The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1844-12-18

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tons 10 science, and would be revealing I'M
known sources, repay a thousand fold the expense
which it might incur. A small appropriation is
all that would suggest at present.
| advert with pride, to the fact that an Obser-
vatory has sprung up within the last year in our
own Queen City, which is likely to become the
best lighthouse of the skies in this hemisphere.
Nay its exploring eyes discover truths TO COM
pensate in some humble degree for the valuable
knowledge we have derived in the last halt cen
fury from Europe. | am not aware that it asks
any aid from the State, but | would not pass So
proud a monument without notice.
Among the various subjects TO which your at
%tention will be called, perhaps no one is of deep
er interest to your constituents at this time, than
the question of Banks and the currency. Our
Banks are reduced to eight in number, and some
OF them are preparing TO close their business
That Banks promote our prosperity IS no longer
a mooied ques ion. They increase The produc-
tive industry of the country, furnish faciliues
for commercial operations, and afford a currency
which is readily counted, easily and safely trans
ported, and, under proper regulations, c%onverti-
bIe into specie at the will of the holder.
That Banks are liable to failure and suspen-
sion, capable Of expanding and contracting their
circulation at will, and subject TO the frauds OF
dishonest directors and stockholders, are reasons
for regulating but not destroying them. The
English language has been the medium of i'm
measurable evil, but who proposes 10 abolish its
use? TOestabljsh an exclusive metallic curren-
cy whilst our sister States have Banks is impos-
sible. Legislation cannot prevent the use of a
paper currency. Stop its entrance at one ave-
nue., and it will come in with redoubled force at
another. TO say that one man shall not pay 81 an
other receive what they mutually agree upon in
a bargain, can answer no valuable purpose among
a free and Independent people. Legislation
may vitiate a currency-it seldom improves one.
What system OF Banking shall be adopted at
this time in the State of Ohio? Many evils have
attended our former policy, and they might have
been expected. The difficulty of devising a
safe system in q new country is very great; the
balance of trade being against it, there is a per-
petual drain upon its specie; and its capitalists
being few, its Blnks are generally established
by those who wish to borrOU rather than lend.
Still, the banks of Ohio have contributed large
Ny to her wealth and improvement; and the pre-
sent prosperity Of the State encourages the hope
that hcr banking institutions can be placed upon
good foundations.
~ iA'''l ~ blli'lSd lcNSFCls lIlll llIC luCS-
lion OF the currency is one requiring much eau
tious deliberations, in consequence of the various
opinions Oh the subject and the magnitude and
completely Of the interests it involves. To
make a Bank which shlIl be safe, practicable and
popular is the problem, and is one of no easy So
iutlOn.
The State Banks of sister States have no,
proved more useful or secure than local ones.
Their connexion with The Government is liable
to abuse, and exposes them to the prcjndiccs Of
he people, which ought never to be overlooked,
when they can be regarded Without detriment TO
the public interest.
The existing general law may be safe, but il
is not practicable.
4 system of local banks cannot meet with
general favor, because it ]conters, according tc
the partially of the localities, great and exclu.
siye privileges, and It's adjustment gives rise tC
Troublesome conflicts, not to say corruption.
The system before the last Legislature, and
which is similar to that adopted III New York
meets with considerable favor. 1t is liable, how.
, ever, TO a serious objection. 1t would subject
US too much to the mercy of Wall Street.
The following plan. which is a modification OF
the system referred 10, it seems to me, obviates
this objection:
lst. Let the system of banking be free; this
would secure IFS popularity.
I'd, Let every bank be compelled TO keep in
IFS vaults, at all times, onc-lhird OF its %circula.
non in specie for the redemption ofits bills; this
would prevent unnatural contraction and expan
sion in the currency.
Sd Let each bank d~eposito with Tho State
Treasurer, as security, for its circulation, the u
mount it issues, either in Ohio State stocks, OF
in real estate within the limits of Ohio, at hal
its appraised Value on the tax list, independent
Of porishable improvements.
4th. Let every bank be required to have a
capital of at least $4,000 actually paid in.
9Th. Let there be adequate guards against Z
diminution Of the security, by depreciation ofthe
value Of The stock or real estate held in trust
by the State Treasurer, and against fraudulent
action on The part of the banks.
9th. Let there be also provisions for the ex.
otcise of a necessary scrutiny into their opera
tons from time to time, aud for the ccnsure of
such as may fail to pay their bills on p~rescnta-
ton, at their respective counters.
7th. Let their be due limits upon the capacity
of the stakeholder to borrow in the bank in
, which his stock is held.
The fist inquiry which arises in examining
This plan, is as TO its practicability.--This will
appear, if we consider what will be the probable
profits to the stockholder OH his actual invest
ment.
For the State stock, or real estate held as Sc.
curity, he continues to receive his profits, 10 wit;
his interest on the State bonds, and his rents fol
real estate.
For the 33B per cent, paid, he would receive
Is per cent, if the isSues were all the time al
their maximum limits; but as this is impossible
} perhaps the average issue could not safely be
estimated at more than $3.50 on each Sl0t
. paid in. This would give the banker Is pei
!, cent. Deduct for expenses and losses, say five
; Lnar cent. and We have a profit of 10 ner cent.