The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1844-07-12

redeeming their circulation we know nearly as
lttle; and which we have every reason to believe,
are not surrounded by those safeguards and estric-
tons. which dear bought experience has taught us
to regard as indispensable. The people OF this
county have never given any evidence that they
are ia favor OF an exclush ely metallic currency,
II is believed that they have decided in favor of
bank reform, thorough, radical and searching, but
not Of bank destruction The bank of Wooster
was charteredin the year 1884, just ten years before
the last session BY its original charter, which
was ia rnany respects guarded and restricted one,
it was to live until the year 1850, butafter the year
1913 it was to be subject to such further legislation
sthe General Assembly might see ht 10 impose.
The question was, what that legislation should be.
On t5e one hand il seemed reasonable and desirable
that this bank should have the privilege to live out
the time appointed in its original charter, subject
only to such limitations and restrictions as should
make the bill holder and the public absolutely and
unaues,ionably safe. And on the other hand no
democrat could or would for moment, consent to
grant t!ii OF any other bank any privilege which
could subject the bill-holder or the public to the
remotest possibility Of loss. The petition on be-
half of this bank was signed by FOUR THOUSAND
citizens, living in its immediate vicinity, and the
rumber of persons who enrolled their names as
remonstrants amounted to only STA, living In the
CITY of Columbus. Under these circumstances
the democratic delegation from the eastern coun-
Ties were unanimous in the opinion that 1t was
advisable to suffer the stockholders to enjoy the
privileges of their original charter for the short
time Of six more years, subject only to those gen.
eral laws which have since been enacted tor the
royerGmeut OF all banks heretofore created, and
70 the following additional limitations and resric
tions: First. Universal, perfect, and immediate
Individual and personal liability of the directors
and stockholders for every valid claim against said
bank, except in the case of depositor who person.
ay aud voluntarily agreed to depend on its corPo-
rate liability. Second. The specie basis for It's
issues in as large proportion as has ever been
required by any act of Assembly of this State
Thirdly, Restriction of loans to directors and
stock k-hoders, to one half the amount OF stock
actually paid in and possessed by them. FoLrthly.
The penentiary clause to punish all frauds or
attempted frauds, cheats or embezzementS by the
president, CASHIER directors clerks or rgents Of the
bank
The whole act is to be found on the 10Th, goth,
and 2Ist pages of the acts of last session. BY the
original act which the reader can find in the AS
semby acts of 1884, the officers of the bank are to
make a sworn report Of its condition to the State
Auditor every year. By the act providing for the
appointment of board of bank commissioners
see Swans Statutes, page l26,-and the various
acts amendatory thereto it is made the duty OF the
officers of this and all other banks, to make state
ments of their condition upon oath TO the bank
commissioners every month in the year. And the
bank commissioners are required to visit them
every wear without previous notice and 10 make a
thorough examination of all the books, papers,
notes bonds and documents of the institution
The bank must therefore live in the light. Fraud
always loves darkness. So much publicity seem
cd utterly inconsistent with its contrvances
especially when connected with perfect individual
responsibility. The course of trade makes it nec'
essary for our western banks to keep funds in Pha
delphia, New York and Boston, it was therefore
provided in the act that funds deposite in those
cities subiectto sight drafts should be equivalent to
specie in the vaults of the banks, so FAR as regard
ed the amount of ITS circulation II was believed
that men indiy dually and personally liable to i'm
me da.e suit would have little temptation to swell
their liabilities immoderately. Yet some person:
seemed to entertain suspicion that those eastern
deposites might consist of paper securities or some
thing else besides gold and silver coin, which being
taken into the account as assets OF the bank nigh
enable it 10 swell its circulation beyond the prope
and legal amount As men ought not only TO dt
right and intend to do right, but to make the evl
dence Of that intention clear as the noon day sun
we took up the subjec again, and enacted that no
thing but Col Dand SILVER funds deposited In thos
cities shod be equivalent coin in the vaults OF tn
bank so far regarded the amount other circulation
And as no harm can arse from making assurance
douby sure, we took up and removed by positive
enactment every objection which ingenuity hat
devised to the provisions of the act in question, Sc
as to make the individual liability OF the stockhold
ers complete perfect and all pervading, though
we believed those objections TO be merely colorado
and unreal. We intended to leave, and we die
leave, no ground for cavil, question, doubt or ap
prehension
Bythis last mentioned act, which the reader viii
6ud commencing on page 40 of the acts of thu
last session, we continued Qor the term of three
years) the bank of Norwalk, the Bank ofSandusky
the bank Of Xenia, and the Lafayette bank Of Gin
cinnai on the same terms ofperfect and inevitable
individual liability of stockholders, and with al
the other restrictions and safeguards, thrown roun
the bank Of Wooster. 1t is observable that th
individual liability attaches the moment that pay
ment Of note in gold silver is refused at tn
counter Of the bank, and may be enforced by sui
in the ordinary forms, with which every individua
in society is acquainted And an individual wrong
ed by refusal to pay, if indeed such a circum
stance should ever occur, has no occasion to wal
until the bank has got into the hands of receiver