Maumee City express. [volume] (Maumee City, Ohio) 1838-184?, 1839-05-04
MAUMEE CITY EXPRESS.
SATURDAY, MAY a. 1889.
GENERAL BANKING LAW.

banking matters. We had thought, how
ever, that he was recovering from his mad
ness, when the furious barking with which
he greeted the first proposal for General
Banking Law in Ohio subslded into.a low
growl, & finally ceased altogether, and altIo
twas not our business to make the inqury,
we hoped all along that study and investi-
cation had brought with it knowledge and
conviction, not only that a change was ne
cessary, but that the one proposed was the
best that the nature of things would permit.
In this we were unhappily mistaken, as the
following outbreak upon the Free Banking
system Of New York does evinee, land it gives
US pleasure to see his remarks answered in
the right spirit by one who is far more com
petent to speak on such matters than we are.
The editor seems to infer, that no sooner
does an institution created under the new
law of New York 60 into operation, than its
directors are Immediately seized with an
nordinate desire TO issue money--that Il
sort Of financial'd 'diarrhea takes hold of the
Institution which can only be checked by
letting Vt every thing 1t contains. without
reference to the warnings of prudence or
thought of the loss which must inevitably
arise from overstocking The market of bank
bills. He seems to forget, that for every
dollar Of bills issued, there is ample security
made in the office of the comptroller, and
that the bills must be redeemed Immediate
y on presentation at the counters of the
banks or They will be redeemed by the comp
troler at runous sacrifices to those institu-
tions. He forgets that while men are
sometimes divested of honesty, the loss Of
that honesty does not always argue the loss
Of common prudence, and that the latter,
when aioed by law, sometimes stands very
well in the stead ofthe former
For our part, we have always been in fa-
vorof a General Banking Law, for the rea
son, that the protection extended by char
tiers over banking institutions is taken away
because it is not needed, and is transferred to
The people who are now the weaker party.
The times have changed and the monied in
terest, once weak has become strong, and
needs laws restraining it from frauds upon
those who may be the victims of those
frauds while the fruits of their labor go to
swell the profits of the bankers.
In the state Of New York every county,
and large town will soon have its bank,
the ultimate redemption of whose issues
will be secured beyond a cavail. This bank
will furnish the circulation for the vicinity
and will have an amount of specie on hand
sufficient 20 guard against any sudden emer-
gency. Perfect confidence in the ultimate
security will beget ease in the bill holders
and will do away with the necessity of SEN
ding the bills away from home to gain cir
culation.. The bills being holden about
home, where the bauk and its owners are
known, its interests will be in the hands of
those who wish to sustain it, while the loss
which cannot but arise from over banking
will furnish the most efiectnsl check upon
the issues--thelimit of prtf, the only true
and natural limit that can be made in any
kind of business.
GENERAL BANKING LAw.--The Cleve-
land Herald and Gazette copies from the AL
oany Daily Advertiser, tatement--coped
into this paper few days since-showiug
the number of certificates of banks under
the general law filed in the office of the
Secretary of State, the amount Of capital
actually Subscribed, and the amount Of pos
tive capital, and appends to it the following
g Is it not time for prudent men to pause
and look about themselves, when single
State is making such rapid strides in exten-
ding banking institutious! Can any one for
a moment suppose that specie enough can
be obtained, even with the steam of gold
which the Globe says has been pouring in
upon us, to sustain such an extended and
system of banking operations!
Stale Stocks and Bonds and Mortgages
may be very good ultimate security tobill
holders, but it may be wei to inquire what
would be the value of Stocks in case gem
eral crash should bring a large amoant into
market on forced sale for specie only"
Would it not be well to inquire what
would be the price of larks, in case the sky
should fall We mean no disrespect to our
valued contemporary, but it seems to us
hat one query Is nearly as pertinent as the
other. II the banks under the general bank
ng law, had the power Of issuing their notes
ike chartered banks, without any limit ex-
,ept what is imposed by law, some appre-
tensions of a "general crash" might not
be entertained. Spectators
ind wildcat operators would engage IN the
business Of banking, and a parallel to Mich.
gan financiering might be found here, As
I il, hedged in as these banks are in the
nust secure manner, unable to issue dol
ar, without the consent of the Comptrol- ;
er, end necessarily owned and controlled +
" men possessing actual bona fide capital, (
vhch they have risked in the business, the i
'ubhc have every possible guaranty that
hey will be'pfudently managed, IL
\ The rapid multiplication Of these institu- !
ini,- fwhihhe seams d, irntrh te, alurn1 onr h