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


/ any other lime lhsn on mand, or who
b s made payable III bank nuleS, or an
0 thing other Than gold or silver; and
: makes all notes, which on their fac
e are made payable at future day
I payable on demaLd. Is there any thlni
I IN this act which imposes on the bank
= improper restrictions? Is i, not ngh
p and proper, in order TO preserve a souu'
currency, to prohibit the banks from
flooding the country with their pos
/. notes, payable at distant day, or note'
payable at some obscure place, or in
, worthless currency2
The fourth act, and the one Of which
the banks have complained the most
is generally known as The bank com.
missioner law. These four acts CON-
prise all the principal Legislation OF the
two last sessions, with the view of re-
forming the banks and the currency.
The last named &C, provides, among
other things, for the appointment OF
three bank commissioners, whose duty
It shall be, at least once in every year,
TO examine thoroughly every banking
institution in the State, and ohener, il
necessary to the public safety, and to
examine the officers Of such Institutions
under oath, as 10 their affairs. II re-
quIrs the officers of each banking insti-
tuition to publish monthly statement,
showing the true situation and condi-
ton of The bank. 1t provides further
for instructiLg judicial proceedings a
gainst any bank tha! shall refuse to re-
deem lis notes in gold and silver for
more than thirty DAYS in one year, and
points out the mode of closing bank
that has become insolvent, and Of se~
curing the assets of such institution for
the payment of it's debts. All these
provisions are intended for the security
ofthe public against the insolvency Of
banks, and they are such as no
bank ought TO object to. VIVA, OBJ
jectIons cans an honest bank, or one
IN sound condition, have 10 an exam-
inatIon Of It's affairs by an officer Of
State2 Wha: objections can the banks
have to publishing 10 The world true
statement OF their condition, 90 that the |
public may see and know whether the y |
are worthy of confidence or no2 If they
have conducted their affairs prudently
and are in sound and solvent situation,
they ought to desire an opportunity of
speaking before the world their true con
dltion. 1t would give them credit, IN
crease public confidence and promote
their interest. 1t is only when they
have been engaged in illegimate BAN
king, have violated their charters, or
are in an unsafe and insolvent condition
that they should object to an examina-
ion, or refuse 10 publish to the world,
a true statement Of their affairs. Any
oank that would refuse 10 comply with
hese provisions ofthe bank commits
sIoner law, furnishes Just ground 10 sus
oect lie solvency, and its 'n,egrily as a
public institution. lis paper should at
ouce be prohibited al the treasury or in
'ay ment of public dues.
Previous 10 the passage of this law,
be public had no means OF. knowing
whether a bank was worthy Of credit or
lot. until it openly proclaimed its insol-
'ency, and then, IN most cases, it was
90 late TO secure any Of lis assets for
he payment Of lie deb,e. The whole
operations of our banks were to the pub
Ic as sealed letter, until the means
were provided in this act to enable the
public 10 know and judge of their con-
lition, 1t is law for the benefit of the
people, and no way drejudicial 10 hon-
ost banking.
This act further provides, that the
actual circulation, OF he notes of any
banking institutions shall not exceed
'hree times the amount OF specie, ey~
elusive of depostes III the vaults. and
actually belonging to each bark; and IN
case Of excess, the directors, under
whose administration 1t may hoppen
shall be liable for the some in their IN.
ilvIdual capacities, TIE policy, and !
'bsOlule necessity, Of tbs provision will
'e made manIfeSt by reference 10 Tie
ePot oi the Auditn of Stale. showing
ne condl'lor, of me banks 10 May, 1887
rom %0Ic' 1t will appear that in many
u Inc Shnks the amount of specie bore
20 20 70 easoLeble proportion 10 the amount
II paper in circulation. For instance,
ne Western Reserve Bank had seven
dollars Of paper in circulation for one
of specie in lis vaults, the Mt Pleasant
Bank had six and half to one, the bank ,
of fCirclevilLe had ten to one. The Urbana i
Bank had nine to one. tn lie Bank of MassiIIion IL
'ad over thirteen TO one, and the Canton Bank d
lad twenty three to one. The consequence 10
his latter bank is too well known to be mem
Toned here In oder to prevent this dangerous
between the circulation and spe.
10 OF The banks. the above provision was IN
orporated into the bank commissioner law.- al
With regular bankers, both in England and in
his country 1t has always been considered un- e.
ale to extend the circulation heyond three dol rt
ars OF paper TO one Of specie, aud the Legisa-
lre only adopted the nronortion which had +