The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-12-04
REMARKS OF MIR FAIRBANKS,
Upon Me amendment of VT BeardsLeu.

MIR SPEAKER: tits not my intention to trou5
lie this House with remarks upon the relative
merits of the several bills upon your table for the
incorporation OF Banks. The friends of these
institutions will present their several claims, and
II is for the House to decide how many and what
Banks the public good requires. But sir it is
important before passing upon any of these bills
that the principles upon which il will be safe to
grant lnnking privileges shall be fully discussed
ana deliberately settled. | came here sir, deep
~ impressed with the importance Of imposing
upon all Banks hereafter to be chartered, "large
restraints and checks beyond those heretofore
eXlstng,"-of so amending the present system
that the public should not only be secure against
losses, but that that public should feel secure
But sir, it becomes us to beware, lest IN our zeal
Tor reform We so shackle these institutions with
needless aud yexatious provisions That no prudent
capitalist will venture to subscribe to their stocks
II has been well remarked by the gentleman from
Wilmington, upon this subject, that eff correc-
tives are needed, we should apply them slowly"
and sir, however much | may differ from The
gentleman in his main position, here go with
him fully. That correctives are needed, is most
obvious; and those eorreclives loudly called
tor by the community. But, sir, the science of
Banking is comparatively little understood-it is
one upon which ahlest statesmen disagree.
To judge correctly Of The effect of any impor- |
tant measure here to be adopted, requires eXpe-
rience and an acquaintance with the subject and
the history OF The currency of the country. This
Legislature cannot he justified in the adoption of
any measure upon this subject which partakes of
the nature OF experiment. So far, and SO far only
rs the correctives proposed are tangible, and oh
viously safe, are we justified in adopting them.
But, sir, let us examine for moment the prin-
ciples of reform which regarded already
settled by this House, in accordance with the spir
II of their resolution, that "large restraints and
checks should be imposed beyond those hereto
fore existing"
And first, the several bills Incorporating Banks
have been so amended that any future legisla
ture shall have power to alter, modify repeal
the same, as the public good may require. They
are also subject to the provisions of such general
laws as may now or hereafter he enacted with
reference 10 banking.
In the next place, you have passed TO third
reading, without opposition, bill which provides
that in all charters for banks hereafter granted,
The directors thereof shall be restricted in the n
mount of their personal liabilities to sun, not
ected upon the pledge of the stock of such bank,
and subjectng to severe panaIties The cashier,
directors or other officers of any bank who shall
issue greater amount of bills than
shall be stipulated by the charter This bill
further provides that the power heretofore vested
chosen by the banks, shall hereafter he vested
solely in the commissioner appointed by the leg
stature ard it is made the imperative duty of
his officer to make rigid and frequent examina-
ions into the concerns of each bank, and sum ,
narily to enjon such as are unsonnd or have vi
dated their charter. Other provisions OF sim {
lar character are embodied in this bill, all oil
which are obviously sautary, aud justly calctl- c
ated to increase public confidence in the safety g
# the Banks. Thus far we may go, and with ,
afety--and should the experience of another I
'ear demonstrate that other checks and restraints
re required, it will be competent for the next (
legislature to impose them. But sir, the meas
ire proposed, by the amendment now offered, is i
If n character entirely different from those c