Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-03-02

'he pTat tical operation Of individual liza
biIiiy in banking shown as tested BY OK
perieace. Now, Sir.the praeiicabiliiy anC
salulary tendency of this principle hal
been demonstrated by the experience o.
centuries in 4 Scotland, The following
are the words Of a distinguished gentle
man Of, Philadelphia on this subject, found
in the late edition Of Raguet on Banking,
page 273.
I'm Scotland, where joint stock Bank
ing cOmpaNies are organized and admin
isreled on the sound and salutary princi.
pie of the liability o. each partner, ia
tho whole extent Of his fortune, for the
whole debts Of the company, and where
this liability OF individuals furnishes ia
note holIers and depOsitors the frmesi
ground Of confidence and of security,
there are no fewer than 90 banks, with
3l4 branches; eight Of the former and
one hundred and thirteen Of the latter
have been established since 1924; and
such is their general diffusion over the
country, that there is scarcely town or
even a village, into which branches Of
the Scotch banks, equivalent to so many
separate and distinct banks. have not
penetrated" :.......
These Scotch Banks are not the assO.
Citations ofa very few men Of OvergrOwn
fortunes. Many Ofihese companies have
greater number Of fpartnes than exist
generally in the Banking institutions of
this C, untry. In s'The Financi al Regis.
ter" of the 24th October, 1888, work
ofvery high character, ] find an extract,
from the Appendix to the House Of Com
mons' report OF 1926, on Scotch and
Irish Banking, containing names Of the
Banks Of Scotland, the number Of branch.
es and number Ofpariners of each. The
following are few Of them:
No. of No. Of
branches. partners.
The Aberdeen Town
and County Bank 4 446
Tho Abroath Banking
Company 2 liz
The Commercial Banking
Company Of Scotland 81 5l3
The Dundee Commercial
Bank none, 202
Dundee Union Bank 4 IS
National Bank Of Scotland 8 1888
MnniFose Bank z H
Perth Banking Company S A7
Here. said Mr.. B., we have specimen
of the Banks Of Scotland. The partners
in these associations must be much more
numerous than the stockholders in the
Ohio Banks; and many of the partners
must own stock in small amounts. To
say, therefore, that Banks can be well
conducted in Scotland on the principle
of individual liability, but not in this
country, is tantamonnt 10 saying that the
people Of this country ara more dish0n.
est han the people Of Scotland.
Mr.. B. read further from Raguet on
Banking, as follows:
''We are convinced Of The accuracy Of
the statement made by the first Lord Of
the Treasury and by The Chancellor Of
the English Exchequsr: "That the
Scotch Banks have siOOd firm amidst all
the commissions in tho money market in
England" Il is, no doubt, true, AZ af.
frmed by Mr.. Gilbart,,a a bank manager Of
great experience, and practical writer
of established reputation, that 'Ths on.
sctment which renders the whole proper.
~ Of every shareholder answerable for
the debts of the Bank, is very just and
satisfactory. II is satisfactory to the
public and satisfactory to the sharehOld.
er." It cannot be denied that whilst, in
1887 and 1888, hank creditors we're
every where in this country defrauded BY
the depreciation Of bank paper, and BY
the on,perfOrmance Of hank promises;
and WILTSHIRE same thing has again par
tally recurred in 1889, in Scotland neith.
sr depOsitOrs nor note.hOlders. have lost
a shilling, Mr.. Bailey, writer Of the
very highest character for power Of log.
ical discrimination, and for penetrating
sagarity and analytical skill, is clearly in
tho right, when he asserts thai The lsgis.
laiure acted wisely in not interferingao
lesssn, by the grant Of exceptions, the
liability M individuals. Mr. Norman, a
prominent director Of the Bank Of Eng.
land, and writer Of signal ability, was,
no doubt, correctly informed, when be
admitted the general solldity Of the
Scotch Banks, when he stated Ii Il ''in.
solVency was almost unknown among
them." and when he referred 10 their
we'll established reputation a. "secure
places ofdepOsii."
| will read furthet on this important
subject, said Mr. B., from the author
which hold in my hand, as his remarks
are entitled to the weight Of authority
and experience, and are totally discon.
neclsd from all party considerations. /
I