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

Contingent Fund, exceeding the Losses =
chargeable thereto, by the sum OF l,i3o,'oi 70
Foreign Exchange account, o4I,c1l Us
Houses l,IO4, 223 90
Contingent Interest 440,e54 IA
ss,ol8,754 60
of defciencies and expenses. 2l7,194 %
Formed the surplus funds of the Institu-
ton, s7,sOl, 800 IS
from which, it will be recollected il was strongly
urged upon the stockholders as the main argument IN
favor of accepting the charter then offered, that, after
making the most liberal allowance for probable losses
the suspended debt and the real estate, the entire
Bonus could be paid whoutn the least degree impair
ing the capital.
The origin of the course of policy which has con-
Quoted 10 the present situation of the affairs of the
Institution, dates however beyond the period Of the
re-charter by the State When it perceived that
the charter Of the late Bank of the United States
would not be renewed or extended by Congress- the
President and Directors commenced winding up its
concerns, and among tho first measures taken to
that end, was TO sell dispose Of, far and as
speedily as could be effected the assets of its several
branches This was generally done to State Banks,
who gave for them their obligations, payable by in
stalmenls at distant periods AT the same time the
policy adopted oil converting the active debt into
loans upon the security of stocks, by which perma-
the Bank during the long period of its anticipated
liquidation. On the 9th March, 1885, I" the Pres-
dent submitted to the Board, general view OF the
situation of the Bank, It's means and Liabilities, It's
circulation and deposits, and the probable future de
mands upon it, showing It's ample resources and
power Of expansion whereupon the Committee OF
Exchange, which was composed Of three Direct
ors, appointed by the President, were authorized By
the Board "to make loans on the security Of the
stock Of this Bank other approved security, and il
necessary at lower rate than six, but not less than
five per cent. per annum. THIS delegation OF power
TO the Exchange Committee, was never expressly and
formally renewed under the new charter, unless It be
considered as included, under general resolution Of
the new Board adopting 1.-The Bye-Laws, Rules and
Regulations of the former Bank. BY the statement
Of the condition of the Bank upon the second of
March, 1885, the whole amount OF loans upon Bank
stock and other than personal security, 81, 49,,
936 % cents, while that by that of March 3, lo36,
these loans had increased 10 the of 446 367 dol
lars So cents. Under such circumstances, the active
means Of the Bank comparatively small, to pay
the immediate demand of the State for the Bonus, to
settle with the Government Of the United States for
It's stock and TO meet It's circulation OF 20 22T dol
iars SO cents, which, contrary to the anticipation, ex
pressed the period of its recharter, began TO be
rapidly presented for redemption. The Bank was, of
necessity driven into the market borrowers, and
very soon the first step was taken TO obtain loans
abroad by sending the Cashier TO Europe for that pur
one in England Of II 100000 sterling and another
in France, OF $500 900 francs on favorable terms
In order 10 provide for the payment Of these loans
and negotiate Others and in general to superntend
the interests of the institution abroad, 1t deter
mined by the Board to have General Agent residing
in London, and on the twenty second Of September,
Mr. Samuel Jaudon then Cashier, was elected to that
post and his agency there commenced accordingly No
vember {, 1887
AT the same time the Bank entered into Foreign and
Domestic Markets borrowers, upon their Post Notes
and Bonus payable in Europe: the whole amount OBJ
tanned in this way at different periods up to July, lS40
being more than twenty-thr millions
From these causes as well as from the general de-
of affairs, the suspension OF specie payments
and the di1cradt consequently thrown upon American
securities and particularly from the course OF the
Banks dealing in Foreign Exchange, by drawing Bills
10 large amount without having previously provided
the funds for their payment and thus subectng their
agent in London 10 the necessity OF obtaining money
in haste in order to maintain the credit OF the BANK
4 was no LONGER found possible to command funds there
lnon the same favorable before. And accord
nply, upon Mr.. Jaudons subsequent negotiations Tor
oans 10 the amount altogether OF l22l2,0U dollars,
I6 cents there is chargeablc to losses the sum Of
49,9O7 dollars, cents, being for DISCOUNT CommIs-
lions 10 Foreign Bankers, and other charges not IN
.ludinq Mr. Jaudons own commissions, and the e1.
,enses Of The Agency in London amounting up 10 ia
,uary 1874 10 the Of 81 3li pounds, IL shngs,
pence sterling, which at nine per cent exchange is
,aual to 49,, 937 dollars, 50 cents.
Ii NAV be proper to explain i'll passing, how this
arge sum for expenses OF the agency at Lohuon
rises. When Mr.. Jaudon elected TO the place
If foreign agent, he the principal cashier, at
,lary Of 1000 dollars per annum. The Bank PAD
he loss on the sale Of his furniture o01l dollars
md the passage of himself and family to London, q
ur,her sum Of 1915 dollars. He was to devote MN
of ,clus;veIy 10 the business of the Bank, TO ne
ro,;ate an uncovered credit in England, to pro-
,;d ror the then existing debt in Europe, to receive
- funds 10 pay ITS bills and dividends, TO effect
ales of stocks, and generally to protect the interests
# the Bank, and "the country at large. fof these
ery;ces he was To receive the commission thereto
faro CHARGED. and allowed to Barring, Brothers y
~ompany equal 10 about $4,000 dollars per annunl'
In addition TO which, the expenses OF the agency
we're allowed him. including salary OF looo pouhus
,,erliny to his brother, MIR. Charles D. Jandon, as
MS principal clerk. From the increase o. money ope'
.a,ons arising from facilities afforded oy the a5en
- the amount upon which commissions were charged
~, greatv auuinented that the sums PAID HIM Tor
s ordinary services to January, c4l amounted nt
,er cent exchange 10 11SOI1 dollars IL cents, ana
the expenses of the agency to 3D. ioo collars ~ GEMS
In addition to these sums, he was allowed by the TX
,h,nns Committee an extra commission of one per
cent upon loan effected in October, le3J, OF coo,-
900 pounds say &c. 735 dollars, oo cents ana upon h'e
claim for a similar commission upon subsequent loans
in France and Holland, to the amour, % o'. uo.
hrs 90 cents the Board of Directors, under the sane
ion of legal opinion from counsel OF high standing,
md The views Of the former President, by whom the
agreement with Mr. Jaudon was made, that the case
of extraordinary loans was not anticipated, nor meant
- no cludsd in the original arrangement, allowed the
further charge Of 1870 Dollars 81 cents These h Sc
vcral sums amount to 333D37 dollars 8? cents as De-
fore stated !
Such were some of the results of the resolution OF
March. 1885, though it cannot be questioned that
much may be fairly attributed to The unhappy sllua
If The business and exchanges of the country con
curing with the unfortunate policy pursued BY the
administration Of the Bank Thus the Institution has
zone on TO increase its Indebtedness abroad until II
-. now more money borrowed Europe, than 1t has
~ lo,n. on its list of Active Debt in America
To this has been superadded extensive dealings IN
stocks and continuation of the policy OF oan'ng upon
stock securities, though it evidently proper upon
The recharcr that such policy should be at once and
entirely Such indeed was It's s70.s s
on Stocks and other than personal security had in
ceased 1891 54l dollars, while the Bills discounted
on personal security and Domestic Exchange mao SUI
fred dminu,ion of 9,5l6,463 dollars, 10 cents, IL
-. - have been sufficient to obtain money on ioan