Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1849-07-23
Ohio Banks -Disinterested Testimony


Ohio Banks -Disinteresfed Testimony !
I he July number of Hant's Merchants
in its regular monthly ''Com-
nerc'al Chronicle and Review" treats at
considerable length Of the condition of the
Banks OF this State from '35 TO the present
time. Within that period it appears that I
the circulation Of our banks reached its
highest point in 1886 when it amounted to
S96s5.6 644. From that time ii gradually
diminished wi,hlhe exception of tie ex-
pansion OF $50, till in Al the aggregate
circulation OF all the banks in the State
was only $2.234, 420 Since IA the num-
Der OF banks has increased from g, TO Sc
and the circulation two and a half mill |
IONS to $9, ,35l $50, more than quadfuplng
hselt IN five years aid that TOO, with less
am"unto capital now than then The
position which the Magazine occupies in The
commercial world, and the uniform Impair
TALLY oiaits financial articles, entities. its
Opinions 10 great weight, while the fact
that 1t is in favor of banks renders lis teSti
mony in this case the more important. We
invite the attention of our farmers particu.
Early 10 the Allegation in The article which
we subjoin that, The tendency to the an.
qatson, IS to prerent Ohso, from selling
produce ON as good terms as Michigan,
or HE'loas, or Ioaoa, aohefe the banks do
not comparatively, eaist.'' Werae this
assertion made by a nemoeraties sspaper.
here the bankers and their friends would
chargeIhas it was made for partizan spur
poses and no matter how apparent the inct
might be, it would be met with a fiat con
tradiction. Coming, however, as it does
from one of their own number, accompa-
MED by the emphatic declaration that the
present banking system of this State seeks
"by q parade Of sham security to engen,
der public confidence an institutions
aohach are far from deserving it," the
charge must be met in some other way,
than by simple contradiction. If the
allegations are untrue they can be disprov.
ed and their serious nature demands that
it be done. Il on the other hand MS we
Honestly believe, they are true and suscep.
tble OF demonstration, the people who sui-
fer now, and will more seriously bye .and
bye, when the whole system explodes,
should note that fact and act accordingly.
Every farmer who sells dollars worth of
produce which goes into market along with
The produce of Iowa, Michigan, and Hi.
nois, States that have no banks, is interes..
ed in knowing whether the o,,eration of
our banking sy stem is such .as to bring
him into dfsadvantageous competition with
the producers OF those states, If so it then
becomes matter ofserious inquiry wheth-
er such q system should longer be tolera.
ted - ChslicotAe Adv.
The unsound condition ofthe banks in
1888 and 1889, became manifest, when, in
l843-44, resumption Of specie payments
became necessary. Under tha, severe test.
onl.. eight, institutions survived. Uf those
eight three have since failed, under dis
graceful circumstances. Under the law
of l845, two new systems of banking were
devised and their effects seem to have been
by parade OF sham security, to engender
| public confidence in Institutions which are
far from deserving OF it and these multiply
with rapidly manifest in the table -
| The bank circulation in Ohiois noao near.
| ly double that Of Neao Orlsams banks, ana
at exceeds the safe rass recognized By
paper money bankerS. as a basis for a
circulation, raz: three to one of specie
While the circulation OF the New Orleans
banks is as to II of specie, that of the
Ohio banks is as Al 10 Ii specie. In the
case of the New Orleans banks, moreover,
the money is loaned upon accredited bills OF
exchange, which are themselves money,
| forming the currency by which internation.
al commerce is conducted. In Ohio, the
! tendecy is rather 10 discount notes, for
goods purchased and sold upon credits,
which are gradully extending and becom-
| ing more hazardous. Adverse exchanges
mus; be fatal to such volume of credits.
Up to this time, the course Of foreign mar
kets is favorable to q continued health OF
the exchange; but the above table admon.
ishes.that the repleton OF bank credits in
Ohio is already producing its .legili-
mate results, in diminishing the specie
in the bank vaults. For the first time
| since the new banks commenced operations
in 1916, the return of specie shows less
ened sum on hand, while exchanges are
still in favor Of the east. TIE tendency
Of the initiation, as to precent ohio iron,
selling produce on as good terms as Mich
igam Illinois, or IoaUa aUhere the banks
do not eaist. A check given to Ohio ex.
ports will enhance the difficulty of collect
ing bank debts, at a moment when the de-
mands upon them for specie will be the
most urgent.
Calhoun'S Reply to Benton.