The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-05-14

oHceofs are limited IN some charters 10 small loan,
and always required TO be stockholders
"A director is the agent of the stockholders he is
placed there TO loan out their money, therefore his
interest should be the his employers
II an agent borrows the money lefi with him To
lend his interest becomes adverse TO his employers,
and still the owners have voice in the matter. No
lender would employ such an agent-because the agent
would only give such security bis own interest
should dictate. From this has resulted more
bank failures than from any other.
One fact is notorious men who wish to borrow
afford accommodation their friends, are the most anx
ous to become directors and too many instances are
ON record, where a borrower has by management Sc
cured the votes Of majority ofthe stockholders and
placed IN the bank board of directors suit his
views; sometimes amaorty of the stock has been pur
chased for the same purpose and well do the pub
c understand the injury likely result from the ope
ration ofsueh an influence, that banks thus situated
become at dscredited and its bills are taken with
much hesitation
ifthis Influences felt when openly executed, il
should be guarded against in the charter, by plain
declaration that director or officer shall be directly or
indirectly debtor to the bank. BY this means
dangerous influence will be excluded from the Insti-
tuition.
II may not be improper to say that the safest
to pursue in legislation and business is make ho-
nesty the hest policy
Ifyou make it the interest Of individuals to act ho
nestly there is no danger to be apprehended. For,
surely if interest and character both prompt man to
do right, he must be madnan who would do wrong.
But il SELF the erDg balance shake, It's rarely
right adjusted"
For these reasons would allow no officer or direc
tor of bank to become debtor borrower of the in
stitution directly indirectly, and would limit the
Dividends for the reason the capital paid in
If these two rules enforced by penal provision in
the charter, there will be inducenent make bad
loans, or force circulation beyond the natural de-
mands ofthe business Of the country.
| Full and accurate information will convince you
that the of the and failure Of all
banks have resulted from the want of these two pro-
visions in bank charters
There is one important feature in this plan to which
public attention should be particularly called and
that is the of twenty millions of security You
will observe that this is to be issued by the
Government until the fire millions shall be absolutely
LOST. That is to say until the whole amount of the
/
CURED by the institution Is il probable under the
above provisions, relative to loans and issues, that
such result can ever occur3 Isit not shorn Of any
inducement to make bad loans and excessive issues
This plan then leaves risk upon the Government,
while the provision relating to the twenty millions will
add very much to the stability and credit of the nsti-
tuition.
| The Government will incur no debt and take no
risk, because it will have its three directors,
guard always looking into the operation Of the bank
and ready give such information the Secretary
the Treasury will enable that officer correct the
action of the bank whenever it may ransgress its pow
| ers or abuse the trust reposed in it.
| Italians LITERATURE OF EUROPE 2 vols repub-
lished by the Harpers, will also attract attention,
being from the author of Modern Europe For sale
| by F. Taylor of this city.
PownATAN; Metrcal Romance in seven cantos
By SEBA SMITH. We believe we are not mistaken
that this author is the original Jack Downing. Any
body might know that Major Downing is poet. Fol
sale by F. Taylor.
Also,-THE PHILosoPmcAL EMPEROR, PoLiTIcAr
EXPERIMENT, or the progress Of false position. All
by the Harpers.
"REMINISCENCES OF THE LAST SIXTY FIVE YEARS &c.
| BY Z. S. Thomas. For sale by F. Taylor.
| The New York Commercial has the following no.
| iice of this work.
| Recoliections Of Veteran Edifor.-Two about the
peasantest and most readable volumes Of the season
have recently been published under the title of "Rem
niscences Of the last sixty-ive years, commencing
with the battle Of Lexington" BY + s. Thomas.
| We have known Mr.. Thomas editorially ever since
ourselves welded pen and having understood that
| he was already veteran when he came upon the
stage our surprise little some few weeks ago,
when he did us the honor Of call at finding him yet
in feelings SO young and in action buoyant and
sprightly He is native of Massachusetts, but was
long series of years editor of the Charleston City
Gazette and afterwards, until year two ago edi-
tor of the Cincinnati Evening Post.
The Knickerbocker, for May, has been received
from the of Mr.. Hampton, agent for the District
of Columbia, and is as good its predecessors in
matter, while il is embelshed with an engraving of
Dutch Cottage in Beaver street, New York, in 1879.
The back numbers be had for this and the two
last years at the Periodical Agency" attended by
the son of Mr. Hampton, the Americal Hotel
Pennsylvania avenue, free of postage for IS per
mum.
STATE OF CONNECTICUT.
This State is free from debt; has public school
fund ofS2 Oco OOO yielding annual income of$ll3-
WV, WIG a"hu"i eNPcnses VI ihc go'eThHent 10 moi
exceed $SOOOO its statute legislation Of 200 years
makes only one volume; and has 40 600 militia
Huzza for the land Of steady habits
TO CORRESPONDENTS
Some Communications for the Madsonian must lie
for the editors inspection who is absent but
is expected TO return next week
The Hon. Mr.. Gushing, Of Massachusetts, has been
invited to public dinner by the Democratic Republi-
cans Of Portsmouth, N. II.