Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-01-30

Bank Projects In Ohio.
The course of the Legislative Wing majority in
Ohio proves very conclu1vely how it stands in rea-
ton to Bank swindling. They go an for it, to the
fullest extent None of the vil or visionary schemes
of the Bidde Era, exceeded the monstrosity of the
present scheme Of the Wing leaders in the Ohio Leg
isatu,e- To give some idea of it, copy the fol-
lowing from the N. Y. Morning News:
The new Banking Bill Of Ohio is probably of
the most elaborate attempts to establish system of
q Wild Cat banking in the face of the past experi-
of the people, that put out The bill in
question violates every principle Of right and equity,
as well every principle of commercial banking and
common sense. Ii provides for two sets of banks
having different ghts and powers and issuing promi
ses as money secured in different ways. The one is
restricted certain amount and the other Is limit
less. The State is divided into II districts. bank
called the Bank of Ohio then be composed of 40
banks, distributed in the several districts, each be
composed of not less than five stockholders; each
capital not less than 100000 and the aggregate not
to exceed S6,0O0000. These to be subject to the in
spection and supervision of board of " bank commits
sIoacrs" and governed by separate - board Of
tract" Entirely independent of these, it provides for
80 independent companies under the inspection of the
State Audtor and controlled by the State Treasurer,
Independent of each other. Thus there four indie
pendent governing powers
Board Of Commissioners. State Treasurer.
Board oil control. Auditor OF State.
The Banks capital and circulation may range as
| follows
40 Banking Companies, capital not exceed 100000
~ independent Companies, capital 100000,
not over 44UOO,OOO
Total capital allowed by bill - 100000
The circulation may range rs follows:
40 Banking Companies, circulation ll,4500 900
lion not over $4,000 900
|
Total circulation by bills 77,45O 900
This is The extreme to which, by the provisions of
the bill, the capital and circulation may be pushed
but the ridiculous absurdity of enacing bill several
columns long, restrict the circulation of Ohio
amount ten times greater than the widest imitation
could ever rise 10, Is pa pable.
The banking companies receive their circulating
notes from the board Of CONTROL and are required in
order to obtain them, TO pay TO the board in
ey Ohio stock, ten per of the of
required, and to have hand at all times 10 per cent
of the amount in SPECIE and 10 per cent in specie
funds. making altogether 40 per cent cash. The ten
per cent paid to the board Of control to form
Safety Fund, out Of which the notes of anu broken
4 banking company are to be redeemed
i The bank capitals to be paid up in cash, 80 pei
cent when they Begin and 10 per cent of the remain
der at each successive 80 days thereafter Stock de-
posted to secure notes not considered capital Nc
bank to charge over per cent interest and to pay
State tax of cent the nett profits These three
last provisions apply as well TO the banking compa-
Mes to the Independent banking companies. These
latter, when they go into business must pay up 81
per cent of the capital half in specie, and depos
lite an equal amount In Ohio United States stock
with the State Treasurer, who shall issue circulating
notes TO them, to an amount equal to the value oil
those stocks in New York. 1t will be observed that
fast the capital paid up every 90 days. the bill
copels the depose of stock with the Treasurer and
the consequent issue of notes. The bank must re-
ceire the circulating notes whether it wishes not
al
capital, which restricts the maximum issue to $780,
100000! The Auditor has the power to send per-
son often as he chooses, to examine any of these
banks. These must pay him $40 day and $40 fol-
every % miles he travels" nice thing" that fol
somebody. Under these regulations, an independent
company to go into operations with the smallest CAPT
tai, 750C0, must first pay in S22 500, of which
gil $50 must be specie always kept hand II mus
then buy S22 SEQ worth of stock, and deposte will
the Comptroller, (this is not capitaD and receive
notes. Here is an outlay of $40 900, of which SD,
500 draws interest subject to expenses and charges
No person conld honestly make anything by such az
operation. A person, however, with $4,000 cash
and Kites in New York to equal amount, could
establish the bank according to law The Ohio stocE
could be bought for short credit, and paid for with
bills issued on it. The bank would then be regularly
in operation $4,000 instead Of S45, 900 the bill
supposes.
What can be the object of seventy lengthy sec
tions of a law to allow man to do business as
! banker man who has money to lend. ant
does do it every day in all the States with perfect free
dom, as much so dealer in any other article TIL,
truth is that the object is only to allow those who hav,
money, to lend their promises TO the people large
money, and to recere interest what they Dor
row instead of paying it. This object has been pur
sued in all the States, and In the words of late Ala
bama Legislative report:
81 has proved disastrous almost beyond example thu
system is mpracicable because it is impossible
age banks such ours, by code Of laws. Such,
least has been the result Of all past legislation upon h
banks and he who would still be incredulous after pa
tent review of bank legislation and bank reports
would not believe though rose from the dead