Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-11-06
The Bank Mania.

The Bank mania is getting quite start again. In
Vermont bill has passed the Senate Incorporating
the Bennington County Bank with amendments in
creasing the stock to SlC0OC0, and making the SIN
gle shares 500 instead of S200. In Ohio two new
banks have been started at Toledo, where the Wabash
and Erie and the Miami canals pour forth their pro-
ducc upon the bosOms of the lakes. The curious OBJ
server may have remarked that banks, like thieves,
always station themselves at the great outlets of the
national industry in order seize upon the produce
of labor it to their use as it issues in
to the open markets. These two Toledo Banks are
what called branches of the State Bank of Ohio,
that part Of the Sea Serpent bill being as we pre-
diced on its passage, the favorite with the produce
grabbers" The two systems authorized by them will
have already prepared promises to issue money as
follows:
State Branches, 600OOO
independent Branches, $4,000
Total new Bank, S950,C0O
Old Banks, last report, 2,31O,2l2
Total Circulation, S3,32O,2I2
The Banks may issue 81 100000 of circua-
ton, making near Sl3,000,G00 of paper issues for
Ohio 1t is observable that these notes have by law
no security whatever. In article of March 5,
we remarked in relation to this law
''The State Branch feature of the Ohio law offers so
much greater inducement banks, that the ndepen-
dent feature viii scarcely be avalled Of"
| Accordingly we find that the branches becoming
far more numerous than the free banks
| We will suppose that there are five persons who
wish to form a company in Ohio in good faith They
have capital say $40, Geo. and may choose between
the two plans If they choose the State branch they
are to have a nominal capital of Sl00;000 and are to
! ply up $4,000. They may then deposit $4,000
with the board of CONTROL and receive $4,000 Of cir
cuating notes. with which they Immediately go
on with their business If they choose the indepen-
dent plan, they must have nominal capital of $780,
coo; they must pay $4,000 of capital; buy Sl5,-
Geo Of stock, be deposited with the Comptroller,
and receive $4,000 of circulating notes. The same
capital under the free plan lriH gtre them oHefour
the circulation they may obtain under the State branch
system Of course as the object is to circulate notes.
the latter will be the only plan availed Of Further
more, although the capital Of branch is by one Sec
ton of the law not to be less than 100000 another
: section makes the payment of more than sixty pei
cent. of that amount optional nth the stockholders
thus, in fact making the minimum capital 100000
Hence, five persons, with capital of $4,000, may
issue Sl20,CO0 of notes, whereof $4,000 may be
discounted to the stockholders and used by them il
paying up their instruments. This is all that Is re-
CURED of honest bankers by the strict letter of the
, law. The $4,000 of the original capital may, how
ever, never exist except as kites on New York, be
cause the 55th section makes New York credit spe
, Gle wherever that term is used in the law. Hence
5000 to deposite with the board of control is al
that is necessary to start branch bank. The free
banks are required TO produce actual stock for th
notes they circulate, and the object can b.
attained without that provision under the other par
of the law, it may be easily supposed that the stool
Will not be bought. The operation of the law viii
probably be to give Ohio Sl6000,0U0 of circulation
under the branch plan.-N. Y. NeWs.