The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-06-26
From the Stark County Democrat.
CANTON BANKING.

CANTON BANKING.
I. Ilis generally known and UNDER
stood here, in Canton, that shortly pre-
vious to the third resumption, some few |
of the Stockholders or Directors Of the
Bank, in order "to raise the wind" bor-
rowed, by giving their individual bonds,
thus making themselves personally lia-
hle,) J from other Banks in the State.
somewhere between $4,000 and
100000.
To this item we would also add, that
the managers of the Bank deemed i,
more convenient to borrow money, and
run further into debt-(perhaps to eluci.
date The beauties of The credit systsm,)
then it was to pay what they owed,
or 10 require TO be pald hat their broth
or Directors owed the Bank. Because
10 this would have compelled them TO
sell some o(lhe large estates which they
have amassed on bank credits, at a sac
rifice. And this it is likely they knew.
(from the effects produced on those who
were not so fortunate as to be stockhol-
derr, and to whom they had "put the
screws" without mercy, would be ex-
ceediDgly unpleasant.
2. 1t is now rifely, stated, and per.
haps believed, that within a few weeks
past, the Bank has sent lie agents a.
round with its own paper, for the pur-
pose of exchanging it of, for other bank
paper, so that they might thus obtain
money TO lift the bonds above mention
, ed, and in that way conceI the personal
, liability of those who executed those
E, bonds. IF this be true, and we think il
{ is, from what we have heard. We would
4 remark TO our neighbor ofthe Rcposto~
r ry, that he ought not TO have published
: that the bank had been expanding it's is
+. sues from about $4,000, TO about
d $ll5,00O, for the good Of ths public,
It We humbly conceive from these facts
o that the expansion wes for the good o
the Directors oflhe Bank, who had sigr
' ed the bonds, and those bonds, and fol
no one else. Certainly the people have
. n not been benefited by an increase oil
# bank bills for circulation, for as many
g we're Withdrawn from the people by thI'
e scheme Of Bank, as were thrown out
:" Z" But we cannot stop here. We beg leav
~ to say, that, taking the last Report of tn
10 Bank as to lis condition, this very oper
Is auon, must have a grea, tendency to Ell
.; e. danger IFS ability 10 redeem its paper
ba Why SO B cause the bank has exten
lis ded It's circulation to about vi 1000
he when 1t has but $40 600 10 specie in it
n> vaults, to redeem that circulation with
= Surely this cannot be considered SAT
banking. What is $ll or $!2 in cir
70 culation for every specie dollar ban
rt- has in its vaults to redeem with, 10 b
nd considered safe bank.pg!! Nick Be
en- en- die himself would not say so;-bu
Iy, would pronounce it exceedingly unsafe
ITO if not shameful or dishonest bankin,
est Indeed, looking upon all these matter
o 'or with all the calm reason We possess
eys we cannot but think them omluous I
er no good. Why was this step taken
it, relieve those who had signed the bond'
'r, when II must have been seen that tn
ad ad bank would be greatly endangered, b
ac it, fnot compelled to close its door
C. again4 Does not this look as thoug
n the bondsmen apprehended danger (
another suspension, [ for the public gooc
- forsOolh, as the bankers have it, an
.io that they preferred the public should los
s. on the paper they threw out, rather tina
they should lose, BY being made pei
,m ,H sonally liable on their bonds2