The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1844-12-12

pADe oI eKpA ndlng and culfacting their eifcuaiton
I and subject The frauds OF dishonest directors
siockh0lders are reasons lOrregnaiBg hnI notdesrqF
iogi them The rbgiish language has been the medium
OF imteasufahle evil bull who proposes 10 abolish il
uses 10 establish exclusive melalic currency Ehis
our siser. states have Banks impossible. Legislation
cannol prevent the use Of paper currency, Stop il
II entrance al oBcavenue and Il wi!hcone in with doi
bls5oree at spolher Fesay thai one man shall 90
pay and other receive what they mutually agree upon
in bargain can answer no valuable purpose s.nJng
d free and independent people, Legislation may yinae
currency il seldom improves one,
n What system Of Banki0g shall be Adopted ht this
time in The State eli Ohio1 MANY evils have sendrt
our former policy aud they might have been expected
Il The difficulty Of devIsing salesysIem in new coun
try is very great the balance tftrade being against IT,
there Is perpetual drain upon its specie and It's capt
tasts being few its Banks are genefaly established
by those who wish 10 borrow rather than lend Still
the banks of Ohio have contributed largely to hey
wealth and improvement andthe present pr6speri Of
the State encoufages he hope thai her banking insu-
] lions can be placed upon good foundations. d
1t must be admitted however that the qnesun oil the
currency is one requiring much cautious deliberaron,
in consequence Of the various opinions on The subject
aud the magnitude and compexity of the interests il in
4 wolves To make Bank which shall be safe, praeii-
cable and popular is the problem and Is one Of bo ca
\ sy solution. 1ie iHu lcGe lfd' 10 vita n. d
The State Banks Of sister States have not proved
useful or sectre than local ones Their conner-
ion with the Government sable 10 abuse and exposes
Them 70 preludces Of hs people, whchought never TO
be overlooked when they can be regarded without det-
rinent 10 the public interest. 10 rie-msisls sys
The existing general law may be safe, but is moi
| practicable. ~ i''' e'''4'''- '"['''A y,
\ "A system Of local Banks cannot meet with general
favor because il eonfers according 10 the Partially OF
the localities, great and exclusive privileges and is ad
Jusinent gives rise 10 troublesome conflicts, MOTTO say
! corruption ~ 4 ,r s.
The system before The last Leslature and which is
similar 10 that adopted n NeW York meets with con.
siderable favor l: is liable however TO serious OBJ
lection II would subject Us TOO much 10 the mercy Of
The following plan, which is modification Of the
system referred to- it seems 10 me ObViates this Obec
iSt Let The system Of bankins be free; this would
secure its popularity t''t - 7 II
3D. Let every bank be compelled 10 keep in its vaults
at all times third Of its circulation in specie for the
redemption offs bills This would prevent unnatural
contraction and expansion in the currency. ~ !
I'd. Let each bank deposile with the State TREASURER
as security for its circulation the amount 1t issues
either in Ohio Stale Stocks or In real estate within the
limits Of Ohio at halt its appraised value on The tax
list, ndependentof perishable Improvements. |
4th. Let every bank be required to have capital OF
at least $50 900 actually paid in.
5th Let there be adequate guards against diminu- !
on Of the security BY depreciation Of the value Of the
stock 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 Tor the exercise OF
necessary scrutiny into their operations from time Ia
time and for the censure of such as may fail to pay
their bills on presentation their respective countes
7th Let lheIe be due limits upon the capacity oil the
sockhoder borrow in the bank In which his stock Ia
held g,fp .sassJ 81 ..er..l s.....,.....,
The first inquiry which arses in examining hisplan,
Is 10 its practicabiliy This will appear il we con-
slider what will be the probable profits Of the stockhpld
er on his actual investment b
For the State stock or real estate held security he
continues 70 receive his profits TO wit his interest
the State bonds, and his rents for real estate. !
Forthe 33s per cent paid in, he would receive Is per
CENT If the issues were an the time at their maximum
limits; bat this is impossible perhaps the average
fssne could notsafely be estimated atmore than $3.50
on each e10O paid in This would give the banker IS
per cent. Deduct Tor expense and losses say 1--WE per
cent; and we have profit Of 10 percent. p ,"
Secondly; Is this system saiel What is the secur-
y to the bill holder? Say he holds in his hand $40
bill for this he has security ls the len dollars de-
stocks 2ndly Three dollars thirty three and one third
ceAs ia specie in the vaults Of the bank 3dy. He has
the discounted note on the borrower and his endorser
(ten dollars making in all security Of $2S, S,33i-ten
dollars Of which, is iLhe handsof a State oficer, who
Il Is objected tat real estate IS not readily converted
into money IL may be answered. lst That the amount
of specie required to be paid in makes the resort 10 the
security Of doubtful necessity ID The real
is subjected 10 sell half instead Of two thirds
its appraised VALDEZ and thar value 10 be fixed by The
Assessor, l,ss. s,sessnaa, ss,l,s,as.1 .Es,
Ift should be said thatthe plan suggested has been
ried, andeondemned Id Michigan, the answer is that,
upon conparison, the above draft differs materially
from the free banEingl law which was formerly adopt
I'd M that Slater and that the lands Of this State are gen
orally cultivated and saeabIe--whns those OF Michf
Ea on viii hthe banks were passed were for the most
part wild and unsaleable This plan Is preferable in
my opinion 10 The one proposing State Sloeks, aonef
1ecause il would enabkthe citizens OF Ohio who have
resources enier into ihebusiness Of bank
ng, without being subjected 10 unreasonable imposlons
II Eastern Capitalists and stock jobbers =; whist al
he same time il would cause an iDaux Of capital hcnr
he east, ...-.-. 3 .,,.. q .. I
Just complaint Bas often been made against the mode
% Whichfhe conviets ia our Penenliafy have been en-
'loJed Their labor has been brought into direct COM
,etitioB with That ofour Mechanics and MadufaetuFersf
o their manfest injury There is 70 doubt fbat me
convict labor can be so directed 10 compete with for
gn labor alone without being made less productive
han il has been here:ofore No class Of our citizens
better entitled 10 protection than The to which
renee Is made and lake the earliest opportunity FOL
raci your notice 10 this subject and 10 recommend
adica change at as early period as II can be effected
onSistenty with proper management OF the Prison III
5 also worthy of consideration whether something
nore cannot be done for the reformation OF that unor
nnate, but dangerous class ofo lloWcitizens VITO
re suferingthe penalty of the laws sea' ,si sB&- r.
Permit me 10 cali your attention The laws 90 our
tatuie Book which Law restrictions and disabes on
he unfortunate eolcfed population Of our State Laws
ghch are too severe TO be executed OF obeyed can an
wer no va luahe purpose II does appear 10 me that
pyision ofihoSe laws Is nowcalled for dhaEreaspn
lsice and mercy demand mitigation Of their penal
n will he nereeived v the legislature that revision