Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-10-18
FOR THE ENQUIRER.
CONSIDERATIONS
On tic subject Of Unchartered BO,sks,
BrA DIsINrEREsrED CITIZEN.


fortune"
Hazard Subsequently, connected with every spe-
cies OF Commercial Enterprise. The merchant
who vests hts capital in goods for foreign market,
must necessarily encounter tie dangers of the
seas and the risque of capture by an cIemy; and
therefore, SO long his adventures are conducted
with prudence and crcumspection, his losses are
charged upon his i'll fortune, and not upon
his folly.-if however, slrom an oyerweening
anxiety to smass immense wealth. we be-
hold him venting entire fortune in a single bot
tom, and putting his all in imminent jeopardy from
the seduction OF anticipated profit we ningle with
pity for his misorunes our censures OF the n
varice which has mpelIed, or the weakness which
has deluded him. The same opinions prevail with
rs IN greater or less degree in relation TO every
gaintul pursuit We are always ready to excuse
rlsque which oilers fair prospect of advantage,
and the greater the anticipated profit the greater
the hazard which 1t will Justify.
Hut what shall we think OF those who stake their
Whole estates upon the chance ofproitirom n very
doubtful experiment who become responsible 10
tie oct Sig Of their fortunes for the transactions
OF a Esnk in which they hold hut few shares and
whose profits must be but moderate who risaue
them all for the small dividends arising from few
thsusand dollars. and involve themselves with ndi-
viduss they do net know, in partnership, which
may beggar them rretJieyahly Yet. such, | con-
ceiye, to be the stuatoa of the Stockholders in IN
chartered Banks.
shall endeavour TO shew, that however fer the
Shares an individual may hold, borrower limit
ed his interest IN an CachGTTered BG1k, he is H.
able tor all the debts and transactions ofthe insttu-
ton d" to the last shilling of his fortune"
This position is believed to follow irressbIy
from the following
That Unchartered Banks are regarded by law as
common paTf'ierslapa, and governed by the same
rules;
not merely responsible for the partnership ttansac-
tons to the amount of his interest in the fund.- 5,
to the utmost eten Of his Prlpety, 1g!s:s, real
personal.
shall not find it necessary to do more in support
~ these doctrines, than to tanscribe few passages
from the Edition OF Watson Partnership, slrea-
dy referred to. They are in these words
"The laws respecting these Companies or Sect
cites, 1vten not confi7nedby public authority are
the same as in common PartnerSlabs"
n Charter is necessa1yto enable Company
to hold lands, to Lave common seal, snd enjoy tie
oiher privileges of Corporation bt Charter is
sometimes procuredm eTeyto limit the risk Of the
partners for in every prSrGte Company, the part
nerS liable for the debts Without limitation In
fncorpOrdted Societies, they only liable for their
Shares in the Stock of the Society" fa]
Here we find that Unchartered Banks are mere
private partnerships, in the eye of the law that
Charters are obtained To enable them u hold pro-
perry, 10 exempt them from liability, further than
the amount of joint funds, and to avoid variety
OF embarrsssInents incident 10 the association OF
such number Of individuals in complicated con-
Germs
1t will be Observedthathe doctrine of the unlimi-
ted liability Of Stockholders in Unehartered Com
panes is here directly advanced. 1t is indirectly laid
down IN the following passage from the same author,
where the general doctrine of the liability of part
ners IS most explicitly stated doctrine, the APP
piieation Of which to Unchartered Banks is una
veidable, as they have been s.pewn 20 be nothing
more than common partnerships. The words Of
the author are as follows
Before leaving this subject to wit, the liability
otpsrtners upon contracts, it may be proper to
observe, that in general, wherever they liable
at all, they fddLe for any Personal debt then
nay hare inGhmdiialy contracted; the partner.
ship creditor, after obtaining Judgment against
them, may seize the zVh0Le OF their gooRs may
get possession Of one hGLfof their reai cstateS or
may take ont executions against Their PERSONS
Il IS not merely the which they bring into the
partnership firm that is risked, bHtfiey Gje an
srceTQbfc to the LAST SHILLING or THEIR fon-
TUNE."f6l
Am mot then justified in alIedging thst in IN
chartered Banks. each individual partner s respou-
sibe for the debts and transactions of the
tue uttermost lsrthing" Of his private property
and is even liable TO be imprisoned for his private
debt
am aware, that to avoid the influence Of these
doctrines, the notes Of URehartered Banks have
been drawn with express provision, tat they
we're TO be paid out OF the joint funds and other.
But this can surely be Of no Importance, nor can
the eontrvance be admitted tovary the rules arca-
dy lald down, when we advert to the author alrca-
dy quoted, and to other authorities OF equal validity.
In these, il is explicitly stated that this general
principle Of individual liability cpaiot be varied by
any private agreement 20 restrict th& liability TO the
JOINT fund, and that Of the beneficial effects of
Charter is To limit the responsibility Of Slockhod-
ers tothc amount o, tho Shares he'll by them res
pectively. IslIall be pardoned, trust, for adding
| the following short quotations
The responsibility Of those who engage IN pri-
| yate partnerships cannot b. limited by any 0qTce-
| mems, covenants proyisoes 10 TIE articles by
| which the partnerships constituted" lcl
n idea, il is believed, has prevailed that tie su-
| thorties quoted, relate alone ~ agreements be-
tween the partners, and cannot apply tosn express
limitation ofresponsibility in the instrument ITSELF
tormilg is coniendel, the Of tie contract
| between the Bank and the n0tehoider. 1t is not
recolectcd however, that any authority b. pro-
duced IN support OF this distinction, whilst the
| ther hand, variety of considerations conspire
| to support the position to the extent have conten-
/ ded for.
| THERE'S no part Of tie laws Of England more RI
| gorOusly adhered to, than the law merchant, and
such d has existed in that Country, it exists among
ourselves, with such variations difference Of stua-
ton hos created. It's fundamental principles are
not permitted To be altered according to the whims
| and capriees Of individuals For h they we're, 50
innumerahe would be the deyiat0ns frofa general
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