The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1840-12-25

HMf 10 uuo quetltOO, dnO our tAsrctlenC9
. lsynot utterly deceptive, its SOLUTION at
: oIice results 10 fsyor Of Incorporated
+ companies, guarded by every proyis>
} ion which ihs wisdom ofIhe Legislature
, may suggest.
, The second objection TO banks, IS
that they expand their circulation al one
time 10 an unnatural extent. and thus
} raise the price of labor and property;
and by sudden Withdrawal of their ear
culatioD, either from necessity or
choice, ,aTeduce the value ofthe debtors
means of payment, in effort augmenting
the amount of the creditors demand a :.
gainsl him. That this NAV be, and has
been often done by banks, is certainty
true; but that the same amount Of credit
in any other form, or sudden influx Of
: the precious metals, and its sudden ef-
Aux, would produce the same evils, is
equally true. Instances of the latter
kind are numerous, and too we'll known
10 justify me in reeapitulaling them here.
IN which banks had not the remoiest 10,
fuence; happening in countries, too,
where metallic was the only currency.
In those instances, however, in which
banks have produced either Of the evils
complained OF, it is worthy n consid.
Grafton whether The fault laj the in
stitulions themselves, or originated in
an extraneous influence exeTted upon
theu. 10 the notable instance Of sus-
pension of specie. payments by
the bank Of England 10 1897, il is q
Iawel known fact, that an order of the
King and Council given to the bank,
produced il, and that it was continued
by act Of Parliament from time 10 time
till the year 1928, when by the judici-
GUS arrangements Of the bank, it re-
sumed payments without producing
any arrangement in the commerce Of
the country, or prejudice TO the finances
of the kingdom. The large issues,
and consequent suspension Of the hanks
in our country, which took place from
1872 10 1920, have been with great
jUstlce, ascribedto the loans" made BY
the Government of the banks, which
were the only means Of prosecuting the
war 4; which. returning upon them at
The close Of the war, with foreign
demand for specie, with the failure in
business, at that time, Of many of their
debtors, rendered su uspension inevitable
and in many instances were followed by
an ultimate close o fbusiness. Amongst
the causes that produced the recent sus.
pension in 1887, the infurnce of the
Government, though by no meAus inten-
ded, is nevertheless distinctly perceiv.
able. The whole revenues Of the Gem
eral Government were deposited with
them, under an injunction from the
{ TTGaesury Department, TO use them as
give,ng capital. A confidence in their
where's, arising from this connexion
Government, natural enough,
Groce, 'as the event proved, deluslve,
der ributed greatly to those largs issues
lcier to 1887, of which go much com
has been made. The contrac~
-, too. which have followed, produ-
1.-the most disastrous effects uponNhe
country, although to a great extent a.
necessary consequence Of previous
o' r issues, we're nevertheless hastened
and pushed too rapidly forward, by we'll
meant. .endeavors on the part of The Le-
gisla'ure to impove the currency Sur.
veying the past history of such ins,i,u.
tons, and availing ourselves ef a dis
passionate view of our own errors, as
well as theirs, we may hope that faith
fdl effort al this time, TO establish them
on firm and secure basis, will be a,,en-
ded by happy results. To this cad !
have 10 sugges, bret outline Of those
plans which appear to embrace a pre-
venlive Of the two grea, evils have no,
ticed--insolvency Of the stitu ions and
consequent loss 10 the communily-and
unnatural expansions and conlrac.ions
Of the currency. The first is State
Bank, with a convenient number Of
branches, at proper points in the State,
with capital Of such amount as the bu.
siness ofthe country would seem 10 10.
quire. Each branch TO own It's own
stock at it's own ssperate property; but
to receive its paper from common
source, and be subject to the control Of
a parent. board chosen by the stockhol-
ders of all the branches. In this plan.
the whole capital employed in the States
should be bound ior the redemption Of
the notes of every brancb; the parent
board having power, under proper limIta-
tlons, TO control the business of all tha
branches. As the whole capital is TO
be pledged for. the liabilities Of each
sePerate branch, abroad representing
the capital should have full power 10
protect it against the mismanagemsHt Of
those for whose conduct in this scheme.
il is made ultimately responsible. In
this plan. itis proposed 10 give the State
a proportion ofthe stock, not exceeding
onn.fifth of the wholo which sLolI