Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-01-25


=, ,,.,,a ,ns,. a.,i ;;.ii IN Es;-iE.,T". IN triHii'.''
Z a. ..,i,.."., - Er!'e"' H'Hir'"' ""'-.
,,,:i.;,. - ..I 3d. "'.',!' rr'i;i'ts ust'! '""''I'"-
,a..,,;,:;n,,, t.i"te Commissioning ''o n.;I'''i.h 80
! ,.Itt.i, i; -k;,ii be inc6rp,,: ntUd, Ia die ai:d !h,!hr' ~'''
H.. n,,nty clerk stating that the Whole TT mo "ap'-
,i stock, or such portion thereof h> by ita charter
Shall DO paid or secured, before Tic rha'nieic:hieht "
il. oneraiious. has been actually pail "r sESoreu Nc
rrrdiu., 10 tho provisions OF ill., charter. lhis pro-
yi.in, has GENERALLY been regarded is not applicable
10 banking associations organized under the laws "i
1888; and, therefore, bat few, II any, AVE ie' Gale"
upon IL file the affidavit under IT..
Tin. SUPERINTENDENT haI un power to inquire INTO
the fnct whether the capital required has been in fact
mid or secured Ia be paid or not. nor whether the al
| tdavit under the aforesaid law has been filed or not
I'm; j. obliged, upon II copy of the ccrtlflcate "i ass".
cin,iuu being properly filed, specifying Il capital OF
SIAN Oln, or upwards, and securities Ia the amount oil
500. 900 being deposited with him, tn consider The
association a. properly organized. aud 10 deliver CIR
emitting notes tn M amount equal tn tho securities III
deposit. Such asIoclatluns are thus enabled to pro-
coed in the ISSUE ot notes and the prosecution Of the
banking business, Notwithstanding q very small por-
ton, in fact, Of their capital may have been paid III,
and nearly all their securities may have been bought
upon credit, or upon pledge OF their circulating notes.
This is plainly an evil which should be reincdlcd.-
Under this state of things, and from the want of a
specific and undoub:cd requirement that evidence ne
furnished Ia the Superintendent before The Issue "i
any notes that the capital stock has been paid III. The
quarterly reports show the tGrt that twcnty-slr bank
ing associstions report in the aggregate : ,3jO,629
less capital than that specified in their certificates OF
association recorded and filed. And 1t further ap-
pears that five of them, with nh aggregate capital
specified IN their certificates nI association oi SJ3J,uOo,
report an actual capital of only $3l7 ,5il, The actual
capital of each one of them being reported at less
than $l0D.OOO, the required amount, the lowest IN the
list reporting an actual capital OF only SlI ,O0o, ana
the highest reporting one of only S9O,OOO. With these
facts before him, the superintendent Is clear III the
opinion that the law should br 80 amended IA TO re-
Guire the certificate of association i'll every case TO
specify the amount of actual capital required to be
paid III before commencing ia" business ui banking,
aud that such amount should not, in any case, be less
than SlOO, GOO, and that tho superintendent be prohi-
bitrd from issuing any circulating notes to such ns-
sncintinn, until furnished with proper evidence by al
fdavit of the President and Cashier of such association
tina, the capital stock required to be paid in by such
certificates has in fact been paid.
BURNING or MITES RETURNED TO TIE BANK DE-
PaRTMESr.
The number Of mutllated notes returned TO the
Bank Department for burning during the last fiscal
Year was Us follows:
EnrtElStered notes ~ $3.50
,g32, LIS bills of banking associations
aud individual bankers amounting to b~'3io,'bl
Amounting IN Iut WllUlc 10 !
This il All Important part Of the duties 10 be dis
charged il! the Department, mud should be carefully
watched, guarded and ~ arranged rs tn preven', as
eilcclually as practicable, any danger of fraud, co.,
fusion Or the possibility of lis exi>tence. The super
inteuipnt, ~ a pubic officer, is entitled to rlch pro-
visions OF law rs will fully protect hun against any
unjust suspicion "r danger of t-uud. 10 accomplish
such end, although not expressly required by law, he
has heretofore and does now assume upon himself the
RIGHT to require each hank to have III agent of lis
nytN sIlpptIpl urpspni fD witness IN. committing anu It,
structinn of the bills az the 4, pnrtIncnt, aud sign n
rertiticu,. thereof i'll a book pr"vidrd for the purpose.
Those certificates are tho evidence III the hand. III
the Superintendent that his duty las been properly
discharged. The attendance of such agent IL also lit
cessury by reason u! the errors which are frequently
detected in tie count and marking by the Officers u the
bunk of the amount contained in the packages sent
to be destroyed. Whea such discrepancy in the
count exists the matter cannot ordinarily he made
satisfactory in the absence Df the bank agent, and
after the packages have been broken open ard
counting progressed without his attendance and
unjust suspicion upon tile clerks of the departments
might b.. the consequence. The attention Of the Legis-
laturc is now called to the subject, inUsmuch rs some
bankers have, at times, shown IL disposition 10 queS-
ton the right OF the superintendent TO make such re-
uuiremcut: and the trustees Of the Bank of Monroe,
nm expired safety fund bauk. have returned four sew
eraI packages marked H. continuing in the aggregate,
$ll5,l4i, OF the circulating notes OF said hank 10 be
burned, without complying with the repeated request
OF the Superintendent, aud wholly ncglecting TO APP
point All agent 10 aNlnOT!Ze any person 10 hpptHI III
their behalf 10 witness the counting and burning
Those packages are still lying unopened III the vault,
awaiting the attendance of 4 trustee or agent.
Tie Superintendent asks that such SAlutary require.
ment may receive tho sanction and authority oi law,
and that in case any bills are received by the Super
intertlrnt for destruction, and the individual banker,
or the trustees or officers Of any bank Ia whom the
same may belong, shall neglect or refuse To procure
the attendance of some person in their behalf, ~ wit
ness and certify such counting aud bnrnin, within
ten days after the receipt OF the bills at III. Bank De-
partIneui, that the superintendent bo empowered 10
select OF appoint some indifferent party at the eX.
pense of thu: bank, banker or trustees, as the case may
be, vino shall, for them, in their behalf, aud rs their
duly authorized agent. witness and certify such count
ins AMI destruction.
tuNCLr>InS.
The superintendent has now, he believes, furnished,
it, the preceding report, all the information I" the L.
gis!afure which h. Is required 10 do nj IN" commence.
Inelt of their annual session. lie has also called
their attention. to such amendments Of the laws IL
will in his opinion, tend to improve the operation anu
success of the banking system.
Having done this, he cnnccives that his duty, in re-
spcct thereto, has been fully discharged, aud it now
remains for the Legislature TO judge of the ~rropriety
of the suggestions, and take such action thereon ns,
in their wi, lon. they shall deem proper. He c;in:iot
close this report, however, without c"nmending, III
the highest terms, the general suunGncss uf the bank
ing institutions of the State. and the superior and safe
medium furnished BY them tn the public.
Il is to be hoped that they wi!i not he Disturbed or
deranged by any hasty or inconsideratr legislation or
change in the fundamental principles OF the systsm,
at the same time that nothing will be omitted 10 be
done on the part of the Legislature which may be ne
cessary to perfect, improve and enforce the require
mcn;s Of the banking laws and system as they now
exist. All which is respectfully submitted.
NJ. SCHU0NMAkE1, superintendent.