Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1859-01-25
For lie EnGnirsI
RANK DIRECTORS.

-'ii 80 "
interest was a@i;atcd, on which some views
were presented which this writer thinks are
important enough TO be reproduced. That topic
Of discussion was the profricty Of giving the
power 10 the Governor, 10 appoint 4 majority
Of tie Directors OH behalf Of the State. in the
Banks Of circulation. This MAY he done, (scc
Code. PAGE BOZ =: tie Ge.srri .isssmbiy STALL
sco nj.
Under the present u>a.cs in clccting Bank
Directors and Presidents. these officers are u
.c,cappointins and selG.pcrpctuating body. II
i. in This particular. in the conduct and mar
a-cmcnt Of these institutions, aS though no
Directors were appointed Ion behalf o' the
State The President recommends, and the
Stockholders elect accordingly. Il; is done in
what i. called = general m%cc;in. Of the stock
holders. hat in fact. lay Il general concentration
Of the appointing power, in the hands OF the
Presidents and their pledged friends. Ly proxy.
However much. or for whatcyc: cause the Gov
crnor might feel bound 10 effect u change in the
Presidency Of bank or any o,ic Of its branches,
he is utterly powcrlcSS in his authority 10 APP
point fonr Of III" nine. and three Of the seven.
The President o! the Bank virtually appoints
twithout counting HIMSELF just as many IS the
Governor appoints. lie appoints his three
men 20 vote for him, lin branch and the Go
vernon may appoint three who "cte against the
former President: and yet. if he does not vote
for. and r~c.c,cc; himself. he cannot he defeated
by the Executive uilrcci Directors. because. III
this state Of the case Code, p. 3oS). he shall
act unit! his successor is appointed (which if
he holds OH and holds out. cannot be sooner
than the next ANNA mcc;in. Of the stock
holders. ~ lro+g. Now. if the interest of the
ti --n l. -.,. -. L. .1s z-.s o..
be capable of hcing protected ny the Governor
effectively, in this business Of making Bank
Presidents. such citizens must
iiav- light where other eye. ar- blind,
4. zig. are aid 10 see The wind"
/, must be Obvious that the Governor will
be "n his guard. and not too readily appoint
>licl, persons IL those Sc!f.aipoimting Prc>i-
dents laay commend 10 his acceptance. This
remark. and the whole purpose Of this article,
are .. i general character and design. not con-
fined to this occasion, but are opposite TO any
and al times. - long as the lax shall remain
a. il j..
1t was Sug.e,.c! and urged in the former
discussion al this topic, 10 which ailnSion has
been made. that Ii would be wise I" alter t!c
law 80 a> 10 have five of the nine and four OF
the seven directors appointed on behalf Of the
State. 1t would nc safer no less for the lrl-
waite stockholders than for the State. Any
abuses or other Encouragement oi a bank ar
any Of It's branches. may be pcrpetuatcd 10y
the presidents, H. the law now is, or We have
seen. 1t would no; be 80, or, 1T least. it worl"
lc much les likely TO be 50, under tfcsuggcSt-
ID alteration ot the power TO appoint; hRi II.
90 give the Governor the power to appoint the
majority of the directors. He is ineligible for
the next succeeding term. He must retire al
ley four years service in the Office Of Cover
nor. His successor would then have it in Ia,
power 20 break up and hrng aboIt a corrcct!o"
Of abuses or other acknowledgement that might
have c!cpt Into the conduct of any Of the
banks or their hrarchcS, under the appoint
,mcn,> iy his predecessor.
This j. i -rca: principle of l'uhiic policy
Il is no; ALLEGED. nor snail il he left 30 Ice in
icr.,i. that any signal acknowledgement IN the
banks orthis State exists. that specially calls for
the III. :c>tcl alteration OF the law q; this time.
|; i Only intended 20 hc suggested tla; the
~>clfaprointing power Of these presidents ut
cari; yearly renewal of the directories Of the
baths and their Branches. is Il dangerous pow
cr. and apt 10 generate social and commercial
inc qualities. and To cndangcr the safety and
profits of bank capital and its dividend, TO the
State. The power to maketh proposed change
! reserved hy the general law. and may he
made whenever the General Assembly shall
think fl. 1t i easier to prevent mischief than
70 correct it after it has occurred. .lm ounce
Il prevention is worth !.orc than i !oui'I
Of cure. 1t i, wise to lock the stable mp
when tie horse is il. 1t no better time
To command the public award Of di-i'i.
ter,>t.d motives. can this change he urged
bv a Governor. than when ones term Of service
i soon 10 expire. 7l"a. the public GOOD. and
no; tire proml.tin. q! - little Gric. authority.
could not fail to bc described freely and thank
fully accredited. | respectfully commend the
change To- the consideration Of the present toy
c.,or who has done tie State seine service.
and is Young enough and strong enough to 10
more. PtmHH.
Jnuary liih, 1859.