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

s traueS ~ the FISK OF their own fortunes
+ there is no reason why spectators should
? be allowed TO establish banks Of issue
: upon a less responsible system
4
/, Again.
Sand as remarked b Y another ecouo-
4. mist, as the result OfIhe most mature ex-
perience, and Of the closest observation:
. The knowledge Of who the partners are
} in bank, and their unlimited TespOns.
, bliiy, are the only securities that, speak.
ing generally, are worth pinch of snuff
lfthese cannot project The public from
fraud or loss, nothing else will; aud the
question will come TO be, not whether
the system should be reformed, but
whether il should he abated as an incura-
BILE nuisance Ia the language Of Mr..
Ricardo: Ills il not inconsistent that Go.
vernment should use its power 10 protect
the community from the loss Of one shl-
ling in guinea, but does not interfere TO
protect them from the loss of the whole
twenty shillings in one pound noIe.'
"TO exOnerate individual partners from
the payment Of partnership debts, is 10
encourage both rashness aud fraud Un-
der any circumstances, in the words oi
an able writer and experienced banker,
'it seems inexpedient, as ,egards the pub.
lie, and unjust, as regards private bank.
ers, to favor especially joint stock banks,
by making particular law in their bo-
half.'-And the practical operation of
legislative act, granting to associated
parties the privileges and the mmunilies
conferred by their beng invested with the
corporate character, is, that they may
contract debls 10 any amount, while they
ore bound TO pay only specific amount;
their charters thus vicialiag the funda-
mentsl principle Of all business, and the
essence Of all confidence, viz. the integ-
rity Of contracts. This surely may be
termed premium upon great villiany."
There is no principle in the law better
settled, than whatever has an obvious ten
dency to encourage guilty negligence,
fraud OF crime, iS contrary to public poll
cy. And such, in the very nature of
things lis the tendency of allowing the |
trader, and especially the banker, 10 linn
il. to throw of, or in any way to restrict
his natural responsibility, or his legal liza.
biIity.
Mr.. Bailey proceeded. ThOse who en-
gage in the business Of banking, do il for
pecuniary gain alone. 1t is breach Of
an obvious principle Of moral rectitude
under such circumstances, to limit the
liability of stockholders. Every individ-
ual is morally responsible for the cOnse-
quences Of his own acts or the acts Of his
accredited and instructed agents. To
permit bankers, therefore, who fail in
business, through imprudence or diShOn-
esty, (and they never can otherwise faID
10 shift the consequences Of their own
acts upon innocent and uninterested per
sons, strikes at The very foundation Of
clear principle of moral rectiIude.
There is an niniustice in limiting the IL
ability Of bankers which is moi generally
appreciated. In the case Of the insolven'
cy ofa bank, il removes the great pro
portion Of the loss, which must he borne
by some person, from those who have
voluntarily engaged in the concern. who
have had the only means Of watching and
controlling its progress, and who would
have been the sole Parlicipators in the
benefits Ofits success, and throws It cn
those who had no share in its benefits,
no control or influence over its manage.
ment, and no means of insight into IFS
proceedings or condition. In case Of the
insolvency Of banks Of limited individual
liability, the stockholders lose generally
hut little, compared to the loss Of other
creditors, who had no interest in the ben
| elil-uO power in the management, and
no agency in causing the failure. And
whls the stOckhOlder of the falling
bank perhaps continues 10 live in splen.
dor and exlraVagance, with superabun.
dance Of property about him, the unOf.
tending creditor may be reduced 10 Pnv-
euy aud want. Such injustice it seems
10 me, ought not TO be tolerated.
Whore high and exclusive privileges
are conferred, the responsibility ought
NOT 10 be diminished. And mpre espe.
cialy, when the exalted privilege is con.
ferred upon few persons, To circulate
their Joint obligations as money, their
moral aud legal liability for the redemp.
tion of their obligations, ought not to be
limited. i
The question was taken on the amend.
ment, and lost; yeas 20, nays 47,ss fol.
lows:
Yeas .--MesSrs. Aten, Baldridge, Bart
| lev, BroGgh, BGrns, Dun, Harlan jenkins,
johnson, Of Monroe, King, Morris. Nc
Gain, Rafenspergsr, R'bIei, Shrsve,
Smith, Of Stark, Spindler, Warren, Wilson,
| aud WOOd--2O.
| Nays--Messrs. Allen, Bell, Bliss,
| Brown, CaF0th4sts Carpenter,
| CLARKE, Cochran, Cook, DUNFlAM,
FlaEsnce. GiddiHgs, Hamilton, Hawkins,
Il an.-nt- I..aal TNh,..u nf Hnua hama. Il