Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-10-05
THE LEGISLATuRE

THE LEGISLATURE
Meets on Thursday next. We anticipate a
short session and harmonious one. The late re
visa of the statutes will doubtless render much
law making Of a public character, unnecessary
and leave the county appointments, the settlement
of claims upon the treasury, and private acts, to
he the principal business ol'lhe legislature. There
may be, however, some questions Of general in
terest agiatcd: perhaps touching the banking sys.
TEN and the grand list. The latter is oI great i'll
portance but such have been, and are, the diff.
cutes in the way Of dcvi2ing just aud pracca
bic system of taxation, that we hardly expect that
so desirable result will he speedily attained
With reference to the banking system: we know
OF no applications for banks to be made il Is
probable, however, that applications will be made,
or that the subject will be presented in the shape
of general law relative to banking. The New
York system of free banking, ON capital secured
to The state by pledges Of stocks, Of real es-
tate and the state to De in fact responsible for the
redemption OF the bills had some friends in the
last legislature. That system has now lost its
popularity, in great measure, and we very much
question whether any will be found to urge its
adoption in Vermont-a state which has no stocks
which could be thus transmitted into banking cap
ila and whose first attempt Mt carrying on Stale
brnking scheme was a failure. The last years ex
pertinent may perhaps be pushed again notwilh-
standing it has utterly failed in the several banks
which were chartered at the last Legislature. II
pushed at all, we inclined to think It will be
either by some, who arc utterly opposed al,
banks, and adopt this method of killing them off
or by others, who care more for party hobby, on
which to ride into power, than for The iis of
the people IT may Indeed be, that the project
has disinteresled and honest friends but we are
utterly at loss to see why it should have such
friends. That apparently safe for the bill hol
ders is at first blush high recommendation; bu,
it loses all its effect when is that the very
provisions, which make the system safe to the
bill holders, render it utterly imprdccab to
capitalists, and can therefore never go into opera.
ton. The first great provision was, requiring
curly by bopd or mortgage, that at once deter.
red every pruden, man from enbarkng in an in
vestment Which, though it might be safe, would
nevertheless be embarrassing. Especially did this
exclude the very best capitalists we mean the in
dependent farmers and mechanics, who have n
small capital TO invest for the purpose of lending
TO others, aud not to increase their own means Of
borrowing. The second great provision was linn
ling loans to stockholders. This was in fact the
best security the system afforded to bill holders,
as it prevented the very men, who had given their
mortgages, from lessenng that security by be.
coming bank debters. But this provision un-
doubledy deferred some from taking stock and
it was the class Of stockholders least desirable
we mean those whose business at times compcls
them to be money borrowers. Between both OF
these stools the project fell; it an utter fail
ure, and however unwilling for party reasons
its projectors may be to confess it, the fact that moi
one OF the banks, chartered on this principle, la,
been able Is go on, is proof TO tho point, full
and conclusive. In these circumstances, we know
of no practicable measure to adopt unless it is t.
make The directors oflhe banks give security frs
for the redemption of their bills and next for TN
benefit of the stockholders, by suflicien, bond,
equal to the amount Of the capital stock Of tn
bank and also TO limit the amount of loans to di
rectors. This would give double the capital @
The bank, in addition to the notes due The bank, 70
the security of the bill holders; and at the sam
lime prevent the great causes of all recent ban
failures, viz: the misconduct or mismanagemcr
of the directors. This, it seems to us, would al
ford ample security 10 the bill holders AMI woul
at the same time encourage capitalists to TAX
stock, inasmuch as they are exempt from the eli
barrassment Of mortgages, and at the same lin
protected from the mslnanagement OF The OF
GERS of the bank
Should not the combined wisdom Of our tv
hundred and fifty legislators find better systeI
we hope they may try this in preference to eth
the New York scheme or the last years plan. f
this recommendation We take the responsibility
--and the whole responsibility.
Another interesting subject which we trust Y
not be passed by unconsidered by the legslatu
Is introduced in the annexed communication. i
argument, that persons guilty OF high crimes
cape conviction and punishment, because the p
visions of the law are abhorrent TO Jurors,
weghty one If such be the iact-and we do
doubt 1.-THE certainty of punishment is lessen
and an increase of murder and arson and OF