Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1838-02-21
A STATE BANK.

Although there has been no showing OF
hands in the legislature, indicative o. the IL
nal action of that body upon the establish
ment Of State Bank, enough has tronsplr-
cd in committees and otherwise, to SATISFY
us that there is a sufficient majority 81 bon
houses, in favor Of such AN INSTITUTION 10
establish one, il they can agree upon dc,
tails. They believe that state bank, wei
euarded and conducted, may be OF grcatu.
tlity in carrying on the financial operations
of the state, and furnishing more valuable
currency than We now have for making ex-
changes abroad.
At the same time that we feel assured
that there is a majority of both houses IN
favor of q state bank, il is evident that thcre
is not the same union Of views upon some
of the Fundamental provisions OF the lnsil-
tuition. The chief ground OF the division
is with respect to the appointment OF the
controlling power Of the bunk. II appears
to be conceded by all the friends oil tie
measure that, n order to make the propos-
ed institution what it should be if established,
the faith and credit of the state must be
pledged for the ultimate payment OF its debts
and the redemption OF the bills. II this
principle land it should be vital one in
our opiniou) be adopted as one OF the fea.
lures of the bank, one party contends thai
the state should have majority ofthe stock
or at any rate eject a majority of the dlrce'
tors. These directors they wish to have
chosen annually by the immediate repre-
sentatives of the people. In this way tho
L..L ILL 10 ~. ro,nblica,, in IFS cha rnc r
and as much under the control of the PEG
pie, as the most popular department. Th'
funds and revenue of the state are now II
the hands and under the management o
officers chosen by representatives OF tn
people, and this party are in favor OF con
tinuing them in the establishment OF
bank. They believe that the intellgen
frecmen of Michigan are as capable o
choosing representatives qualified to secc
safe and prudent directors of State Bank
as the individual stockholders are likel
to he.
The other portion Of the friends OF
State Bank, are jealous of roposing the tru'
of selecting the majority of directors, in tn
hands of the representatives OF the people
Their plan is to invest the individual stock
holders with the power OF aprointin
the controlling number of the board OF d
rectors, Notwithstanding they propose
make the state responsible for any loss
Encouragement. The Old United State
Bank seems to be the model from whlc
they have drawn their plan. In that II
strution it will be rccollectcd the govern
ment owned minority of the stock, an
elected minority of the directors. An
when it undertook to set itself up again
the government, neither the governmel
directors, nor q committee of Congress. we
powerful enough to get at the bottom of u
proceedings of the institution. In defianc
of toe power to which it owed its create
it seized upon the public funds, on an o
legged claim Of right, and the governmel
has not been able to recover them to tn
day.
Thus at present s,tand the friends OF
State Bank in the Legislature, and how tht
will finally act on the question remains
be determined. If a majority of the mer
bers Of the Legislature believe that such ,
institution will be Of great utility TO the pc
pic of Michigan, it ought to be presume
that they will make such mutual conce
sons as will secure its establishments
Free Press.