The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-06-30

issued the following circular TO their
Stockholders;
ELn consequence Of Q large amount Of
this bank beng tied DIP In unproductiye
real estate, taken or purchased 70 secure
old elatms, besides other assets Of long
standing yielding little or no revenue, Il
d impossible for tho bank 10 continue 70
pay the usual dividends. In view Of this
tAct and the high priee now TO be OBJ
tanned for Government bonds, Il q DEEM
cd advisable that the bank 60 into liqui.
dAtion, believing That the assets viii pay
tho stockholders the par value Of their
stock. Therefore, In pursuance Of this
object, meeting Of the stockholders will
b heldin the banking house, In Wheel
Ing, on the seventh day Of July, 1874, TO
vote Tor the Windipg.up Of the Rfails Of
the bank
Byorder Of the Board.
"JNo. ]. JONES, OGGtisr."
WsleGrn that there arc some persons
who do not seem 70 understand the ns-
ture Of the above circular and who labor
under the apprehension that It involves
in some way the solvency Of the bank
For the benefit Of such persons we may
explain that 1t has no bearing or sppllca-
ton in that direction. The Merchants
National Bank Is entirely solvent It
can pay every dollar that It owes and
then divide between four and five hun:
bred thousand dollArs among It's stock.
holderL The circular therefore has moth.
ing whatever 70 DO with lis note holders
or depoSitors. The movement concerns
only ii stockholders, with whom it ia 4
question Of this sort, viz: Can we make
more money by winding up the bank
than We can by runnipgils The bank
holds today 100000 in United States
government bonds. Thee bonds have
risen 10 value until they will now, Of this
morniDg's quotations, sell for $4,000.
This $4,000 premium above the par
value Of the bonds Is big item, and
taken In connection with the fact that the
capital stock oil the bank is too large Cor
the amount oil business It is doing the
directors think It better 10 sell the bonds,
realize the premium, reduce the capital
and organize q new concern. By 90 do.
ing they expect to reslizs the following
advantages.
/. They will realize $4,000 premium
on The bonds. Second, they will reduce
the capital from 100000 10 100000,
and Il they retain the same deposit line
will make more money. Third, they
will cutoff q long list Of foreign and un-
productive stockholders, who simply
draw dividend and confer no benefits
upon the bank in the way Of deposits OF
business. Fourth, they will be in bet.
tershApe TO wind up the business OF the
old bank, such as converting its real es-
tate into money and gradually reducing
It's outstanding long loans.
All lhesc items involve important con-
dterauons 10 the stockholders, with
whom, as We said, it Is a simple question
ofproHt. The ability Of the bank to do
business is not in issue at all. She can
keep right on in her present shape and
continue to pay small but not satisfactory
dividends to her stockholders. 1t Is
therefore simply and only question that
concerns these latter, as TO whether they
are willing toput up with small dividends
Tor the present or wind up and receive
each one his share Of the capital stock and
employ 1t TO suit himself This Is all there
Ia In the movement.
As 10 the result Of the movement, we
have no doubt that msjurity Of the
stock will vote In favor OF winding up
the bank. We learn that the sentiment
10 largely in favor Of such policy. We
may therefore expect 10 see new con-
cern organized Immediately. Indeed q
portion Of the stock in the new bank has
been already subscribed. This new con.
cern win keep right on in the old bank
ing house and continue business with the
public precisely Is II no change had been
made. As to what name 1t will take, or
whether It will organize under the State
or National systems we are not advised.
30 far IS We know, such points are not