The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1869-11-18

= wefs but The
IL 6nfsency, all at
- lsa. and swerse than,
1T, ybSlt became I species Of commo-.
dity, and It took much real money TO
buy and send it lr,me for redemption.
Now, every dollar Of bank issues is real
money all through, the most. violent
panics. The notes on broken National
Banks are just as good as any money
in circulation. Ave now come 10 au
advantage Of the National system over
the State system Of great interest, es-
peciaily To depositors aud customers.
The National law mkacs the stockhoId-
ers individually liable for an assess,
ment on their shares in case the bank g
assets are not sufficient to pay itsde-
positors. The State bank stockholders
are not assessable for the safety of de-
positors, for the reason that State banks
are not now banks of circulation. The
following is the National Bank
law:
SEC. IL. The shareholders of any as
ISOLATION folmed .undt the provisions of
this act, shall be held individually re-
sponsible. equally and rateabIy, and
not one for another, for all contracts,
debts and engagements Of such associa-
tion, to the extent of the amount of
their stock at the par value thereof, in
addition to tho amount invested in such
shares. 'f7""T
The following is the State law OH this
individual liability question:
Constitution of the State of New
York, Article s, Section =: The stock
holders in every corporation and joint
stock association for banking purposes,
issuing bank notes or any kind OF paper
credits to circulate as money, shall be
Individually responsible to the amount
of their respective share or shares in
any such corporation or association, for
all its debts and liabilities of every
kind
The old State banks that continue to
do business under the State law having
retired their circulation, and the new
organizations under the State law hav-
ing never issued obligations to circulate
rs money, effectually shields the share
holders of State banks from the ii,di.
vidual liability. The National Banks,
whether they issue currency or not,
give the depositors and other creditors
this individual guarantee. 5.--In case
Of the failure of National Bank, the
assets are Immediately taken in hand by
government receiver, without going
through the tedious aud uncertain pro
cess of State courts, aud its affairs are
wound up with dispatch. This Is Sciy
different from the usual process with
broken State banks. 6. The exami,la-
tons of the National Banks 10y Govern
Ment inspectors has II restraining and
salutary influence over bank manage
nient that il Of vast importance. When
bank is found to be doing loose, nn-
safe and losing business it is closed up,
before even its capital is lost or its insol-
} vency fairly developed. Taking all
these advantages of the National sys-
tam over any State system into consid,
eeatlon, II becomes the people TO see to
r. that Gtate banking never again gets
neo vogue. We hope tho people will
- slght NJ Slie ut thu fot6,es,y
y Neye lest annually 81 incur
ooSy prsusis,A % Eastern cx-
nalf Afuik en bsnIz sanney IL NV
NclkInn IN ILLS Kind u lost. Bear also
r. mind that IL former times tile State
! ho6k oaryeney was The most inilamable
Slpn MT NJ fin,e sof panics. New be
ntai1efs In business should talk with
those who were in business III lt5G to
1860, during the revul-ion OF 1851, when
the currency of all the States was
thrown into utter confusion
IT is a well k,owtl fact that no AMI
NAL is more difficult to Kill than a shark: