Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1834-12-17

|pital of the bank would consist Of one mill
ion Of Dollars, and three millions of unin.
numbered real estate, at moderate esti
mate.
6. Besides the usual corporate powers
the bank shall have power to take and hold
real estate TO the amount Of three millions
as constituting part of its capital, and they
shall also have power to borrow upon the
credit Of the bank, sum Of money not ex-
lceediDg three milllans of dollars, and to
give 4 security upon the capital Of the
company. 1t is estimated that bank
thus constituted. would preseat to foreign
capitalists a sound security for the perna-
nent loan of their surplus capital, which
liz now seeking the means Of investment,
The whole amount nigh, not be had in the
first instance, bat the successful operation
of the bank for n time, woald certainly
Iproduce confidence in lis stability. The
very Increase in the value of property
which would be produced by the operation
lof the bank Itself, would be constantly atl-
ding to the security of the foreign lender
7. The charter will provide that two
thirds Of the capital of the bank shall al
ways he kept !oaned out upon real estste
in the city of Baltimore; but no loan shall
be made upon property for more than three
tourihs Of its estimated value, the loan to
be also secured by the bond of the borrow
er.
8. To prevent the capital from accumu-
latlng in the hands of original borrowers s,
the loans shall be made reimbursable by
moderate instruments at stated periods,
which, together with the interest accfulne
upon loans, would always preserve the Ca
pital in active operation.
8. To hold out inducements for persons
to subscribe for stock, the charter will pro
vide, that in making loans the bank shall in
all cases gipe preference to the holders o.
stock. By this means every holder of a
lot, by becoming stakeholder and paying
bat small portion ia money can at any
moment convert his real property into ac-
tive and available capital.
10. In order that the holder of real e.-
tate, who has subscribed for stock, and paid
in three fourths Of his subscription in pro-
perty, may have when necessary, the pow.
er OF usingit; the charter will provide that
any such stakeholder may at any time in
the whole, Or any part ofthe estimated val
Ne Of his property (where it is capable of
diSlsion) and take reconveyance Of the
same. The effect Of this would be, to add
to the moneyed capital of the bank; but
still the security of the foreign lender to
the bank will remain unimpalred, because
the charter requires that two thirds of the
capita should be always kept invested in
real estate.
IL. The charter will also contain pro-
visions for safe and speedy mode of en-
forcing the payments of debts due to the
bank by the sale of real estate; the loan.
being made payable by moderate install
ments, and the property necessarily iacren-
sea in value by the improvements made
upon vacant property would render such
resort but rarely necessary.
49, The charter will also coatain a
clause providing sinking fund for the final
redemption of the whole, or part of the
loan to be effected on the credit of the
bank
Adjourned to Tuesday, Cd December.
THOS. PH3NIX, Sect'y.