Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-03-02
OHIO LEGISLATURE.
HOUSE OF REPRESENTATIVES.
February 10, IS4I.
Sknie Bank "a Ohio.

ft uHt SN'""'y avs VITA
State Bank of Ohio.
Mr.. BARLEY moved to insert the follow.
ing: Sec. % "Each and every stockhol-
der in any brench Of the State Bank Of
Ohiu, shall be individually aud separately
liable for each aud every valid claim
against every such branch. And every
transfer or assignment of The stock Ofany
branch which shall be made; when such
branch is in failing circumstances, with a
view TO the insolvency Of such branch,
shall be void as affecting The liabilities of
the slOckholder making such transfer or
assignment. And also the liabilities Of
every slOckholder in any such branch for
any valid claim against the sum contracted
during The time for which such stock
holder held stock shall continue for the
term OfsIx months after any sale, transfer
or assignment Of stock, made by any Such
stockholders.
Sec. %. The term "stockholder," as
used in the preceding section, shall ex-
tend 10 every equitaNe owner ofstock ap.
pearing on The books Of any insOvent
branch in the name Of another person, and
to every person who shall have advanced
the insialImenls or purchse money Ofany
share ofstock standing in the name OChs
wife, or spy Of his children under the age
of2l years; but no person holding stock
as an executor, administrator, or as guar.
dian or trustee, appointed by cOurl, will
or tesismenl;'Or by court Of competent
authority,and no legal or equitable owner
Ofslock under the age of2l years., shall
DO Individually responsible on accuoRt Of
the stock 80 held.
The amendment was supported by Mess.
Barley, Morris, aud Jenkins, at con-
siderable length.
Mr..BARTLEY said that the amendment
was so shaped as 10 avoid any Of tho d,f'
fculties OF injustice which might be sup
posed to arise incidentally, under certain
circumstances, from unlimited liability,
Il prevents Stockholders from escaping
from their liability by holding stock in
the name OF an Irresponsible person, or
by making fraudulent transfer Of. their
stock with a viewio the insolvency Of the
bank. Il also, protects administrators,
guardians, trustees, and minors from loss
by indiviaa i liability. These objections,
ID the incidental operations Of unlimited
liability Of stockholders in hanks being
.fuIly obviated, said Mr.. B., i am Of opi".
ion, that no other valid objection can be
made TO the principle Of the amend
ment.
The gentleman from Mercer, Mr..
Hamltonl and other gentlemen wtOse
opinions are entitled to great respect, in
form us that we cannot have sound ana
honest banks on the principle of individ.
Dual liability. But upon what reasoning
is this opinion foundedi The business
Ofbaaking is not so much more hszar.
.dOnsE OF dangerous an investment than
other branches Of trade that capitalists
sh0uIdifeas the risk Oftheir properly.
The business Of banking consists Ut
nothing more than loaning money at in
tsrsst, and receiving money on deposit.
In making Ioaus the banks accommodate
only men of property, and that upon an
questionable security. and only for short
periods. And besides this, the banks
almost uniCoSnly take Judgment notes for
thsir loans, and therefore, are not sub.
ieciea 10 the danger Of loss from delay
inthe prosecution Of suits. The tise
and falI 81 prices in the operations Of the
trade Of the country do not effect the pro-
fiis Of banking aS II does those Of the
merchant, OF manufacturer, The mer'
camille business and manufacturing bus.
mess are sttended with infinitely moro
danger Of lass than banking. And yet
We end both these branches Of business
carried on very extensively and very sue.
sessfaily, BY the must prudent and enter
pFisInR Of business men. Ifthe business
ofbanking then, is conducted PrGdeHtIy
and honesty, where is The danger Of loss
which Is to 81 comp with tbs dangers
allsndinQ othsF Branches Of trade in
which tie must prudent capitalists do mol
hesitate 10 engage will Dit the Limitation
Of individual IlaBiIityf
.The gentleman from Mercer Mr,
Hamilt0nl ,anvasAkaA hA vwnuld lila In have