|
|
Early Michigan Early Banks Of Michigan
The law, moreover, required security to be given for the payment of the liabilities and ultimate redemption of all the notes issued by each bank.
It limited the amount of indebtedness which might be incurred by the corporation and for all excess imposed a personal liability to the full amount on each director and to a limited amount on every stock-holder. It required approved bonds and mortgages or bonds executed by resident freeholders to be executed to the auditor general for the public security. But in the midst of almost universal insolvency personal responsibility vanished away, and real estate, appraised at values measured by the standard of a highly inflated and depreciated currency, would have commanded merely nominal sums at a foreclosure sale.
With such an inception the banks organized under the general law promised little of success or permanency—much less did they inspire confidence in their ever becoming efficient aids in regulating the currency, arresting the onflow of bankruptcy, or relieving the community from pecuniar embarrassments.
Michigan
Page 32
|
|
|
|
|
|