The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1852-01-24
Our Banking System.

the state, "under the general banking law, as
they express it. The State Register saws at
seems that the construction the bankites put up
On the law row is, that deposites OF stocks are
necessary" These companies are organizing to
bank On foreign bank paper altogether. We are
told Ivy the wing papers that one Of the chief finer
its of the rag scheme was to exclude the foreign
trash" yet it now appears THAT such only is to be
the basis Of banking. When is the good time
Of seren per cent IA mechanics paper to com
nlence In Gloje.
The Free Trader, upon several occasions, cx-
posed this feature Of the Bank Bill. We always
con,ended that the law expressly provided for
two classes Of banks oas. to be founded upon
public stocks, which were required TO be dcposi.
ted with the Auditor for the protection Of the
bill holders, before any banking business, could be
done; and the oiher, having no basis Of security
understanding no protection to the bill hold
er except the 'honor" or individual liability OF
the stockholtlers' To show that such were our
views, we refer our readers to the Free Trader
Of the s0tt Of last August, where, iii an article
upon the insecurity of the so much Landed stock
security system. Of banking, in New York. heat.
VI DAHh LAW, iottoWWS VIII iouHu
I'VE copy few paragraphs for the benefit Of
those Of our cgel gentlemen who, at that time
,idiculed the Interpretation We gave Of the law;
The banks under our law will not be required
to give even this state stot Ks security for the
redemption Of their bills. We have read The law
carefully, aud eau ind in IL no PROVISION RE
CURING ALL BANKS IN THE STATE TO SECURE THEIR
CIRCULATION BY PLEDGE OF STATE STocKs. Any
banking company or individual banker deposit.
ing stocks with the Auditor shall be entitled to
receive bank bills TO the amount deposited &c;
but they may issue Asi, em hook and se-
YER DEPOSIT A DOLLARS WORTH OF
STOCK WITH THE AUDITOR The law was
framed by Chicago men, who kept ,t in charge
up to the time Of its passage through the legisla
ture, and seems to have been especially framed
for the accommodation Of George Smith. The
adoption Of The lar By tie peosie WOULD LEGAL
izE SMITHS BAsK without his taking another step.
His circulation would ut once be lcgalized al.
though without dollars security beyond the
honor Of George Smith. The same would be
the case with Burch's bank and even that baldest
swinde the Southwestern Plankroad Company
rhinplasters.'
In our paper of the 27tn Of September last
We again alluded to this feature of the bank law !;
the same, on the LIST Of November. And in
CIRCULAR" addressed to the voters of this coun,
ty, published in this paper, and also in "extras,"
over the signatures Of Richard Stadden, VIM
Barber, and James McBurney, just before the
election the following ground is taken:
I'VE hold that every section Of the Act has a
SPECIAL reference to the advantages Of the Bank
,r over tho bill holder But the trainers of that
act haze been quite careful to give full and
complete charter to system of banking cren
,oora than the old via ca. Charters Of Uichi
gan. Should tho act he approved of by tkGQso
gle, and become the law Of tho land any m
Of persons may associate Themselves tog
provided for in the 9th 9Th and 9th scc q
the act, and Cause 10 be printed or engrdrcd b
o~n bank notes. and pat them in cireaiati1|5oe
money, INDEPENDENT OF ANY STOCKS DErosf1e1
vwnu 1ur AUDITOR, or rithout any security vhat.
'era. For the truth OF this We refer you to the
setitsslf"
They then quote The Law and demonstrate beyond
dout. that the position assumed is the true one
-taa. the law did actually provide for two kinds
oft~ssg one uponsta or U. S. stock securi-
ties, and Che other upousHo securities whatever;
aud which was one of tie wors, systems ever i'm.
posed upon aey people.
Many Of our wise heads upon reading these
articles ridicued ciem--said the construction 81
ven to the law was too Ear fetck(l, and that no
court would hear to it. Even intelligent demo
crats--such as boosted of having been born
IN the democratic faith, and lived in it for over
half a cen,ury--took sides against US; they
could no, understand the law in that way. The
fact was. they had never read the law. They are
obliged to understand it in that way now whether
they read the law or not: and We should like to
ace the court that would call this construction"
into question, or "too far fetched
The Free Trader was the only paper in the
state that took this (thc correct view Of this IN
Infamous Law. Although orr articles were fepub'
lisbed in q nuwber Of papers throughout the
state, none Of those papers ever pursued the sub
jet any further.
Now, then, since the practical operations Of
the law have proved that We were right, We
would just remind those who opposed us, that,
although they trumphed at the polls, they have
saddled upon the people one Of the most corrupt
infamous systems Of swiudlng that ever
cursed q state And the worst feature Of all is,
there is no escape from it--no way provided for
its repeal Every bank started undor il is chart.
cred for twenty-five ycars, md can carry on its
operations fo,- that length Of time, independent Of
any action Of the legislsturc and then commence
anew again, while new ones, meantime, can bt
startsd every gear.
We hope those honest mechanics and laborinl
men, who supported this law because the,
thought Il would drive ost tho foreign pape
with which they imagined the cosntry was food
sd and Gil up it, plaes with alargcr supply ant
Of better quality 81 our own, will got abundant
" rich from the doods Of Wild Cat and Re-
Dog that are daily pouring IN upon US from ON
own splcndi system of Tree banking '"but