Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-07-26


understood have hitbertoo determined
If it is not so, banks are legalized swindlers.
They may under false pretence OF pos
sessing the capital required by law, pass
their notes upon creduous community
and shield themselves and their private
property under the pretended sanetity OF
a charter Common sense torbids the be-
lief that charter can ever be made TO CO.
yer inlquity."
The question as stated by this able edi-
tor, may be thus more comPendiously ex-
pressed: is it essential that bank should
do its business with or without any capital
whatever? The notes of the institution
promise to pay the amount OF the sum for
which they are giveo, IN gold and silver.
Suppose that the subscribers who are TO
furnish the funds from whence this paper is
to be redeemed, and who are allowed for
their own ease and convenience, to pay
them in certain proportions, and at certain
intervals, which is all that is meant by the
word instalments, disregard this provision
oftheir charter altogether, and pay nothing.
The bank, we will suppose, notwlthstand.
ing goes into operation, and issues notes
signed by the president and cashier, by
which they promise to pay the sum specl-
fed in hard money, on demand. This in
sttu,ion, however wealthy the individuals
who may compose it may be, is fraudulent
from the very moment the first note is put
into circulation. Ofwhat avail may it be
that the individuals who compose the cor
pora,ion are opulent in their private capa.
cities? Not cent of their individual pro-
pertv can be touched-it is protected by
The charter--the funds of the institution,
the gold and silver in the vaults, constitute
the only security to which the creditor may
resort for the payment Of his note, This
institution is beyond all doubt therefore
fraudulent in its first commencement, for
in the case we have stated, there is no fund
TO which the creditor can resort. But ii
the FIRST instalment is paid in, and The o.
theirs neglected, then should the bank COM
mence business, and issue notes far beyond
the amount of capital in the vaults, does
not this amount to the same palpable fraud
In the absence of hard money, 10 what has
the creditor to resort 10 for payment? RE
has no collateral security, not even the
personal responsibility of the president and
directors, for they are protected 10y their
charter-he has not the personal RESPONSE
bility of the stockholders, for they are By
the same instrument made liable no further
than the funds which they contribute. Col
lateral security for payment by the stock
holders not being required, the creditor
has nothing but the empty vaults oil the
bank TO which he can resort. But what
shall be said when the charter itself, ex-
pressly declares that the instalments shall
be paid in hard money--what shall be sald
when this evil is, with providentlal and
almost prophetic sagacity, guarded against
bv the express terms of the charter! The
legislature say to the directors. all install
men,s due to the bank must be paid in sill
yer and gold, and you so long as this con-
di,ion is faithfully fulfilled, shall be exempt
both in your persons and beyond what pro-
perry you invest in such all establishment.
The condition is. that all instruments must
be paid in gold and silver; this is your Sc
curity, this your responsibility both as to
your persons, anC as TO your personal pro-
perry. The directors OF TIE institution
with the charter in their hands, say lbls-
We will not compel payment OF the install
ments in gold and si!ver--we will not even
obey the injunctions OF the legislature so
far, as to demand collateral security for our
contempt, for the provisions guaranteed by
the charter we will proceed to issue notes
we will borrow money at high interest,
to meet immediate eDgagemenls--we will
thus create an artificial rise OF stock, and
turn the confidence of the public into mat
ter of profitable speculation. The bubble
will burst, but il shall not burst in our hands
we will carry these glitterisg noihlngs
into market, and they shall vanish in the
hands OF the purchasers. When this child
OF heat and air expires and evaporaies INTO
its own elements, doe, it remain for these
directors to say that they can plead viola
ton of the charter, tor the irresponsibIliiy
secured by the char.er--no, If the authors