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


and dangerous.
The subject of banks and the currency
has occupied no inconsiderable share o
the attention of the Legislature in THU
State for the last ten years, and will prob
ably continue to do so for many years tC
come. 1t involves considerations of par
amount Importance and difficulty, and Ell
Their for good or for evil, bearing directly
and extensively upon the various and com.
pick interests of the community. The
diversity of opinion on the subject, is not
to be wondered at. Distinguished states
men, in different countries and ages, have
differed on few subjects more widely and
warmly than upon paper money ard bank
ing Truth should be searched by u can
did consideration of the views on both
sides ofthe subject. In the adjustment of
the question, the great body Of the people
have u common interest, and certainly, no
one a be governed by any other motive,
than a desire to see it settled in the man
ner best calculated to preserve the safety
four institutions, and advance the welfare
and happiness Of the country.
Within the last three years a majority
ofthe bank charters in the State expired
In March 1912, an act was passed, design
ed to supersede the necessity of special
charters, fixing, in a general law, the pow,
ers, liabilities and terms of future banks,
and imposing rigid restrictions on the a
buses heretofore practiced in banking,
This law was alleged to be too severe, and,
in February, l843, it was amended, and
a number Of the prominent citizens, be-
longing to companies which had petition
ed the Legislature for a renewal of their
charters, were authorized to organize and
commence The business of thanking. They
declined, however, to engage in business
on the conditions imposed, On account OF
the unsettled state ofpublic sentiment on
this subject, and with a view of obtaining
banking privileges, at a subsequent per-
iod, upon terms more in accordance with
their own views.
The persons who desire to embark in
the business Of banking in this State, are
requiring c1ClUsire privileges and SPECIAL
exemptions from which the rest of commu.
nifty are inhibited, and which the people
who are anxious to protect their right:
and preserve their liberties, should fully
understand and maturely consider before
they confer them, without the necessary
safeguards and limitations.
LIST. 1t is claimed, that the banks shall
have their usual power to issue their cor
porate promissory notes to be made cur.
rency by the authority oflaw, and to sub
stitute them for the circulating money O
the country.
Cd. That, in order to give their prom
Issory notes more the appearance and au.
thority Of actual money, it is claimed tina
they shall be received in payment of the
public dues of every description by thu
positive sanction of the government.
Sd. 1t is claimed, that the banks shall
have their usual powers to put out theiI
capital, on loans or discounts, at interest
and also, to lend out at interest their pa.
per credits in the form of bank notes, anc
thus receive an interest on their promis
sorry notes, instead ofpaying an interest
as does the rest of community.
4th. 1t is claimed; that they shall have
the power to receive the funds Of Other
persons on deposit for which they pay nc
nte est, but upon which they are enable
to receive "a profit, by loans and other.
wise.
9Th. 1t is claimed that they shall have
the authority to deal and speculate in the
exchanges and public stocks Of the coun
try.
9th. That they shall have the author
ity to grant credits on their books, anC
transfer the amount OF the credit from
one person to another; and to make loans
without limitation, to themselves, theil
officers, managers and favorites.
7th. That they shall have the author
ity to take six per cent. interest in ad
vance, on their loans and discounts, anc
thus be enabled to realize compound in
terest instead o simple interest, to which
the rest Of the community are restrict
ed.
9Th. That they shall be permitted t.
transact business, through the interven
ton of brokers, according TO the under
written code Of "banking usage" where
by, they are enabled to eyade, with i'm
punity, the inconveniont restrictions 0
law, and injunctions o~fintegrity.
With these ample powers, banks can re
allze a compound interest on their CAPT
tai, the chief part Of which they usually
lend out, also, on that portion Of their de
posts which they lend, and likewise OF
their prommissory notes which they issue
and lend outas money: and besides all thi
they can have their profits arising iron
their speculations i'll the exchanges an,
the public stock Of the county, and thei
illicit transactions through the interven
ton of brokers, as we'll as the advanta
ges of liberal accommodations to thei
own managers and particular friends, il
!, the exercise Of these high ~prerogative
! and exclusive privileges, banks can fur
nish TO their managers means Of extraor
binary efficiency for the acquisition o.
wealth, and for controlling the bushes
and interests Of the country. Situated a
! the various commercial points, they ar,
enabled to acquire an arbitrary control G
! yer what little gold and silver remains il
Liberalization, and which thew can gather nj