Maumee express. [volume] (Maumee City, Ohio) 1837-1838, 1838-01-06
MAUNIEE ExPRESS.
sATURDAY. JANUARY 6. 1855.

" ttlc cotvclirhhiSubo VI ~ tatSSN uutnDeE Oi
banks, Of small capital, in Michigan, cannot
be forcseen. These banks, especially those
established the late general banking
law, are supposed to be placed under such re-
gulations as to ensure their solvency in any
case. Still the creation Of SO many moneyed
institutions in so short space of time, has
had the natural effect of exciting suspicious,
as to their ability to meet the demands which
their issues Of bills will create--a suspicion
which even the quarterly exhibits of the
banks, creditable as they are, in many cases,
cannot allay. Michigan is placed in rather
nm unfortunate situation, to become the bank
er of the west. The balance Of trade is iarge-
ly against her, and of course her money must
come back to her in the form Of claims upon
her banks, rather tnan in payment for her
surplus products. 1t is of the highest mpor-
tauce that the notes of the Michigan banks
should possess the confidence of the public,
for they constitute almost the whole Of on:
circulating currency. A note o: bank in
Ohio is rare spectacle to the merchants in
this section, and New York bill is "rara
avis indeed.
The arguments for the circulation of Michi-
gan money, may be summed up as follows;
The banks are based upon what was con-
sidered by the Legislature as sufficient sccu-
rity.
They have so far been equal in promptitude
to similar institutions in other states.
Their periodical exhibits show an amount
of assets large in proportion to their liabilities
and
it is our duty to preserve, as far as in oul
power, the confidence of the public in insti.
tutions which, SO far as can be discovered
are sound and solvent.
On the other hand, it is urged against the
reception Of, Michigan money, That
1t will not pay debts in the Eastern cities
at par.
1t will not purchase provisions in Ohio a,
par.
1t is not redeemed by the banks at home.
That by discouragng its circulation its
place viii be supplied by money in which the
public have more confidence, and
That many doubts always exist as to the
absolute truth of the statements of the officers
of the banks, especially, rs it is notorious
that funds are sometimes surreptitiously accu
mulated, with view of adding to the appa
rent amount of assets in the institution.
tits said, that the FIVE million loan negocia
ted by Michigan, to carry on her works of in
ternal improvements, is to be temporarily
loaned to the bank, to be drawn out only as
occasion requires. IF this is the case, it will
undoubtedly add much to the grounds of con
fidence. Measures are also taking by many o
the merchants and traders in Buffalo ant
Cleveland to receive the bills Of Michigan
banks at par. IF this arrangement becomes
general, it will take away many of the objec-
tions now urged by us in this section of the
country. If we refuse the bills of Michigan
banks entirely, they lie dead in the hands Of
the holders, and as we have no surplus agri
cultural productions, other money will not rea-
dily flow in upon us. Under these circum
stances, it seems to be our only course to take
the money, keep us little of it on hand as pos
sible, and hope for better times.
.