Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-02-09

Inc President ,esponsble for the deialcntion IN man
ner injurious 10 his interest, affecting even his oihc,a
existence, when his very enemies pronounced .,
auess and the House could not all 10 perceive 'a'
Il had been assumed charge against the fres'us'
at the very moment when II the subject OF invesli'
cation. ,h
In regard the second item Of charge, VIZ the SUI
scr,ption 10 The james River and Kanawha Company,
il was a subject of unbounded nstonshment nc VI -
error of the gentleman was renafKaDie 'h"eeu =,
assumes that the subscription made on behaii Oh
the mother Bank alone, and constitutes chasse
against the capital alone but it was evidently SUP
scriplion on behalf of The entire Bana ncluah5 LUZ
branches, and is charge on the entire caplai, TOT
this reason alone il should have been exciuced from
the account stated by the gentleman; but when the
circumstances under which it was made were consuei
ed, it became matter Of umazemen thatt was seeceu
as ground of objection to the President Chaer .ne
terms of their charter the Banks had right TO take h
subscription The projectors of the James River anu
Kanawha Improvement, failing TO procure individual
subscription 10 amount necessary to secure iher
charter, forward TO procure the passage OF an
authorizing a subscription on behalf OF ench OF ou
Banks. The passage Of the act was secured ~ .Is
most active exerions Of that portion oil the house
who favored the Grand scheme of Internal Improve
ment. 1t is believed the member from Williamsburg
was intimately associated with that interest (Mr "le
uorv said he had advocated an Incorporation VI
Incorporations0 Mr. Goode sad the measure was car
!
w. with whom the member from Williamsburg was
usually associated; many Of whom were now seeking
The annhation of John Brockenbrough. The bill nav
inc passed. the cxpedency of making the subscriPoh
was submitted to The Stockholders large huJo'-
ity of the individual Stockholders cast their voles
u@ainst taking the suJscription-but the proxy OF Inc
State representing her stock in the Bank OF Virginia
regarding himself instructed by the passage o' le
BILL the heavy vote OF the State IN favor oil tue SUI
scription, which being added to the small minority VI
Individual stockholders, formed majority of the STOCK
of the Bank and thus compelled that institution 10
make the subscription. And now, some OF the very
men who thus controlled the action OF the Bank, adduce
this very transaction ground of accusation against
The President of the Bank and ask that for IT. he should
he driven from his Office! Mr. Goode called on every
member who had urged the James River y kanawha
Improvcment to come forward-assume the Just re-
sponsbility of his conduct, and deliver the President
from the danger which threatened him
was a subject of scarce less astonishmen that Inc
subsc rption had been regarded involving loss
equal to the whole amount subscribed On former &C.
casion the country had been excited by glowing repre-
sensations of the vast advantages which would result
from the construction of the work-of the unprece
denied development of the resources OF the Sta'e-oi
The growth of citcs-the improvement IN the price
and profits Of and and in addition TO all this was
urged as aiiordng profitable Investment 81 captdl-nn
investment which would yield large dividend. IL
must be confessed he had ndnlged these delight
full but delusive anticpa,ions; yet he was wholly I'M
prepared for what he had witnessed. The representa-
tons of re nemen had induced the investment IN tins
work of more than three millions of public money, to
which was added two millions of individual and cor
porate subscriptions and loan had been authorized to be
negotiated by the company Of one million and hail.
to which extended the guarantee OF the State Tor
the payment Of the annual interest, and ultimate re-
demption of the principal. All this was accomplished
by the enthusiastic assurances OF the friends Of The
work that il to the country inesiinabe ac-
yanages besides offering just remuneration Tor the
capital invested; and subscription on the part OF
the Bank induced by these glowing representations III
the manner already stated is treated total loss, and
adduced by these very gentlemen as proof OF the want
Of sagaci,y, which should justify the removal OF the
President.
Mr. G. said il was very well known that he had OPP
posed the several appropriations TO this work tic had
thought the country would realise an advantage
from its completion adequate to the enormous exPen-
diture. Yet he could not regard the money as wholly
lost to the subscrbers-the work might he considered
as already completed to the town OF Lynchburg, ana
when placed in operation, must yield some dividend
inconsderable perhaps bu: yet dividend. The Bank,
too had secured advantages by subscribing, which
were not 10 other subscribers lis capital stock
was augmented by act of Assembly, five hundred thou
sand dollars, in consideration that would subscribe
like sum to the stock of the James River and kanawha
Company. This increased stock Of S500,OOO had COM
manded a premium Of eight per cent, and yield ID
profit of forty thousand dollars to the stockholders IN
the Bank.
By making the subscription, the Bank had secured
stockholders derived much advautage,th were, al
all times on deposit in Bank large sums OF money,
standing the credit Of the company, enabling TO
augment lis discounts and thus to increase It's profits
The large loans, Announcements, 50 mprovdeny ex-
tended hv the Legislature to the company, had been
prroated through the Bank, and sold on terms adj
yaniageous The company, yet so as TO place the
Bank in possession OF Northern funds equivalent 10
specie contributing largely to the Of the bank
in maintaining or rcsuming specie payieEtsi-and, II
H.. a
from the work, through the enhanced value Of real es
tate the Bank would participate largely IN such advan
tare by the augmented value of lis real property IN
Lynchburr, Norfolk and the City of Richmond These
obvious advantages resulting TO The Bank from her
subscription 10 The James River and kanawha Compa
nv were to other subscrIbers-bu secured
tn the exclusive enjoyment of the Bank Yet gentle
men denounce that subscription as imProvident and
runous and make the ground OF charge against the
President for which lie should forfeit his reputation rs
fnancer and his place as an officer, though they
themselves srenuousy advocated and actually forced
much larger subscription TO the same work, on heha
Of the Commonwealth, when she, as kholder, was
admitted 10 parlc pate IN several important enume
rated advantages Let the public Judge oil The justice
Of the procedure.
To sustain the charge of mal.administration, the
member from Williamsburg, had referred 10 the sus-
pended debt which he understood 10 estimate at
$3.50 900 and treated loss equal to that sum There
was indeed large suspended debt, which had gradual
but an error treat as total loss 10 tue Stock
holders though could not be relied upon 10 meet pre-
sent and pressing liabilities it nevertheless valu-
able fund, coming regularly and periodically in aid Of
available funds 1t consisted for the most part, OF liza
bltes from solvent debtors who were not able 10 meet
cash engagements though they were ultimately good
The Executive Commissioners. appointed by the
Governor, TO examine into the state oil inc lhslilu.
,ion after the lae deacaton had reported that there
was due the Bank, on protested notes and bills the
sum of s57 ,325 Go, and on bonds $1,000 o. making
an aggregate of S6ol,o Grand this was the sus-
pended debt treated as lost by the member from Will
iiamsburr But OF this sum, the commissioners,
men of The highest responsibility and responsibility,
acting under solemn sanctions, had reported that no
more than SOL e37 Is was bad-which, being De.
ducted from S60l COS o. leaves the sum OF Sos9 l0s
a., TO be estimated available to the Bank Bot, OF
this last sum, they report that SGs,2oo % may be
estimated as doubttnl-muke the statement most un,
favorable 10 the Bank, regard the whole doubtful
debt as bad, and deduct il from the S549, l6S A,
and there would remain S4o9,s79 50, ultimately as