Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1843-02-25

LuS suli vi @OU,UUU, WHICH duueu 10 tnc
sum of $4,000 would make up the amount
Of $4,000. This was one of the fruits of
resembling the resolution not TO deal in the
paper of suspended banks.
In addition to the sum of $ll3,545 put
down in the Bank Report, as the amount
of notes held by the Missouri Bank, of the
Bank of Illinois, there appears to be, if
your committee properly apprehend the
answers made by the cashier of the bank
a sum equal to 100000 which the bank OF
Illinois undertook to secure to the Nilsson
ri bank, by drawing bills on New York,
These bills are all protested and returned
The Bank has however, $4,000 of the
paper of that bank, in the hands of trus-
tees to secure the payment of the $780,
000.-This is perhaps the only valuable Sc
curity which the Bank has, and which
must fall far short of full indemnity. This
collateral security, is not probably worth
more than $4,000, which if the security
on New York, be valueless, will leave the
sum of 100000, which the Bank would
lose from the reception Of the paper of the
bank of Illinois, additional to the loss she
must sustain on the sum of $1l3,5l5, for
which she has no security.
The committee cannot omit to call the
attention of the House to the fact that
when the Bank of Missouri, had concluded
to refuse the notes of the bank of Illinois,
the sum of S2l, s39 81, in notes of the last
named Bank, appeared to the credit of the
directors of the Missouri Bank, and that
the whole sum was paid to such directors
in notes of the mother bank, and its branch
es. Whatever loss the other citizens Of
the State may have sustained by the unwlse
conduct of the bank directors, they were
careful to secure themselves from loss
Your commtte regard comment on this
conduct as wholly unnecessary.
1t cannot have escaped the observation of
any person familiar with banks that the
amount of suspended debt of the parent
bank is unusually large. 1t is greatly dis
proportionate to the amount of business
done by the bank. 1t amounted to the
large sum of $l47,739 26, on the 3lst De-
cember, 1912. OF this sum $39,039,lS
was reported bad, by the committee of the
board of directors, and charged to the soon
tingent fund" The bank, however, enter
tains the hope of collecting a part of
| tiiio Sulil. NV uOUOJ d pOlIioll, oAA ~
may be a large portion of the suspended
debt, regarded as good will never be re-
ceived. The whole of this large debt is
now in process Of collection. The exis-
tence of so large an amount of doubtful
debts evinces, in the opinion of the COM
mittee great lack Of management of the
affairs of the institution. There must have
been great want of skill and vigilance in
protecting the interests of the State; other
wise the amount of doubtful debts could
never have sweled to the enormous sum of
$l47,739,2I.
In the item due from banks (as per Bank
Report the sum of $9,554.03, is due from
suspended banks and of this sum, $685.
24 is due from the U. S. Bank of Pennsyl-
vania. This is additional to the sum of
81 200 before referred to, as due from that
institution. The board of directors expectito
realize the first named sum; but $2.600,00
part of this sum of $9,556,03, the directors
| simply express hope to see realized.
From the examination of the various pa
pers, statements and reports, with which
the committee have been favored, they are
unable to form any accurate estimate Of
| thO VI iOosCo "lliSu thC Odllh uluot
necessarily sustain from the course it has
pursued from the time of its creation. The
necessary loss must be large, the probable
loss very large. The committee however.
believe they would not overrate the amount
by estimating it at the sum of S2,5OO,O0O.
The expense account of the bank, all
things considered, is greatly disproporton-
ate to the same accounts Of the branches.
The committee in casting their eyes over
the ample enumeration of the particulars,
making up the sum of expense, discover
many charges for things they are inclined
TO believe, administer rather 10 the luxuri-
Gus tastes Of the officers than tend TO fill
the Golfers of the State An air of extrav-
agance pervades the whole account from
the salaries of the several officers to mat
tiers of far less Importance; under these
different views of the subject, and patient
investigation of facts, the committee regret
they are compelled to believe it would be
highly inexpedient to invest in that insttu-
ton any additional funds The transac-
tons between the State and that institution
should be like those between Individuals
When agents violate the confidence reposed
in them, deviate from known legal and
moral path, bring losses and great embar-
easements upon themselves, the community,
and their principals, prudence seems to ad-