Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1845-09-19
From he Scioto Gazette.
OUR BANKING SYSTEM.

| OUh bANhlHT OG Cl LIN.
A better system Of Banking, than that
, now in operaticnin this State, was proba-
: ably never devised. Its principaIand best
feature is thatit affords the am plest securi-
ty to the bill-hoder.
As Collateral secarity for the payment Of
notes, one class OF the banks, under The
new law, arerequired, in sdditioh 10 til ir
capital, to opiedge dollar tor dollar of their
circulation, in Ohio or United States stocks,
at their market value. These must be
pledged wth-the State as security for the
circulating notes, and cannot be diverted
from that purpose. Well does Hon. Mr..
Cowan, in his address TO the voters of Eel
mont eouHty,inguire if this is not better
than "individual Gahility1"-if Ohio State
creditand United States credit Is not as GOOD
and better Than any" "'individuaI"c credit?
) The Branchcs'of the State Bank are not
onIy liable, in their corporate capacity, to
the amount of their capital, but they are
required to pledge with the State. ten per
cent. of their circulation of a sqffy find;
and this fund is liable for the redemption of
the notes of every Branch. For instance.
II the Bank OF Chillirothe should issue
SlO0,000 in notes, it will have to secure to
the State, Ten percent. of that smoant, or
$4,000. This will 20 into the safety fund, |
and if any of the Banks fail, will be devo-
ted to the redemption Of its notes. In ad- !
dition to this, the Branch Banks are III re-
CURED, at all times, to receive the notes Of /
each other branch in Payment for debls.-
Thus, the Cincinnati branches are rompel-
ed TO take the notesof the ChilIicothe Bank,
without any ''shave" or Discount" "at their
face value. Thssecures a uniiorn as well
as safe and sound currency.
9tris Is infinitely better than "Indivdunl"
liability Or any other Locoioco humbug .--
if branch stops, under the new low the
other banks are obliged TO take its notes the
same as before, and there is a safety fund ,
tocance them--a in addition to the capi- Z
f9l Of the Bank itself. Were these banks +,
under the "individuai liability" system,
and one should fail to redeem its circula- {
ton, the biIi-hoder would be obliged to keep
the note GA hand till the property OF the c
stockholders colrd be sold, and their huu- I
ses and lands, horses and hogs, converted !,
into money--then if there was enough re- !
llzed out o. the sales, his bills would be 81
'edeeIned, and not till then! All this might n
possibly be done in gear or so, and mean n
lime the biII-hoder might hang on to his =
rags" or sell at a "shave."
II will seen, at once, that it is quite
to devise banking system which al
hall bette. secure the community against fl
oss, or which shall provide aaferor more D.
nliormcurrency. Yet without waiting TO !
Est its operation, and without Offering a te
Inge valid objection to its provisions, The in
ldllaI Locolocos are already cIamoring for ty
s Repeat Notsatisfed with having once
estroyed the currency of the State, pros
ated It's business, impaired its credit, and
'Vited swindling spectators from abroad,
iocolocoism again renews its war upon the in,
If confidence is again suffered 81,
'revive, and quicrand prosperity suffered c''
,retun, the occupation Of the Locoloco irc
rganlzersanda agitatos will he gone, and lei
ley will be compelled to woik or anrbpi lisa
heir very existence depends upon their o.
aeplng a constant turmoil--they live by 80
and hence arenewalof the war on banks Jui
he people Of Ohio will profit by pas, cx- elf
'rience in this matter, and sustain by their cal
'tc that policy which promises prosperity Co,
ID good currency to the State