The Arkansas banner., 1845-03-26
THE NEW BANKING LAW OF OHIO

strous privileges to banking corporations, has
 at last got through the Legislature, and has
 emerged from their halls dragging along its
 wondrous length of 75 sections. Next to
 the currency of their own state, the people of
 Pennsylvania are very much interested in tho
 currency of Ohio. And indeed, the people
 ot this region are perhaps more deeply in-
 taresed i'll the currency of Ohio, than in that
 oi ther own state. One thing Is certain,
 they have suffered as much from the failure
 ot the Ohio banks as they have from that of
 PennsYl lyania banks. All well rememE e tho
 pecualary distfess and anxiety which was
 ehdu ed, and the losses which were enroun-
 teredin Pittsburgh and the surrounding coun-
 Try, as the slender threads of solvencv by
 which the Ohio banks were sustained, were
 snapped one after another; for Ohio paper
 formed nearly our whole circulating medium.
 Nlth this severe experience in view, the
 banking movements of Ohio are of the
 greatest interest to our citizens, and we pro-
 pose 10 give brief review of the complex
 and unjust banking scheme that has just passed tic Ohio legislature.
 The new pundering machine ia to De
 called the ''State Bank of Ohio, o,n--it is to
 have numerous branches, ani the whole cap-
 t1 to be employed IS not 10 exceed S6, l5o,-
 000-exclusive of the capital of the bank of
 GeaGga, the Western Reserve bank, the Col : Hmblana bank of New Lisbon, tlIe Lafayelto bank ol Cincinnati, the Ohio Life Insurance : and Trust Company, the banks of Wooster, 7 Alasslllon, NorwaIk CirclevilIe, Xena. San- ) dusky, and the Clinton bank Of Columbus, Q which are allowed to go on with the banking f business; and such of them us are broken $ '.fat," are allowed year to patch up their Q concerns so as to make them sgo,'' once l more. The Trust Company and the Lafay- cite bank, at Cincinnati, may increase their : capital to Sl,000,000 each In order to se- s cure Il '..fair participation in the privileges | granted by this act' (2)--or, in plain words, e in order to render equal, all over the State, e the influence of whig bank rule, Ohio is di- ,f vided into twelve bank districts, and this six q millions of capital is apporoned among = them. There shall nol be more than four c banking companies under this act in Hamilton
 county-six in Cuyahoga-3 i'll Franklin and q SQmml-2 in Ross, Muskingum, Jefferson,
 Lucas, Miami and Montgomery.
 : Three commissioners are appointed to or l. gagize the machine, and the Governor, ut z their instance, will proclaim what companies V shall go on with their business. The com f panies formed under this act, may either do | business as branches of the '.state bank of if Ohio,o or as independent banking companies. V II they choose the first, they are put under # the direction of board of control, elected V by each branch, which is to have an office l. at Columbus. It is to have a president, sec l. relary, and executive committee, who are to , 6 be paid for their servlces. by a tax assessed s on the branches-and they are to continue a f,.rsl il, ,ta
 Of the state bank fl Ohio, Only thirty per
 cent. of the capital stock of this bank is re- ,.i qured in gold and silvcr-and they are not {. e to issue more paper than will double in . amount their capital stock!-they are also re- qnired to have 50 cents in specie for every y paper dollar they issue. The board of con-
 trol are to have the notes engraved and print ed for all the branches, and each branch is to u e deposite with the board stocks 10 the amount '' of ten per cent on the sum il wishes to put r ill circulalion--this is to form 8 safety fund,
 but the branches are to get the interest on l, the stocks-the board of control is then to r give the branch as many notes as it requires, a 10 keep record of them, sc, Sc. The e stockholders of any branch shall not owe it l, more than an amount equal to one-third of it's capital nor the directors more than one
 
 taken at par by all the others while it is &C., s counted solvent. In cases of insolvency, re- '- celvers, &c., are to be appointed, and the de- g fcit is to be paid out of the safety fund If Il q company wishes to do business as an in- : dependent banking company, the state trea- surer of Ohio performs the duties above de- It fined for the board of control, and on extra '- ordinary occasions is to call the state auditor and r. 10 be formed by deposing stocks with him, s- and insolvency in the case of the branches, I'd is to be found by court and jury Each IT independent banking company IS 10 take at y par the notes of every other which may be s, solvent. All these banks are to issue notes 'e of l. 2, 3, ,, 10, 20, 50 and 100 dolars-
 not over ten per cent. to be in one dollar
 noes-and noi over 50 DOT cent. in notes of
 less than 10 dollars.
 q There are other provisions, but we do no.
 regard them as important to the public, we
 have given all that struck us as necessary to
 right understanding of the nature and scope
 of this most infamous enactment. We might at mention that a bank IS permitted to let it's l. specie go down to 20 per cent on it's circu- y latlon. The condition of the. bank Is to be h ascertained by all examiner, 10 be appointed n by the board of control, and to be paid by IS the examined bank It is unnecessary to ts dwell on the miserable humbug of these bank l. examinations
 a It will be seen, that while the framers of d this bill acknowledged, in their safety fund, IT and other pretended and puerile, restrictions Il the danger that existed of the bursting of the l. whole system, they will not give the people $ the only reliable security they could have, e viz: the individual Habifity of the stockhold- " CTS. This is the only way in which the pub r. lie can be protected-the bank corporators d snap their fingers at any other kind of re- IF striction.
 of We think that any one who reads this
 project must admit that the fabric to be built