Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1842-09-29
Address Of N. Bike.

AAAh ~ W. f"Tse W w
so, | have thought it right TO make
known briefly, in the following commu-
nicalion, my views OF the Bank subject
which, more than any other now agl.
tates the community.
Most ofthe Ohio banks were.charter.
ed in 1916 and 1917. AT that time the
State had suffered so much from the
scarcity Of a sound circulating medium,
that II was deemed necessary TO adopt
some efficient remedy, add as there was
so liNle capital seeking investment
within the State, the Legislature deem
ed 1t wise TO grant very liberal charters
TO banks, in order to induce capitalists,
both at homo and abroad, 10 take the
stock. About the same time, also, there
was a general explosion Of the banks
that had been doing business on TIE ba.
sis Of individual responsibility; and so
obnoxious had they become that the
General Assembly enacted a law, with
severe penalties, against that sort of
banking, which law is stlIl in force. 1t
will be found that the people Of Ohio
have lost far more, at all times, by the
failure Of individuals according TO Inc
amount OF capital employed, than by the
failure Of banks even chartered on tho
present principles.
There are now twenty two banks 10
Ohio, perfectly sound and paying specie;
their soundness could have been ascer-
tanned two years ago as we'll as now
and so long ago they ought to have
been 70 .chartered with diminished pri-
viIeges and with such new guards and
checks, as experience has shewn TO be
necessary; but such a warfare has been
wagcd against them, that they have
been compelled TO draw in their circu.
~lation, and 10 pursue the process Of wind,
ing up Os fast as they could without
rum 10 their debtors. So that, at this
time, the banks Of Ohio furnish but q
small proportion of the currency Of the
State, the rest being supplied by the
banks Of adjoining states, whose notes
are from 5 10 10 per cent less valuable
than the Ohio bank notes.
The ad voCates Of an exclusive metal.
lie currency. knowing that their doc
trinos are rejected by a Iargo majority
of the people Of Ohio, have taken re-
iuge behind the bank law commonly
called 'LOlham's bill we'll knowing that
none but desperate men would organize
banks under that law, men who would
be sure 10 involve the system in de-
served odium. lfthat law is practica.
bic one at all, | ask, emphatical! y, why
has there not been q solitary movement
among its avowed friends, in any part
Of the state, to set up a bank under it2
| am satisfied that the business OF this
vast State cannot be transacted ,RdVan-
~i0gcously, without the aid OF banks, No
bank should be chartered merely for
the bencft ofthe Stockholders; and
do not believe that any State in the
Union ever granted.e aoank charter ex-
cept on the ground OF public utiiity.-
We have therefore the united testimo-
ny Of all the states expressed by solemn
actsoi legislation, to establish the i'm
portance Of sound banks 10 Tho public
t%prospcrlty
There is no impen' trable mystery in
rthls matter Of banking. Twenty men,
with q reasonable degree Of Intelligence
some experience, and with an honest
purpose, 7und mot 'perpleXed by the
,mOzcs which ARE conjuredup around
slhHssubject by political demngogueB for
sinister purposes, could in n week,
settle this whole bank question on a
basis that would be al once safe, perma
snent and satisfactory TO all interests.
The first great point in constructing
q bulk charter, is entire protection 10
the note holder, by ensuring, at all
times, the prompt convertibility of It's
notes into specie. | prefer a State bank
with independent branches; but | think
the welfare Of the State requires that
the currency question should be imme,
diaIely settled on some safe and perma
nent basis. II has been too long alrea
dy the foot ball Of politicians.
The faculty which a bank possesses
ofexpanding and contracting its issues
is useful ard important, while it con
forms to the demands of wholesome
state Of business but tho Legislature
must establish limits that are not TO be
exceeded under any circumstances, lin.
its much more circumscrIbed than in the
old charters. and must regulate the cx
pansion and contraction even within
those limits, by requiring a larger pro.
portion o qpccie in the vault, to the cir.
culaliOn at all times than has been re.
qpired heretofore.
The whole banking capital of tho
State should DO bound Tor tho redemp.
ton Of tho notes of every bank char.
tered by the State, and Tho notes Of each
bank should DO made receivable in pay
nnant oc Iab,s nj all tha ko,k. f. ~