Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1845-02-11
INDIVIDUAL LIABILITY.

We copy from the Statesman the fvl.
lowing debate, which took place in The
Senate on the 24IhJanuary,on an amend. !.
mem offered by Mr., DlrIley to Mr.. Kel.
ley's Bank bill, TO provide for the ind;vid,
uai ability Of the stockholders.
Mr.. Barley offered an amendment, pro
vidiBg Tor the liability Of stockholders in
their individual and natural capacity, for
overv bill or note issued as money by The
hank, Of which they arc Stockholders, and
allFans iers Of stock 10 deGaud creditors,
or with view 10 The insolvency Of the
Sank, in which said stock is to be held,
shall be void.
Mr., Batliey said, that he proposed this
Amendment because he believed that the
principle of individual liability OF stock,
huIders in banking companies, was right
and propeI-and that no banking system
ought 10 be created wilhontils lie haJ
but little hope, however, that il would
meet the appreciation Ofs majority Of the
friends Of the bill. Much reflection and
examination Of the subject in all lis bear
ings, had satisfied him that il was deman,
ded as principle Ofjustice as we'll as a
principle Of safety. Regarding il as vi
tai principle which should never be yield
ed, aud which. coulG noGbe TOO slrenu,
ously urged, hs would detain. ihs Sem
ale with few remarks on The subject.
When we confer upon one portion oi
the community means and facilities foI
enlarging and extending their liabilites,ll
appeared iotmanlesl total disregard fol
kthe safety Of the public, 10 lessen at the
same time, the responsibility Of that part
for the payment Of their debts. II the
,pac " Of monty is 10 be given by law Il
The prom ssoEy notes Of favored few, ,wht
are 10 be authorized 10 substitute thei
4 nix debs tor'ths circulating medium 0
The coanlry,and by this means receive al
interest instead Of paying an interest OF
their debts, they ought not TO b. tolera
ted in The domand that their liability TO
The payment Of their notes SHOULD not b.
less than The liability for The payment o
debts which is exacted from The mem
hers Of firm or assbciltioR Of indiVidu
} els engaged in any other business Wbe
high aud exclusive privileges are grant
ted, deeply affecting The standard Of va
$ ue and the interests 81 an entire COMMIT
b nifty. The favored recipients should hav
I their responsibilities increased Fathe
T than diminished; and unless by lie insiC
i0us encrOachmenls the moneyed pow'
! hos already acquired tho control Of II
citadel Of our Hberiies, the inteligeI
I> freemen Of Obo will not tolerate this u
J. reasonable and unjust exacIiOn at the
<, hands.
The failure. Of banks are always cause
u, either by imprudence, negligence
u fraud, and il is as certain, as any 9th
p principle ofhuman action, that the stoc
l, holders ofa bank will be strict in the
n supervision aud MANAGEMENT, and u
i, rigid preGaulionsain proportion 10 q
g. risk and personal responsibility whit
i they incur; and on the other hand VIII
Is, Eihe STOCKHOLDERS run but little risk thei
b e,yescwben he loss occaslOned by
q failure faIlsRhiefy upon the rest OF q
IN, community. tbsy will often for the sa
k. oflaige 2tofils, ejtIien -negligently, il
Is, prudanily orfraudnen'ly peSmlI The
lc. sues and business Of their ballA 2
ey pushed 10 dangerous excess. Indivl
Sc, upl liability. therefore, is aafeeus
en- agsinst negligence, ,impFudence and iraI