New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1848-09-29


straet Of the condition of Banking Ohio give. clear
view OF the new syseu ard is method Of working
II Is from ssemtcfical and has been drawn o.,
BY the remarks we have heretofore made uo.r a.,
new law. II will be seen tina, the main 90 ect.oD W,
have urged IN regard 10 the safety O. the sy..ua b
been overruled by the Bosrd Of ControL I, ain -.
In the Act itself:
The state ofOho has three separate and ai.finc, ~.
sems First the Old depending for pubic e.oss,r..
exclusively upon capital and the ability ana n,egrx %
their managers These Banks have generally ,u.,,,.a
high credit through numerous rovu.ioDs and A..
.ers which prostrs1ed mnDy In OHIO sad elserh.,s =
the most Of these the public has for many year. rsnosa
full confidence. I'D Il appear al al diminished s,,r
one under the systen recently exploded Since n 4
Disaster By which The people o; ohs particularly have
been very great sufferers less suspcioas h.,
reached the remainder principally, however con-. a
traed upon two of the survivors the psrtcssr srouna,
for which not very accurately known. Ger.
iany 10 favor OF the sovebey Of The Banks sbov.
referred 70. that they have for time ,ustslned
pressure growing out Of suspicious widely oirea,s5
which would have forced into suspension any Banks no.
having pretty ample resources.
Six Of the Ohio Banks namely sandaskv. Norwsh
Cioton, Ia lsyettc Cireeye aad Massilloa. are IL,
ouy surviving Institutions under the ola regime TIE
charters OF the rst named expire early In the year
$780, Of the next iwo in ls5i and Of the others als
such the old Bank, OF Ohio and il they have lee.
credit ~ home abroad than those more recently o.
gsnizcd il is not perhaps because they condlced
with lees skill honesty but becGase they have css
security 10 guard the public against accidents and mis-
fortunes to which all business 10 occasionally subject
and sgsinst the possibility OF which Il deemed good
policy 10 provide
| Tie haepsAdo1 system is nd ntcd to contain sprin
cple which siyes 10 thr noteholdcr thc most ample 20.
curiy namely Issues secured entirely By sound stock.
The stock "a be deposited with tn Treasurer Of state
must be equal 20 the amount OF notes delivered ana
must De keprat par In the foreign market There an
absolute prohibition upon the stockholders 10 use ng
ssseis Of the Bank in the purchase OF these stockss
valuable principle not found ii i believed in any otte
system. The noehoder is thus secured almost beyond
| the possibility OF loss
Before referring to the State system, which hss A.
ready absorbed very large proportion Of the capital
allowed tor banking ia Ohio tlray be pro select
some OF the most prouinen, provisions OF he organic
law more particularly applicable 10 it By the rcc,r
law the whole Banking capital of the state is mtei
! TO six millions one hundred and dlty thousand dol.
lars. TINS Is distributed among twelve districts which
embrace the whole state. and specified amount - III
lowed to each. The minimum capital. II an iudepen.
dent Bank cannot be less than Ss0C0J. and Il >sta
Branch not ess than 100000 But tie most lmpoftsa;
restriction in the State syst,m is that upon issues
proportion 20 capital By law, il IA as follow. 81 Ca
the first 100000 any less amount OF s cppt. a.,
more than twice the amount; the second olNoo
no, more than once and half; on the third siO00p
not more than once and quarter the Ourth eluO.
lOO, not than the amount ana
OF capital over si0OOou not more than three iorrhs
the amount OF such capital And these precisely
the proportions which have been issued, toe
Branches obtain circulate unless By the per
jury OF their oicers aud by mourning the penalty
forfeiture of franchises Directors and sockhoier,
restricted in liability to comparatively small proportion
Of stock owned by them The law also requires basic
of thirty per cent upon circulation half AZ least 81
which must be IN specie in vault and perts the other
halt to be deposited in the Cities of New York PbIa
dolphin. Boston and Baltimore with Banks aud Bank
lara al. Sfa alt.p.A r.lf a..i.. -. i.
Gle, but the Board of Control that body which one Of
the Presses Of Newyork has been please 10 senouuce
as calculated to do more hurt than good has. By
recent ooer required the whole 30 per cent IN specie
10 be constantly kept in the vaults aud this order has
been implicitly obeyed by the Branches Subject 70
these and many other restrictions and limitations the
third, or STATE system of Banking in Oho. commenced
operations In July, 1913 Thirty nine Branches have
already been organized with assumed aggregate
capital OF about oi500OO0 and notes been ds.y
cred by the Central Board in conformity with the l-w
The capital actually paid in. smounts 10 more than
e3oOOOOO The residue is being paid insisllmeni. Of
ten per cent every ninety days and the specie
augmented and the Safety Fund increased accordingly
Inc present circulation, now fraction over s6l(0O0l
mas specie basis of more than 81 0000 snd deposits
subject to sight drafts In specie, prncpsly with he
ONO Life Insurance and Trust Company and other
Banks in the City OF Nswyork Of the most undoub1sd
credit toupward Of s65OCo0. Those who have SIP.
posed that circulation issued upon deposits
with brokers' pirate bankers In New.Ymk or ess-
| where, have been most egregiousy mistaken. Such
practice has never prevailed and would not TO the
| least extent be tolerated. At the very commence.
ment, the Board of Control restricted dsposis upon
which circulation might be delivered to Banks ftsuo
lished credit and such continued to be the uni'orm
practice 80 long such deposits consdsrsd
sis at all Beside this large independent capital the %
per cent OF specie upon The circulation. aud thu large
amount Of deposits with Banks OF the most undouhfsi
credit, convertible into coin demand the Branches
nave Safety Fund undinnished by loss spprehent
ed loss, OF more than $4,000; and all these
pledged with this Joint and several liability OF tho
branches for the redemption of their Issues. This inn
mense Safety Fund. increasing in a steady ratio OF 10
per cent upon circulation Is vested under the t~ofod
supervision or the Directors OF each Branch end the
Board OF Control IN bonds and mortgages upon unln.
numbered real estate at half the cash value deductrz
everything appurten ant subject 10 deterioration de.
strucuonor In stocks OF the United States or Of ioe
state OF Ohio required constantly 10 be kept At par In
ne foreign market By the regulations OF the Board of
control every Branch 10 required make monthly
ports OF its condition under the oaths Of s Of
Gers ana Is subjected, without previous notice, semi
annually OF course, and ottener IL circumstances shall
require, 10 most searching examination by agent
VINO Is himself Interested in the Association. Debtors
10 Two or more Branches well every deiaultsr
and delinquent are made known 10 all In the A.sDcs
ton without delay. The Board Of Control Il clothed
WIN ample indeed unlimited authority. not only 10
maze out IN the most summary and sieotual way e.
enforce ali orders deemed Necessary for the security Of
the public and the confederate Branches H. short The
hoe vast machinery 50 perfectly adjusted and regu.
aeo mat no part can get out Of order without being
inineoiaeiy KNOW, not only 10 the superintendent.
but 20 all Interested
Sucn - oflei outline OF The Banking System OF Ohio
IL IS not intended az at all dsparsgnz 10 others or A.
hatery' 10 say that those gentlemen who are inter
esed In, and who manage the State system are gener
sny men Oh wealth, experience and undoubiei inteari
W lenders not borrowers. and II IL believed In these
respects they will not suffer by comparison with an
equal number OF bankers in any State OF this Union
Experience must determine whether the LEGISLATORS
OF ONO have been the first 20 discover that desderatun
In banking so much desired by a good ctzens which
VIII Iuy secure the public and at the same time AT nd
areasonab'e proht to stockholders The organic law
rom the variety and extent OF the details "a not with
OUT compexty and this together with It's great len 9Th
hhu WIN the difficulty OF separating from the msss
nose parts important TO be known, mas no doubt pre-
vented iull examination of lie principles aud IL may
also be ADDED by way OF toward those who
nave entertained or expressed doubts concerning 10
securlty or stability that the Central Board has not
given sufficient publicity TO its uncessing efforts 10 rem
der the systom worthy of the public confidence.
REAL ESTATE SALES
ny T. j. Bteek>r Tie pfdg The sonhwe.t ,leofFf,rk
nstre-i with the souihet eide ~ Ceairefffe.t an Tie ,
TIER, ~ M b. 81 IN ssfOo on ne norh - o.
Seventeenth street. - u ins east Of Fi venue . H3e.s
and ot Us West Broadway t3J ga ot Not no.,