Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1843-09-19
From the Ohio Eagle.
GOV. SHANNON'S VIEWS UPON
THE CURRENCY QUESTION.

! GOV. SHANNON'S VIEWS UPON
THE CURRENCY QUESTION.
The following extract is from GOyerno
Shannon's Message of 1910. He speak,
the sentiments of the democracy of Ohio
and we know that no democrat can be
found in Old Fairfield, who will not re-
spond. most heartily, to the sentiments
therein set forth, and TO the policy advi.
sed. We ask every democrat in the
county-yea, in the whole state-to read
this portion Of our noble Democratic Cor.
ernor's Message, and contrast the views
of economy, patriotism and honesty with
the wretched fund'mungering scheme
OF the Federalists,-GliGS, "Nye's Sow
and Pigs"-which it put forth in opposi
ton TO the sound, honest policy Of the
Democracy Of the StateP Read the fol-
lowing. The Governor says:
''It does not unfrequentIy happen. thai
when a bank fails, the stockholders. or
those who manage its affairs, are largely
the gamers. This fraud, with impuDity
results from the principle contained in
all our bank charters, ofa limited liza.
bility.
The banks, generally are authorized 10
issue three dollars Of their own Dotes
for every one dollar of capital paid in;
and the capital paid in is all that is liable
for the payment of their debts. A bank
that may be disposed to act fraudulentIy,
can put outithree dellars ofits own paper
for every one that is liable to be applied
to the redemption Of its notes in circu-
lation. The banker, by banking loses
the one dollar of stock, but gains the
thr ee that were issued upon it. This
may not often occur; but il is sufficient
to know that it has occurred, and that il
may again take place, to authorize the
Legislature to guard against ii. This
limited liability of the stockholders, not
only furnishes an opportunity to commit
fraud with impunity but holds out an
inducementt 10 engage in exclusive bank.
ing. The banks are not restrained in
their operations, because they know that
ifsuccessful, they are the gamers, If un-
successful, the greater part Of the loss
may be thrown on the public. The in.
ducement should be the other wav.-
The temptation 10 commit fraud, Or to
engage in excessive banking, should be
taken from them This can only be
done by increasing the personal respoL-
sibility Of the stockholders, and placing
the banker on the same footing, as to la |
ability for the payment Of bis debts, with |
the farmer, merchant, manufacturer, or
other citizens. Is there any reason why
the whole community should be made
liable for the payment Of their debts,
while The banker should alone be ex.
empif ifan association should be form.
ed, for the purpose Of erechnga manu-.
featuring establishment, and after having |
exhausted all their mems, ,tecome involy. |
ed in debt, each member is liable for the
whole of the debts of the association. al |
though they may have lost their Joint |
by some great misfortune Which |
no prudence could have guarded against. |
If similar association obtain charter.
and embark their capitalt in the business
Of banking and fail, fraudulenily Of other
wise, they are personally exempt ffom
the payment of any of their debts. All
that can be reached is the stock paid and
and the assets Of the bank, and in nine
cases out Of ten the creditors can nei.
ther find stock or other assets. Is there
any reason for this distinction? Is there
any justice init! The business of man
ufacturing is as honorable and useful,
and as much entitled TO Legislative pro.
lection, (and much more SOY as that Of
banking. Why exempt the one from
personal liability and not the other? II
is said that if bankers were made person.
ally responsible for their debts, as other
citizens, they would not invest their mon.
ey 10 bank stock Why would they not2
Is there anything more hazarded in BAN
king than in merchandising, manufactur'
ting, or other ordinary pursuits Of lifeY-
So far from this being the case, capital is
more secure when invested in legitimate
banking than in almost any other busi-
ness, and is equally, ifnot more produc-