The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-10-11
BANKING WITHOUT SPECIE.

BANKING WITHOUT SPECIE.
The Gazette and Express, Of Ian
caster, whig paper, says, in speaking
of the banking law of last winter:-
"The law is as faultless as human wis
dom can make it, since the bill holder
is safe beyond all contingencies" The
Ohio Eagle, in order to show up the
falsity of this language, publishes the
whole of the first clause OF the fifty.
fifth section, and comments upon it,
and then the remainder Of the section.
The first clause of that law is as fol.
lows:
"SEc. IS. Each banking company shall, at all
times, have on hand, in gold and silver coin, OF
their equiralert one half at least of which shall
be in gold and silver coin in its vaults, an amount
| equal to at least thirty per ceptum of the amount
of its outstanding notes of circulation; and when
| ever the amount of its outstanding notes of cir.
| culstion shall exceed the above named propor-
| ton, for the space of twelve days. or whenever
the said gold and silver coin, or their equivalent,
shall at any time fall below the amount of twenty
per centum of its circulation, no more of its notes
shall be paid out, otherwise put In circulation,
| by such banking company, nor shall such company
increase its liabilities by making any new loans or
discounts other than discounting or purchasing
bills of exchange, payable at sight, nor make any
dividend of its profits, until the required propor-
ton between its outstanding notes of circulation
and gold and silver coin the equivalent on hand
shall be restored"
The Eagle, after publishing this por-
ton OF the law, thus comments upon it:
"The above clause provides the fol-
lowing:
" list. The bank must AT ALL TINES
haze on hand, THIRTY PER CENT, of its
outstanding circulation, in gold and sill
yer or their equivalent.
"2d. One half of which, or Is per
cent. must be gold or silverin the vaults
of The bank.
"sd. After providing that the bank
SHALL AT ALL TIMES have thirty per
cent, &C., of gold and silver ON HAND,
this same clause coNTRADIcTs that pro-
viston, and the very same sentence
says: " Whenever the amount of its
outstanding notes Of circulation shall
exceed the above named proportion,
FOR THE SPACE OF TWELVE DAYS, or the
said gold and silver coin or their equiv-
alent shall at any time FALL BELOW,
TWENTY PER CENTUM of its cir
culaton, no more of its notes shall be
paid out"
"Thus, the same clause of the law
provides first that the proportion of
gold and silver or their equivalent, to
the notes in circulation, "sHALL AT ALL
TIMES" be "thirty per cent" and I'd that
it shall not "FoR THE SPACE OF TWELVE
DAYS" "faN belsw" that proportion, $50
it may for eleven days,) and Sd that it
shall not CAT ANY TINE" "faU below"
"TwENTY PER cENTUN." And thus, the
last part of the clause quoted, whttles
the first part down almost to the little
end of nothing. By the time we get
TO the tail end of this b5th Section, we
shall find that the SPECIE, the "GoLD OR
SILVER" provision is all gone! entirely
whitfield down to the little end of moth
ing!!
"The remainder OF said section is as
follows:
"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, payable in gold and
silver coin shall be deemed equivalent to gold and
siluer coin, Dheneper these terms are used in this
act."
"There ii is! specie clause is all
gone! deposits IN eastern cities. out of
the reach Of Ohio note holders, SHALL
BE DEEMED EQUIVALENT TO GOLD AND
SILVER coin ,Ukeneue, these TERMS ARE
USED IN THIS ACT. By the ,oords Of the
1av therefore, a certificate Of an eastern
deposite in the possession Of a bank Of
Ohio, isdeemed equivalent 10 SO much
specie. And this certificate may be
all sham, given by an irresponsible
agent Of the bank, for there is nothing
in the law to prersnt such fraud. We
have fairly dissected this 55th section,
(the specie section) Of the law, which
begins with such a flourish about gold
and silver; and we have exposed its
cunning deceptions, which its trainers