Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1839-08-30

IS-Wc invite the attention Of our readers to
the Act regulating the cha,fering Of Banks,
passed Nov. 9, 1881, which will be found in our
columns this week II will be found that all
the Banks chartered or re chartered since 1871,
and which may be chartered hereafter, must be
subject to the provisions of this act. AT the
time this act was passed, il was considered
great and necessary reform Of our banking sys-
TEN. For the security Of the bill-holders in
case of the failure Of any of the Banks, the act
provides for the raising Of fund which we be-
lieve amounts at this time to sixteen thousand
dollars, and will soon be increased by the an
nual contributions of the banks TO over twenty
thousand. Should this fund prove insufficient
TO redeem the bills of such insolvent Bank, all
the other banks subject to this act (of which we
believe there are about IL or l4) are obliged TO
contribute, annually, 3-4lhs Of one per cent on
the capital stock paid in until all the bills of
such insovent Bank are redeemed; and also,
until the safety fund is replenished in The hands
OF the State Treasurer TO l-2 per cent on the
capital stock Of said Banks 10 be applied TO the
redemption The bills Of any other Of the said
Banks WHICH may ldtl. Huai ~ Will nt cttht
that all the Banks chartered since 1880, are
Jointly holden for the final redemption of the
bills Of any one or more Of them which may be-
come nsolvent-lhai all the Banks subject 10
this act have great interest in the soundness
and prudent management Of each other Here
then, is a heavy liability, well calculated to IN
sure the most vigilant and eagle-eyed watch
fitness Of these Banks over the management
Of each other. The Bank Commissioners must
investigate their affairs annually, and report TO
the Legislature. If any one ofthese Banks is
managed imprudently all the others have d.
rect interest in looking into the business And
who, we would ask, would so soon discover
the danger as the managers Of the Banks in in
ierest7 Who so well qualified to judge cor
reclly whether bank is managed prudenily as
those who perfectly understand the Banking
business7 And who so likely, in case OF dan
ger,to apply TO The proper officers for an iniunc-
ton as those Banks which are holden for the
final redemption of the bills in case Of failure 2
In connection with these questions we should
bear in mind, that this Act obliges the Bank
commissioners to examine into the affairs of
any Bank as often as requested SO to do, by
any one Of The Banks in interest, and in case of
any default or danger Of insolvency, TO apply
to Chancellor for an injunction whose duty
it is in case the violation of any law binding
on such Bank-or ofloss Of one. half its capital
stock or of Insolvency, to appoint receiver
and wind up the concerns of such Bank.
Now, it is evident that this is more summa-
ry mode Of annulling the charters olBanks than
we can expect from the action of the Legisla-
tuie If the charters are placed under its imme-
date control. Under this system the. Banks
can be estopped at any time and without any ex-
pense to the state. But under the system pro-
posed, we must await the sitting Of the leeis-
lature and the tardy movements Of that body
and in addition. abe ssrnt ssI's-"sO 90 che
state Of investigations Of such questions by the
Legislature is danger that the decisions
Of them in high party times will be governed
by party considerations, rather than by the in
teres,s Of the people at large on the one hand,
aud strict justice TO those Immediately concern
ed on the other. But we will not enlarge upon
this subject our object being merely to direct
attention TO the Acts placing the Banks under
the control oflhe GoYenmcnl-and counterfeit
the misrepresentation Of our political oppon-
enis on this subject.