The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-06-16
DEMOCRAT.
BANKS OF OHIO WHAT THE PEOPLE HAVE
LOST BY THEM-THE NEW BANKING LAW
Issue BETWEEN PARTIES, sc.


on the subject of banking it is the light ofexperencs-
the losses they have sustained by the past and present
system of Banking. When we look over the catalogue
of fraudulent and swndling concerns that have sprung
up in Ohio during the last 80 years. and which, after
career of robbery AID plumber ofthe working classes
have gone down, leaving nothing but wIechedness
ruin and distress in their wake almost wonder that
such Thing as bank is now allowed TO exist.
The loss sustained by the people in the breaking up
of banks, and the depreciation of paper, will never be
ascerainej to a certainty but we can form something
Of an estimate by enumerating the principal concerns
that have gone out ofexisence. Leaving out num-
Der ofpeY shinpaster corporations, we give the follow
ing list:-Jelfeson Bank New Salem: Kirkland Safety
Fund Society Bank of Mansfield; Cincinnati white wa
Ter canal CO.; Lebanon and Miami Exporting Co. Ex-
change Bank Gin. Farmers & Mechanics Bank Gin.
Orphans Institute Fulton. Owl Creek Bank. Pialt's
Bank Cn. Bank of Sandusky Bay, Union Bank Of
exchange. Washington Bank of Miamsburg, Yves.
Reserve Banking Col. Hamilton county Bank, Com.
Bank ofLake Erie, Bank of cleveland. Bank ofGran
vile, Urbana Banking Co, Bank Of Hamilton, Bank
ofChiIlicothe Lancaster Bank, Franklin of Columbus
Mec g. Traders Bank Of Cincinnati, Bank of Cincin-
natl, Miami Exporting Co., Farmers Bank of Cam
ton, German Bank of Wooster Banks of Manhattan,
of Crcleville, of Steubenvile, Of Galipois ofWest
Union, of Pottsgrove, of New Philadelphia, of New
Rumley, ofSmithfeld. Butler county Bank, Farmers
Bank ofSalem, Farmers & Mechanics Bank Of Chilli
cothe.. Hamilton & Rossvie Man. Co., Ohio Rail
Road Co., GAINESVILLE canal e. Man. co., Mad River
Railroad Co. Msc's saving institution Columbus.
Here is list of As delunct corporations, which were
born lived, and died in fraud, How much they swim
dled community no one tell accurately. Some buIs-
ted with near million in circulation, others with on
" few thousands but by taking The smallest and lar
gest we can strike average 5000 900 each. This
is low estimate, and yet we find it makes The eucr>
nous sum Of nine millions fdollars which the hard
working people of Ohio, have been robbed of by their
own corporations.
Now what is the cause OF all this loss to the people2
1t is because the whole banking system was wrong
because banks and bankers never properly esrc.
ted, or bound up by sound strong and wholesome laws
because any set of men could collogue together ind
put hundreds Of thousands of dollars in circulation,
without The slightest authority blow up and the
law could not touch ihem-because stockholders and
directors wese not made liable lhesame private n'
dividnas for their because banks were not res-
triced in their issues, TO 10 l-because worthless ras
Gals got 10 be officers and speculaed in the inds-be'
cause banks were not compelled to redeem their noles
in Specie &c. &C. These are some OF the causes ofhe
vany and robbery perpetrated upon free people, and
which KEEP, increasing year after year. until 1887 when
the Democratic party rose as one man to check the
punderers and bring them to justice. Their .alying
cry was "Bank Reform and majority of the people
went with them-since that time they have abOred in'
cessanty to effect the great object, but having 10 con-
tend against the whole monied power, backed by whig
leaders and whg legislators, their efforts were paral'
yzed in measure until wthin the last year. The last
Legislature however, did more to effret thorough Re-
form than all preceding ones 1t fereled out the bank
fauds-put down forever irresponsible corporations
passed laws to Danish shinpasers-to make banks pay
specie for their notes. to make them take their own
notes in payment ofdebs-and last though not least,
made general Banking Law, under which all banks
hereafter chartered must come-and which eradcaies
most Of the evils of the old rotten and fraudulent Bank
ing system
Let US look al the Bill to regulate Banking which
may be found first page, and which, ever since
the day passed the Democratic Legislature, has re-
celved the censure of,he whg presses, while they Pc
remponly refuse TO publish it, or to give their readers
its provisions. After Stating the mode Of application
by which any banks or companies can come under its
PROVISIONS it provides that the bank shall have
cssson for the time its charter runs; can sue and bo
sued purchase or hold real estate or prop
ery than Is necessary for the transaction Of business;
must annually elect president & board Of directors
majority of whom shall be residents of the county the
the bank is located in keep Office of 6lscount&
deposit only at the place olts location; can receive de-
posiles loan money, discount bills issue notes for cir
euation and make its own Oy-laws. Before il COM
mences banking the whole amount fits capital must
be subscribed and paid n in gold and silver coin none
Of the officers shall make dividend except from the prof
its arising from he banks business Phey shall not
pay to the stockholders make way with or reduce the
capital stock without the Legislatures consent They
shall not apply The property, or funds of the bank to
the purchase ofis own stocI:, to the purchase oil
stock 10 any other bank they shall not ipke its own
stock, the stock ofaDy other bank as security for
loans or discounts, or as payment any debt due The
bank No sockhoder or director can become indebted
or liable to the bank for than one half the cagal
stock actually possessed by him. No stockhoder, d.
rector, individual or firm can become indebted 10 the
bank at one time for than these proportions: Ifthe
bank capitals 100000 such liability not TO exceed
$4,000: if$300 0OO such liability not to exceed $40.
00c; il $500000 such liabilhY not TO exceed $l5O0O
M ma