Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-04-30

d That the Board have, from time to time granted
TO other Exchange Committees the same powers 'eie
delegated in 1885.
ID That the Board hare instructed them not to con-
fine emSelrcs 10 erchanots-but TO make discounts ana
ernressy ercmptcd them from The necessity 81 reporting
fhtfr yroceediass TO the Board. a., =,
4th And finally, mean to prove thai oil all Tue ~
reclors of the Bank, from its commencement 10 'is
hour-,he man who has been the most Gecued IN HIS
support of the dongs Of the Committee oi Exchange
the man who again and again declared that the Commit
tee of Exchange should not conne itself to mere pis
bnt should make discounts, and should not report lis
proceedings to the Boardthat person is the very den
teal Mr. Joshua Lippincott, who now as Chairman Of
the Investigating Committee, denounces these Com
mites and Boards for doing this very thing which
he himself insisted they should not do shall at the
same time prove that next to Mr. joshua Lippincott
the individual who most jealous in the same cause
is Mr. Manuel Eyre, the real member OF this Commit
tee through his partner Mr. Massey
/ l. With regard to the Exchange Committee, IN the
year 1871 ccramttee of the Senate Of the U. 5
was appointed to investigate the Bank of the u S.
| and Of that Committee Mr. Tyler was the Chairman
The recent elevation of this gentleman to the Chief
Magistracy couidAnot induce me to say 1t, but shall
not prevent NC IN saying it; that no man ever went
into that Bank WIKI more sincere disposition to seek
the truth and To cxpose what he should find wrong
but then his eny, thong thorough and severe, was
conducted in tone decided, and at the same time
so penemanly, that il was pleasure to give him eve
| r information
enquiry was the history and formation of the Exchange
Committee. He traced it from its beginning in 1877
TO its more regular form in 1891, and he concludes
with this: "Thc Committee on Exchange was created
at the same time with the Committee on The Offices
and other Committees, has continued ever since, and
exists as your Committee believes not only IN strict
conformity with the charter, but with advantages to
the Bank and convenience to the public
Cd AS to the power heretofore conferred on such
commi,,ces,-on the 9th of July, $780, on motion OF
Mr.. Alexander Henry,
Rcsoired, That the Committee Of Exchange be au-
horsed TO loan the collateral security of approved
public stocks large of money at rate of discount
not lower than FIVE per cent.
On the 18th of September, 1880, this power was ex.
tended by resolution offered by Mr. J. c. Fisher as
follows
Resol,ed, That resolution adopted by the Board on
the OH day of July last authorizing the Committee of
Exchange to loan the pledge of public stock, be so
modified as TO permit such loans TO be made on the
same other approved securities, at rate OF interest
not less than Al per cent. per annum
Now let us see what done by this Committee oil
Exchange, Of which Mr. Eyre himself was Chairman.
Under this resolution Of 1882, loan made which
happened to attract the attention of the Committee OF
Congress in 1892 on which occasion Mr.. Manuel Eyre
made, under his own hand, the following startling
statement.
"The Board of Directors passed resolutions authors
ing the Exchange Committee to make investments at
any rate of interest less than four and half per
Messrs T. Bidde and Co several times and partcu-
ary requested them 10 make all their great operations
with u.s. and urged them to take two or three millions
of dollars more at FIVE per cent and for as long
time as they wished, They were not willing TO take
the loan for rs long time the Committee wished,
but reserved the right Of paying off might suit their
convenience. Tie Committee, upon undoGbted secu-
riiy loaned them upwards Of 81 100000 al per cent
which loan reduced as your committee has OBJ
served to 100000, and will pay an interest of six per
Il h4 oS,,anf
men TO obtain such large investment at per cent.
on such undoubted security, when the committee were
authorized to loan at four and half per cent have
always regarded this operation one in which the
Bank the favored party, and think il may be safely
and truly said the Of Mcssrs T. Biddle * Co.
has been of the most advantageous accounts in the
Bank. MANI FL EYRE.
April 5, 1892"
Here is a Chairman of Committee of Exchanges,
who urges single house TO take two three millions
Of dollars for long time as they wished,
and by an odd coincidence, this yery house whom
Mr.. Eyre urged loan OF two or three millions of dol
lars or more at five per cent and for long time
they wished, is the very house the amount of whose
loan is the subject Of complaint by the Committee Of
Investigation.
3. The next complaint is, that the committee made
discounts as we'll as purchase of bills. Now this was
done in consequence Of instructions in fact given BY
Mr.. Lippncott and Mr.. Eyre themselves of which The
proof is as follows:
On the 18th of April, 1889, the following preamble
and resolution offered
"Whereas, it is proper that the ordinary business Of
the Board should not be transacted by smaller num-
Der Of directors than that required by the charter and
the business of discounts be conveniently trans.
acted heretofore it has been at the meeting Of the
Board: Therefore,
Resotred That the duties of the Committee of FIX.
change shall not extend to the business Of discounts. "
On this resolution, you viii, Of coarse suppose that
these great champions Of loans exclusively By the Board
would have heartily embraced this proposal.
Well
This resolution was made the order OF the day for the
10th of April, which day il was called up, when,
strange TO say,
Mr. Eyre moved that the said resolution be post
poned 10 the day fixed for the consideration Of the
rules of the Bank and said motion, equivalent 10 q
rejection, agreed 10, by yeas and nays, as follows
Yeas-Messrs. Eyre, lipplncott White, Henry,
Sergeant, Fisher, NewkiTk, Lewis, Holmes, NJ Kim,
Biddle-l3.
.Nays-Messrs Macalaster, Gilpn Sullivan, NJ
Eldery, Wager.
the order of the day. the consideration Of the rules
and regulations for conducting the business Of the
Bank, Tbeing the same which were adopted and are
now in force in April, lc4l
On that occasion, the following amendment was of.
fered
The Committee of Exchange shall act as daily
committee the Bank, and afford their aid and advice
in all cases relative to the interest and affairs Of the
institution but their duties shall extend the bust
ness Of discounts. They shall lay before the Board
at every stated meeting statement OF the proceedings,
which shall be read before the discounts Of the day
settled
This amendment was rejected BY yeas and nays as
follows:
yeas-Messrs. Sullivan, Wager and Gpln-3.
.Noys-Messrs. Lippincott Eyre, Bevan, White, Fish
er, Chauncey, Newkirk, Manchester, Lewis, Holmes,
Potter, Biddle-l3.
At the sitting, this amendment TO the rules was
proposed:
"a statement of the proceedings of the Committee on
Exchange since the last stated mee,ng shall be report.
ed in writing, and read, which rejected b. yeas
and nays by the nlexble haters Of loans by the
Committee of Exchange. The votes
ieas-Messrs. Gpin, Wager, Sullivan, Willing,
White, Manchester, Potter.
.Nays-Messrs. Lippncou, Eyre, Bevan, Fisher,
Chauncey, Newkirk, Lewis, Holmes, Bddle-9.
The decision by this vote in fact instruction
to the committee that they ought include discounts
in their business, and that they need not report their
doings to the Board.
Mr. Lirpincott and Mr.. Eyre, as members Of the
| n, If IL, ~