The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1854-05-11

/ ~-'N>N~SsSs"s~t 10y - Aes's - Y
To tie Senate and IIouse of Reprsscntaiis<s -
GEsrLEMEs !: The following bills have
been presenssd for my consideraiion and ap-
provaI, and I;hsrewiih return The same with
on. my assent 10 the Senate in which body
they originated. 81,
Bill No. 159, entitled an Ac. TO incorporate
The Donegal Deposi, Bank, 10 be loeated ai
Marietta, Lahca.,ef corhiy No. els, -eali-
lied an Act 10. incorpoials ihe ca,asaiqus
Denosi, Bank. a. csisssuque, Lehish coun.
1iy; bill No. 2is emitted an Aci to incorpo-
tsle the Fsrmsfs' Deposit Bank Of Lebgh
County and bill No. ese, en,i,led an Act to
incorporate the Mount Pleasant Savings
Bank t
The principal objection 10 the bills unde !
consideration, is, thai no adequate liabilitY
Is imposed uponihe Stockholders, for the
protection for those who may be creditors Of
the inslituiions. II. has become . seuled
principle, that IN granting corporate pfivil-
eges, where large private gains are expected
and the public deeply Interested in the ope.
sations of an institution and ils ability to
meet its engagements, that the individuals
thus associa,ing shall be severally liable, in
their private estates for the debtsof such
corporation -, ...s4.. : "a ~ Z
This prin..pfu has been applied, very
properly, il Is believed, 10 Banks of Issues
and 10 Mining and Manufacturing Eompan.
les, andlhe public are certainly quite as
much interested in he safety and solvency
OF Bank Deposit, as ia these corporations.
Invi ting deposits by the offer OF liberal
terms, the entire community surrounding
such an Institution may become creditors,
and especially those classes least able 10
bear loss and hence the prophecy of fur
nishiug an efficient protection. The appli-
cation ofihe principle is not more salu,ary
upon ,he public mind, by inspiring conf
dence and trust, Than upon the corpora,ors
themselves and the greater vigilance res.
uling from a proper sense Of responsibility,
would more than compensate for this ia
creased liability.
Whilst i is true that mere Banks Of De-
post not having the powerto increase the
aggregate Of paper circulation, are not liable
to The objections generally nrged againsi an
increase of banking capital, as basis for
paper Issues, and cannot Itffa:e prices BY
an expanded currency, they shorid never
theless be guarded by every proper limna-
lion and restriction, for ihe security of ,as
public. Nor should such Institutions be es-
tablished at random, and without due re-
gard TO acuai business wants.. but only iu
such localities as manifesily require them.
In places where large amount of bust.
ness is transacted, | can see no well founded
objection To such an agency--lhus from the
size and importance Of the place, no ioslilu-
lion OF The kind at Allentown might be EN-.
inently proper, aud be of grea, benefit 10
its business inhabiiants--and perhaps al
other points indicated in the bills before me;
but in this, as in all other allowable meas
ures,. the utmost discretion and judgment
must be exercised, and the true inieres, and
safety ot the public ever held ia view.{
Misapprebeusion seems 10. have existed
as 10 the ex,ento Of the liability imposed by
the general Banking Law of 1850, under
which the proposed institutions are to be or.
ganized. Il was certainly such erroneous
impression that secured the approval Of the
bill 10 incorporate the CiizeHs' Deposit Bank
of Pittsburg, for in all oiher similar ases,
the pricipal of individual liability seems 10
be rigidly adhered TO. Even in this case,
however, is an express reservation in the
act OF incorporation that the Legislature
may impose new conditions. if necessary,
which to some degree, at leas: supplies The
omission Of an express individual liability.
As there seems therefore to be defect in
the general laws in this particular, respect
fully recommend that il be SO amended as
apply,to the principle of individuai liability
to Deposit Banks shsfeafler incorporated, as
well as those already established, in whose
charters the right isreserved to impose new
conditions II necessary.
sN ~ VIM. BIeLER.