The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-05-26
A BILL 10 REGULATE BANKING.
From the Ohio Eagle.

Is'. lnat every dppHCd'ioh Ior All hc' VI In-
corporation 10 carry on the business of bank
ing, must be published IN public newspaper,
win the names of the Opphcan's, amount of
capital stock, &c, at least thirty days before
the meeting Of The Legislature.
GFSDoes this leave the business TO rogues
and bsnkrUpt,F
81. The banking powers which may be con
ierted upon, and exercised BY the corporation
are all specifically enumerated IN this Law; and
the company prohibited from exercising any
oilers.
G}SCan honest bankers object 10 ,hisi
Sd. Before the corporation can commence
business the certificate Of the Bank Commls-
sIoners must first be obtained. showing from
personal examination that The whole amount oi
the capital stock is actually paid IN, as per-
manent investment, in gold and silver coin.
GFDoes this Fundamental provision not ex-
clnde 'rogues and bankrUpls' from engaging
IN the 'busnesSP
4lh. The President, Cashier, Directors, and
other officers Of he bank are to take an oath
Of affirmation for The faithful discharge Of their
duties, and the observance of every provision
of the law.
GTsDO honest men fear The penalties of
perjury
5lh. 1t is specifically provided that no divi-
deDds shall be made, excecl from the actual
profits of the bank; and that 20 part Of the cap
lal stock shall be divided, wtbdrawn, or The
capital stock reduced without legislative con-
sent,
Gj@Are there not thousands of duped stock
holders in The exploded swIndIIng shops under
the unristncted system, who will grant that
thus Is an indispensable limitation in system
which shall combine safety TO The bill holders,
and a fair profit to (as wellas the safety of The
baukert?'
GF6h The law provides that the bank
shall not, directly or indirectly, apply any of
It's funds in purchase of stock in any other
bahk, company or corporalon-that no loan
or discount sha be made upon pledge or cor
pora'ioD, and such stocks shall not be made
upon pledge Off stock in any other con-
pany or corporation, aud such stocks shall not
be received 10 payment of debts. And that
1bere shall be no stock operations, or exchange
OF bonds shares, or other evidences Of debt,
between the bank and any other stocks COR
porallon, save that The circulating notes ofoth
er banks may be received in payment Of debts
or on deposit.
0FSdoes this restriction and limitation
strIAe al The root Of The greatest evil connec-
led with the present banking system. one which
more than any other, has brought ruin and
bankruptcy upon near all our banks! Indeed,
it may we'll be asked, where is there amau 50
Ignorant Of the sad results taugh, by expert,
ence as to deny or doubt; the necessity of This
regulation in safe and well regulated bank
log system2' Ii at once wipes off the gamb-
ling par, olihe old system!
7tb. The law further provides that the bank
shall not discount any nole 10 furnish persons
with funds for the purchase Of i's own stock,
or receive a note or other evidence Of debt in
payment thereof: and that no note shall be dis.
counted to enable stock holder by any means
TO withdraw any money paid IN by him on his
stock.
G|W,ll this forbid honest, prudent men of
property from taking Stock when they are
thus protected from The encroachments of
'rogues and baDkrupisP
9Th. The bank Is prohibited from making
any loan TO It's President, Cashier, Cletk, or
other officers, or or upo0 any paper upon which
euch officers may be liable; and no >tockhoId
er or director shall be permitted to become la
BILE 10 the bank for an amount 10 The bank for
more than one half Of The stock actually pos
sensed by him.
1FSls not this striking at The next greatest
evil Ofthe present system; and will any pru.
deut man object to lll
Oh. The law provides that no loan shall be
made 10 any person or 6rm, or to one or more
individuals Of firm, in the aggregate, save in
special ratio Of such loan to the capital stock
as, ifthe capitol stock be over 100000 and
not more than $500, 900, then the liability of
one person or firm may be $4,000 and no more.
@Wil any but reckless Spectators and
adventures objectto this provisionl
lOh The law prohibits any bank from sell
ling any o( its gold and silver coin, or expor-
Ting the same out of the Sa'esor be in auy
way connected with brokers or any brokerage
business.
G5%Is this provision detrimental to Ihe,'ssfe
~ Of the bill hoders;' or is il inconsistent with
we'll regulated system Of banking2' so
lllb. 1t is provided that aOy officer or agent
fthe bank, conserving 10 violation of any
of the provisions this act, shall be deemed
gully Of m'sdemeanor, and on conviction,
fined mol less than $1,000 nor more than $4,000
and imprisoned 10 the cell or dungeon of the
ja,,. and fed Oh bread and water not less Than