The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1839-11-05
OF TIE CoMMITTEE ON BANKS.

TU f. S d Y NOV f. M Il E r 5, 1889.
REPORT OF THE COMMITTEE ON BANKS.
The Committee on Banks IN The House has upon
it majority Of Van Buren, members, as also has
the Senate Committee, and the Chairman Of each
is of the majority The House Committee in con-
Guiding their Report append he following specific
provisions which they recommend to be incorpo-
rated into all bank charters hereafter granted
LIST. That no bank ought to be chartered or re-
chartered by tho Legislature Of this State without
requiring the stockholders of said bank furnish
security by way Of bonds with responsible sgners,
or bonds with mortgage, secured on unincumbered
improved real estate within this State, double
the amount OF the capital stock of said bank, pre-
Vions 10 the commencement of operations under
their charter; the security of each stoc<holder be
double the amount OF his stock and the said
security to be given to, and lodged with, the
urer of the county, weere the bank may be located,
or TO and with the treasurer of the state, and The
sufciency thereof to be Judged of by the Judges of
the county court of such county.
ID That all banks chartered or rechartered as
aforesaid, be exempted from the provisions Of the
safety fund
Sd That all such banks be made subject to the
power and control Of tho Legislature, that the
charters thereof may be any time modified, u
mended or repealed
4,h That no such bank shall be permitted to is
sue more than Two dollars for each dollar of capital
stock paid in.
9Th That the President, Directors and all ofi
Gers of such bank, be made subject To penal punish
meuts FOR all fraudulent acts in their official CT
TO. NEWELL klNSMAN, tor Com.
OF the above provisions three new--the bond
mortgage security for the redemption of the bills
Of the bank-,he exemption from the provisions Of
the safety fund act, and the Limitation Of issues up
on the capital stock. The Sd and 9Th provisions
added to the charters granted last year.
A system Of banking based upon the above pro-
visions, if a guarantee can DO gwen that the
rity shall be in all cases faithfully insisted on, and
the County Judges always act without fear favor
affection, may be safe, perhaps than the
present system. The bill holders, under such cir
cumstancss, would have no occasion for com plant
But the question arises who would be willing to
invest funds in bank stocks under such charter
the report insists upon? Among tho stockholders
OF most of the banks in Vermont not few may be
found who real estate, such as widows,
phans, aud others retired from active business, with
their all invested in bank stock, and who fur
nish neither the bond mortgage security requir
ed. The stock, of course will be thrown into the
hands Of the weaIthiesl portions Of community, and
large share of tho community would necessarily
DO deprived of the privilege ofinvestments in bank
stock With one two exceptions the bank cap.
ta in this State is now held by large number of
individuals This bill would effect revolution in
this particularly and while it pretends TO be radically
democratic Il possesses of the strongest features
of arislocracy-that OF comforting chartered priv-
leges upon the wealthy few One of the exceptions
where bank stock is in the hands of few, is that
of tho bank of Caledona aud it is understood that
bill is before the Legislature for recharer Of this
bank, embodyng The provisions quoted above from
the Report. And it is further understood that
| surances have been given by the gentleman who
| ,L,,, Al. -. II ID l..
of such a charter, II they do, can object.
| The financial skill and tack OF most of the mana.
gers of this bank will be guarantee Of the safety
OF its issues. The wealth Of the stockholders and
the small number of them will enable them
! ply with the acquisitions with much less trouble
than would attend the organization of Bank in
any other section of the State. No one has doubt
ed the soundness of currency furnished by this
bank under It's present charter; and if chooses to
continue it's operations under the proposed, it
will furnish the people with currency equally az
good-certainly no better. Our fears that few
men will be willing to invest funds in banks under
the system-so few that when the present charters
c Apre banks will go of existence in the State.
IF mistake not, there is impression with
most tho people, that il is great privilege to hold
bank stock, and that moned men willing to
submit to almost any exaclions to procure it. If
this impression does actually exist the tarn which
matters taking will dspe the illusion. A crisis
is evidently hastoning-and 1t will soon DO demon
stratcd that banks may be efectually swept from
existence, prohibited from going into existence,
by requiring too much, as by their demolition by a
mob, or positive refusal to grant charters
We are sorry to see that the bill granting bank
facilisies every body who would accede to Its
demands, similar to the New York general banking
law, has been postponed by the Senate TO the next
session. 1t was introduced by Mr. Foster, Senator
from franklin County. 1t proposes to make real
estate the basis of bank issues with sufficient specie
for all necessary purposes. 1.-THE banking system
is to undergo a radical change, we believe the peo.
ME would find this to be better system than any
proposed-more acceptable to those who would be
likely to make investments, and equally safe to
the bill holders.
,,,;nortv of he COMMITTEES agreeinu FIJI