As this portion

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As this portion

Post  mbt888 on Tue May 03, 2011 9:36 pm

As this portion

As this portion of the directors are MBT Trainers likely to feel an especial responsibility to the public, they afford some additional security against excessive issues. They will always incline to look more to safety than profit; and the public will be more disposed to have confidence and favor towards banks in which it has an interest, and has guardians to watch over that interest.But this interest of the public ought not to be made the plea for giving to the state the whole MBT Shoes power of management, by giving it the appointment of all the directors, or in a greater proportion than the interest of the state bears to the whole stock.This objection lies to the charter of the bank of Virginia, in which the state owns one fifth of the stock; but, by the practical operation of the char- ter, the public authorities, under the form of an election, virtually appoint all the directors. To this course, there seem to be the following objections:It is against natural justice, that, in a partnership, the several partners should not have a voice in some proportion to their respective interests ; and flagrantly so, when the proprietor of one fifth prevails against the other four fifths. It is unfavorable to the prudent management of the bank, as the self-interest of the stockholders will quicken diligence and sagacity far more than a sense of public MBT Sale duty is likely to do. Public sentiment, too, has an influence in appointing directors, whereby persons but little qualified for the office are often appointed. Thus, members of assembly, living in the bank district, who have been chosen for very different qualifications, and sometimes MBT Shoes Sale merely because their personal or moral qualities had won the regards of the majority, or because warmth of paxty zeal had supplied the place of every other recommendation, are generally appointed ; and their wishes are consulted, in making the other appointments. This power is the more objectionable, as it is exercised without responsibility. The agent of the MBT state, who is dependent on the legislature for his continuance in a lucrative office, will naturally accommodate himself to the wishes of the members; and the influence they have thus exercised not being visibly exerted, they are not held accountable to the public for its abuse, except in such flagrant cases as will be of very rare occurrence; and, although theeffect may not be to appoint directors who are confessedly and utterly disqualified, its tendency is certainly to prevent the appointment of the best, or, at least, to make fit appointments a matter of chance.


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