Columbus Democrat., 1838-02-17

may be incorrect with regard 10 other sections Of
the Union; bu, The experience OF years proves
that what may be practical result or a safe linz
OF conduct for banks in State, IS not in anosh-
ef.
The reports Of he bank Of England show, that
IN prosperous times the maximum Of deposaes
may be relied upon as so much permanent csri-
tai, for the moment panic ensues by any Fevul-
sion in trade through bank agency or otherwise,
her deposiles increase. The reverse is the case
with us. lor the deposites are Withdrawn at every
reyusion. They are Of course cash liability,
aud the mere iorbearance on the part Of deposi.
tors to use their own funds should not be COZ.
strled INTO removal Of immediate liability on the
part Of The bank.
A general law which shall embrace the follow
ing compulsons, restrictions and penalues, would
no doubt have q very beneficial influence, 10 Wit:
First, the banks to resume specie payments on
the tirs, day Of August 1889, end At that period
| to have specie enough in their vaults 10 bear the
proportion Of one dollar 10 every four Of eircula-
tiou and deposites. The resumption to take
place provided the banks IN the Atlantic cities
shall have resumed if moi, in August. lS4o, the
resumption positively to take place.
I'd. In August, l540, asd ever after, the banks
70 have at least one dollar IN specie to every three
dollars Of circulation and deposlses, and after that
period not to have an issue Of any note IN ler the
denomination Of ten dollars.
Sd. The circulation Of banks whose capital IL
over one million, not to exceed ons-hah the q
mount of capital paid IN, the circulation Of banks
with capital of one million and under. not 10 ex.
cecd two thirds the amount paid IN.
4h. Qdarterly publications, under the dIrec.
lion olthe commissioners and at the expense Of
the banks, to be made o>ihcr affairs.
9th The banks To furnish each other a GUAR.
terly statement of the account Of each individual
, | or firm whose Liabilities cYceed $1,000.
9th. No officer pcrmlltCdt TO have accommoda.
, tions or limit them to a email amount, each di.
rector like the presiden, and cashier to receive
, salary.
7lh. The non compliance With there provisions
/ to authorize withdrawal Of charter, either now
4 vr hereafter.
!, The probable effect Of lhe four frs, sugges-
II tons is obvious. II made Law Of the land, II
d would prevent the continual fluctuations in tho
r price Of property; which are the result Of onres-
b. trcted issues and uncontrolled conlracona and
!, by prohibiting the issue Of five dollar notes the
}. specie circulation will be increased about ore
'. twelfth Of the aggregate issues.
The etectoi publishing general statement o.
,s the affairs ol each bank. will enable lbse private
nj citizen as well as the banker 10 decide upon pu,
pC chase or sale. Heretofore the banks had II IL
O. their power, by expansions or contracons, to ele
N vae or depress the prIce Of property at pleasure
,e while the citizen who had no access TO bsnl
ct books, was made tho victim Of knowing specula
SO tors. A general publication viii in grea, mea
n. sure remedy this.
%. The objec, Of requiring tho banks to flrnls
e. each other with statement Of the liabilities of 10
by dlyduaIs or firms, is 10 prevent their being i'm
IN. posed upon, thus making the security to tie MOI,
bv holders far better than ibad debts were con,rac
~. ed.
he Paying the directors salaries instead Of permit
10 ting them TO absorb all The bank accommodations
would be generally beneficial.
4, The manner in which bank stock is usual
re-. paid in. calls loudly for the interference Of h
zee Legislature. In most instances not by means
of cash, but merely bank credits in the form Of loar
on from other banks for one instulmcni, and stoc
ch notes for the balance. Tie actual operation
nm which is to make the apparent lender The aciu
aid borrower. 1t nomnally increases The bsnkit
Se capital Of the State, but in reality crpples con
mercial enterprise, by absorbing hose bank crc
re- Il5 Wncn ltRlunaley helObg 10 lHe meICual'N'
ipp ifpurchasers Of stock were probibred irc
inc transferring it until every inslament was pal
the there would be little incentive for stock specul
nh tons when bank came into existence, fewer p
Ne ltions for bank charters, and a more healthy ri
,er Mgitimate bank action.
rhe 44R board Of commissioners were requlredl
the law TO accompany their report with such stat
, Of mcn,s and suggestions MS they might deem as
nny full.
be All ofShlch is respectfully submitted.
an l.. i. BEsANC0N.
pon,,I r n