The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1845-11-18

3 The Bank mania Is getting quite start a.
gain. In Vermont, a bill has passed the Sem
ate Incorporating the Bennington County
Bank, with amendments increasing the stock
to 100000, and making the single shares
$500 instead of 5000. In Ohio two new
banks have bet n started at Toledo, where the
Wabash and Erie, and the Miami canals pour
forth theirlproducc upon The boscms of the
lakes. The curious observer may have re-
marked that Banks, like thieves, always sta
tion themselves at the great outlets of the ma
tional industry, in order to seize upon the pro-
duce OF labor 10 convert it 10 their own use,
as it issues into the open markets.. These :
two Toledo Banks are what is called branch
es of the State Bank of Ohio, that part ofthe
"Sea Serpent" bill being as we predicted on
its passage, the favorte with the ''produce
grabbers." The3 two systems authorized by
them will have already prepared promises 10
issue as money as follows:
State Branches, 100000
Independent Branches, -35O,0O0
Total new Bank, ~ ~ $95o,Oo0
Old Banks, last report, 2,37O,2l2
Total Circulation, $3,32O,2l2
The new Banks may issue $l,20O,OOO of cir
culation, making near $l3,00O,OOO of paper
issued for Ohio. 1t is observable that these
notes have by law no security whatever. In
our article of March S, we remarked in rela-
tion TO this law.--"The State Branch feature
Of the Ohio law offers SO much greater in
ducement 10 banks, that the independent
feature will scarcely be avalcd Of" Ac-
cordngly we find that the branches are be-
coming 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 $4,000,
and may choose between the two plans. II
they choose the State branch, they are to
have nominal capital of 100000, and are
to pay up $4,000. They may then deposit
$4,000 with the board of control, and receive
$4,000 OF circulating notes, with which they
can Immediately 60 on with their business.
If they choose the independent plan, they
must have "a nominal capital of $50,00o;
they must pay $4,000 of capital; buy $l5,-
Il UUO Vi SlCCh, 10 Ue Ut pOsleu WIN tuC SOIiIp-
troller, and receive $4,000 of circulating
notes. The same capital Edcr the free
plan riH gire them one fourth tie circulation
Meym obtain ander the State branch system.
Of course, as the object is to circulate notes,
the latter will be the only plan availed Of
Furthermore, although the capital of a branch
is, by one section of tho law, not TO be less
than 100000, another section makes the
! payment of more than sixty per cent. of that
amount optional ariM the stockholders, thus,
in fact, making the minimum capital $50, 900.
! Hence, five persons, with capital Of S540,-
: 900, may issue $4,000 Of notes, whereof
:, = 1000 may be discounted to the siockhol-
: ders and nsed by them in paying up their in
! stalments. This is all that is required oI
: honest bankers by the strict letter Of the law.
, The $4,000 of original capital may, howev-
= er, never exist except as kites OIL New York,
. because the 55th section maAesa New York
:, credit specie wherever that tenn is used in
! the law. Hence, $4,000 to deposte with the
board of control is all that is necessary to start
y y branch bank The free banks are yequircd
:, 10 produce actual stock for The they cir
J, culate, and as the same object can be attain
= ed without that provision under the other part
;; ! of the law, ii may easily be supposed that the
: stock will not be bought. The operation o
the law will probably be to give Ohio $lc,
:, O,OOO Of circulation under the branch plan
!. ~ Y. Ne,rs.