Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1845-01-14

Kelley informs Us that this rzinsIiluli5n-
cannol be icensIred for the suspensions
beceuse ils charter autburizes saspeh
pension lor lbiuY days Il a line 1.-THE
company did not ,vioiafa- is charet, ii.
riolsled ils contracts. Us bank notes
bOTe on their lnce promises 90 pay onNde>
msnd. These promises were falsi6ea, and
the public confidence abused. ~ 0>
Further, this company had been guilty
of abusing its franchise and iniuring ibe
public by anfssue Of postnores and other
deprecialed paper, and BY -deRling ia lhe,
deprecated paper Of The banks Of other
States. Ehe-eyideBee of this=delinqaeB.
cy is public conviction before the high
est Judicial tribunal Of this State. [Mr.
B. here read The decision OF The Suptsme
Court in Bank al page 29l and 292 Of the
9th vol Of the Ohio Reports, in which
Lane, Chief Justice, delivered the opin~
ion Of the Court that this company had
bcen found guilty Of issuing carrencg =
for circulation ''un~aranIabie BY its chars
Ter and inexpedieni, y aud Ihereupon the
Court recommends that said company
should suppress" such illegal notes and
bills. and issue no more &c = a.
This biil proposes TO authorize this
eorNPcDy TO issue It's promlssory notes as
money, II the amount Of one haIfmilion
upon terms more loose and JunguIrded
Than !his privilege was ever before gram
ted IL this State, of psfhaps, uly other
State. The authorized capital Of the
company is two millions. Mr.. B. read
from ,he charter Of The company the pro
vision which positively required the whole
capital Of the company 10 be Invested in
bonds and mortgages, loaned in the save
eral counties Of this Siate. Ths prcpo-
siiion 10 ame6I the bill, so as to require
the company 10 keep on hand tho propor-
ton OF one dollar ofspecie for every three
doll9:s ofpaper issued, Was voted down
by the friends Of :his bill. This compa-
NY is TO be authorized TO issue a half
million ofpaper money, wilhouI one dol
lar of its capital in money in lts vaults and
" ihont being required 10 keep on hand
one dollar ofspecie for the redemption
Of ifs paper. What are the bill holders
.torny upon as fund for the conversion
Of the paper into specie on demand?-
Nothing in the world, but the contin,
gency Of the compahy's having deposits
in its vaults. For the FIRST time, propo.
stion is made in Ohio to aulhmize ah is.
sue Of paper money without any specie
fund required 10 be kept on hand, and de
pendent solely on the contingency Of the
existence Of deposits. The deposllors
might, al any time withdraw their depos
IFS, aud then there would nothing, whats
ever, remain for the redemption Of the
paper money. 1 ''I ''h
(Mr Kelley Of Fankin, here rose 10
correct Mr. B., and read from report Of
an examination, by a Master Commis.
sioner, made lasl October, showing that
this company had funds to the amount ofI
seven hundred and fifty thousand dollars,
deposited with it, on an agreement with
the depOsitors that the same should re-
main in The bank for twenty years)
Mr.. B. proceeded. If this was The
fact last October, for ought we know, this
agreement between the company and The |
bank may baYe been altered or rescnded |
belOre this time, Or even in case il be
not, The company and the depositors may |
It any time alter or rescind the Vgreement
and deposits may may be withdrawn
And what use has the company already
made Of these depoSilsf 1t is moi pro.
ended that they are il The form of sDe.
lie. These funds OF deposits, are als
eady doubtless invested in sPecuaiions
r lie deprecated p1per OF othe: States,
nlands, in bills of exchange, &c, and moi
0 any shape by which they can be used
Or The redemption Of The paper issue in
pecie on demand. Where then is The
pecie fund 10 be reliedS The bones and
lorIgages ih which the entire capital il
vested, could not perhaps be converted :
ITO specie IN lass than two or three
ears, even at Sheriff sales; and the con.
ngency OF deposits and their invest. ! ),
enis cannot be relied on for The redemp. y
On OF apaper issue. This then, is TO be
'VFt0a aS WIG p'oG0u0Ht JuI NH6 tutufe l.,
sue ofPaper money in Ohio, A speI "
Q fund is discarded, and bonds and r
origages, and the contingency Of depos, Il
!. relied upon as the sole basis for M. =
y money. The old ruls, that paper is, y i
Q oughttO be limited 10 three dollars of "
per Tor one Of gold and silver, inlthe !.
ulls OF the bank, 10 here abandoned In !,
lio. Albert Gallatin, the Celebla.ed !
ancier and banker, in his recent work "
bohking, page 10, used this language. :
'Hereluforo il had been deemed es. :.
'llal that the whOls capital should be =
d up In specie. An honest institution /,
b a capital consisting of nothing but -
rigages. has nothing 10 lend, and must q,
essarily begin l,s operations by con, wv w
ting debt. Aud those mortgages ~;
ID no available resources 10 NEE, The
ilities TO which banking association ~
u Hanasaasitxf ha liakla 81 Nh