Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1840-10-03
PROPOSITION TO VIOLATE THE PLEDGED
- FAITH OF MISSOURI.

Of "Agricola," to which we wish to invite public
attention, and particularly that purt of it in the
following words
V. would propose, TO alter the charter of the
bank OF missouri SO as mol 10 permit IT, under anu
circumstdnceS 10 issue more than ttuo paper Cokafs
for erery specie dollar in It's vauLS! On tho propo-
siion to amend Bank charter would arise cues.
lion for discussion between the Opposition and the
Democracy. This question has 10 be met and de.
cided upon by the Democracy, before reformation
can take place! The present crisis of the APPROACH
ing Legislature would be the mDst suitable time to
settle this point. There is nothing more clea in
Democratic legislation, than that The po,csr aoticf
creates ought 10 ABOLISH; particularly so in the case
OF the mercan corporations, where now they
assume acts OF sovereignty which do not belong to
them. On this point there ought to be concert of
action with the Democracy" Il
at certainly is sef-evident truth with the Amer.
can people, that the acts chch they authorize their
agents TO pass, they hare the pouer TO repealt'
There is no installing this proposition aud did
We not believe the article under consideration to
have emenated from the President oe the Branch
Bank in this place. we onld pass it by as the idle
wind-but coming from him, and addressed to
the people Of Missouri" it is proper that we should
at expose the monStrous tendency of its sent.
ments.
We assert, therefore, the exact converse of the
proposition contained in the quotation, and without
hesiatonl declare that the legislature of the State
possesses no power 10 alter or repeal the chartered
rights of any incorporated company, and upon this
point will fearlessly meet the President Of our
Branch Bank, or any number of Loco Focos who
may eepouse or defend the doctrine.
An act ofincorporation, when its terms are fully
nd fa nliad wi
which the State is only one of the parties, and con-
sequehily possesses no more power over the con-
tract than any party in ind ividual transactions
To persons who have been taught to attach n sort
of superficial or supersttious Importance to the
POWER OF A STATE, this doctrine may net be ut
once comprehended, but moments reflection and
the slightest application will set them right.
The proposition is that the State, being party to
the act Of incorporation, alter or abolish the
charter without the consent of the Stockholders
Il does not read that the power Of alteration is to
be discreety exercised, and confined such points
only might be called for by public opinion, for
this could never be ascertained in a manner salts
factory to both parties but the claim is OPEN,
and the power to be exercised is to alter or Abolish
We will suppose single Most acts of
incorporation require the payment of very large
Of money from the persons Incorporated, and
in return grants them the privilege of making
paper issues. and louDing their funds to the peo-
pie In connection with the power to loan, is d
grant to sue their debtors and coerce payment
but the doctrine advanced in the quotation under
consideration asserts the power of the legislature
to alter repeal the charter and Of course to take
,ba ,,r IL,
from those indebted. This doctrine is absolutely
too ridiculous 10 merit moments consideration,
and we are right glad that none but the democracy
are called upon to give It favor.
Such doctrine, we are quite sure, will find no
favor with the honest portion Of citizens, and
is therefore dismissed and nailed to the counter
base coin.
Circumstances, however, seem to authorize the
conclusion that the writer was not very clear in
his perceptions, and we are perhaps giving to has
production more attention than it deserves. See,
for instance, the financial wisdom and great know
ledge Of circulation manifested in the following
connection: 81 would propose, to alter the charter
Of the Bank Of Missouri, SO as not TO permit
il, under any circumstances, to issue more than
two paper dollars for every specie dollar in its
vaults" OF course the author Of this wiSe propo-
ston is hard money, and we fear hard headed char
acter, it does not to have entered'into his
conception that tho security of Bank note holders
consisted not SO much in the silrer in the vaults
Of the Bank, as in the notes Of parties for which
the circulation was exchanged. A Bank with cir
culation of two for one being no more able to re-
deem its notes with Silrer than of four five
TO one;-the ultimate security in each depend
ing upon the discretion manifested by the directors
IN the purchase Of individual notes and bills Of OK.
change.
But in practical and operative sense, the propo-
sItun is extremely ludicrous and ridiculous. We
will suppose the amendment adopted, and as is
usual, violation Of the charter, forfeiture. The
Fsyette Branch has seventy five thousand dollars in
silver, upon which its officers issue one hundred and
fifty thousand dollars in paper, being two for one.
During the existence of this state Of fact, some
hard money man happens 10 present ten thousand
dollars of this paper for redemption, thereby leav'
ing only sixty-ive thousand silver dollars and one
hundred and forty thousand in paper! This SIM
pie operation, it is perceived, would stop and block
up the whole concern, for to paper in any cast
whatever would be to issue it, and this, as is seen
is TO be prohibited "under all circumstances" i
Is but charity, therefore, to infer, that the Pres
dent Of the Branch did not fully mature the ohsta
cles which every day practice would throw in chr
way of his undigosted theory, and upon reelection
we think he will discard it as fabric entirely to,
visionary to encounter public investigation and dis