The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1841-04-17
NuzkRsser ga.

UT lnan tle peOpe Oh INC OOWuUuWedItu
would willingly tolerate. The latter part
Of the same section too, for tho first time IN
the legislation Of Pennsylvania, expressly
sanctions The issue of post notes. No pof-
ion Of our citizens, SO far as ! have been :.
informed. have asked this at the hands of
the Legislature; and the policy Of issuing
them by the banks, has been moro than
rendered doubtful by the experience Of
past years, and has been loudly roprobated.
have already stated, that the regulations
and restrictions iaposed upon the banks,
were, some of them, wise and saIu,ary, and
| shall conGne my notice only TO some of
the principal ones which consider peculi.
ary objectionable. In the first place, this
bill provides that the directors or any bank,
individually or collectively, shall not con-
tract any liabilities TO the bank exceeding
certain limits; that is,when the capital stock
actually paid in does not exceed S250,0o0,
the amount of such liability shall not exceed
! the ode-sixth par, Of the aggregate loans OF
such banks and proceeding 10 provide, ihat
as The capital ol edcn bank increases In a.
mount, the relative proportion oi liabilities
shall also be increased. Alta cursory glance
this provision might appear 10 be very
|
iho monopoIiEing rapacity OF bank directorss
but upon more mature consideration, il will
he manllesliy fraught with dangerous conses
quences. One of tie most grieyous COM
| plants against tie banks of this Common
wealth, has been their over issues and ex-
pansuns. The direct tendency of this pros
VISION seems 70 me 10 be TO produce them.
II. for instance, bank has made loans TO
an amount Of 100000, the liability OF al
the directors can only amount 10 one.sixth
of this sum. But should they wish TO OBJ
tain more, they have nothing 10 10 hui TO
increase the extent Of loans TO S20O Geo, or
IN any other sum without limit, und they
can increase their own Liabilities to one-
sixth oG that amount. II is evidently, ,,here-
fore, offering direct inducemen, to expand
their circulation, and that too, perhaps, by
J loaning their money 10 unsound borrowers,
/ the interests of the public. cannot, thereS
, fore, yield my assent to such provision as
2 this.
The Cashiers of the banks are specially
entrusted with all their cash and other prop.
erty; vet by the sixth sect.en Of this bill,
they are prohibited from keeping any pri-
r va.e or individual account with the banks of
! dom, or additional security 10 the public in
4 This, it is, Iconfess, eyond my conprehen.
8 sion.
r A material change in the number Of votes
0 to which stockholders Of banks shall be en-
r titled, is also made. 1t is provided that
4 every share Of stock not exceeding fifty,
shall be entitled TO vote, and proportion
D ate increase Of votes 10 the number of
t shares of stock held is extended 10 an in-
K. definite number. BY the law as it stood
n before, fifty shares of stock weie entitled 10
thirteen votes, with relative proportion
e for any number of shares. II appears to me
t that the effect Of this change would be, 10
s place the control of each bank in the hands
e OF few persons, and TO enable them TO
It monopolizo lis management. | cannot
:, think, therefore, that this provision is cal
y cuatcd 10 advance either the interests Of
/, the banks or secure the interests Of the pub
n lie.
S This Bill further provides, that directors
hereafter TO be elected, in banks with an
o amount OF capitol stock paid in moi less Than
r three millions of dollars, shall be holders, in
C their own right of not less than three thou-
!. sand dollars of the stock Of said bank, and
o extending like proporionaie qualification,
/ 10 the directors elected in all other banks;
b and further providing, that persons 10 be
: elected State Directors in the bank OF Penn
G sylvauia and in the Philadelphia Bank shall
e be stockholders 10 the amount of one thou
v sand dollars, ,aud iA tie Columb!a Bank and
e Bridge Company, to tie amount of Gye
j. hundred dollars. The Whole system here
G proposed TO be established, of requiring the
y directors of the several banks Of this Com
i monwealth to be holders Of stock TO so large
y an amount, seems 10 me 10 be exceedingly
If Objectionable. Ii places the control of HE
O banks, at once, in the hands either of I've
l. rich or Of the large stock jobbers and stock
II holders. So far as respects the country
'f banks, in particular, lis operation viii be a
f hard oue. II will amount TO a disiranchise.
J. meni of some of the most competent and
If efficient bank directors in the Common
wealth, and will eventually place tie banks
n in far less competent hands ,han even those
,r that now manage them. Tie banks are
)t already arsoeralic enough without the ad-
Is dtion of this, which is in effect, properly
e qualification to their directors. | can SIC
e. nothing so peculiar in the character aud du-