Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1845-07-25
1S i~ Edtto,s or lie Enquirer.

CARROLL. Co, Va, July ;, 1915.
Gentlemen Some editorial remarks in The
Lynchburg Virsinian OF The 18th June, on the
subjec, oi The individual liabi!h, Of members Of
corpora,ior*, having attracted my attention. had
intended 10 notice them n an earlier period, bni
nv engagements have prevented me from 50 DO
ins until to-day; and now beg room. in your
columns Tor few thoughts upon the subject.
The attention of the editors oil the Eireinian
seems 10 have been called 10 The subject By The
praise which the Enquirer bestowed upon lhc
message of Gov. Steele Of New Hampshire; in
which message The position is assumed, that the
individual members OF all incorporated compa-
MES should be held personally responsible Tor the
liabilities and debts Of such companies. They, OF
The Virsnian, ask with al air ci triumphant "a
serne>s-"Dues The Enquirer endorse lhls doc
Irine y They seem anxious 70 see 'the progics-
>iye Democracy" advocating and maintaining
this principle
Now, sirs, know not whether you are iarora-
bic 10 such policy; hui if it will afford any plea
sure 10 lie EDITORS OF the Virgnian 10 know, that
many members Of "the Progressive Democracy"
(as they snceringly, YET apply term us,) believe
that this doe.rrne is not only reasonable, just and
expedlent, hu absolutely necessary 10 that reform
OF the Banking system Of the country which ex-
pericncc has shown 10 be imperaivcy requisite,
| can give them sIch Information. Small rs are
ms abilities 10 discharge such task, also think
that can show the correctness and exped!cncy
oil this 9ocisinc. which Mc>sfs. Toler s. TO- seem
10 regard as almost synonymous with treason
sIraiasems and spoils.
The FIRST advantage which would result from
the adoption ol This principle, would be the IN
creased can.iousncss and care with which the al
- al no M n
II those who controlled The business oi such COM
panies knew that the whole oi their own proper
~ as well as that ul the other stockholders, would
he liable for the consequences OF any mlsTan-
agemeDi excess or fraud, cannot 2ny one per-
ceivc, that they would be more careful u avoid
such acknowledgement, excess or fraud 10 pro-
portion 10 The injury which may result from tail
ure. will be the precautions 10 guard against iall-
ing, provided the undertakes be honest and are
aching in good faith and il they arc dishonest,
then The fewer facilities we allow them, and The
more safeguards We throw around them The bet
ter Not only would directors h. hns rendered
more careful but the persons who conferred power
upon those directors, would be more Caution, in
the selection OF their agents; would require
stronger guarantees for The faithful performance
Of their duties; and would hold hein 10 more
rigid accountability for The manner in which they
had discharged their tasks.
This increased cauiousness in the manage /
ment of The affairs OF corporations combined 1
with the knowledge of the increased amount 10 /
which holders of their iabilies could toos for .
settlement oil their claims, would produce The Sc
cond beneficial result OF the adoption OF this prin-
ciple, 10 wit an mcTsaie Of pabi,c comhdcars IN (
ib0sc Institutions. H. FOR instance, the holder Of!
bank note knew that all the property Of the OH
GERS and stockholders oil The bank when issued
hat note, was liable Tor is redemption; and II,
as would be the case, he were satisfied tina, such
liability would proven! any over-issue, ana guard I
against fraud would be not more willingly re-
ceive !hai noe, and hold with stronger assur.
ance that he was sale in 50 doing?
This increase CT confidence would produce a
third advantage. che, 81 which The benefits would .
be divided between The company and the commit /
nitythat IS 10 say, the ability, on lie par! Of The
company, 10 dO tarscr business. Public conf +
derce j., TO some extent, necessary 10 all corpo- (
rate bodies 10 banking campanie, il is absolute /
" necessary. Credit they must possess and ere.
lii they came, obtain. unless the community lie !
salished as 10 their ability TO discharge their |
obligations The more credit they can OBJ /
lain, the more business they can transact;
aud ii their pccuniary aj.f,SY is equal 20 their
;rc3n, lie better it is for themselves and The
public. That which is usually considered the
safe limit 10 The issues Of 4 bank, is the amount
Of its capital actually paid n--the money in lis
vaults il, other words-comtincd with the notes
Of individuals, and other property received in
exchange for the notes issued by itself Now,
sirs, adopt The individual liability principle, and
you d, once have guarantee for The redemp-
lion Of larger amount OF issues than was Pc
viously proper. II The customers OF hank
hose who borrow its moaey and put il in circula-
ion-know that The stockholders are all Liable for
is redemption they viii borrow more-the public
will receive and circulate more, than they wonfd
have done, when they knew lha, no person was
beyond the nominal amount 81 The
'apilal.
To illustrate and enforce lis view Of Inc sub
ect The Virginian puts this case SUPP ose
company 10 be incorporated for any purP Sc;