The Council Bluffs nonpareil. [volume] (Council Bluffs [Iowa]) 1857-1867, 1858-06-19

D-sEE FIRST. THIBD & FOURTH PAGEs.4l
"Ez fur Banks, 7 Kinder 60 Asin EN-
To this sentiment our neighbor Of the
Bugle declares his unalterable adhesion -
The reasons for this determination, have not
yet been given to the ''vulgar gaze of a rude |
world" but We are led to conjecture, from
certain interrogatory remarks in his last
Issue, that he is not satisfied with some of
the provisions of the Bank Laws enacted last
winter, and under which it is now sought to
establish banks Of issue in this State. We
regret this exceedingly, yet we see no way
open for assuazing his opposition.
lie assumes that 'the men engaged in the
s cat raising in Nebraska" will engage in the
same business in this State, should these
Bank Laws carry, s'but he has failed to state
the grounds upon which he makes that as
9 SUMPTION and then very pointedly asks:
"Have We any good reason to believe that
men who could not or would not bank hon
cstly in Nebraska, will do any better on this
side of the Big Muddy" Yes sir, We think
We have, in the Bank Laws, to be voted up
on on the 2Sth inst. In Nebraska, there
was not even the ghost or shadow of law
to compel men to do a legitimate banking
business. Charters were granted to parties
without making the least provision for the
security of the creditors of the Bank
There were no checks, restrictions or safe
guards thrown around the "dens of the
cats" in the Territory. No security was
asked or deposited to insure the bill-holder
against loss. Everything pertaining to the
business of tho Banks of Nebraska, was
left in the hands of the shareholders. They
were not required to keep even one dollar
of specie on hand to redeem their promises
they were permitted to issue as great an
amount Of bills, as they saw fit, or at least
rs many as they by any means could set
aaoat. After such issue of bills, the Stock
holders could transfer their stock to other
parties, and thus escape all responsibility for
their promises to pay. Take, for instance,
the charter of the Bank of Nebraska, and
let US see what there is in that document to
protect the bill-holder. The first two Sec
tons specify the incorporators, the amount
of Capital Stock, the name Of the Bank, and
the place of doing business, while sections
three and four contain all the provisions
under which the Bank is to do business
Read and ponder:
SEC g. It shall be the duty Of the President or Vice
President feither of whom shall be compel ent) and
Cashier 10 attach their respective names to all bills or
notes issued by said bank to circulate currency and
mat The Stockho ders shall be each and individually
liable FOR the full and final redemption Of such issue,
payable at their Banking House in gold or silver and
that this Charter shall have existence and be
force, II faithfully complied with, for the
years from the date Of its passage and becoming
law Of the Territory.
SEC. I. The Stock Of said Bank shall be assignable
and transferable according to such rules under such
restrictions the Board of Directors NAV prescribe
who shall have power at all times make such rules
and regulations appear for the -being of said
BANK not inconsistent with the Constitution Of the
United States and the laws Of this Territory
And so, with all the Banks in the Terrific
~, and yet we are asked in substance, if the
Banking Laws Of this State, which are to be
voted upon this month, are any better than
those of Nebraska? 1t would seem to US.
that the superiority of the laws in question,
over those in force in Nebraska, is SO pal
pably sclf-evident as to need no calculation.
But yet our neighbor seems to ignore this
view of the matter, and contends that the
.tr.--s -. ,--,+-4--~-.---.
Of the communicable not intend to deal
fairly with the ssbone and sinew" Of the
land, because the last legislature voted down
the individual liability clause, introduced by
MAHoNEy, Of Dubuque. Well now, let US Mr..
see what real force this alleged exemption
from indebtedness" has. Branches of the |
State Bank are required to deposit sum
equal to II Upper cent on the amount of notes
for circulation, which shall be delivered to |
said branch. This is denominated safety |
fund, to BIO applied to the redemption of the
notes of any branch that may fail to redeem
its notes. Each branch is required to keep
in its vaults, at all times, gold and silver
equal at least to twenty-five per cent. of its
outstanding notes of circulation, for the re-
demption of the same, and besides, at least
twenty five per cent. of its current deposits.
The same provisions exist in the General
Banking LAWN addition to which, the
Free Banks are required to deposit with the
Auditor of State an amount of good inter-
est-bearing Stocks equal to the amount of
notes to be put in circulation by such banks.
Both the State and Stock Security Banks
are prohibited from engaging in other than
a legitimate banking business. Then we
have the individual liability clause in both
laws precisely alike, as follows:
~ Stockholders in branches shall each he ndi-
viually and severally liable to the creditors Of the
above the amount Of stock by them held to an amount
equal to their respective shares held for all ia-
hitles accrning while they remain stockholders and
transfer of stock shall effect such liability shoud
any such branch become nsolvenr and its assets be
found insufficient to pay its debts and liabilities its
stockholders may be compelled to such deficiency
proportion to the amount Of stock by each aud
should the whole amount for which stockholders are in
dividually responsible. provided in this be
found In be INADEQUATE to the PAYMENT Of
all the residue Of the debts branch the an
ptcaton Of its assets to the payment Of debts then
the moneys due from the stockholders account Of
their inddual liabilities such, shall be distributed
equally all the creditors Of such branch in pro-
portion to the amount due to each the personal abi-
~ in this section provided for is above the
stock owned by stockholders, and any unpaid
thereon.
Here We see that each stakeholder is per-
sonally liable for the indebtedness of the
Bank, to an amount equal to, and over and
above the amount of Stock owned by him.
IL A. owns $1,000 Of Stock, he is PERSONAL
ly holden to the creditors of tho Bank for
that amount; no transfer Of stock can effect
such liability.
What more would our neishbor have? 1t
is not true, as he alleges, that the friends of
banks "refused to be individually liable for
any damage the 'yarmnts' might do, in case
they should be hard squeezed" They have
refused to do no such thing, as the section
above fully proves. They are responsible
for the "good behavior" of any "cats'' they
may introduce into the State, in a sum equal,
to the amount of damage the seats" are ca
pable of doing. In other words, they are in
I:,:d,,ollp l;,b1o fo, thu rholo omount of