Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-01-05


.a''s q" negligence This brings US TO the m
~ cbaTreable, in either the greater or lesser
~ with tha, negligence: -
.'Sc W." WIZ rernla;Ion ordained by the Directors in
!h'.,,arcs The Cashier, among other things, 10
a. W., Of all the specie in the Bank, SO m"ch eS
as he may judge necessary TO De iei, -. Wv"
pea :oss in the hands of the teller 10 Keep
y push III Rank notes so issued !" "to inspect,
ss e - lime, such individuals accounts as ne may
on we" TO ;aspect the teller Settlements, issue
~ P..i, lime TO lime bank notes for circulation,
a'' 10 him spcce necessary for ordinary daily
1.,ons.'' ITO have the general snperhtendance
'as" s.ars clerks and servants OF the bank ana
The 'A's .snnt of the President TO make such more
" w." ,ccua,ions as may be necessary LOT cohouc'ihg
n G@ of the bank; 10 prepare an inventory OF
o,,,t debts and funds of the bank, IN as detail
nt suit ,M,. manner as possible, as they may stand
IN" u, January in every year, which shall be kept
' hook provided for that purpose. Farther and
mar; .,,nce in February S9.-See doc. No. l, p IL.
nm, ne late Cashier did, and what he omitted to
these acquisitions and powers, and his reasons
u" one or the other, will appear by his testimony
as,sc, 10 the President besides the duties deyolv-
.on him as of the Directors, more especaiiy as
Iad of the institution, high salaried otheer, ana
~, permanent member of the board, 1t VIII De
MVss ,hs 18th of the before me ntoned regulations,
en-; made "the duty of the President to superln,
,,bs conduct of all persons employed IN the hank'
tho 18th regulation, that all the officers oil the
~ arc directed "to do and perform all such duties
4,vices as may, from time to time, be required OF
M - os,sctiyelv, by the President and Cashier
"a,- these provisions, we'll as from the character
nv ~ osce i became the duty of the President TO
-" general superintendent and control over
" .,,ducf of all the officers OF the oank, from tue
,.Ss- down The order of the beard, OF the ON feo
. " 20 Shaved very conclusively the necessity OF
s,sed diligence in that respect. II stated that the
mess of the bank was in arrear, and authorized the
psident and Cashier TO employ two clerks temporar-
:, sl00 per annum, and it required that all ITS &C
c,un,s be balanced quarterly
|, has been thought that this ORDER enJonng earnest
.bo,s and other duties on the Cashier, might have
sn considered by the President as relieving HIM, IN
. decree. from his general duties in that respect.
a. !, cannot be regarded in this light. 1t contains
,,bipr TO discharge him from the imperative obliga-
80, before mentioned to superintend the conduct of
~ The officers of the Bank. Nor does it, in fact, i'm
e new duties or confer powers, to any material
sxsn, on the Cashier. The matters then required to
dome ourht TO have been dene in effect, long before;
IL mi, new and emphatic order and injunction on the
bec, ought to have prompted the President to ncreas
vigilance in experimenting its execution, and re-
curing its fal6lment, by the Cashier and Clerks. But,
,e.d of this seems to have been regarded by both
|ba President and Cashier, as dead letter in every
|svect, except the requirement of two new clerks,
Inho were promptly appointed and thereafter the at
fairs of The Bank went as before Neither The gen.
ea nor the individual accounts of the bank were stated
or settled quarterly required The general accounts
were MT settled from the date of the order till Dab
peys fight Instead of the Cashiers inspecting daily
the cash accounts Of the bank examining the tel
lsrs settlements, and comparing the same with the
cash account he who procured the passage of the
&c. Tor that purpose most upaccountaby neglected oil
action under it. And the President seems never to
required his attention to this obviously important
ia,y.
tappears by the examination Of the Directors, that
none of them recoect any instance in which the Pre-
called their attention to the requirement of the
5yaws and the charter, for monthly and quarterly
examinations of the cash and funds of the Bank except
the occasions on which committees were appointed
and they confident that no such application from
bin was ever rejected by the Board.
Upon the whole, then, the Committee are Of OPT
nion that the loss which has been sustained, oc
casioned mainly by the neglect OF the Cashier, the
President and the Directors, TO perform their res
pec,ve duties. The Cashier is the chief agent o.
The Bank, and primarily responsible for the man
agcmen and conduct of all its affairs, and specially
or the safe keeping of its cash. He greatly erred
in allowing large amount Of funds to accumulate
ii the hands of the Teller His duty required him to
keep them HIMSELF except what might be " necessary
fox ordinary transactions and yet he allowed them &c
attain the amount Of 81 100000. Having done this
his OMISSION "to inspect daily Tor even at all, as il
seems the cash accounts ofthe bank, to examine the
Teler's settlements and compare them with the cash
accounts" and 10 examine the account Of Merrill u
Green when Informed of their overlooking, gross
and fragrant neglect There is nothing in the pretext,
tina. the omission Of the Board of Directors to examine
the funds prevented the performance Of this Duty
cep that, if done BY them it would have relieved him
OF trouble. On the contrary their neglect ought
10 have furnished stronger incentive to bis vigilance
His powers on this subject were plcnary in themselves
and independent of the Board; and his duty rem.
tered the obvious and imperative by the order oil
which he procured the adoption.
The President, having the general superintendent
o. the and business Of the bank, and the conduct
its officers chosen for his capacity and qualifications
AID compensated for his services guilty of neglect
emitting to call the attention of tho Board of Direct
the necessity Of making monthly quarterly
snnations of the funds of the institution. He ought
have required the books of the bank TO be balanced
annually a. least, and balance sheets to be furnished
o lis inspection and that of the board and if the
Cashier neglected this Duty he should have reported the
TACT to the Board' But to use his own language,
THE President and Directors relied too much the
vigilance of the Cashier, and he has relied too much
on The fidelity of the Teller. They have not examined
into the funds entrusted to the Cashier, (Which in
truth all the funds of the bank) as the bylaws
rendered proper; and he has allowed the Teller to
tain money in his hands than necessary for
lie daily operations Of the bank without examining his
vault"
Tie directors have been guilty of neglectin not max
The bank required by law but their situation and du
les different from those of the President that
they are far less obnoxious to censure.
The Committee desire not to be understood cast
ing unmer.ed reproach either President, Cashier
Directors and feel convinced that cognzant of
the facts of the defalcaon justly impue to any Of
them greater censnre than pertains to omission and fail
IRE to perform they ought TO have done, the duties
enoined upon them respectively and for the due per-
iormance of which, the stockholders confidently relied
Considering, under the influence of these views, the
enormous depreciation which has been committed upon
the funds of the bank the long period of time in which
= a' progressing, the entire omission of ordinary vi
GLANCE, IN an eminen. degree by the Cashier apd in
lesser one by the President, whereby it might have
been prevented detected in its early stages and the
preJudcs! effect of such examples in our large and
numerous banking institutions, the Committee recon-
mend the adoption of the following resolution:
hesofred, That the power Of the State in the APP
po, men Of Directors of the Bank of Virginia ought
10 be so exercised to prevent the reelection of the
p'esen. President thereof
Mr.. TAyLoR, of Norfolk Borough, presented the fol-
owing substitute for the above report:
II was ordered by the House Of Delegates Of Virgil
ma on the 10th Dec, 1910, as follows:
"feSo'red, That the Committee on Banks enquire
ho and report to this House all the facts connected
with the late dedication of the Bank of Virginia, and
mai they have power TO send for persons and papers,
and that the Committee enquire and report how far the