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

Otno5 Clatesi dno seNeFai Ol Wo jain
doing business at this time in Ohio, hay
accepted indiyidu liabiI ~ oflbeir stock
lhOlders. Ss provision in their charters
| The Legislature was memOralized a
Ibe last session by several banks, for ih'
continuance Of their charters Ou ceTIaiI
terms. and on the express condition thai
their stockholders should be made liable
in their individual capacity. In England
and Scotland, the joint stock banking
companies are all founded on q g indivId'
Ual liability Of lhsir stockholders TO the
whole extent Of THAR private property =.
And il cannot be claimed that the people
Of England or Sc1lland are any more
honest or prudent ihan the people Of this
rounIry. And if individaI liability 10
banking is not Objectionable TO capitalists
in England and Scotland, there does mol
appear 10 be any good reason why u
should be objectionable in the United
States. Il is true, however, that bank
ers here will at FIRST pronounce any prop
OsiIion impraclicabe, which does not
meet theiI own peculiar views.
Mr.. PERKINS replied to Mr.. Parlley al
some length. He read frOmMcCullough's
commercial dictionary, and insisted that
the joint stock banking companies IL Eag
land and Scotland had many failure 9, not
wIlhstanJing The individual liability of
their stockholders. Individual liability
may be principle Of saIely, but banks
can be made perfectly secure without
il.
Mr.. WETMoRE said that safe aud good
men would not bank on the principle Of
individual liability. The Senator from
Ricbland would not engage in banking il
made personally liahle. Mr.W's own pO'
lilical party in his county were not in IA
vor OF individual liability in banking.
Mr.. EcKLEY said ne considered the
bill afforded security Sufficient without
Individual liability. Banks were not BET.
Ter with individual liability than without
it. file exhibited bank mole which he
said was ten dollar note OF the bank OF
MaLsfi Id, bank on The principle Of in'
dVidual liability, which once existed in
The town in which the Senator from
Richland (Mr. Barley resides. That
bank broke and some person lost the
amount of that note.
/, Mr.. BARTLEY said that the Bank Of
Mansfield was an Unauthorized assuciation
Of individuals, who before the year 1916
banded together 10 swindIe community.
They had no capital and could not be
edsled a bank upon any principle. This
single instance Of an Unauthorized and
fraudulent company did not prove any
thing. fraudulent banks without individ-
uel liability were as numerous as the
sands on the sea shore. But even in the
instance mentioned, individual liability,
was not found useless. For The stock
holders we're sued and stripped Of their
property, and the swindling managers
wele, after being striped of heir prop
eriy, driveE from the county.
II it true, as remarked by the Senator
from Lake, INIT. Perkins) that failures
have sometimes occurred among the
banks Of Scotland But although banks
Of issue have occasionally failed ineall
countries and under all systems, yet the
individual liability banks Of Scotland
have had fewer failures, and have been
mo, stable and uniform than any system
Of banks Of issue which had ever existed
in that county. The individual liability
banks Of The new England states have
been the svfesI in this country.
Mr.. B. said that very large majority
Of the people Of all political parties in
lOhio were in favor of Individual liabilit!
1 in banks. In his own eUatOrisl district
very Inge majority of The political par
" 10 which the trends Of this bill belong
ed, we're in favor OF individual liability
| And he doubted whether. the people o
Ohio would tolerate any system Of bank
ing which repudiated this principle ofslle
~,
Mr.. ANDERSON called for division o
The question, which being ordered pre-
sented the individual liability Of stock
holders as a naked question, leaving Ou
|, that portion in relation TO transfers 9
slock.
TIE question being taken theTeon,wa
lost--yess Is, nays 20 as follows:
YEAs-Nlessrs. Armstrong, Aten, Bald
wind BARLEY Clancy Disney Johnso
Jones King Kouch Loudon Mile
Warner Waters and Woods.
!, NAYs-Messrs.A Anderson, ,Barrere, Cot
ding, Cox ,Crouse .EckIey, Gregnry ,Grc
} Hastings Kelley Of CuyahOga, Kelley ,
i, franklin, Osborn O'Ferrel O'Neal Pe
Z kins Powell Qainby Van Vorhes Vet
!. more and Speaker-20.
So ihe Senate, by a.sirct parry vo,e e
. refused 20 make stockholders ilaole -
their debIs.
: The remainder Of the amendment wa
3 then lost withoula DIVISION
!, PosAp-Tbe Providence Gazett