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

r"nS N~NSns vi eSefnhS lnPIOpeI ulotn'1
eds TO avoid the provision of law, which
l,rblds the receipt Of more than elk per
e c. nj, per annuw on loans, il should be
paid into the State Treasury.
The second plan, which has been
uch the subject Of discussion, which
would seem TO be great improvement
on the exlstingsystem, embraces the pro
position of re- -charleriDg so many of the
present banks or the Stale, as shall be
thought necessary, and such of them
only, ae on thorough examination shall
bc found 10 be in a sound and healthy
condition.
In this scheme, il is proposed 10 com
pei all that shall receive charters to u
mite in lhe election Of Board-of Con-
troll; each bank 10 be entitled TO vote
in proportion 10 its capital. This board
who may or not hold stock in any bank,
as the Legislature shall determine, to
issue all paper. and 10 sign 1t by officers
TO be chosen by it; 10 receive reports
from each bank at stated periods, em-
braciDg all its trAnsactions, verified by
the oalhs Of its officers, 1t is proposed,
also, to vest the board with power to ex-
amir into the affairs ofall the banks
at stated periods, TO have fixed by law,
as ofener, if they deem it necessary;
and to close the business of any bank,
when, in its judgement, such bank had
conducted it's business in svch manner
as to render it unsafe to permit it's fur
ther continuance; and in all cases the
assets Of such bank should be transfer.
red. to the board, for purpose Of liquida-
ting all claims outstanding against it.
In this. plan is also proposed, to make
the capital Of zach bank, who shall ac-
cept Of charters liable for the debts Of
every other bank, and to compel them
TO receive the notes of each other at all
times in payment Of debts, and to re-
deem each its proper proportion of the
notes of any other tha, may suspend
specie payment, or be closed by the
board Of Control.
1t would be also salutary provision
in this scheme, 10 limi! the divi dends to
stockholders, and bring into the State
Treasury all the profits arising from the
operations ofthe banks above such limi-
tallon; and also limit in the charter the
amount Of circulation as COMPARED with
the capital of the several banks.
l have, as itmust be obvious, only
thought necessary 10 sketch an outline
.".of some Of the most prominent features
of the scheme proposed. have been
iwpelled at this, as to some il may seem
unusual time, 10 bring them to the view
OF The Legislature, as the loud call oil
the State summons its immediate &C
ton, OF some sort, upon this all-impor-
tan. subject. .
In either Of the plans which are here
suggested, il is believed sufficient
gaurds arelprovided agains,:over issues
leading to dangerous expansi Of the
currency, whilst capital varying from
six to ten millions Of dollars, with, al
the property Of the banks, are pleged al
aperpetuaI security ,e the holders Of
the paper Of every bank embraced iI
the scheme. II is undoubtedly proper
that the Legislature should reserve th,
power to inspect the books u examine
into the alIairVof The banks, by sucl
agents as they may from time to tint
select, and that the Board of Contro
should make an annual report to tn,
Legislature embracing full slalemen
and OF the business and condition of tn
banks under its supervision, 1t is i'm
Portant in this. as in every other char
ter, which creates a compact between
the Slate and It's ci,lzens, that thos
acle, which should work a forfeiture G
the coperoie powers granted, should b
specifcately named, and the mode q
adjudicatng such forfeiture clear
pointed out.
lts believed that the establishment G
the banking capital Of the state on
permanent and secure basis, might b
the means of great occasional relief, !
the future prosecution of our publ
works. The want OF funds for thl
purpose. arising from the iemporar
arrangement Of the money markt
abroad, could be supplied by the bank
OF our own state, were they assured ,
the. further continuance Of their char
tiers. en- proper principles;
The losses which havs beeusustained by COZ
tractors snd laborers, at that time occasioned
failure ofthe state TO make punctual and Fl
quent payment might n such cases be avoide
They might be made US 4ill to the state in tn
way, IN enabling it to full as it always shon
with rigid procession, il compacts with both
foreign and domestic creditors; an object wh,
/, is hoped will be lost sight Of BY any who mi
he charged with the preservation of the cha
Gclsr and honor ofthe state. The high reput
iion which our stocks have maintained in mar
els ofiho world has been earned by scrupulo
fidelity in complying with our contracts. T.
public improvements Of the state, those endur
monuments Of her enterprise, are the fruits
that character. That failhkeeping prInciE
which shtinks with abhorrence from the idea