The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1840-12-18

b tAe embarrassmenls which their imprudenl ex~
J pansions had brought On tins country, aud Tie
u unsafe limits 10 which they had extended their
circulation, is undoubtedly true, But NUM-
u Der of the banks of ts State have contracted
: their circulation, much below any actual neceS-
i sity. The excess which has been offered TO
the public is the above provision of the bank
commissioner law. A reference 10 the condi-
ton, is exhibited in the last quarterly statement
q of orSeptember 3Oth, 1910, will show how far
this excuse will avail them. Take, for instance
the franklin Bank of Columbus the bank Of
Chillicothe, Belmont benk Of St. Clairsvie,
franklin bank of Cincinnati, bank of Dayton,
, and the Farmers and Mechanics bank Of
Steubenville, all located al important agriculture
al and commercial points, where their con-
, traction would be more sensibly felt by the pub
lie than at other points in the State. The six n-
stitutons have an aggregate capital Of So, ,6O9,s
1856. Their rcu'aton was $269, 487 and tl.er
specie S 462. .493i thus showing an excess CT
specie over their entire paper circulation Of
$l72, 936. They might have put in circulation
81, ,3s7 ,266 ofthsir own notes, inOtoad OF $685.,
437. aud still have been within the provisions
of the bank commissioner law. Many Of the
banks might have greatly extended their circu.
laton, and still have been within its provisions
while some have had circulation beyond thres
dollars o!paper to one of specie, 1t will an.
pear, therefore, from this date that it is not the
provisions of the bank commissioner law that
have compelled the banks in this State to reduca
their circulation.-They appear to have paid no
regard in this particular to its provisions. Some
have gone beyond. while others have fallen fsr
below, the proportion prescribed by this law
as proper between their circulation and specie.
Why number Of the banks have reduced their
circulation greatly below their specie, while 9th
ers have shipped their specie out of the state.
and sold it in the eastern cities at premium.
are subject worthy of your investigation. When
banking institutions that are always created for
The supposed public good, cease to be so, orif
they so act as to Cypress the community thew
were intended 10 benefit from political or other
considerations. they should at once for the like
considerations that Undue ed their creation. he
stricken out of exiSance. All these institutions
1t is believed, have in some shape or other. vio>
lated their charters, and hold them now a. ,be
Will OF the legislature. You will have no diff
Guilty. therefore, it is presumed in adopting such
proceedings against any Dankiug institution in
The state that you may deem no longer worthy
Of public confidence, as will cause its dscon.
All corporations ought to be made
10 know they are subjects ofthe law; that they
are created for the public good, and are amen,
able to the people. The legislature has made
ample provisions in the various enactmer,s ,o
"hch l nave alluded 10 protect the public a.
5ainst spurious currency and the frauds of
banks.
What would be the effect and consequences,
lfyou would repeal these laws7 You would
thereby permit the banks to issue their small
notes. allow foreign institutions, not amenoble
- our laws, aud questionable intcg ity, to Io-
'"'' ''""ches III this State and fiji II O eoprrv
", "' worthless currency. You would virtu-
my give license to the banks, to food the
'''" "Y Win their post notes, payable at
~ stant day, and notes payable at remote and
obscure points, and IN currency, or eomeiLn,
o'her than Iii gold and silver. You would per.
init The banks TO shut their doors on the people
conduct Their busircss in secret, and deny to The
P"O'O all means of knowing whether they are
worthy Of being trusted or not. Ynu would rer.
mt institutions about to become nsoIvent n
keep 'h''f true condition from the world, until
they had made way with Ih ir assets and when
they shall have proclaimed their irsolvencv
Won will leave the public without any ndeoua,e
remedy against them. And you would allow
The banks as in lsd7, to extend their circulatitn
without having any reference TO the amount Of
heir specie. These IRE the Iobiec's which
would be obtained, and the consequences which
would result, 10 the public, by the repeal of tho
nwF which have been passed by the two last
legislatures, for the reformation Of the banks, g.
he Improvement oflhe currency.
arict and rigid enforcement Ufthe laws,now
existence would go far to renc cdy existing G.
is. Many oitle hanks have disregarded all law.
nd seem 10 claim The right of acting as sover-
ign and independent powers. They have dis
egarded the law againslIpos notes, e,aGed that
assed against small bills, tramnIed with mnu.