The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1844-02-22
OHIO LEGISLATURE.
SENATE.


Barley delivered his objections to it and among other
things said, aEsss
1t is preented that this bill makes the stockholders
individually liable for the debts of the bank Butthe
individual liability provision in the bills mere sham
cunningly framed seas to enable the bank to evade it
and render wholly imperative The language of the
provision is hat the stockholders shall be sueray liza
be in their individual capacity for every valid claim a
gainst the bank, except where they shall otherwise a
gree with depositors" The Senator from Stark (Mr.
Lahm) said that this is the language of the individual
liability provision in the existing law. Inthis he Is mis-
taken The language ofthe existing law is, that the
stockholders shall be individually LIABLE exCept where
the bank and depositors shall otherwise agree in rea
tion to their liability for deposits" The exception in
the existing law is confined to special agreement in
regard to the liability for depostors, and does not ex
tend to their liability for their bank notes and other
debts. But the exception in this bill is general By
special agreement with one class of men the bank can
exempt the stockholders from personal liability for eve
ry valid claim The liability of the bank NsockhU
ders for the notes issued is created by the contract with
the person to whom the notes are originally paid oaby
the bank The bank, under this bill can put all its notes
out through deposiors by a special agreement. The
directors and stockholders themselves often deposit
ors, and they can agree with the bank 10 exempt them
selves from individual liability for the notes which they
receive from the bank and put into circulation. lift be
necessary in order to identify the notes otherwise than
by their number which are issued by this special agree
ment the bank put stamp the the notes Of this
kind "issued by special agreement with B. depos
ior &a written contract ofhe depostorcan remain with
bank Thus all Individual liability of the stockholders
can and will be evaded would submit the construction
ofhis section ofbil 10 the candid judgment Of any gen.
eman ofhe legalprofession without fear contradiction
The exceponin the provision is general By an agree
ment with class OF persons the bank can exempt the
stockhoder from liability orevery valdclaim
Is the Legislature tobe thus duped guled and imposed
upon by this petty artifce at evasonl He had hoped
for better things. 5.
This bill provides no process tor enforcing this ind
vidual liability against stockholders. If lea to the
common law remedy the course obligation would be
so expensive and tardy, that oteholders in general,
could not afford to contend with bankers Under the de-
cision Of our Supreme Court the stockholders Of the
Granville Bank individually liable; but the stock
holdersare taking up the circulation themselves, at
twenty five cents on the doslar.
There is another provision in this BILL to which can
never give my sanction 1t provided that funds de-
posted in New York, Philadelphia or Boston, subject
to sightdrahs shab equivalent to gold and silver in
the vaults of the Bank for the basis of the circulation
the Bank" This is substantial and total abandon
ent of the rule which requires one dollar OF specie
handtor every three dollars of paperin circulation. Il
is privilege which even the original charter of the
Bank did not give it and privilege expressly forbidden
by the law, passed at the session Of 1889 The eff
feet of this provision is, that the bank issue large
circulation ofpaper basedupon paper funds on deposit
in the Atlantic cities without dollar of specie on
hand in the vaults of the bank The Bank Of Wooster
can make an arrangement with a banker, or broker, in
one ofhese eastern cities and even by special deposit
Of its own bank paper, make this deposit Of 'funds"
the basis for the urherissues of its paper currency a.
mong the people Of Ohio. Truly, we have reached a
pul state of affairs in Ohio. The credit of an Ohio
bank with Eastern banker is to be made substitute
for the specie with which our banks required 10 re-
deem their circulation. dIno whatebasing servlity is
this calculated to bring the commercial affairs OF our
people, to the capitalists of the Atlantic cities Not
wihstanding the fact that the balance Of trade may
times be in our favor and drafts on the Eastern cities be
below par and less valuable than Ohio bank paper,
yet the Bank of Wooster is to be authorized to redeem
her circulation in sight drafts on ndS deposited in
Philadelphia, N York or Boston This is repeal OF
the bank resumption law aras this bank is concern
ed; an abandonment of every principle oftan'1 reform
If the people Of Ohio ever respect to be free from bank
dominion, they must rise in their majesty and rebuke
this fagraa outrage in the legislation Of Ohio in indig-
nant tones Of thunder
Mr. Waters opposed the bill at some length wasre-
piled to by Mr. Lahm Messrs, Baldwin, Parker Jones
and Hazeltine, spoke in opposition to the bill.
Mr. Jones said: AsI find it TO be the fixed determina-
ton of the friends Of the bill now under consideration
pass it into law before adjournment even reces
can be had, feel Tiny duty to say fewwords inrela-
lion to this question: and TO give the reasons whyI be-
ieve the bill ought MOTTO pass In the first place. ask
Senators, who it isthat petitions the Legislature for the
passage Of this bin Do the people ask it, have the peo
pie requested usto move in this matterl Have they're
quired our hands the great and dangerous privileges
the Senate is about comforting uponhe stockholders
the Bank Of Wooster? No; sir. The people Of Ohio
have not been consulted in relation 10 this bill If they
had time given them to be heard on this subject the tab
your Clerk would groan under the weight Of the re
monstrances sent up here against its passage. In Ham
ton county alone 1000 freemen would demonstrate a
gainst and that too in language not 10 be misunder
slood.
I A0ersome further debate between Mossrs johnson
Disney Chambers Loudon and Waters, the previou
question was called and the vote taken on the final pas