The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1851-03-01


coalastsl HONESTLY. anil he isseress Of the state
p ,..-tei agsinst frlui the stockholders have no
us ,r,sai Il ,laint 1t this precautionary re-
q-ir .neu, but il not the bill holders has 10
g-e.'rr security than he is entitled to- to protect
b,ssclfagains' losses and dishonesty
Such iiberslity by the stockholders, would
supply what h' always been needed IN conauct'
isy the affirs Of banks. II would bring TIM keen
sense Of = direct personal interest, among the
strongest Of all safeguards, to bear upon the di-
rccticn AMI general management OF all banking
operations. am aware that it is often said that
capitalists will not invest in banking institutions
where its owners are held individually aud per.
sum,lly responsible f,rtbe redemption 81 It's notes,
aud the payment of their debts But there would
be little loss, and possibly much good might be
done in making the experiment once; aud unti
il is tested the assertion Is worth nothing as an
argument. There Is probably no business. which,
if properly conducted can be directed and con
trolleJ uron safer principles thin associate bank
ing if the design AMI object be solely to furnish
sound circulating medium. and the chief point Of
difference between the friends and enemies of
blinking h,. beea whether its correct and proper
management shall he insured by the safe guatnn.
a. Of miyiluil liability Of those interested in
banking, or left subject TO the influence Of interest
and cupiity to give direction and CONTROL to It's
operations.
There seems To- be no provisions in the bill to
prevent Interpretations ia this or any other state
from being used 10y spectators a. stockholders IN
any blnk which may be framed unler the bull
and those interested IN them not being personal
ly liable under the act of incorporation may en-
silly evaic all personal liabilities sought to be i'm
posed upon shareholders by the bill What will
prevent such corporations as these from getting
tho possession and control Of banks and not only
evade successfully nil personal liability, and a
vhiling themselves Of the unequal and dangerous
powers conferred 0n such corporations, use them
fn their own purpo.esl and conv'rt them into
nurseries Of frdu'i, aud maks the people their vic
tins.
The power conferred upon banks and banking
associations 10y the bill, may enable them TO be.
como the mere agents for the circulation of foreign
paper. BY making sm all deposit witt, the aG-
ditor, and ns-ocialins uner limited capital,
the rcspnn>bty FIT the circulation Of foreign
paper to any amount within the state RAY be
ueasuribly evldcd The bill seems to be fran
81 with view 10 insure the redemption of do
nestle paper, while by emitting all restraints in
conducting diicnunts and deposits, the purchase
Of pronisury notes and bills of exchange banks
may refuse to deposit with the auditor, save their
bpn,ls for other purposes, and become the agents
for the circulation 81 foreign bunk notes. The fact
that M deposit is required to justify this process
l. virtually Offering premium to tho circulation
OF foreign notes over tii,'se Of our own state, by
requiring no security aud imposing no liability.
1t will thus bc seen that if the bill goes into op
Grafton in lis present shape, one Of the professed
objects Of establishing banks among u.s. is utterly
defeated viz tina prevention of the circulation OF
So great n variety of bank paper, the charter Of
which is su picous and unknown.
The constitution Art. 6 Sec o.. provides that
"tha genera! elections shall be held an the Tues
day next, after the first Monday Of November
bennilllv until Otherwise provided by law
Sec ) AR. 10. also provides that, "no at Of the
general assembly authorizing corporations or as
soclations With banking powers, shall 20 into el
feet or in any manner be in force, unless tie same
shat be submitted 10 the people, at The general
election next succeeding the passage Of the
same" DC.
II is not known FIAT any law has been passed
since the adoption of the first mentioned article,
which requires general election TO Pc holden in
November 1851 The general election for the
state was held in November. 1850. and by TIE
above proyision the next general election in
course will take place in November 1852 Tie
bill provides that at the general election 10 be
held on the Tuesday next after the first Monday
in November 1851 il shall be submitted to the
people for their adoption or rejection as is provi-
ded for bv the above article Of the constitution.
No general election being provided for on that
day, consequently no vote can be taken at that
time, which can give any Ercc or validity TO the
I'LL a. law except it be done in violation Of the
constitution fthis construction of the conStitu-
tion anil i,w b. correct it follows necessarily that
al r L.. Il 4,
FIJI to the ground Upon bill Of so mu II mag
nitud haste !, no part of prudence, and the wis
dom of the above provision Of tue constitution is
manifest to give the propl, sufficient length of
time to examine bill of this character, thorough.
", befirc acting upon it, that they may not be
hurried ihte II vote upon il, without ample time
for consideration.
Ia awaiting myself of the right belonging to the
executive. under the constitution, as eonstitu
cnt branch Of he law making power, retain the
gratifying conviction, that II the course have iolt
il my duty to acop, has been msjudg.
el, no serious derimcnt to the public interests
need follow from il for the same vote III the &c.
neral assembly which caused the bill to be laid
before me, N place it before the people, without
as well as with my sanction. Only the strongest
conyction of the Objectionable provisions Of the
bill and the consequences which might follow
from their adoption INTO a law, would have lndu-
ced me to oppose my views to those Of the gene.
neral assembly or led me to inerpose between
the Representatives and the people. ! am not
unmindfll that before this bill or any other Of
Ike character can become a law, il must receive
the sanction of The popular vote but this fact in
no degree lessons my responsibility to thc people,
to aid in making it perfect, as nearly in accord
ancc with the wishes and Interests q! the people,
rs possible, before it shall be submitted to .hen.
A ter having dischared this duty rightfully dcmun.
ded Of me, entertain no fears Of the public juds
men, upon it, to desire to arrest its action upon
this or any other question.
AUG C. FRENCH
FxEcuuyI DEPARTMENT,
Springfield Feb 10, 1851.
yYo ,av pn,uor az 0tfaruo