Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1845-01-24

| tinue its business as a bank; while the
same laws require no capital whatever ioF
the daily banking operations OF the conf
pany, leaving this W ole matter to he de-
cided by the peculiar notions, or Interior
designs OF the banker: For, the prohibition
against the withdrawal of capital cannot
be construed to relate to the certificates
! OF funded debt pledged with the Compuol-
der, as these are beyond the reach Of the
banker, and can only be given up to him
on his complying with certain prescribed
conditions.
The committee are aware that it is said
by the advocates Of the New York system,
that the Legislature is bound TO provide
! ample security for the note holder, and for
him alone, letting all others who choose to
deal with Banking company, either as
depostors or purchasers OF its bills of ex-
change, do so at their own risk. In this
doctrine the committee do not concur
They view a law OF the State which gives
no companies corporate powers, as we'll
as a right to issue notes for circulation, as
to some extent letter of credit 70 the COM
pany, and they feel confident that the
practising Of frauds by such a company
upon its depesitors, and the purchasers of
bI's Of exchange, even should lis note
holders be secure, would bring merited OPP
probriUm upon the law, and .discredt Oh
those 10y whom it was enacted,
The committee have also deemed it inn
portant to limit she total amount of bank
ing capital authorized by the bill. The
apprehension Of excessive banking, Whe-
ther well Or iIi-lounded has tendency TO
deter prudent men from engaging in that
business, while it cannot fail 10 aam the
community with the idea Of an infatad
currency, with all its wild specuations
ana eXuaVagance, and, as an inevitable
consequence, subsequent contraction
which will bring ruin upon thousands,
and distress upon all.
1t is said that the privilege to bank
should be as free as that 5f engaging in any
other kind OF Dusiness--that ifit be carried
to excess, competition with diminished /
profits, will insure proper reduction;
and, thai the evil will thus work out its
own cure, Us in other pursuits. Those
who reason in this way, DO not, in The
opinion Of tie cOmmittec, take Il view OF
the whole ground. While they trace tie
Galo,ie5 betWeen banking and other in
diridaaI pursuits, they omit TO notice tue
point, in which the analogy fails. If
greater amount Of capitol or labor be en-
pIoyed in any kind OF farming, ,aanu.ac-
turing, or commercial business than can be
made profitable, the loss falls on those
who thus invest their capital or IabOr.-
Those portions Of the public who are en-
gagged in ouler pursuits, so far from being
sufferers, are perhaps gajners, in cOnse-
quence Of the WitfldraWaI Of capital or Ia
Dor from the pursuits in which they are
engaged, and in the cheupcnng of .5Re ST.
ticIes by those Who have made these eX-
cessive Investments, But when the cur
rency OF Il coGnuy is too much inflated,
moral fever is prodHced throughout the
whole body lotic, which injuriousIy al-
iccls every interest in commumty and cam
not fail 10 draw after it subsequent ex-
hauston with its long train OF spEerings
and evils.
Ii may le said, and the coma ltee think
truly, that there is no immediate danger
of excessive banking in this State. There
are those, however, and men whose opin-
ions are entitled 70 respect, who think diE
1erentIy:-And tire entertaining of this
opinion ty capitalists, will as efectualy
deter them ii~m engaging in the Basiness
OF banking while they believe It may be
carried to excess, as it their apprehensiens
were reduced TO certainty.
The committee have GEerefore, in the
bill which they hGve now the honor to pre-
sent, limited the amount Of banking capi-
cal Authorised by the bill, six millions of
dollars. Such 4 limitation drew after lit
the necessity of 0pportoning ahe Uapial
among the several sections of the State,
according9o the supposed wants of each,
and the probability Of its being supplied.
In doing this they have taken into view
the banking capital at present employed,
and have assigned to the districts in
which such capitI now exists, q less a.
mount of that which is to be created by
the formation of new companies,
All of which is respecltuIly submitted.
Mr., Armstrong called for the reading Of
the bill
After considerable delay in calling the
yeas and nays on motions to adjourn and
take arecess, the bill was laid on the ta-
ble.
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