Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1860-07-19
A Brief Review of the Mif1in County
Bank Charter.


the Mif1in County Bank-which became a
law without the signature of the Governor
having been published in the newspa-
pers, it has no doubt been generally read,
if not criticised. As it is understood that
sufficient amount of stock, or nearly so,
has been subscribed to put it into operation
with capital of 100000, provided sun
dry existing liens are removed, the institu-
! ton may now be regarded as a species of
public property, and as the 'public' after
all are the party most interested in the cir
culation Of bank notes, an examination OF
the main features of the charter may not
be out of place.
In perusing the act, the first thing
which will strike the attentive reader, but
may altogether escape the casual, is an ap-
parent care to guard against fraud or wrong
doing. To illustrate this We will quote a
part Of section /:
In said election Of officers and on all 9TH
er questions that may come before the board
every FIVE shares Of stock shall entitle the
holder to one vote, exceptin determining what
Taper may be discounted, when each stock
holder shall be entitled to ore vote and no
more, irrespective of the number Of shares
held by him; and all paper offered for discount
shall be rejected if there be two or more votes
against it. The president and cashier or any
other officer is prohibited from diScounting
any paper unless they have written instruc
tions signed by all the directors giving them
power to do So and in all elections for officers
and all matters ercept diSc0untiHg to be decl-
ded by vote two-thirds of all the votes shall
be necessary to decision"
"These are excellent provisions" every
reader will exclaim, and so say we but on
reading on to section II it will be seen
at glance that section + is completely
nulIied. Here is section II:
"SEcrIoN II. That the said directors to
meet on the Tuesday Of each week and as
much oftener as they think necessary for the
purpose Of discountiug or other business, at
which time the cashier shall make full state
meut Of the situation of the bank in a book
to be kept for that purpose, when majority
Of the directors shall be a quorum for dis
counting, but II majority Of said directors
should not attend on the days appointed, then
aHd TT that case any ttco Of them shall hare
the priciiege Of diScouHting."
These two sections are certainly an ano-
maly in legislation, difficult to be account
ed for except on the plea that legislators
seldom know what they are doing, for
while one provides that two votes shall ig
more all paper offered for discount, the
other permits that number, in case sick
ness or anything else should cause an una
yoidablc absence Of majority, to do the
artole diScouating business! Further COM
mcnt on this absurdity is needless, as every
person can at once imagine what a few de-
signing men could do, if such should be-
come stockholders now or hereafter, by
watching their opportunity.
Section creates an unequal liability, by
rendering all ''jointly and seyerally" liable
for the redemption of the notes-because
he who mortgages all his property has
nothing further to lose, while he who
mortgages but part runs the risk Of losing
the other portion also.
Section l. has also a remarkable feature
in it, to wit, empowering the Bank or its
o6icc,'s TO LOAN the notes Of other banks,
which is also contained in proyi5o, as fol-
/ lows:
"Pr0ridcd That nothing in this section
shall be construed to prohibit said bank or its
oGicers FROM LoANING, passing and circulating
the notes Of other banks in the same manner
as other banks incorporated by the laws 81
this Commonwealth may lawfully do"
The question here arises who will be it
officers? The President and Managers con
stitutc the bank, but would not this clause
empower the President and Cashier TO loan
/ the notes of other banks without even con
/ sulting the managers, for they undoubtedly
constitute its cficcrs9
Section Is is of the same character 0!
those already quoted:
s'SEcrIoN 13. That no officer or director o
! said bank shall at any time permit the specie
/ or specie funds on hand to be reduced below
/ twenty-five per cent. of the aggregate amour
/ of notes in circulation, and should specie o
specie funds at auy tim e be so reduced it shall
not be lawful for said bGnk to discount an.
/ paper until said specie or specie funds b.
/ made to exceed said twenty-five per cent, ant
I any president, cashier or director who shall
allow or knowingly permit any discount to D.
made in violation of the provisions o. thu
section shall be deemed guilty of a miSde
meanor and on conviction shall be fined no
less than one hundred nor more than five hun
dred dollars and undergo an Imprisonment
in the penitentiary of the proper district fOl
a term Of not less than one month nor mort
than one year: Pr0Uided, that nothing IN TIL
section shall be construed to prohibit the renea0