Richmond palladium. [volume] (Richmond, Wayne County, Ind.) 1831-1837, 1833-02-09

4 Ia - ~ =. heoebs
INSEl
: bank friens within the losing districts
as well as,v its friends within the
: gaining dlsriots. lcould not account
] tor it. 1t i not often that representa-
: tives are dipoed to sacrifice the rights
and lntere.s Of their constituents for
the benefit II their nei@hbors without
some reason. Why VAST resisted
when my fred proposed to limit loans
to bank dire brs, and to prohibit Their,
from taking OFT of the bank more thar
double Their stock paid in2 1t was
lopposed, though we were told the in
stitution WIS or the benefit o. the peo-
pie; that the stockholders aud direc-
tors were ell to he horowub'e men.
and that it WIS not necessary to limi,
their loans. rbi>, sir. in these times
is but feebl barrier against avarice.
thirsty for speculation, and ! for one
would not trlst eight hundred thou
sands dollars dpublic money With ever
better securit
Let us iooAa little further into the
details of this iii. 1t is provided tia,
when stockholders shall pay in thirty
thousand Golirs out Of eighty thou
sand subscribe and secure the residue
that then thestate shall pay in eight,
Thousand and go into immediate oper
alton. Those stockholders then arc
authorized to draw out as permanent
loans the anpunt by them paid in
and this and Pit wheDsso drawn on
as to all practical banking purposes, il
IA dtminution olthc bank capital to tina
amount. Yet the bank is authorized
to issue paper upon it rs though j
was really in the vaults. If thirt,
thousand should be paid in, that ant
the state capitl would authorize al
issue of one hundred and sixty-hv'
thousand dollars, at 81 50 to eacl
dollar paid i'm yet the stakeholder
will have out on permanent loan thirty
thousand of the capital, and the stock
hoitIh NhooSCSO W w u.fU titlS Stats'
ter they can borrow money from tn
bank, Pay up the whole of their stock
and then draw out the whole amt G
it in permanent loans. and leave tn
bank without capital TO redeem its pa
1er. II this is not done, it is not be
cause II IS provided agIlnst Ky thi
charter. These are not the onl, fraud
that may. and in all probability will b
practised under this charter. ATE
one Bank is put in operation, all Ia
other banks will be founded upon il
issues and the state capital: and this b
regular banking operation, so tina
IN putting ten banks into operation
there will rcall, be less in their vault
than the state capital. In consequence
OF the permanent loans tnis cours
would limit the usefulness Of such in
siitu,.o s 10 a very few. And then d
gain, the charter provides that eyel
the debtors to such bank shall he coz
cealed from the public. Would it b
discreditabie to borrow out of th'
bank? WHY then is it made the dut,
OF all concerned to conceal in dark
ness the names of debtors to the bank
here may be some great good grow
ing out of this delicacy, but indeed
am not capable ofperceiving it. The
circumstances of tine country at thi.
time too, are adverse to the success oil
a oank. Our people owe ou, mer.
chants and other traders. They owe
the bank Of the United States and
eastern merchants nearly the same a.
mount. If a bank goes into operation
and IS fairly administered, it may ena-
bic those who are indebted at home
to change their creditors, but not to
pay their debts. it may put off the
evil hour a short time. The whole
issues Of the bank must run into the
hands Of thestsader, from his hands II
must 60 to his creditor, or if that cr1
i:or should reside out of the vicinity of
the bank, as they u,cSll5 do, the papef
would not do Funds must be furn-
ished By the bank at par tkroughoat
the government, dsihi4 10 asshort
Tina would bank rupt the SUBSTITUTION.
h could not be otherwist. The
friends Of this measure claim Cor it the
Of relieving our embarrass-
mentssby af1ordn,Ess SIS the means Of
n..v.ssne 80 ara i5nx.SSs- TaSLccxl4