The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1845-06-27


terest, and pledges-but pshaw! these matters
are all in the family, and you belong to different
connexon.
HOW IT LOOKS AT A DISTANCE.
ONO BANKs-The Democratic Reuiew for this
month, has the following remarks ON Ohio bank
ling in its monthly notice Of financial matters:
1.-THE citizens of Ohio, after having suffered in \
former years to avery great extent from cessveI
banking have, at the late session o. their legls
ature, authorized new creation OF banks ms
Twas effected under the influence of the dominant
party, which took advantage of the want OF cur
lrency within the State, at time when the lssuesr
!of the banks had been Withdrawn from circulation X
lin consequence of the failure or liquidation OF the
banks, and before the course of trade had resup-
piled the channels of trade with the constitutional
|currency, to urge the necessity of banl<Paper as
la circulating medium. The popular preJudiceE
la painst banks was overcome by complication OF
requirements, the effect of which, it alleged /
would prevent the dangers inherent IN the sys- K
tenn. This resulted in authorising two modes oil
banking, one on the old system of chartered
rights, and the other in imitation of the New
Y ork free banking law The law, asif in ds-E
thrust of the creatures it brings into existence linz
Its the capital and circulation to specified sums
Thus there are in existence twelve old banks with
9tnue business, and, in addition, sixtythree new
banks are authorized with an aggregate capital OF
&C. SO, 900, making together capital OF $9,942E
a54O. to be employed in banking in Ohio. These
/ banks may circulate their promises as money toI
the extent of $l6,675,000. This precise amount
is assumed by the law to be safe and no more
Notw outstanding that, it is larger by near S70oo-I
aOOO than the highest amount ever cirulated mi
that state, und which resulted in such ruinous re-
vulsions. 1t is very clear to reasonable mind
that if the currency furnished is sound 1t Isl
useless to limit it. If is not sound it should mott
exist at all. No government ever attempted tol
limit the precious metals which should circulated
for the obvious reason that they can never accu.
muate in any state or country beyond the actual
wants of its trade, and we told that paper con-
yertble into the precious metals is every way|
equal to them as currency and preferable for
daily use. When, however, the people discover
by sad experience the dangers of paper, it is pro-
posed to avoid the danger by arbitrarily limiting
1.-The amount The design of this parade OF eau
ton is apparently to deceive the unwary, and 10
induce the belief that legislative restrictions can
make that safe which Of its nature is fraught with
danger to the community. The Ohio law is COM
posed of seventyfve sections of great length, all
Hprofessng to regulate banking.
1.-THE regulations" however, apply almost entire
*y to issues of paper as money, by which means
Hthe banker becomes borrower instead OF lend
Ter. Nearly all the disasters and losses that have
Wattended banking in the United States hnve
Ngrown out of this fact, that it rs not what the
Nbankers have loaned, but what they have borrow
& ed of the people by means of their paper issues
Nthat have involved their failure. The seventy-fve
Hsections of the Ohio law are occupied almost ex-
Mclusivey with detailing the manner in which
Hbanks may borrow of the people; not word is
said of the manner in which the people may bor-
row of the banks. The first method OF issuing
Bnotes is for seven banks or more to associate and
n appoint such an agent These agents assem-
n plee at Columbus and become Incorporated as the
ID. State Bank of Ohio" each bank which sends
Nan agent being a branch of the bank, and charged
with the salary and expences of its agent, who is
supposed to exercise supervisory power over the
bank that appoints and pays him, and he has Q
vote in the board fyr every $50 1000 of circulation
that the institution he represents may have out
standing at the time Of his vote. The duties o.
this Board of Control seem to be confined entirely
to the preparing of notes to be issued by the bank
that employ them. When bank requires note
for circulation, it is required to deposite in Ohio
hin United States stock or specie, ten per cent.
1.-The amount with the board of control to constitute
/ IA safety fund. The notes are then signed by th'
president of the board Of control, registered ant
Hdelivered to the banks, by the cashier OF whcl
they are countersigned, and ready 1or circulation
n In putting them out, however, the bank is requir
ed to retain on hand thirty per cent of the amour
Hin cash funds, of which one-half shall be specie
Wherefore one half or Is per cent. OF the crcula
3tion ia required to be - specie funds" Thi
phrase is usually applied to bank notes on hand
and the amount seldom or never in the course Q
!, business falls below fifteen per cent: thus tn
]returns of the New York banks showed clrcu
] lation of 1896, ,03l, and of bank notes on han
: $3, 1928 or about seventeen per cent, bein
ii umore than the requirement Of the Ohio law
4There is then required fifteen per cent. gold {
Esyer to be kept on hand yet the 55th section pre-
e vides that sight drafts'' ON New York, Philt
d Hdelphia, Boston or Baltimore, shall be " deeme
Eqold and silver wherever these terms are used b
lthis act" Hence egold and silver" can be maj
/ #ufactured at O moments notice. Paying out bill
oIafor a ..kite,, on a New York. agent will provd
it Eany amountsof legal "gold and silver" Thu
Hong sections of the law containing fancied rel
Utrictions are neuraized, and the whole matter res
precisely as under the old ao plain matter of fac
:. 3an Ohio Bank of 100000 capital may issue $500
dNOOO of circulation, by merely paying away part OF
for Ohio stocks to deposite with the clerks of a
1.-The banks, associated under the name OF board
Isl control. Several banks have already been orgal
r Used under this law, and unless it is promptly RI
!. HPEALED that State wiN get undergo LOSSE
y cou,pared to which the FAILURE OF THE S.
'eUCL.aIR BANK WILL BE As NOTHING
It is to be hoped that this latter occurrence wi
, Il so operate upon the citizens as to deprive II
,3banks of the ability to obtain too extended CT
- culation before repeal of the law takes place.
DErRNcEs OF THE ATLANTIC BORDER
la general order has been issued from ii
k. War Department to mount the batteries
a, the various Notifications for the protection
nd the Atlantic coast. We learn that the of
a,d GERS and troops at Fortress Moore are
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