Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-07-31

s.. 33t.sea ?il44, CD 73s,O4s ,5.0, 2ls f3f.4l9


The Bank of Xena has become a Branch making
ten Branches of the Ohio State Bank. The law re-
quires seven only to organize the State Bank accord
ingly the Commissioners have under the 18th section
of the law, notified the different Banks TO appoint
members Of the Board of Control which Board is
to meet at Columbus the 18th inst to organize The
'' State Bank of Ohio" In addition TO the above
there are some eight nine independent Banks about
going into operation by the deposit of stock The
Branch Bank system will, however, become the favo-
rite with the Bankers whose object is the extension of
credits, the law offers far less restrictions than
even the old system. Seventytwo long sections were
enacted for no other purpose than to embody decep-
tive restriction in one section TO be neutraized in
another secton for instance, section declares as
follows:
SAT least thirty per cent of the capital stock of
each company shall be paid in gold and silver coin
their equivalent, one half Of rhich thirty per cent at
least shall be gold and silrer con and shall be in
the actual possession of the company the time of
the commencement of It's Banking business, and at
the place designated for carrying on such business"
This positive and clear injunction to have and to
keep ID per cent in actual coin runs through several
columns of the law and eectualy lus the suspicious
of the reader, until he comes the close of the Seth
section, when suddenly the following provision is
thrust in
Actual deposits with any solvent Bank or Banker
of established credit in the cities of New York,
Boston, Philadelphia, or Baltimore, subject to be
drawn against, at sight, in gold and silver coin, shall
be deemed equivalent to gold and silver coin whenever
used in this act"
These few lines efectualy destroy the necessity &C
all the provisions that before in relation to gold
and silver. +" Kite " drawn from any Bank upon
its agent in Wall street deposite subject
to be drawn against, and although there may be an
understanding that the credit is not to be used, yet
that transaction is 'god and silver coin actually in
the vaults at the place of business This is only one
instance of the absurd contradictions contained in the
law going into operation such an alarming
exteht The sole object Of these Banks will be to
push out their credits speedily possible, by
doing they will impel larger purchases of goods on
the part of the Ohio dealers, and will involve very
speedy revulsion, the rapidly inasmuch as that
the currency of the surrounding States is not capable
of corresponding mutations. The currency of Ohio
will become redundant as compared with the Others
and specie will leave the State. The Eastern Banks
will have become too cautious such concerns
dollar and those merchants that sell goods to Ohio
dealers for notes payable at their Banks will meet
with Severe losses inevitably. The New York Banks
in former years too severely Bitten by trusting
Western Banks with collections, such system
with these pestilent Ohio wild cats The people of
Ohio have chosen to take the promises of the Banks
as currency, instead of gold and silver, and the
lesson win be severe one. them. If city dealers
wish to avoid sharing their losses they should take
nothing but city acceptances cash from the Ohio