The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1865-12-25
The North western Bank OF VIrgInI n
and its Onicent I'nrISersbuFg.
To GO. w. mENDERsoN, -

] ~ IED. w. HENDERSON, Esq
AS a stakeholder in the North West
ern Bank, deem it not improper to re
pei some ilI-natured remarks that have
been, and are now being made, in rela.
ton to the management of the NORTH
Western Bank, and its office in Parkers
burg.
Under law of Congress, mt its sas.
sion in 1861, the surplus money in
the Treasury, arising from the sale OF
| the public lands, the Legislature OF
I Virginia, mt its extra session of 1877.
passed an act investing her share lover
3, 0OO,O OO) in Bank stocks, charging the
capital OF her Banks for the purpose:
under this law tho State became Il
Stakeholder in the North Western Bank
to the amount of 100000. The Legis-
lature, at the same session, established
the Branch of the said Bank at Parkers-
burg, with II capital OF S4OO, 600 one half
of which was the States.
1t was not until October 1889 that the
Bank In Parkersburg was opened; and
then with II capital of but $50 900; this
was gradually increased by its own sur
plus, and by the Farmers Bank, to the
100000 as provided for by the Charter
of 1887. Mr.. Beverly Smith came to
Parkersburg and opened the Bank as
- NsA1AAANAg anu NNhlllAheAl SUCH
that time until July, 1865, when it be-
came National Bank under the laws
OF Congress.
No bank in any country can offer n
more successful and prudent manage
ment than the Branch of the North
western in Parkersburg. With an an
nunl discount of many hundred thous-
and dollars, for the first sixteen wears
it did not lose dollar. In the great
financial conVulsion of 1897, it lost some
seven thousand dollars by the failure of
the Ohio Life ~ Trust Company, The
office of this company in New York
was the collector and place of tleposi.
of the branch, us also of the parent
bank, and of the NJ. d NJ. Bank of
Wheeling. In 1855 the Branch, under
nm act of the Legislature of Virginia.
purchased, and paid for out of its sur
plus fund 5000 OF the stock held by
the State in the parent bank and
branches; the whole purchased by the
bank and branches was 100000 al
about II per cent. above par, and was
! as things turned, n bad bargain, AND
IN 1850 the ParkersburR Brunch trims,
4 terred to the parent bank $50, 600 of its
surplus; and It was by means of thi.
surplus that the general stoclSholder,
1 We're enabled to obtain 90 per cent. OF
their stock in the new organization.
The surplus earnings of the Pnrkors
burg Branch, from 1899 to MAY 1886
were 100000; and this after paying il.
own share of the dividends, and con
trtbuting to the means OF the Bank n
Wheeling.
The whole of the losses of the Brnncl
from its organization from discount
has not exceeded $1,000; it has lost b,
the failure of the Richmond Bank abOu
$1,000 more; making its losses from al
sources about $4,000; three from dis
# commits mud NaNN E.gN
bonds, leaving II clear surplus of nea
500, 600.
SO far from acknowledgements tn,
/ PnrkeTsburg Branch OF the Nortl
] Western Bank, has been managed will
j great prudence; this is mainly nttribu
table To the care of its Cashier, and I,
I Directors that wanted to borrow bu
little money. The officers and director,
of tho Branch avoided the fatal theory
1 that Frustrated the parent Bank, to-wii
I that tho Board was made To build up ,
I city, regardless of the interest of tn,
Stakeholder.
But though the parent bank los
much money by the false system OF
which IL was for time conducted, We
1t would have overcome the embarrnss
ment from that cause but for its loss hy
the Branch mt Je1IersOnVille. The law
! required the parent bank to redeem The
/ issues of its branches; the circulation ~
this branch in the spring of 1861 was
over 500, 600, nearly the whole OF which
I was redeemed nt the Bank mt Wheel.
ing, and is IL total loss to the stOckhold.
/ erS.
The laws OF Congress, of last session,
compelling the State Banks to become
National Banks and submit to an oner-
Gus taxation, was clearly unconstitu.
tional as it was possible to make n law.
II was designed by its trainers to sever
the last link of State independence; il
is the consumatiOn OF the favorite pur-
poses of Alexander Hamilton and the
Northern federalists. What IA wide de-
Parture from the original theory ON
which the Banks of Amsterdam and
Vienna were founded, or OF the banks
in Europe and the United States in
modern times. a SToCKHoLDER.
In the n. w. Bank.