Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-02-14

and ,hcy have increased the doubtful debt which VA
Sc, set down Is S'i2 oo0, II be about 80 900.
The report Of the prosdentand Directors urtcrshow
tn. amount Of stocks hand Ia be &)D,s54. held b,
the Bank at Richmond while Your COMMITTEE, undc
the most liberal OF the eas, canno estimate Il -
worth more than S3ls.n UO
This reduction IN the estimated value Of tho Stock
held b, the Mother Bank Say t2l2,0da added IN tho
increase of bad debts, which the Committee fixed At 50
600 and these Two items unn. added 10 the loss as
forth the report of the President and Directors {"
IfS 900 would swell the real present loss o the Bank
/ 10 the sum Of slaS sos.
From the above sum Of tas SOS. deduct the profits on
hand belonging to the old and new Stockholders. Of
$50 2ql would leave the deficiency of the capital Of
+ the Bank equal 10 about tfDoOo
I Your Commltie, also had under examination list
OF the suspended debts. which amounts 10 the sum OF
taf2 600 of whle amount t2l7 900 are considered as
lost by the foregoing estimate Aud here your Commit
tee would remark hclr deliberate conviction that
se u tins loss has resulted from the creation Of large
debts and want Of proper attention 10 them after bccom
ING suspended They further state thai they find one
case where the endorse. ot note has been entirely
c,sed by neglect though they consider tins debt good
aud that another large debt might have been las under
the Of limitations bu or the timely counseloi the
prosent Cashier On his coming into Office
They ais find thai many oi the suspended debts
which have always been. and now. considered good
have been lying. without consideration. from three 10
twenty Years state OF things, IN view Of your Com
mittoc irregular u.ustifable. and entirely at yarIatcc
with the true principles ii Banking.
Nont Committee, also found that bond had been
taken from the late Cashier under the new charter and
tie only reason alleged Tor not taking SAID bond. was,
that the ASHER refused 10 give II; and that the Pfe.l
dent and Directors considered the old bond good
II conclusion. your Committee say, that they have no
data npln which they could investigate the state OF tho
Branches Of thls Institution therefore recommended that
Committee Of Stockholders consisting OF other than
Directors be appointed 10 examine into their condition
All of which ~ respectfully submitted.
Mr. Chandler moved the following resolution:
Resoired That tho communication made Ia tins meet
ting yesterday by the President and the report Of Com
mtee appointed Yesterday be recorded by the Secretary
on the Journal part OF the proceedings OF this meet
ing.
Which fesnlulion on motion of Mr.. Il. W. Leigh
amended hs adding tho words without expressing
any oplulon Of the Stockholders on either
The Resolution. amended. was then adopted.
As the Resolution OF the Senate calls Tor explanations
the statements Of the Bank Of Virginia and the report
made To the stockholders ther late meeting by
mltlec the following brel remarks respectfully sub
mitted
On examining the report. II Will be observed that the
cei difference between tho committee and the directors
n the Bank consists then respective estimate Of the
bad and doubtful debts oI The institution The commit
tee admit that adequate want OF time necessarily com
pcls thcn to be very bel aud they only call the al
tcntlon Of the stockholders few particulars which
came under then notice. Now, the fact is that the
committee won't through the whole o the suspended and
bonded debts, with such explanations as the cashier and
the president could give them They thought proper 10
swell the bad debt 81 1872 beyond the cs,maooi the di
roctors. and the doubtful debt $50 oo0 more making
gcther So g2. Whether the hurried estimate Of the
committee the deliberate Of the directors
entitled 10 most confidence, may not be becoming
10 express opinion which can have practical opc
aton
Tho SUBJECT of anin,dyerslon the part Of tho
committee the value o tie stocks hold the mothor
hank TIN directors pat down then value at the cost
They CONSIST OF tlni,ol1 at Virginia per cent stock.
lWs5i Il sartols sloels aud 800 600 of james Riyer
and kanawha stock In, first has long been held by
tho hank, and has always been considered a convert
hlo fund while thu hank WAS regularly receiving into
rest. On H. The second description consists oil
stocks taken IN ho settlement o questionable debts
and which. Ike o'hrr stocks greatly reduccd price
Dividends. however, have been received on some Of
them and The establishments all IN improving con
dition and II Is believed they will ultimately become
productive OF the manner in which the bank acquired
the james River AMI kluawla stuck 1t Is needless 10
than thai the directors Of the Bank are not 70
sponslhlGInr the acquisition OF IT.
After once making their estimate Of tho bad and
doubtful d'hts. the committee Introduce The suspended
debt. IN which all The Lad and doubtful included
and then proceed 10 remark ms their deliberate con
Nlron that nj the nsS has resulted from the crra
lion of large debts and the of proper attention
To them after hclng suspended 1t is at once admitted
that some OF tho lass has resulted from large debts but
when they created, the parties. both makers and
nnduf-'fS, were considered very wealthy aud debts
perfectly safe. In the great mutations. in the none
tary affairs oil the country for the last or years when
Governments, and Banks and individuals have incurred
heavy losses, is II wonderful that this hank. which is
purely moned corporation. should sustain l,sscs
by extending credit too Tar 10 certain individuals 1t
Is an easy matter after an event has happened to At
tach hlamo but bank directors are no more secrs than
other men, and II s we'll known that the strongest
corporate companies and individual firms both In
furore and America have suffered immense losses az
casionaliy from extension OF the credit system
IN the phreuzy Of the times. That any portion of
those large debts referred Ia by the committee have been
tN from The want OF proper attention after becoming
suspended. is fatty conradlcted It's moi at all times
good policy To institute law suits against denaucnts
until efforts made 10 render the debts as secure AZ
possible either by banks individuals and this bank has
host nothing 10y nepocallon which could have obtained
by the process ut law.
The case Ia winch the committee aludo "whcrc the
ondorser OF note had been released by neglect though,
they consider the debt good was so satisfactorily OK
plained 10 the meeting. generation Of the bank by
the maker oi the note. that further explanation s 70
qurcd at tins time.
! Committee also remark. that another larre deb,
might have been lost under the statute nl limitations hui
Tor the mo, counsel of the cashier on his coming int,
Office This debt had been transferred 10 this bank b,
the bank Of the ntcd States " hen the office At Rich
mond was about 10 be closed and secured BY dee,
OF 'rnst ON valuable property The same person owce
another debt 10 this tank, which satisfactory,
secured and II became object the first instance /,
ensure that debt. which recovered by law suit
beiore the present cashier INTO office much auxio
~ was felt by the officers Of the bank in regard to tn,
rsi mentioned debt and of the were arpe,
To TO execute the trust who declined acting without III,
inorposon of the chancery court from the particula
"A al al Tho A..I a IL -