Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1842-03-15

Mr. Taylor, from the standing com
mlllse on the Currency, made the follow
ing report;
A majority Of the standing committee
ron the Currency, 10 which was referred
sundry petitions praying for the estab-
lishmenI Of a State Bank, submit the
following
REPORT:
ANY person, in the least acquainted
with the financial condition of the Stale
must be aware Of the utter impraclicabili.
y Of establis ishIng such an institution, un.
der existing circumstances. Leaving out
Of view the questions Of expsdiency or
policy, let us look al few facts; for one
fact is often sufficient TO put 10 fight o
whole feet of theories.
Suppose, ,,hen.a law were enacted for the
establishment Of "a State Bank, with a |
capital Of one million Of dollars, and the |
Slate were to take one half The stock, we
would then be forced into market with
FIVE hundred thousand dollars Of State
Stocks, 10 raise means to put the bank in- |
10 operation. Our stocks are now at a !
discount Of 80 per cent, or in other words |
we would loose on every hundred dol.
lars Of stock sold, 80 dollars, which on
five hundred thousand dollars would be
dead loss 10 The STATE, Of one hundred
and sixty thousand dollars. Butin add.
ton to this the State would have to nav
at least six per cenlum interest on the
full sum Of fiVe hundred thousand dollars,
while she would receive in.money only.
The sum Oflhree hundred and forty thou.
sand dollars. Nor is this all; the State
would be bound to redeem, ultimately. |
The full sum Of five hundred thousand
dollars. Any profits which the State
might realize from banking, land such |
profits IN ordinary banking are no doubt
CONSIDERABLY would be insufficient 10 Jus.
Iify such sacrifice as this.
Your committee Leg leave to refer TO
The fact that the State is now unable 10
procure funds to prosecute her public |
works. Nay, she cannvt procure means
10 pay the debts due The contractors and
laborers on the public works. How then
is she to borrow money TO turn bankerf
lf the Slate sacrifices her stocks at all,
the first obligation is due to those contrac.
tors and laborers upon the public wOrks;a
claim Of higher import than any cOnsidera.
ton in reference 10 State Bank. Your |
committee deemlhe establishment of such
an institution, entirely impr0ctibabIe, and
ask 10 be disChargedlrOm the further con.
sideratiOn Of the subject.
Mr. Wade, who constitutes minority
Of the cUmmittee on CeTrency. dissented I
from the report. He was a State Bank
man, but not such one as was c0ntem-
plated in the report. He was Of opinion
that State Bank could be establish.
ed in which the State would hold no
stock.
Mr. Nash said, the petitioners never
dreamed Of such bank as that contsm,
plated in The report, A State Bank could
be established, in which the State would
not be a stakeholder, and would not be
subject to any OEthe objections contained
in The report.
Mr.. Taylor said, the committee had no
Otker mesns Of ascertaining the wishes Of
the petitioners than through the medium
Of the petitions themselves; and the
petitions prayed fora State Bank, and not
for the unmeanlng thing 10 which gen
tlemsn alluded. The petitioners no
doubt understood the meaning Of the term
State Bank, as every body understood Il;
a bank CFwhich the State is part owner,
L can mean nothing else. Il would be
contradiction ia terfnS--ah incOngruily Y to
call that State Bauk in which the State
held no stick. Il was the substance which
constituted the thing, and not the name
He could not tell of what the petitioners
we're dreaming, as the gentleman from
Gallia, (Mr, Nashl said they had not
dreamed ofsuch bank as the report cOu.
but il was evident they we're
dreaming when they asked foF aStale Bank
The State could not get money 10 pay
the interest on our Stale debts; how then
could she get money 10 turn Bankert-
The thing was msnilestly impossible aud
the gentleman from Italia, as we'll as
from Ashlabula, (Mr. Wade,) admit this
in effect, and must admit itin fact. We
cannot make State Bank five would for
the State can get no fundsl op ut such !
machine into operation.
HOUSE OF REPRESENTATIVES,.
Saturday, March, 5, ls42. q
MESSAGE PROM THE SENATE.
House bill, No. $50, making appropris-
tons for the year 1912, was received with
Iundfy amendments. G
The fiiIh amendment being under con. 9
5ideTetiOn, which nYoDoeaa n ahol;sh III 4