Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-07
POLITICS..

THE LESSONS ESrERIESCE.--In ne diiIeltHCc ut-
tween the wise and the simple is that the wise prot
by experience changing their course, whenever cxpe
rimcn, has proved injndcious, while the SIMPLE 60
on in the old track, regardless oil the laws oil cause
and effect which may have been manifested 10 al those
wha were accurate in observation
The late disasters in the United states banK, lhe
Schuylk Bank and several other similar institutions,
IN different parts of the country, suggest The necessity
of change in the mode Of organizing Boards o. "
rectors so as TO prevent that sporting with the inter-
.sts of stockholders which often occurs when the
whole board is Of stamp, elected under one m
fluence and controlled by one mind An opposition OF
views OF interests, or of feelings in board IS always
desirable in order 10 check The rasncss or the selfish
ness of the majority The Government Directors oi
the old United States Bank constituted such an ePPo-
slion, and for the time preserved The BANK from nose
disasters which have subsequently bciaen II. lhcr
advantageous influence partially oostructed by
Mr. Bldde's scheme of authorizing the exchange com
nittee to make loans without communicating then 70
the whole board Under this regulation many inJn-
Gcinus loans were made but still, the presence OF
The Government directors at the general meeting, ana
their partial 10 the books Of the DahK opeFa'ed
as powerful check But when these directors We r.
removed, BY the charter from tins S,n,e, ana ,ne
Board became elected entirely through Mr.. bidde
proxies all proper restraint ceased, and the institution
drove rapidly on to rum.
The general history Of nsolvcnt banks in our coun
try, is the sau,e with that Of the IT, S. and Schuylk
Z
tanned BY one or lew combined individuals through
proxies, and through stock only nomlnaliy owned, be
ing IN reality held by those who owed more IMAM is
whole amoun-a history Of enormous loans mace 70
Bank oliccrs and Of ultimate explosion as The natural
result.
The course which we would suggest to the stock
holders Of corporations and TO Legislatures as the
conserva,ors ofhe public wea is TO pfoVde ioue %
choosing directors which shall always secure check
by having different gents, Influences or motives re-
presented in tine Boards To secure as lar as posi-
bic, the constant presence Of vigilant minority
This might be effected by having one portion OF lhe
Directors elected By the stockholders each giving one
VOTE and another portion by votes given IN proportion
the amount of stock owned, and perhaps one portion
by stockholders actually present at the election, and
another by those who vote by proxy i one fourth o
the Directors were chosen ny each Of these modes
aud provisions added 10 the charters by the Legislature
for restricting the amounts of loans granted 10 lndiv
duals and FIRMS well prohibiting them altogether
10 Bank officers the Widow and the orphan would have
less frequent future to mourn over b9htec
hopes the public large would suffer less of ag
ation and ofmoneiary embarrassments, occasoned by
the rashncss or sel6shness Of the controllers Of such IN
stitution
This principle Of the representation Of the minority
MI ht also be most advanlageously introduced INTO Pc
ltca bodies. If the councils Of Philadelphia had been
elected in such that the weaker party should
have always possessed onethrG of the board
immense benefits would have resulted in checking ex
travagance and misconduct. Such an end might cas
Is be attained BY authorizing each voter TO vote for bu
thirteen candidates for council, and providing
that the thirty persons having the highest number o.
votes should be considered as elected. Thus the weak
er party would always have seven members in the
board.
This is not only sound policy, bnt il is strict justice
and conformity 10 the Democratic principle repre-
sentative body in theory stands in the place Of all the
voters, if they were personally assembled II 80
assembled the minority would always have right 10
be heard and TO turn the scale by their votes when the
majority should differ among themselves They should
enjoy the same right through their agents in repre-
sentative body, then such body would be what ought
"a mirror reflection OF the whole people.
[Pennsyranian.