The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-23

tire money power IN the hands and under the
absolute and immediate control of the Exc
cutiyc. No State in the Union, has more
resolutely struggled for the preservation Of the
rights of the States than patriotic Virginia
Will she now voluntary abandon those rights
by surrendering up, and thereby consolidating
all power in the hands of one mani We
believe the ancient dominion viii be found
the last to yield particle Of the right reserved
to her in the Constitution.
THE COMMONWEALTH BANK FAILURE.
Our purpose is sufficiently answered by the
admissions of the Globe. In the only denial
attempted to be made, in regard to the state
ment of the individual Indebtedness OF several
Sub-treasury advocates, the Globe has ad-
mitted that the Indebtedness in the instance
referred to "does not exceed a fortieih part
of the sum" of 100000; or, in other words,
does not exceed the sum Of 800.
The Conservatives" ESQ called) are clear
ly vindicated from all lot or part in the use
and abuse Of the funds of this bank and its
gross mismanagement. The onus of this
failure, as well as Of some others in the neigh
borhood which may shortly follow, falls upon
quarter now most loud in denunciations of
what is cantingly called the conservative
interest" The result will show that the bur-
den falls upon those who are most anxious to
annihilate all banks, that their iniquities may
be hidden under the ruins of the general
downfall Like the felon who has loaded
himself with "spoils," and rushes through
the crowd crying, "stop thief" certain men
will be found in this case joining in the Loco
Foco cry Of down with the banks" in or
der to screen their enormities, and commend
themselves by this device to public respect,
as patterns Of patriotism and virtue
We are no friends of such institutions as
this Commonwealth Bank has proven itself
to be. The sooner all such rotten concerns
wind up their affairs, the better for the coun-
try. We hope the present crisis will have
the good effect Of purifying the currency by
driving all such valueless paper from circula-
ton, and directing the public confidence to
such institutions only as shall prove them
selves to be sound, solvent, and well conduct
ed. Neither are we the friends of any depo-
site system that shall be conducted as the late
one appears to have been, by building up tenn
porary institutions of doubtful credit for the
purpose, and advising them by the authority
of the Secretary of the Treasury to extend
their loans and accommodations on the public
deposites to party subserratiues.
We solicit particular attention to the fol-
lowing extracts from the revised statutes of
Massachusetts, chap. SO !: that il may bring
the conduct of the managers and Directors of
the Commonwealth Bank, TO the test Of the
law -
Sec g. The total amount ofdebts, which any bank
shall al any time owe, SHALL NOT EXCEED TWICE THE
AMOUNT OF ITS CAPITAL STOCK, actually paid in, ex-
elusive of sums on account Of deposits not bearing
Interest," shall there be due TO such bank at any
time more than double the amount of its capital
stock actually paid in
Sec ii. If any bank shall become indebted beyond
the amount allowed by the two preceding sections
Tie directors under whose administration it shall
happen shall be liable for the excess, in their private
capacities; and an action of debt may in such case be
brought against them or any OF them their or any
of their heirs, executors or administrators, by any
creditor OF such corporation and may be prosecuted
TO final judgment and execution; or such creditor
may have remedy by bill in equity against them
| in the supreme judicial court.
Sec. IL. Any directors, who may have been absent
| when such excess of debts was contracted, or who
may have dssented from the resolution or act where
| by the same was contracted, may exonerate them
selves from being SO liable by forthwith giving no
ce of the fact and of their absence dissent, to the
i f.nyr md md IN hnl nj
any general meeting; which meeting they shall have
power to call for that purpose.
Thus much for the law; and now for the
facts
The capital of the Commonwealth Bank
was 100000; It's liabilities are said to be
81 100000; leaving an excess for which the
Directors are personally liable, of 100000
The President of the Bank was the late
John X. Simpson, candidate for the Boston
collectorship cashier, Charles Hood.
The following is list of its directors:
j. X Simpson, (pension agent) adams Bailcv,
J0hW Mills, Otiper Fletcher, H. j. Hoic, Nm. Free
man, Elisha Parks Samuel S. Lctcis +. S. Cayruh,
| Otis Rich Charles Hood.
Mr.. Parks, it is understood, is the only gen.
tleman who refused to participate in this gross
fraud and violation Of law. #.
Mr.. Mills is the District Attorney of Mas
sachusetts, bound to protect the interests and
rights of the federal government and yet
large amount of the public revenue is said to
/