The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1845-02-12
5O,OO0,OOO
77,45D,O00
Total circulation by bills,

'sions of the bill, the capital and circulation may
be pushed; but the ridiculous absurdlty of enact
ing a bill several columns long, to restrict the
circulation Of Ohio 10 an amount len times great
err than the widest imitation could ever raise to,
lis palpable.
The banking companies receive their cITrula-
ting notes from the board of control, and are re-
|quired, in order to obtain them, to pay over ID the
board in money, or Ohio stock, ten per cent. of
the amount of notes required, and 10 have on
hand, at all times, Is per cent. of the amount in
specie, and Is per cent. in specie funds, making
altogether 40 per cent. cash. The ten per cent,
paid to the board of control to form a common
Safety Fund, out of which the notes of any
broken banking company are TO be redeemed.
The bank capitals arc TO be paid in cash, 30
per cent. when they begin, and 10 per cent. of.
the remainder at each successive period of 30
days thereafter. Stock deposited TO secure
notes not considered capital. No bark to charge
over 6 per cent. interest, and to pay q State tax
of 6 per cent. on the nett profits. These three
last provisions apply as well TO the banking COM
panies, as to the independent banking compa-.
mics. RThese latter, when they 60 into business,
must pay up 30 per cent. of the capital, one
half in specie, and depostG an equal amount in
Ohio or United States Stock, with the State
Treasurer, who shall issue circulating notes 10
them, TO an amount equal 20 the value Of those
stocks in New York. 1t will be observed, that
as fast as the capital is paid up every 80 days,
the bill compols the deposile of the stock with
the Treasurer, and the consequent issue %ofnotes.
The bank must receive the circulating notes
whether it wishes to or not. The amount must,
however, not exceed three times the capital,
which restricts the maximum issue to S l32,000,-
600! The Auditor has the power 10 send a per-
sen as often as he chooses, to examine any of
these banks. These must pay him $40 a day,
and $40 for every Is miles he travels-"nico
thing that for somebody. Under these regula-
tons, an independent company to go into opera
tons with the smallest capital. $4,000, must
first pay in $22, 800, of which $ll,250 must be
specie always kept on hand. 1t must then buy
S22,000 worth of stock, and deposite with the
Comptroller, (that is not capital,) and receive
notes. Here is an outlay OF $4,000, of which
S22, 800 draws interest subject to expenses and
charges. No person could honestly make any
thing by such an operation. A person, howev-
er, with $4,000 cash, and "Kites" in N. York
to an equal amount, could establish the bank ac-
ICOrul1G 10 law. Inc ONO StoCk COulu NC DOuBll
for a short credit, and paid for with bills issued
on it. The bank would then be regularly in op-
Grafton on $4,000 instead of $4,000 as the
bill supposcs.
What can be the object of scycnty-two lengthy
sections of a law 10 allow a man to do business
as a banker? A man who has money to lend,
can and does do it every day, in all the States,
with perfect freedom, as much so as a dealer in
other articles. The truth is, that the object is
only to allow those who have no money, to lend
their promises TO the people at large, as money,
and to receive an interest on what they borrow
Instead of paying it. This object has been pur-
sued in all the States, and in the words of a late
Alabama Legislative report:
"It has proved disastrous almost beyond ex-
ample; the system is impracticable, because il
is impossible to manage banks such as outs, by
any code Of laws. Such, at least; and he who
would still be incredulous after a patient review
of our bank legislation and bank reports, would
not believe though one rose from the dead.'"