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

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banker is morally eesPOnsible for all ih'
losses and damage Occ0siOned by hisim
prudence, negligence or fraud, and hi
legal liability should be COMMENSURATE
with bis moral obligations. The exemP
ION Of bankers therefore, from indiVidu
al liability Tor The payment ofIheir debts
strikes at The very foundation Of a grea
principle OF moral rectiUde, gives a Ii
cense 10 disregard ihs requirements Of I
distinguished author on this subjects
'holds out premium 10 viIlany upon Z
large scale
When bank fails the loss must fall
either upon the holders Of its bills OF
upon lie stockholders. The bill holders
as such IRE entitled 10 noHe Of the prof
its Of the b. nix and they have no Voice
or authority in lis management, and none
Of The means Of ssceraining its coDdi'
lion. The stockholders receive all the
profits Of The business, have ,Ge entire
conuol, aud can at any time by an exam.
ination asc erIain for themselves the pres
else condition Of their institution, Who
then, be would inquire, should bear the
loss in case Of a, bank failure? Those
who receive none Of the profits; and haye
no means -Ol protecting themselves, or
those who receive all the profits Of the
business, have the sole power Of control-
ling The bank and the only means Of
knowing its condition: Shall bankers be
tolerated in coming into this chamber,
with the audacily and UffronIery OF de-
maDd that they, the favored few, shall
be exempt from personal liability for1he
payment Of their debts; and the loss and
damage OccOsioned by their negligence
impudence, frauds and Villainy, shall be
thrown off their shoulders on 10 The inno-
cent and uDsuspec,iRg portion of commu'
nifty?
Shall we be- luAed into stupidity by the
siren song, that this bill provides other
securilies amply sufficient, that undof this
bill bankers are compelled TO provide Sc
curly abundsntly sufficient within their
individual responsibility. How much
safety this bill affords toibe community,
i may have occasion 10 examine at an
other time. But let US not deceive ohrs
selves. Ifthe bankers are required by
this bill to provide security which will be
amply sufficient 10 prevent any loss, why,
il This security is provided in good faith,
should the banker be afraid 20 risk his
personal responsibility II the commL-
niiJ is made perfectly securs, individual
liability cannot do The banker any harm,
and he will not be afraid. Il the banker,
who provides this security and controls
it, is unwilling to trust loit himself, in
the name Of all tHatis just and sacred, T,
should the community rest content with
~ Shall the people be reSuiVed to take
The promissory notes Of bankers ss their
circulating medium, and coHide in them
as their standard Of value, when the ban
kers themselves are unwilling 10 stand
personally responsible for their red mp
.tion? warn the friends of this bill to
be beware OF venturing loo f5r in The at
tempt to delude the people by the cry Of
security willPut individual liability
They may, before they are aware oft
wake up those ,slumberng lions in The
public MIND, which with the thuDders O
popular ind ignation will tear 10 latiers lhC
facti,ious fabric Of their exclusive privl
cg :. Far better, Mr. Speaker, had yo'
-allemp.ed TO chain down the elements o
popular indignation by giving convincing
evidence OF the honestyof your system
in The adoption Of Ihs principle Of inVd
Gsl liability.
The practical operation Of banking IN
toTporallous shows ,hc necessity Tor ih
personal liability Of The siOckhoidersv
natural person in the accumulation Of pre-
perty, regularly continues TO augment hi
| liabilities by the increase If his property
Rutnot so with a bank Every six month
a Uank distributes It's dividends 10 il
Stockholders, 6nd as fss, as it acCulnu
ls,es profits, the stockholders receiv
thcm. and add eo much 10 their rrivat
property. Thus bank may enlarge i
; debts, and increase lis profits, and at th
/ same time, grow poorer BY its dividend
10 ils stockholders. Bankers may b
wealthy IN their individual capacity, frol
The plofls derived from their bank, Will
! thew are poor in their corporate capaeit
|, as a bank. Thus we may occasional
I, find men rolling in luxury and SPLENDID
and riding in magai6cencs ihroueha OF
streets, from The wealth ainassed fro
! the profits Of banks which have faile-
! leaving one part ofcommunity sufterir
4 for the very necessaries Of life. on a,
count Of losses, occasiened by their br
ken promises 10 pay their notes on d
4 mand.
q Ii cannot in candor be pretended
8 any intelligent person, that the pFlnciP
II of Individual liability in banking is y
J practicable. Il has been already TT
" n ne Baited States; as we'll as y 9th
i. countries. Individual liability u qua