The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-04-04

and silver roin; and moreover, il Is provided that
this l5 per cent in gold and silver coin "shaat oil
timesbe on hand Iftbe ratio Of Is per cent shall
be diminished, the bank to cease doing business,
except to purchase sight bills Of exchange until il
is made good. This keeping Of l5 per cent Of
specie on hand has been tried in New York, in
Alabama, and elsewhere, and its ridiculous absur-
dityalways made manifest or what use is 1t that
the bank has the gold and silver il the law forbids
1t to part with IL To comply with the terms OF
the law, the bank must have at least 80 per cent.
in specie, I5 per cent for use, and Is per cont to
keep according to law. The b5th section howev-
er removes the difficulty entirely That informs
US that wherever the term gold and sitUer coin is
used, it means draft on New York, Baltimore,
Philadelphia or Boston. Henee, If bank pays
out its notes for adraft either of these cities,
cuiation is $4,000 and the specie reserved is re-
duced TO SIC, 800, the bank has only to pay out its
notes for new York draft of $1,000, that draft
being gold and siiuer com within the meaning of
the act, ii will have Sl5,sOo, or l6 per cent on
hand. and its quota more than restored. What a
caster Bank, which for years, when making a
return or for any other purpose, used to draw on
the Manhattan Bank OF this city in favor Of Nc
Garraty. and invariably the draft went back pro-
tested, but by return Of mail was supplied by an
other which was also protested These "kites" are
by the lao Of Oho" gold and siloer coin on hand y
because, by fiction, they supposed to be pay
able in gold and silver. The law says that 80 per
cent Of the capital shall be paid In gold and silver
or its equivalent 1t then explains gold and silver
to mean eastern ''kites;" it would have been well
II it had explained what ats equivalent meant.
intending to do business branches Of the estate
Bank of Ohio,' they are to organise, and each to
appoint one person to be member of "board OF
control" THIS s.board of control locates itself
ut Columbus, elects president, and becomes in
corporated as the State Bank of Ohio, and fix their
own salaries, each member representing one branch
and having vote for every $50 900 his branch has
in circulation. The basis of representation are,
therefore, the promises Of his constituents; the
more they promise, the more power has he. This
board is empowered to investigate and examine all
the branches, reduce the circulation, If necessary,
SC. Now the place Of each member is dependent
upon the bank that appoints and pays him. Yet
this appointed and pa,d serpant is constituted a
supervisor over his employer who pays him. 1t
may well be supposed what kind of board OF
control that will be which is dependent far its ex
istence upon those whom they are to control. It
will resolve itself, as sprobably intended, into a
mere white-washing committee to cheat the pub.
lie by standing between it and those banks which
employ the "boWd of CONTROL" we will suppose
that the first board is formed of existing banks, say
the Ohio Life Insurance and Trust Company, the
Lafayette, the Coumbiana, Sandusky, Wooster,
Geauga, and Massillon, each member of the hoard
is entitled to one vote, and one additional for eve
ry $4,000 his branch circulates The vote will
then stand as follows, supposng the circulation
full: s
Ohio LII & T. Co. l3wooster A
Lafayette bank % 3Geauga 8
CoIutnbiana 3 Massillbn
6andusky 4 =
=" Total votes 49
Ont of 40 votes, the two Cincinnati banks have
;26, amajorty of three The control will be en-
trely with those two banks. Suppose, now, the
Ohio Life Insurance and Trust Company raises its
circulation to 81 10000 instead of $3.50 900 to
which il is limited by kiting on Wall street, will
its agent, whom it appoints and pays as member
of the board of control, and holding the whole
power, endeayor to restrict it, The idea is absurd;
equally absurd is 1t to suppose that majority Of
this board will report any bank. Witness the bank
commissioners Of this State, who, although entire.
ly independent Of the banks, allowed large num-
Der to fail, involving the loss of the whole safety
fund, 81 600 900, and debt OF 81 500 900 in ad.
dition, and they never, in any one single instance,
detected or exposed misconduct on the part of the
banks.
This "board of control is to furnish the crcu-
laton when 10 per cent OF the required is deposi-
ted with them, shall be be deposited in money or
stocks. Here again money means "eastern kites -
ii bank wants SIC, 900 circulation, it sends the
requisition its agent, accompanied by draft on
New York tor 81 900. This by the law is "goId
and silver on hand" II the board of control have
not sense TO see in that light, the banks viii ap.
point those that have in their places 5,si>,4el
The stockholders of these banks are not to bor-
row more than one third of the capital directly,
and one sixth az endorsers, making one half That
rs, two stockholders owning Ss3 900 each, may have
q discount of 81 900 as makers each, and 81 900
more between them as mutual endorsers. This is
worse, because they have been known to borrow
more than the whole, and no one individual shall
borrow more than half the circulation of one bank
!, Now. there Is nothing whatever in this Ohio
State Bank system to prevent the enactment of the
same scenes, which in 1880 were presented under
itbe wild cat system in Michigan. 1t IS the most
absurd piece of cbarlatanry with which commu-
nifty were ever insulted A bank may go into op-
ration on sixties" with nominal capital not less
than 500 900, and when go per cent is paid in
the 'boaid of CONTROL" its own paid agent may
release it from paying 10 the remainder. II may
Then proceed topsh out its promises to any extent
and in. active competition with other issues. The
man who trusts one Of these banks will be ruined.
oisgSgs NOTI CE. faaai