Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1844-12-27

| btbi0tn vi iOSdI OahhS SUUuOt NCS
with general favor, because II conters
according TO the partialIty Of the local.
ties, great and exclusive privileges, aut
its adjustment gives rise to troublesome
conflicts, not to say corruption.
A system before the last Legislature
and whirh 10 similar 10 that adopted il
New York, meets with considerable ia
vnr 1t is liable, however, 10 a serious
objection Il would subject ds too much
to The mercy of Wall street.
The following plan, which iSa modif
cation Of fhe system referred to, it seems
to NE. obvistes this objection.
lst. let the system ol Banking be
free: this would SECURE it's popularity.
2nd Let everv Bank be compelled
10 keep in us vaults, at all times, one
third Of l,s cirCuIatiou in specie for the
rede mpton Of It's bills; tbi' would pre-
ven, uonatural contractlen sad expan-
sion in the currency.
I 3rd. Let each Bank deposit with the
State Treasurer, es secsriry, for IFS cir
cuIatinn, TIE amount il issues, eiiher in
Ohio State Stocks or in real esldie With
in the limits Of Ohio, at ha f its apprais
ed vaIGe on the tax list, Independent Of
pershabe fmproVemants
4h. Let every Bank he required to
hnve a capital of at lvas. $4,000 &C
tually paid IN
5lh Let there be adequate guards a
gainsl = diminuDlon CT the security, by
depreciation Of The value Of the Stock or
real estate held in nust, by the State
Treasurer and against lraudueat action
on the part Of the Banks.
9Th Let lhere be also provisions, for
he exercise Of necessary scrutiny in
To their operations from line TO time,
and Tor the censute Of such as may fail
to p,y their bills on presentation al their
respective cOunrers.
7th Let there he due limits upon tho
capacity of tho s'ocGho'ders TO borrow
IN the Bank in which his stock is held.
The first inquiry which arises in ex
amioing this Phn, IS ae 10 It's VraCtIca
biIity. This will appeSr, if we consider
what will he the probable profits 10 the
storkhoIder on his actual investment
For the Safe stock, or real estate he'd
as security, he continues TO rPreiye his
poGls,to wit: inis in;eres. on State bonds,
and his rents tor real estate.
For the 33l per cent paid in, he would
receive lS per cent. il the issues were
all the time nj their maximum limits;
but 40 ths is impossible, perhaps th'
avcrage Issue conl not safely he es,ma
lpd at more than Sc, So cach 800 pald
lu. TVS would Wve toe bankor Is per
cent. Deduct for exp nseI ana o9-es,
cay five per cent, and We hevs profit
o. 10 per cent.
Secondly; T. this ssysIem safrf What
is tie security to the bIII hnideri Say
he holds N his hand $40 brli. fr this
he has ~ security, list, the ten dollars
deposited in the State Treasury, IN zeal
estate, or in Slato stocks. 2ndIV, Three
dolara thirty three and OncthrF cents
IN specie in the Vaults ol the hank. -
9dly lie has the discounted noDe on the
nnrrower and hrs rNdorsrr, ('eu dollars
making in all oecavr,y oil 500 33 Is
ten dollars Of which is in the hands ol 4
State officer, who is d,sirtcresrod
If it Is objected that real estate is not
readiIy converted into money, it may he
answered, 1st. That the amount of specie
required to TO paid in, mikes the resort T.
the collateral security Of doubtful nccessi-
Iw. ID. The real estate is subjected tC
sell at one haV instead Of two thirds It's ap
I'praiscd value; and that value to be fixed
by the Assessor.
II it should be said that the plan sug
gested has beeE tried, and condemned ii
! Michigan, the answer is, that, upon com
parson, the above draft differs materially
from the "iree banking law" which wa'
formerly adopted in that State; and iha
the lands of this State are generally C0Itl
NtltU t.Ilh NdItUbl'- w llllSt lliO'N VI mum
gan, on which the banks were based, wcr
for the most part, wild and unsaleabIe.-
This plan is preferable, in my opinion, Il
the one proposing State Stocks alone, be
cause it would enable the CiG2ensot Ohl
who have substantial resources to enter IN
to the business Of banking, without bein
Isubicctcd to unreasonable impositlons
Eastern Capitalists and stock iobbers;-
whilst, at the same time itwould cause a
Influx of capital from the east
Just complaint has often been made
gaInst tile mode in which the ConvIcts /
our Penitentiary have been Employed :
Their labor has been brought into dHeC
kcempetiton with that Of our Mechanic
and Manufacturers, to their manifest inv
ry. There is no doubt that theConViC
labor can be so directed osto compete wit
foreign lcbd' atone, without being mad
less productive than it has been hcretoiort
| No class Of ourciti2cns is better entitled
protection thyn the one to which reierenr
Is made, and l'takc the earliest opportunit
to attract your notice to thssulject, and
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