To the President and Members of the Legislative Council of the Territory of Michigan.
Entertaining, as I do, a strong desire to concur with the Legislative Council in all their proceedings, I regret that a sense of duty compels me to dissent from them in regard to the bill entitled "an act to incorporate the stockholders of the bank of Wiskonsin." My objections are both general and specific. Having witnessed the evils resulting from the multiplication of banks in a new and imperfectly organized country, I have been admonished by experience of their danger. From my own knowledge of the country west of Lake Michigan I do not think the necessity exists at present for such an institution as is contemplated by this bill. The population is sparse, and much of it, in that part of the territory where the lead mines are situated, is of an unstable and unsettled character. The commercial operations of the country do not seem to demand a bank; and I have great doubts whether one could be supported. If any doubt exists on this point, it would certainly be prudent to postpone the attempt; and as the time is rapidly approaching when the country west of Lake Michigan will be provided with a Legislature deeply interested in, and well acquainted with, its local interests, no injury can result to the people of that part of the country from this course.
The currency of the Territory of Michigan is, in the present state of our banking institutions, considered by all as being equal to that of any of the states, and entirely sound: and in that condition I feel desirous it should remain. I do not undertake to say that it would be impaired by the passage of this bill; but no doubt can be entertained that an increase of banks in situations where they are not absolutely required, or where they cannot be supported, would lead to that result.
To the bill itself the following objections occur to me. In the first section, it is provided, that a bank shall be established in the county of Brown or Iowa. To this, it is only necessary to say* that the Council have hitherto, m all cases, and with great propriety, refused to grant a charter, with a provision so loose. The precedent would be a bad one, and if the privilege were not abused in this case, it might be improperly exercised in others.
In the fifth section it is provided that a majority of the directors shall reside in the county where the bank is located. The remainder may reside without the limits of the United States; and the consequence might be that the whole of the concerns of the institution could be controlled by three directors. The possible result of this provision will be seen by examining the eighth section. In that section it is provided that "no loan or discount shall be made to the directors of such corporation, or upon paper on which such directors or any of them are responsible, to any amount exceeding
