The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-02-28
THE BANK REFORM BILL

THE BANK REFORM BILL
We present below synopsis from
The Statesman, otthe Bank reform Bill,
now before the Legislature Of this State,
and which has went through second
reading, Two years ago. when the
democratic party were called upon By
the voice of Ohio. to take the ship Of
State, and pilot her through the rocks
and breakers, in which the Whigs had
nearly wrecked her, they promised
thorough reform in the Banking System.
II was an arduous undertaking, almost
superhuman; yet in the short space Of
two years, we 6nd our banks,in SCUM
der condition than they have ever be.
fore been. And il is the duty Of the
present Legislature, to carry out their
principles, by making the banks still
more honest than they are, at the came
time be beuitit to the whole comnuni-
ty, and no. to the favored few. Wheth.
CT this bill will have that effect, we
have our doubts. lift wont, we don't
want il. Let Us have the work we'll 6u~
ished, or not at all. Banks are but mo-
nopolies at best. II we must have them
make them honest. Let the law show
them no moro privileges, than it does
individuals, when guilty Of crime.
Ist. That all the powers, privileges and res.
trictions necessary for the management of the
banking insttutions of this State, Be defined and
established in general snd uniform law, instead
of bank charters. .
Cd. That upon application made, and leave
granted, by the Legislature, which may be by
Joint resolution or otherwise, any of the exis-
ting banking institutions Of this State, can by
surendering all rights claimed under their char
ters, be hereafter continued under the provis-
ions ofthIs law. And lfany new banks should,
at any time in future be created in this State, all
that is required, is an act of the Legislature,
fixing the amout of its existence under this laws
Sd. For the more effectua security of the
public against loss, bank fund is provided for
in manner somewhat similar to the safety fund
system of the State Of New York.
4th Unqualified individual liability of the
stockholders and officers ofthe bank IS provi-
ded for in the following order: Upon the fai-
lure Of a 6ank.-First the corporate property and
effects, and the bank fund are to be entirely ex-
hausted. Second, the individual property Of
the directors and officers of the bank and last.
ly, If any ofthe debts still remain unpaid, the
idividual property of the other stockholders are
liable.
5th. The banks are required to settle their
accounts with each other, and exchange their
paper on day certain, in every month, at Co..
lumbus, at the office ofthe Bank Commissions
ers, and under the supervision ofthat Board.
9th. Each bank is required to take the paper
ofevery other bank in operation under this law,
at par, in payment oflfs own debts. .....
9TH. The circulation is limited to the amount
efthe stock annually paid IN; and the loans and
discounts to twice the amount Of the stock paid
IN.
9th. The stock is required to be paid up in
due time in gold and silver and every bank il
required to Keep on hand one dollar in specie
for every three dollars ofits paper in circulation
9th. No directors or stockholder is permitted
to borrow money from the bank until his stock
is all paid up, and then at no time to be liable
either as principal or security, 10 any amour
to exceed the one halt the amount of his stock.
10th. The banks are limited in the amour
Of their extravagant loans to favor individuals
lth. The banks are prohibited fom en-
gasements in the ordinary business transactions
of brokers.
18th The banks are prohibited from direct
ly or indirectly exporting specie out ofthe Stat
for the purpose off selling it at premium. or sell
ling the same al premium III this State to 9th
er persons for the purpose Of expectation.
18th. The provisions Of the law for the ap-
pointment Of Board Of Bank Commissioners
and also the act to prohibit the circulation o
small bills, passed at the last session of tn
Legislature, are continued unter this system
for the regulation oflheir appropriate subjecis
l4th. The banks are made subject to the sam
taxation on their cupital stock, which is by lay
Imposed on their capitol, and loans Of privat
individuals who have money on Interest.