Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1857-11-10
For tie Enquirer.
THE BANK OF KANAWaA.

The BANK OF hANAWHA.
kANAwHA SALINE, Doth Oct. 1887
The Directors of the Bank of Kanawha regret ii.
necessity of being drawn into a reply to the Proeis
nation of the Governor, prohibiting the notes of thu,
bank from being received for public dues but i,l
misstetement of fact, errors OF conclusion, miscbievou,l
effects on the interests of the note.hoIder, and ;tJ
wanton reflection on their own characters, wsrsns
this statement.
At the commencement Of the present 6nsuc;,i
troubles, and whilst the Bank Of Ksnawha WA snci
cessfuly sustaining itself against the return of nh
circulation, which had then continued for seysrd
weeks, the Governor sent q commissioner to ersmInl
into its condition, which 80 far as it had ipHuencIl
added to the panic. increased the embarrassment N
the bank, and diminished the security of the no,s|
holder, whose interests 1t was his protested object hi
protect. What there has been in the condition nj
aBank, advertising IFS intentions to the public bv "a
de.ming all but 9S.S03 out Of 40 entire circulation al
s25s,UOO lnsbout i've weeks, and having ample msau|
TO meet the rest OF its liabilities, to attrsc, 80 mucI
of Executive supervision, We are at loss TO determjn.
However unwi@e the measures adopted BY the bant|
may have been. every opportunity was given to thai
commissioner to maka his examination, which seemsJ|
to be very complete, not even emitting TO embracsI
some inquiry into The political EFF acts Of the act. Ths|
result of hs examination, or a copy of his report. tia
commissioner declined 10 furnish the bank, syadino
the request by the statement Of his confidence in ths
officers Of the bank, and that in their hands bs Ala
not fear for the interests Of the public. The rsno,t
was thus not exhibited here, whers lts errors cnnid
have been corrected; and ii afterward, on Of tba
materials furnished for il, it was made "manjfs,t that
the bank cannot meet its liabilities" this conclusion
could only have been drawn by one desiring 10 reach
thar result to justify the blunder Of having made An
examination ut all. 1t could scarcely be expected
that conclusions could be drawn, or were even dssir.
sd to be drawn, from an investigation conducted In
this uncandid spirit.
At the time Of the suspension Of this bank, Il had
in coin, notes Of other banks, due from other banks
on drafts. stocks and bonds, and bills receivable,
| $3il,3iS IS to pay q total liability to note.holdsrs,
depositors and banks, of Sll3,7S9 IL; Of which
$93,SU3 only was then the entire outstanding circuls.
ton. 1t is the expectation and intention of the bank,
out Of these resources, TO pay every dollar Of iu liz.
bility, and the conclusion that it will BE- able to do 20,
ia confirmed and strengthened by each days Opera.
ton.
The business of this section of the State, consist.
ing almost exclusively in the expectation of salt and
| minerals TO the western markets, the legitimate ope.
| rations of rhe banks are based mainly on bills 60.
| cepted and payable out of the State. II this il what
ia meant by the statement in the Proclamation 'that
the assets OF the bank TO q large amount have been
removed beyond the limits Of the Commonwealth,
and without the operation Of its laws it would be
more accurate 10 say that the payment Of such bills
is removed beyond the State. whilst the bills them.
selves and all property in them are in the bank. and
90 far within the State and subject to it's laws. Every
intelligent business man knows the superior CONNER.
cial value of such bills, based on the business OF the
country, and payable elsewhere than at the counter
of the bank. Under the control Of the predecessors
oil tnOSe NOW III IU6 management VI ~ oouht otmU
of lis debts were secured without the State; but il
would be a great violence to terms and sense. to calf
the securing of debt, the removal o. effects out OF
the State. The bank under its recent management
has fortunately been able generally to withdraw It's
means from abroad as fast rs they were needed, and
the debts referred to as secured abroad, 10 collect.
ing under its own direction; 80 that all OF Its effects,
whatever the Proclamation may mean to the contra.
ry, are completely under i.s control, and as much
within the State and subject TO its laws, "a banking
purposes aud the business requirements ol tho COM
munity will permit.
The unwarranted peryersion of both the tern end
import of the communication OF the President .. The
bank, annexed to the Proclamation. 10 effect ..HA-~
the action OF the Board in directing the suspsr To-.
of specie payment, the result Of inability to %contiale
it longer, instead of a policy required by the financial
condition Of the country, and reluctantly adopt.
ed OH that account. The Bosrd deem. 1t due
to Themselves, that their motives In direct.
ing this act, shall be drawn from this statement.
and the letter of the president referred to, rather than
from the Proclamation, which artfully degrades both
the motives and the policy which really Influenced
them. Whatever therefore skill or cunning may have
made "mdnltsst" from the report or letter, quite the
contrary is manifest from the facts.
1t would perhaps be uucandld to characterize the
executive action in this matter as precipitate and par.
tial, if we omitted to add the facts, that this Bank re-
csived no circular addressed 10 many Of the other sus.
pended banks permitting their notes 10 be received for
public dues on certain terms; that at the time the
commissioner examined into the condition ofthe bank,
or since, go far ~ We have received notice, none OF It's
notes have been offered or received at the deposlto.
riss of pubic money; and that the Board can appeal
with satisfaction 10 the appreciation OF their manage.
ment by the community in which the bank is located,
and by the individual note.holders Of the bank,
whose interests have been unneO-.sarily sacrificed
upon the pre,eIt Of guarding the interest OF tho State,
which practically was nothing at all.
The statement of the Governor in a conference
with the representatives Of some OF the suspended
banks, at Richmond. on the 8h ultimo. shat II was
not his intention TO issue a proclamation, prohibiting
the receipt Of the notes OF suspended banks 10 pay.
ment of public dues, go long as no remained convinc.
ed that they were acting with a bona I'D. intent 10
protect The State credit, and the communities in
which they are located, and so long as there Is no
evidence of fraud on their part" having been applied
to this bank, by the issuing of the Proclamation on
the 10Th ultimo, the gentlemen of this Board are
placed. without notice or hearing, in the condition Of
and condemnation Oh these charges. The
opportunity of official position has thus been taken
needlessly to insult the citizen, and to impair the Gre.
dit of an institution Of the State, which had the
means otherwise to preserve that credit unimpeach.
cd. But however skiHfully misfatement and insult
may De mixed with acts permitted by law, Difference
to authority, does not blind gentlemen to q just dis.
elimination between them, nor require submission to
outrage under the cover and pretext of official duty.
II. FITzHuGH, I. j. BUSTER,
Z. W. HILL, Isaac n. SMITH,
y. PATRICK, B. ). SMiTHERs.