The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1845-05-02

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tion, as a natural consequence, followed,
and in 1910 and Al, whilst the banks and
their party had the control of the State,
these paper shops exploded and blew up, not
being able, in the bosom of their friends, 10
exist any longer under their own corrupt
management. Explosion after explosion took
place, SO that, out of from 70 TO 100 corpo-
rations which issued notes of promise, but
81 existed in 1912, at the time the resump-
ton law took effect the others having sunk
beneath their own corruption.
Whenever we have had bank expansions,
the people have entered into speculation and
become indebted, as in England. In ls42,
when the banks in Ohio were all suspended,
we found around the Capitol bank Presidents,
bank Cashiers, bank Directors, bank stock
holders, bank Attorneys and bank creditors,
and the whole federal party in the General
Assembly, opposing resumption of specie
payments. But the democracy triumphed,
and what was the result? The paper of
banks which had deprecated from ten to
twenty per cent. rose within cent or two Of
par; and whatever improvement has been
made TO make bank paper more valuable or
safe TO the holder, the people owe it TO the
democratic party. Whilst the opposition
have been the advocates of the banks, we
have been the advocates of the rights of the
people.
In l642, the Legislature, looking back
and seeing the desolation and ruin brought
about by the banks, passed General Bank
ing Law, less susceptible of abuse by the
bankers, and more safe to the noteholders.--
In lS43 that law underwent some amend
ments, and several banks were brought un-
derits provisions. The banks thus brought un-
derthe provisions ofthe General Banking Law,
seeing that their privilege to swindle was
curtailed, joined with the whole whig party
in denouncng the law as impracticable, in
order to obtain a more general license to
swindle the people and the State. Mr. w.
said he would call the attention of the Sc
nate to some of the provisions of that law.
No loan was to be made for a longer period
than six months. The Directors were re-
CURED TO make examination of the condition
of their banks; the stockholders to be
Individually liable for all their issues; banks
and bank officers not to deal in stocks of any
kind, whether of The United States, of indi-
vidual States, or Of any incorporated compa-
ny; and not to receive or retain more than
six per cent. interest. None can deny that
these provisions were more in accordance
with the wishes of the noteholder, than any
ever placed in bank charters in the State
before. No bank could be incorporated, un-
der that law, unless company was previ-
ousy formed. Not so with the bill under
consideration. 1t contemplates the creation
of from SO TO 100 banking companies, with
out the General Assembly having knowledge
of an individual siockholder They were
not TO commence business until all the cap-
tal was paid in gold and silver-not SO with the
bill before the Senate. If portion is paid
in, the balance will answer in the debts of
the stockholders, so that the circulation, to a
great extent, is based on debts of stockhol-
ders, or debts of the State. The stockhold-
ers and Directors are limited under the Ge-
neral Banking Law, in their liabilities 10 the
bank, which are not 10 exceed from one
twelfth 10 one -thirtieth. Not so with the sys-
tenn under consideration; the stockholders
can borrow one-half. That law prohibited
bank Presidents, Cashiers, clerks Or subor-
dinate officers from becoming indebted to
Lhe banks in any sum whatever; but the
bill before the Senate has no restriction of |
The kind. Under the General Banking Law, no
oank could sell its specie, or engage in the
business of brokerage-the pending bill is
without any restraint of the kind. The Ge-
neral Banking Law provides punishment or
fines for officers violating the provisions of:
the law for their government. The General
Banking Law restricts the circulation to the
amount of capital stock paid in, all notes put
in circulation TO be numbered and registered |
by an officer appointed by the General As
sembly. 1t provides for the punishment of
the Register, as well as bank officers, by i'm
prisonment in the penitentiary, for the viola
ton of the law governing them; banks to be
inspected by Bank Commissioners the ex-
penses TO be paid by the banks, which are to
be taxed on their capital as other property;
but thesbill under consideration proposes 10 |
tax only the profits If it is right and Just 10
tax merely the profits of the banks, then tax
only tho profits of the farming interest, and
all other interests liable to taxation on the
grand duplicate of your State. Were you TO
lax my constituents according to their pro-
fits, many of them would pay but light tax,
and such would be the case all over the
State. Then why should bankers be thus
Favored-because they have less honesty and
nodesty than the taxpayers of the State p
None but banker would have the mpu-
lence TO ask an exemption of the kind.--
Another wholesome provision of the Gene
-al Banking Law, (if such thing is possible
Is to have any. connected wtha a bank whole
'ome OF honesty is the recording of the
lames of stockholders by the County Re-
;orders where the bank is located, and the
mount Of stock owned hy each. Mr. w