The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1844-03-21
VOLUME 1O-NUMBER 81.

stockholders i'll banking was cialllied 70 pc Milol-
" impracticable by capitalists; but now we find
banking institutions, in an application mado 70
the present Legislature, by bill reported BY MT.
Fuller, whig member Of the Senate, on behuit
of the banks Of Sanduslky and Norwalk, positively
agreeing 10 accept the individual liability prnci-
ple as prescribed in the existing law. And thus
it is with capitalists. Whenever it is proposed
to impose any new safeguards and responsible
ties upon banks for The protection Of community
against their abuses, the new Regulations are uni
formIy resisted, as impracticablc and Tuinous, UNI
Ill their operation becomes inevitable.
The inducements which have deferred capl-
talists from engaging in business under the law,
during the short period since its enactment,
appIehend to be not very difficult Of comprehenS
sion. The prospects Of moro liberal and profita-
bic terms, and terms by which the banks would
be enabled 10 WELD political power and infiu-
ence in the affairs Of State, have been held out 70
them as an obiocs az re irconsderable inpar
taIice The b8isks haae determined to mako
another struggle for political power before thay
| yield to the majesty OF the people. Also, II was
well known during the past season, That 7 any
persons bad attempted tos commence the busi-
ness Of banking under the existing law, they
would have done it under the tiefcosand exter-
minating wayflrc Of the whig party Of This State,
with all IFS party organs, Under these circun-
stances it is not surprising to me that none oi the
tcompanies authorized understhe law have COM
lmenced business When capitalists hnd, howev-
er, that the people are true 70 their integry and
can neither be bought nor driven from the safe
guards and liabilities Of the present law, they
RI will acccit IFS terms and 60 INTO business un-
der it.
In endorsing the charge which has been made
that the present law is impfactcablc, it seems 10
me that il was due TO yourself and duetothe dem-
ocratc party, that you should have specified the
f provisions by which il is rendered npractcable
With your acknowledged superior ability and
your extensive researches and long continued
investigation Of the bank question, you certainly
, can comprehend tho effect ofeyery provision IN
the law and determine satisfactorily whether any
y part of ii be impracicabe or not. Why not spe-
city the provisions which are thought 10 be i'm
1 Ipracticable? Why found your opinion barely
upon The interested clanor which capitalists have
: uniformly raised Whenever an attempt has here
Io(Ure been made 10 correct their abuses BY sal
y utary safeguards? Tie practicability ofthis law
+ has been undor diacussionin the Senate during
: theprcsent winter Our political opponents who
! make the charge Of ilnpractcablty, were called
= upon 70 sustain it by reference 10 the provisions
of Tho law, but in most signal manner did they
fail To respond to the call BY Sustaining the
ri chargc. ALLOW ne, sir, here 10 say, with all due
4 Difference for your opinion, (anda have always
entertained high respect for ~ that DEFY you
,r OF any experienced practcalbanker to come be-
d fore the people Of Ohio, in public comrnunlca-
,c ton and spsain the charge inpractlcabilty BY
.tpzoYinb any 2pecifc pfoxissl. ta layy ~ be
!. npract;cable. Upon full understanding Of the
j. subject, solennly believe that every provision
. will be found 10 bo ust, reasonable and praetca-
lble ard that there is not restriction in this law,
r. which is not necessary as check upon abuses,
:, which past experience has shown us to require
= correction
,s Ycu charge, that capitalists claim that they
90 cannot make six per cent interest on capital IN
"a vested in banking under this law. Whether this
81 claim be we'll founded or not can be ascertalned
TO demonstration, by reference TO the privileges
N allowed Under this law, d bank is authorized
G. TO issue, for circulation, its own paper to an
n amount equal 10 lis capital paid up is authorized
an to extend its loans and dlscounts,to an amount
oc equal 10 twice the amount of the captal;l IS au-
Il Ithorizedt TO receive deposits without limitation,
# and is authorized to deal in bills Of exchange,
-, ana sell checks aud drafts. IN the exercise OF
is these powers III prudent and economical man
nj Iner, it can be demonstrated with certainty that
of more than six per cent. per annuin can be feal7
Ia zed, after paying the tax and all reasonable ex-
"a lpenses For illustration, suppose bank TO be
NJ commenced under this law, aadiWith capital Of
q. one hundred thousand dollars paid III. The bank
RI can, from the beginning lend out one hundred
M thousand dollars of IFS paper and slxty-sx thou
ie sand dollars of its capital the remaining thirty
cv three thousand of its,capital, being the specie
70 fund for one dollar for every three dollars Of pa
ga per issued. The interest OF six per cent upon
he this one hundred and sxty-sx thousand dollars
at loaned, would be justten per cent. upJn the cap
s ital invested But, inasmuchas The bank i authoE.
edEized 10 take the interest in advance, and thus TO
L. realize compound interest, the profit would be
n Icons;derqbly more, Besides this, whenever the
e ldeposiis Of tie bank Will Istily il, the loans and
NJ discounts can be increased to two hundred thou
rol lsand dollars, ot iWice the anount Of the capital
Il. had up, which would yield without taking the
linteTest in advance, Just twelve per cent. upon
,ta lho capaal inyegtei Ard besides al this, the
M lbank caa realize very considerable amount, b
nv dealing in bills of exchange, and selling checks
Ia and drafts Ii may be safely estimated, that, bI
ION 1.-THE interests upon The looms taken in advance
ists land by the profits on dealing ii the exchanges
ve land al the business, gToss profit, Of at least
as- twelve per cent, can be realized The tax i'm
.in- posed Is one half per cent upon llie capital
css which wculd amount 70 1900. Under the pfu
itb dent MANAGEMENT which they would be compel
mn. He'd 10 observe, the losses could not exceed u
I'D average of one per cont pf tlie captal which
faa lwould amount 10 $1,000. 1Ae expense Of the
f.Ff banking bouse, bank oiieegs, qEght not (
N, lexeced @2 500, making il h oy the entire ex
nra taenscs aud hiss, four thousand dollars, Wltcl
! N would he four per cent on tlln capital lhl
fie would leave eight per celt ilott profit or s