Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-08

AZ
ons on the statements of the Bank OF Virginia, ana Inc
rport made 10 the stockholders at their late meeting oy
committee, the following brief remarks are respcctiui
~ submitted: -,
On examining the report it will be obsers ed that the
chief difference between the committee and Tie dec
ors Of The Bank consists their respective estimate oil
he had and doubtful debts of the lnsuton Inc
committee admit that adequate want Of time necessa-
rily compels them to be very BRIEF and they can 's
call The attention OF the stockholders 10 few parties"
lars which came under their notice. Now, tue iac'
&C. that the committee went through the whole oil The
suspended and bonded debts with such explanations as
the cashier and the president could give them lbei
;hourht proper TO swell the bad debt sal, l92 beyond
The estimate Of the directors, and the doubtful dto'
S:3 600 more, making togetne! STOLE Whethe, me
hurried estimate OF the committee or The mere deiIoe
rate me Of the directors entitled 10 most confidence
II may not now be becoming 10 express an opinion
which can have practical operation
The next subject OF annadverslon on the part o! te
committee is the value of the stocks held at The MO-
Their Bank The committee put down their value nj
Tho cost. They consist Of $780, Goa Of Virginia per
cent stock SIT, SOD Of various stocks, and SI0uuOo oil
lanes River and knnawha stock. The first has long
been held by the Bank and has always been consider
ed as convertible fund.- while the bank was regular
ly receiving interest on 1t. me second description
consists of various stocks taken in the settlement
or questionable debts, which, like other stocks, are
greatly reduced in price. Dividends, however, have,
Ueen received on some OF them, and The establish
ncnts are all in improving condition, and II
i believed they will ultimately become productive
of the manner in which the bank acquired the James
River and kanawha stock, 1t IS needless TO say more
than that the Directors OF the Bank not responsible
for the acquisition o! It.
After making their estimate oil the bad ana
doubtful debts the committee introduce the suspended
debt in which all the bad and doubtful are included,
and then proceed s'remark their deliberate convlc
,on tina, some of the loss has resulted from the ce-
alton of large debts and the want OF proper attention
to them after being suspended. lis at once admitted
that some of the loss has resulted from large debls, ou
when they were created, the pares both makers ana
endorsers were considered very wealthy and the debts
periec;ly safe In the great mutations IN the monetary
ils in the country Tor The last SIX Or eight years,
when Governments and Banks and individuals have
incurred heavy losses, is il wonderful that tins bahh'
which is purely monied corporalIon should sustain
losses by extending credit too far TO certain individuals
Ii is an easy matter after event has happened to at
tach blame but Bank Directors are no more seers IMAM
other men, and it is well known that the strongest
corporate companies and individual firms both III En-
rope and America have suffered immense losses occa
sionally from an extension Of the credit system IN
the phrenzy of the times That any portion OF these
large debts referred 10 by the committee have been lost
from the want Of proper attention alter becoming sus
pended is fatty contradcled 1t IS not at all tunes
good policy 10 institute law suits against delinqus nts
until efforts made render III" debts as secure as
possible either by banks Individuals and this bank
has lost nothing by negotiation, which II could have
obtained by the process OF law.
| The case to which the Committee alude "where the
endorser oil note had been released by neglect though
they consider the debt good satisfactorily ex
planned 10 the meeting, IN exoneraon OF the BANK, by
The maker of the note that further explanation is
required nj this time.
/ The Committee also remark "that another large
debt might have been lost under the statute Of mta-
tons but for the timely counsel Of the cashier on his
coming into Office This debt had been transferred to
this bank by The Bank Of the IT, States, when the Office
nj Richmond about to be closed, and was secured
by deed of trust on valuable property. The same
person owed another debt TO ths bank which was not
satisfactorily secured, and it became an object III the
first instance to that debt winch wns recovered
hv lawsuit. Before the present cashier came into
Office much anxiety felt by the officers OF the bank
in regard 10 the first mentioned debt and one OF the rus-
tees we're applied 10 To execute the trust who declined
acting without the interpretation OF the chancery court
from the particular wording Of the deed OF trust abosl
this period Gen Pegtam came into c!ce, and win great
prompnes took the proper legal steps Tor the recovery
of the debt.
The last specific allegation Of the committee is that
emo bond had been taken from the late cashier under
the new charter In the opinion OF learned counsel
il was not deemed essential that bond should be
taken nnsnuch the old bond provided for tle obI-
CATION of that officer $50 long he should continue IN
office, and what the committee denominate the me I"
charter a extension O. the corporation with
notifications which DID not change the tenure
\
| The general state OF the Ban; the first o Jann-
sry with the estimate Of bad nnd doubtful debts, EXIT
bits the condition of The institution according 10 the
viea Of the officers Of the bank No mention IS made
OF The probable gain from The destruction and loss Of
notes during thryeight years Of very extensive CIR
culaon. That gain is probably equal 10 anF loss that
may be sustained from the depressed price OF the stocks
held By the bank and the bank cannot, by law, d.
vide than per cent per annum OF It's profits, Tie
annual surpluses w it is hoped, restore the entire
capital in the Of few years. The bank has
been exceedingly unfortunate in losing large amount
Of its paper lis way 10 Lynchbnrg, which has
long since been carried 10 the account OF profit and loss
and it would notwithstanding, have been IN excellent
condition but FOR the great loss sustained by the ms
conduct Of its late Teller. The Bank has been IN ope
ration thirty Eight years and has rendered no ncons
derable service TO The Commonwealth. The Indlvi
dual stockholders have paid about five hundred thou
sand dollars bonuses and the State has received abou
two millions Of dollars in dividends, besides such loan:
occasionally required in anticipation of its reve
nue..
In conclusion it mny be truly remarked, that the
leading and premedta,ed design Of the Chairman OF the
Committee, avowed in his speech presenting the
report, was the removal of the President Of the Inst
tnlon. JOHN BROCKENBROUGn,
President
State Of The Farmers Enuk If tirsiata, Including III