The weekly Lancaster gazette. (Lancaster, Ohio) 1852-1855, 1854-11-23
state Bank OF Ohio, and Indc-
- ncndcnf Banks. =

The law incorporating the State Bank I
Of Ohio was enacted in February 1916, and |
the following are the most important CON
di:ions contained therein, and by which |
may be estimated the strength and seeuri- |
| tyof the system, and its ability to sustain
itself against apressure in financial affairs
such as isnow prevailing over the coun-
try.
| The capital stock was not to exceed $6,-
$50. .0O0, unless some banks then in exis
tence were to continue, or resume business
under the provisions of this act. The
State was TO be divided into twelve dis
tricts, among which, the banking capital
authorized as above, was to be apportion-
ed.
The number OF banking companies or
, branches, il each county were designated
and no company was permitted to carry on
banking under this act, unless its capital
was at least 800. .000,nor to exceed $500
900, thirty per cent. of which was to be
paid in gold and silver coin, or their equiv
; alent, ,one half Of which to be in actual pos
session and bona jfde property. when COM
mencing business, the balance to bo paid
in ins.allments of ten.per cent every nine
ty days thereafter until all was raid in.
All notes issued by any branch intended
to circulate as money, shall be payable at
!: the branch by which they were issued. in
gold and silver coin, or either at its option,
upon demand. The amount of notes is
Q sued BY each bank shall not exceed, for
! the first 500, coo of itscapialor less more
r than twice the amount. On the second
d 100000 or less, not more than once and
j half the amount of that capital, over
100000 On tho third 100000 not
i. moro than once, and quarter that amount
d over 100000. On the fourth 100000
Is or part thereof, not more than once the a.
mount of such capital over 100000 and
Is on any amount of capital over $400, 900,
l. not over three-fourths the amount ofsuch
is excess
lie Before any branch shall receive or issue
le notes for circulation, it shall pay or depos-
IN it to the credit ofthe Board Of Control in
II money or certificates Of the stocks of this
st State, or the United States, at their cur
2, rent value in the city of New York, but
a ir no instance above their par value, an a
mount equal to ten per centum on the notes
IL for circulation delivered to such branch,
IL which shall bo denominated the "Sgfety
u Fund" to be held by said board in trust
Is. as q fund for the redemption Of the, notes
" OF circulation OF any one or more Of sale
,g branches that may fail to redeem its notes
II, The Safety Fund shall be invested un,
e. der the board of control, in stocks of thi'
nd State or United States, or secured on unin
at numbered real estate of at least twice th'
value Of the amount SO secured, and exclu
ie siye of buildings fixtures &C., tho amour
y ofwhich belonging to a failing branch shal
he be converted in:o money for the purpose
IS OF redeeming its notes before the part o
on the fund belonging to other branches is 81
en- applied. Each branch shall contribute, IL
he the ratio ofits circulation to the sum neces
or sary to redeem the notes ola failing brancl
es on a requisition from the board of control
ed If any branch refuses to redeemits note
ut it shall be deemed insolvent, and its asset
IS. OF every description shall be vested in tn
on board Of control, which shall immediatel,
wv provide money for the redemption Of it
is notes, and place the same in the most con
nd venient solvent branch or branches, Civ
or notice in newspapers, DC.
ur Each branch shall receive at par the note
of the Independent banks authorized b.
he this act, and also, the notes of any othe
lis branch of the State Bank Of Ohio, in pay
nd ment Of debts, bills Of exchange and othe
in evidences Of debt, discounted or purcha'
ay ed.
his During its existence, several branche
to have failed but their issues have bee
The promptly redeemed, and the public ha,
of sustained no loss therefrom. It's presei
Of condition, 90 far as we can learn, is
rer healthy asat any period Of its existence, ar
unless public confidence in banking is e
tircly destroyed by tho present panic,
will weather the Storm safely.
nat All the branches arc under the dire
hat ton of Board of Control" compose
re- ofone person appointed from each br.nc
m. who keep an Office in the city Of Colun
- bus, procure and furnish the branches vii
vas notes for circulation, and regulate the qua
Oy titles to be issued, from time to time agre
zen ably to tho provisions Of this act. TIL
res board also appoints agents as often as the
think proper, to visit and examine Il
condition Of the branches, and general
was to control and direct all matters Of impo
'ro- tance thereto.
itu- The strength Of the institution consis
de in the use and combination Of all its car
a. tai and resources, to sustain each and
'' its branches, and more especially in
KS Safety Fand. accumulated and secured
not before mentioned,
all The circulation fthe Independent Bank
ked established by the same law, is secured
the stocks OF this State, or the United Stat
and equal in amount to the capital stock paid
'ar- and deposited with the State Treasurer, al
YES the notes delivered by the State Treasur
TO such banks for circulation, shall n
, exceed the amount of stocks deposited
'he aforesaid, The Independent Banks a
has governed by laws similar to those that re
r Of ulate the affairs Of the State bank of Oh
the in regard to amount Of specie on hand.
IA , demption, &C., but are not governed by
y board ofcontrol."
'us' The circulation has the ordinary ass,
'ol- Of the banks for security, and in additi
,rd. thereto. dollar for dollar Of State Of Oh
or United States Stock, at its current, |
lear never above its par value.
TNsooorrr IA cK Erocv W. laarY e.,