The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1838-10-05

o. The Bill vested in tho Bank dan.
gerous power-yiz; the power to determine
whether lis own Capital should be reduced,
and ii so, to do it themselves. The Gener-
al Assembly might decide hereafter, that il
was polite TO reduce the Bank Capital, but
the Bank bud a right 10 reio It. The Bank
might unriSeig resolve 60 decrease It's Cap.
ilal-and the representatives OF the people
could not prevent il.
TO- Il gave powers linble to be abused,
and by which the Individual Stockholders
might defraud the State, according 10 idT
thus: the Bank nigh, resolve 10 buy IN
bali million Of its own Stock, at 30 or 20
per cent. above par though II were m re.
atty, worth no more than par-or misior.
tune or other unforeseen casualties might
ial: on the iS-us, so that the stock wall be
reduced below its par; and should II be re.
solved to buy It's stock at par, for the Bill
declared they should no, buy II at less, -
IN either case, who will he the sellers ! who
will be the payers !, was certain the
State will not be the seller-snd IT was a
3lke certain tina, the Stale being the owner
Of one.half ofthe Bank, would be paying iar
one halfoi the stock purchased in,wiIh Bank
tonds; individual stockholders would b.
the sellers OF IT, at a price ADORE IT'S ieorth.
single calculation will demonstrate how
utterly iuadmissible vas this provision.
Let j. ;. represent Individual Stock
holders.
Let y. c. represent State Stock.
Each owning one half Of Il common fund
in Bank.
]. 5. directs the officers Of the Bank to
buy IN one half OF his own Stock, ard pay
/ Tor il, on, Of the Common fund.
\. &. cannot prevent II rs eorpoFator,
for he has less vote than J. $, and ShIs
iGr au,hor.zes the sale.
Before THIS sale Of stock, by means Of bad
debts, excess OF previous dividends above
profits or other accidents, DC; We will sup
pose ,he Bank has lost one million, or that
amount OF debts IS 20 jeopardy.
Now the original Capital having been
two millions, deduct ibts loss, aud only one
million Of dollars are left
II the Back we're closed altogether al
this period, ]. ;. and \. c. would each be
entitled 10 ot.s nsii' or j1d 600 dollars each,
Bu, J. $. has ordered the sale Of ore Aai}
of his stock to the Bank (nhicb this Bi
declared should not be sold at lr-> than par
lhercupon, he receives for one half Of h..
stock ALL that ne IS saitly entitled to have
for the WHOLE Of il.
Leaving the residue 70 IT, again divided
between ] s. and y G., and 50 Il vii be-,
Al any other rate Of sale above Is value.
4 law maker has no right 10 say thai this
t-iH not be dome he IS bound - inquire II
Il ran be- doue under the Law he i passing.
Laws restricting Banks, are made 10 pre-
+ vent misconduct ard Dgsi necessarily rest
20 the presumption tia. they Will Do wrong
III the Charter permits II.
I II. Finally. Even after a reduction Il
the Stock Of Individuals, dosn to one third
Of The Bank Capital, The Bill allosrd thea
+ % control the institution aesius, the State
although the latter had become the propric
+ tor Of two-thirds Of the Stock. Individuals
still voted to 2, and elected 6 out OF 10
/ directors
As the States in'erps, Increased, her
power over the institution decreased
+ For these reasons L VAS proper to rcisct
+ hrs Bill. 4 majority Of the COMMITTEE OF
- themselves, voted against that part Of
their o~n Report-aad the House IT Com
mons rejected II by large majority.
The House also rejected the senate.
Bill without division, 50 uuaulmous we're
they IN their opposition 10 It, for tie reasons
assigned IN this communication.
MENTOR.