That the Committee of Exchange be
authorised TO loan on the collateral security Of ap
proved public stocks large sums of money at rate
OF discount not lower than FIVE per cent.
On the 18th ofSeptember, 1880, this power was
extended by resolution offered by MIR J. c. Fish
er Us follows:
Resolved, That resolution adopted by the Board
on the 9Th day of July last, authorizing the Com.
mlttee OF Exchange to loan on the pledge of pub
lie stock, be modified TO permit such loans TO
be made on the same, or other approved securities,
at rate OF interest not less thaa ~ per cent per
annum.
Now let us see what was done by this Committee
OF Exchange, of which MIR Eyre himself was Chair
I
made which happened attract the attention Of the
Committee of Congress 10 1882, on which occasion
| MIR Manuel Eyre made, under his own hand, the
following startling statement:
"The Board OF Directors passed resolutions
thorizins the Exchange Committee TO make invest
ments at any of Interest less than four and
| a half per cent. As Chairman of that Committee,
| called upon Messrs I. Bidde & Co. several times
and particularly requested them TO make all their
great operations with us and urged them TO take
] fEn nr Of fnlta mon nj i've
cent, and for as long time as they wished. They
were not willing 10 take the loan Tor as long time
as the Committee wished but reserved the right OF
paving off might suit their convenience. The
Committee, upon undoubted security, loaned them
upwards OF 81, 100 900 at per cent-which loan
is now reduced your committee has observed, to
S6OO,OOO, and will pay an interest of sx per cent
| IL was thought very advantageous arrangement to
obtain such large investment at per cent. such
undoubted security, when the committee were au-
lhorzeJ TO loan al four hno half per cent. have
always regarded this operation one IN which the
Bank was the favored party, and think 1t may be
safely and truly said that the account OF Messrs. L.
BIdde * Co. has been OF the most advantag eous
accounts IN the Bank. MANUEL EYRE.
April ), 1882"
| Here is Chairman of Committee of Exchan-
| ges, who urges a single house TO take two three
millions OF dollars or more for as long time they
wished, and by an odd coincidence this very house
on whom MIR Eyre urged loan OF two three mil
lions OF dollars more, at five per cent and for
long time as they wished, IS the very house the
amount of whose loan is the subject OF complaint
by the Committee OF Investigation.
B. The next complaint is that the committee made
discounts well as purchase of bills. Now this
done in consequence of instructions in fact gi-
ven by MIR Lippmcott and Mr. Eyre themselves, OF
which the proofs is as follows:
On the l2th of April 1888, the following pream-
BILE and resolution were offered:
"wherens, 1t is proper that the ordinary business
OF the Board should not be transacted by smaller
number oil directors than that required by the char
ter, and the business of discounts can be convent
emily transacted heretofore it has been at III,
meeting of the Board: Therefore.
RsS0lred, That the duties of the Committee o
Exchange shall not extend TO the business OF dis
counts"
chat these great champions Of loans exclusively b,
the BoaId, would have heartily embraced this pro
posaI.
Well
This resolution was made the order of the day
for the 18Th OF April, on which day it called p
| when, strange to say,
MIR Eyre moved that the said resolution be post
poned 10 the day hKed for the consideration of III,
rules of the Bank; and said notion e1 uiVsent to
rejection, was agreed to by yeas and nays as fol-
lows
YEAs-Messrs. Eyre, Lippincott. White, Henry
Sergeant, Fisher, Newknk, Lewis, Holmes, M'Kim
| Bidde-I3.
NATs-Messrs. Manchester, Gipin, Sullivan
On the % OF May, 1888, the Board proceeded to
the order OF the day, the consideration of the new
rules and regulations fOr conducting tho business oil
! the Bank, tOeing the same which were adopted nd
are now in force in April, ls4II
Oh that occasion, the following amendment was
4 offered;
"Ths Committee Of Exchange shall act as a daily
committee at the Bank and offOrd their aid and ad.
vice IN all cases relative to the interest and affIrs OF
the institution but their duties shall not extend 10
! the business Of discounts. They shall law befors
tie Board at every stated meeting a statement o.
their proceedings, which shall be read before the dis
counts Of the day are settled"
This amendment was rejected by yeas and nay,
as follows;
YELs-Messrs sullivan, Wager and Gilpin-3
NAIs-Messrs. Lippincott, Eyre, Bevan, White
Fisher, Chauneey, Newkifk, Manchester, Lewis
Holmes, Potter, BijdIe-I3.
At the same sitting, this amendment TO the rule.
was proposed:
"a statement OF the proceedings Of the Commit.
lee on Exchange since the last stated meeting shall
be reported IN writing and read" which was reject.
ed by yeas and says by the same inAexibIe h4ter,
Of loans by the Committee ofERchange. The voteI
we've:
YEAs-Messrs. Gilpin. Wager, Sullivan, vii
ling, White, Manchester, Potter
NAIs-Messrs LiPpInco't, Eyre, Bevan, Fisher
Chimney, NewkiTk, Lewis Holmes, Biddie-9
The decision by this vote was in fact an instruc-
ton to The committee that they ought to include dis
counts IN their business and that they need not re-
port their doIrgs to the Board,
! Mr. LippncOu and Mr.. Eyre ns members Of the
Committee Of Invest CATION, think II wrong for the
Exchange committee 10 Jscouut--stliI more wyons
for Cashier alone to discount-and they would
doubtless have added, If they had thought such an
enormlty conceivable, that the extremity Of wrong
would be for director 90 obtain discounts from the
/ Cashier without the knowledge OF the B1ard-yett
] am assured by the late Cashier that boil Mr. Lin.
pincou and Mr.. Eyre, while sitting aE difcctoTs IRE
quentY asked and obtained from him large Oans
which they did not submit either the Board or 20
the Committee. These acts Of kindness ought 10
have prevented any veg violent Indignation on
theY part against loans by the Cashier
BUt say the Committee, the Exchange Commit.
tee keep no minutes-make no entues-but hsTing
decided any thing, give yerbi orders 10 the officers
10 carry into execution Wei, IN what other way
DO committeeman Mr.. Lippncott has been be-
iieye, Director Tor more than twenty years, has
been member OF many Of the Committees and
Chalrmnn, believe, Of them. Did he ever keep
mind'esi DID he ever propose such a thing-tlipk
Of such thing7 Does any Exchange Committee
Of any bank On Philadelphia keep nibu.csI And
now az the end Of these twenty years he comes 70
repro ch his ancient Leagues with not doing what
he DID Hoi do himself
And now We come 10 the final and most impor,
ant part Of this report
IN yeHr or two NJ er the veto Of the bill re char
tering the Bank m 1882 it prepared by degrees 10
retreat back 10 Pennsylvania by the gradual "a e Of
the branches, and by the concentration of The a..
sets m stocks, winch might 90 any tml be- available
m any aspect Of 10 affairs, either 10 Wind up or 10
expand under n new charter.
Accordingly on the Oh Of March 1885 there Is the
ioiowifg sn,y on the minutest
d UH Pc. fFIrr.F -s...