Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1844-02-20
oAIo LEGISLATURE.
The WOOSTER BANK BILL.

the Bank OF Wooster the Bank OF Aeuld'
and the Llytayetle Bank Of Cincinnati
from the restrictive PROVISIONS and saie-
guards Of the general banking law passed
by the last Legislature. The bill Of
Tiginated in The House Representatives,
and was passed by that body on the Sd
inst. by vote Of Al TO 90 aud on the
10Th inst. it was passed by the Senate by
a vote Of 20 10 l6 and became a law
four of the democratic members uniting
with the wings to force it hastily through
that body.
As it is said by some that the bill con-
tans the Individual liability principlcs,we
annex extracts from the speech Of MIR.
Barley, ,(Speaker Of The Senate ,)showng
that this provision in the bill is mere
nullity.
"It is pretended, that this bill makes
the stockholders individually liable for
the debts Of the bank. But the individ'
ual liability provision is mere sham, Gun
ningy framed so as 10 enable the bank
to evade it, and reader it wholly inope-
rative. The language Of the provision
is, "lhat the stockholders shall be sew
erally liable in their individual capacity
for every valid claim against the bank,
except where they shall Otherwise agree
with depostors.'' The Senator from
Stark (Mr. Lahm) has said that this is
the language Of the individual liability
provision il. the existing law. In this he
is mistaken. The language Of The exist
ing law is, that the stockholders shall be
individually liable, "except where The
bank and 6oIcsitos sIall otherwise
gree, in relation TO their liability for dee
posils." The exception in the existing
law is confined to special agreement in
regard to The liability for deposiies, and
does not extend to their liability for their
bank notes and other debts. But the
exception in this bill is general. by a
special agreeament with one class Of
men the bank can exempt the stOckhQl-
ders from personal liability for every va.
lid claim. The liability Of the bank, or
Stockholders, for the notes issued, is Gle.
a;ed by tho contract with the person 10
when the noies are orginiasiiy .~paid out
by the bank, the bank, under this bill,
can put all its 1otes out through deposi
tors, by special agreement The di~
rectors and stockholders are themselves
often depOsitors, and they can agree with
the bank TO exempt themselves from in
dividual liability for the notes WHICH they
receive from the bank and put into. .circu.
lation If il be necessary, IN order to i.
IDENTIFY the notes otherwise than by their
number, which are issued by special a.
greemeni, tho bank can put stamp on
the notes ofIhis kind, ISSUED by special
agreement with A. B., q dePosiIor,' and
a written contract Of the depositOr Can
remain with The bank. Thus all individ'
ual liability oft stockholders can aud
will be evaded. would submit the con.
structon Of this section Of the bill to the
candid Judgment Of any gentleman Of The
legal profession, without fear Of contra
diciion. The exception in the prOvis.
ion is general. BY an agreement with
one class of persons the bank can ex'
empt the Stockholders from individual
liability for every valid claim Is the
Legislature 10 be thus duped, gulleC
and imposed upon by this petty art'fcC
at evasiOnf lie had hoped for bettoI
things.
Again: there is no restriction Gpon the
transfer of stock. The pretended indi
vdual liability in this bill attaches only
TO stockholders while they are sunh>--
When a person ceases IO be n s'OCkhol
DIR, he is no l9nger Fable Individually
as such, under this bill. Tue bankers,
therefore, arc at liberty, when they fad
that thy have rendered the hank in
solvent, by m;snansgemeni or fraud. 10
transfer their stock TO irrr spons'ble men,
or The bank itself, and thus escape from
all personal liability. " hen the German
Bank Of Wooster failed, the heaviest
stockholders, by the authority Of a spe-
ciaI Order Ofthe directors, transferred all
their stock 10 The bank, and thus, at the
par value ofths stock, paid their debts
10 tho institution, aud rid themselves Of
The capacity Of stockholders,
This bill provides NJ process for enfor
cirg this ind vidual liability again srOck.
holders. II left 10 the common law rem
edy, the course Of litigation would he so
expensive aud tardy, that note holders,
in general, could not afford to contend
with the blIkers. Under the decision
Of our Supreme Cour, the stockholders
or The Granville Bank are individually
liable; hu; the common law remedy IS SO
inefficient that The stockholders are la
king up the circulation themselves, al
twenty five cents on the dollar"
"rhere is another provision in this
bill, to which can never give nv sanc-
tion. Il is proviled that, funds deposit.
cd in New York. Philadelnhia Or RusIon.