Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1844-03-26

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: principle as prescribed in the existil
} law. And thus il is With capitalists
Whenever il is proposed 10 impose d
: new safeguards sud responsibilities upo
! banks for the projections of communil
against their abuses, the new regulation
are unifoF mly resisted, as impractical
and ruinous, until their operation b
comes inevitable. a 20
The inducements which have detevse
capitalists from engaging in business vi
DER the law, during the short period sine
lts enacIment,l apPFehend to be not yer
ldltiicnlt Of comprehension The pros
Pecis gilmore liberal and profitable term
and lermS BY which the banks would b
enabled TO WELD a political power al.
influence in the affairs ofthe' State, have
been held out to them as an Object .
no lnconsiderable Importance. The bank:
have determined TO make another strug.
gle for political power before they weld
TO the majesty Of the people. Also, Il
was well known during the past season,
that ifany persons had attempted 10 com,
mence the business Of banking under
the existing law, they would have done
It under the fierce and extermina,ine
warfare Of the wing party of this State,
with all i's party organs. Under these
circumstances il is not surprising 10 me
that none f.he companies authorized un.
der the law have commenced business =
When capitalists find, however, that the
people are true 10 their integrity, and
can neither be bought nor driven from
the safeguards and liabilities Of,he pres.
ent law, they will accept its terms and
go into business under it.
In endorsing the charge which has been
made, that the present law is impractical
bic, it seems TO me that il wss due 10
yourselfand due TO The democratic partV,
that you should have specified the pro.
visions by which il is rendered inpractl
cable. With your acknowledged supeti.
or ability and your extensive researches
and long continued investigation of the
bank question. you certainly can compre.
bend the effect Of every provision in the
law, and determine satisfactory whether
any part of it be impracticabIe or not.-s
Why not specify the provisions WHICH are
thought to be impracticables Why found
your opinion barely upon the interested
clamor which capitalists have uniformly
raised whenever an attempt has hereto.
fore been made TO correct their abuses by
salutary safegua:dsf The pracli ability.
Of this law has been under discussion in
the Senate during the present winter
Our political opponents, who make the
charge OfimPracticability,wer called upr
on TO sustain it by reference 10 the plo>
visions Of the law, but in most singular
manner did they fail to respond TO the call
BY sustaining the charge. Allow me sir,
here to say, with all due Difference for
your opinion, (and have always enter
lained a high respect for it, that defy
you or any experienced practical banker
10 come before the people OF Ohio, in
public communication. and sustain the
charge of impracticability by proving any
specific provisions in the law to be i'm.
practicable. Upon full understanding
ofthe subject soIemnly believe that eve.
y provision will he found TO be just, ,rea-
sOuable, and practicable, and that there |
$ not a restriction in this law, which is
lot necessary as check upon abuses,
which past experiences has shown US TO
equire correction. ... /
You charge, the capitalists claim that
hey canot make six per cent. interest on
'apital invested in banking under this law.
this claim be well founded or not
'aIl be ascertained 10 demonstrate by
clarence 10 the privileges allowed. UNI
Ter this law, bank is authorized 10 issue
or ciFculatiOn.itsown paper TO the amount
'qual g TO its capital paid up; is author
red 70 extend its loans and discounts, TO |
a amount equal I'd twice the lie amount |
'fthe capital; is authorized TO receive de,
'osits without limitation, and is AUTHORS
ed TO deal in bills Of exchange, and sell
;hecks and drafts. In the exercise Of |
hess powers in . prudent and econom:e
al manner, Il can be demonstrated with |
certainty that more than six per cent. per
mum can be realized, after paying The |
a. and unreasonable expenses: For IL |
nstratioB. suppose bank TO be commen, |
ed under this law, with a capital of one
hundred thousand dollars paid in. The |
'ank can. from the beginning, lend Out |
me hundred thousand dollars OF its paper |
nd sixty.six thousand dollars Of its cap
!al, the remaining thirty three thousand
4 its capital. being the specie fund Of one
lollar for every three dollars OF paper is
ued. The interest Ofsix per cent. upon
his one hundred aud sixty six thousand
lOhsrslOsned,would be Ust ten per cent.
lpOn TIE capital-invested. But, ,inasmuclI
he bank Is authorized TO take the inter-
'stAin advance, and thus 10 realize a com.
,ound interest, the profit woOld be cOn-'
Iiderably more. Besides this Z whenever
he deposits OF the. bank will justify il, /
he loans and discounts can be increased /
=, uaC hundred! thousand dollars OF twice