Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1839-08-16
"sMILlE AND BANK REFORM

| lltNoto III ftItllOUts uilu iIOul fhN FNf
Gifts repetition, il might be supposed that
there was something very imposing about
| il. MIR Smile, the Tory candidate for Cover
nor, was member Of the senate, aud as the
question ofihe re.charter Of Banks came be-
fore that body, his action upon il doubtless
reflects his opinion Of "bank reform" Oct
l6.
"1he Senate resumed the consideration Of
the bill entitled an act to incorporate the
bank Of Caledonia"
Mr. Smile moved that said bill be commit
ted TO a member for the purpose Of being
amended by the addition Of the following
sections
BE nfarther enacted That the private
property Of The stockholders shall be holden
to redeem all bills issued by the corpora
ton"
"Be IL further enacted, That any stock
holder in said corporation shall be at LIB
ERTY. at the expiration Of the charter OF
this act mentioned, to WITHDRAW from
said corporation, and upon such Withdrawal,
said corporation SHALL PAY SUCH
STOCKHOLDERS FOR HIS SHARE
Of the capital stock, an amount equal 10 the
original cost Of said stock"
The question was taken and decided in the
negative.
There is something little captivating in
this amendment at first sight. But upon an
examination Of its true meaning and import,
the conclusion is irresistible. that il means TO
add provisions 10 Bank charters allowing
the ckholders TO suiRdie, rob and cheat
the holders OF the paper of banks into which
il might be incorporated. according 10 their
charters. Mark the provisions. pri-
vate property Of the stockholders is holden.
bu, when the charter expires, aud the banks
bills are unredecmed. any stockholder may
withdraw from the corporation, and receive
from il the amount of his stock, and bis pri.
waite property is released from The liability TO
be holden for the redemption Of the bills on
the bank. The corporation then must re-
deemt the bills. Who or what is the corpo-
alton Why. it may consist of corpo-
rate means OF the bank and one, ten or TWEEN
ty stockholders. and these men perhaps as
poor as Lazarus The bank may have los,
lid OF It's capital 2.3ds of the stockholders
may be rich men they sell to the corpora
ton their 2-3ds, and receive the remaining
two thirds Of the capital stock for pay. The
corporation then consists OF the balance Of
poor stockholders and not u cent ofcapiial 10
redeem its issues Especially, il the bank
was in bad condition, and the stockholders
dishonest, would there be all the inducement
desirable Tor the stockholders who possessed
private property 10 pursue this course. and
swndIe the bill holders and do it too accor
ding TO Mr. SMILES notion OF bank reform"
without violating the charter
We have a case in point. that illustrates
the effects of such reform" with the ex-
ception that the corporation was noi obliged
10 pay out the capital OF the bank 10 buy up
the stock fits owners.
Some years ago in New Hampshire, there
was established 'rhe Hillsborough Bank"
according 10 tho charter of which The privnte
property of the stockholders was holden for
the redemption OF its bills The bank failed,
and many Of its bills remain unredeemed to
this day. The stockholders possessed no
available private property when the explo.
sion occurred. Every bank that has been
chartered in N. Fl. according 10 MIR SMILES
reform" has failed and robbed the public.
while only one. since banking commenced
in the state established on the specie basis,
has shared the same fate We doubt very
much il one man can be found in all NJ H.
who would vote for chartering bank upon
the Smile reform" system. The State is
satisfied with their experience in such re-
FORM and since, 10 this day. they have not
asked for its revival. Welded, as the State
is 10 Van Burenism, they ask only, for the
specie basis and the specie in the vaults for
the redemption Of bank issues.
Another illustration. When the Windsor
bank exploded il held notes that had been
discounted to Thomas Emerson, for the pay
ment ofwhch his private property was le-
gal'y holden. He nominally held vast
amount OF private property. But it could
not be secured to cancel his notes. He was
also principal owner Of the stock. and what
would have been the result had his private
property been holden 10 redeem its bills p
The same.
Accordingto Mr. SMILES proposed amend
ment Mr. Emerson could have compelled the
corporation of the bank of Windsor to pay
out all its means TO him for his stock therein,
and leave not cent for the redempton'of its
bills.
Were we DESTROYS OF swinding tie public |
by the Wholesale. by the means Of corporate
privileges. we would go with all our nigh,
for Mr. SMILES system of mock reform. We
would go into the Senate if we could get
there& shoulder TO shoulder with Mr. Smile, |
contend for bis reform measures; &ifsuccess. |
ful, in ten years would become as rich as MIR |
Smile. We would take up stocks, and rob
the people. But we have no such desire.
and therefore feel impeiled 10 oppose meas.
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