Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1855-10-02

pei cent. would pmrly pay you for the
exchange on Cincinnati, and in tie
transoclicn YOU, might consider il as cx'.
change (,wo per cent. per nnnum.'
.Th. letter shows that my calculations
whn, banks are willing to pay fora circu'
la,ion whose redemption they need NOT
provide Tor, wpscorrri; and That was
Il shiir asserting ihet ii " no, the one
AMI half per cent. tax. but tho cost OF
frequent rc,!emp,ions which keeps our
banks from mainlaining home cur
rency.
However carefully covered over these
currency operations may be, BY making
them originally in the name OF the
officers and sto, kholdcrs as business
htms Of lfon,on, and calling them
deposits, the veil is too Thin to deceive
any person. The correspondence Of the
Bank shows that the Bank knows all
abou, The matter, and that it isprivy TO
this species Of illeglilna,r circulation,
and Il party to that general scheme
through which Ohio labor is deprived Of
getting good money for its prodLcis.-
The Bank (and the same may be said OF
all similarly si,uated,) has already
stretched its own circulation far beyond
safe Limits. Rather than make an effort
to Increase It's specie basis, currency is
borrowed abroad, which needs in Ohio
no specie basis, und Ohio labor and
produce is again obtained on a new cx.
pansion Of credit upon tho worst pos.
sible basis. Foreign banks are, through
,hi. policy recipients Of large amounts
OF interest from o currency which is sup.
ported from Ohio labor and projuce.-
The officers Of the OHIO Banks call such
transactions loans in aid OF Ohio bus.
ness. | call it loans by which Ohio
business is made tributary to o,her
S,ates-no legitimate bank should en-.
gage in them.
The general condition Of the Bank is
not very satisfactory. There are but lit.
tie over S25 900 Of Immediately availa.
bic means TO NEE, 100000 Of ;mmcdi.
ate liabilities. There are but few notes
payable Il, the counter Of the Bank, and
the frequency with which the bills re.
turn home protested" suggests that
there will not be much aid from that
source. ! am aware that the directors
feel this, and that they have paid most OF
The more urgent dep0silors, and arfang'
ell matters with others, so az 10 ward oil
any immediate danger; but it will not
lake many drafts for specie--a thing not
at all unlikely since the river is now par
TALLY open-to drive the bank into sus'
pension. The financial crisis has exis:
ted for some time, and the Bank evident.
| ly does not grow stronger, although its
discounts have been very restricted. In
ordinoIy times j, might be easy TO wealth
er all these difficulties, and perhaps this
will be the case now, but in view Of all
these laets, | canno, place this Bank in
any other category than that oil No. 3, IN
my general report.
The capital of The Bank nomlnally
paid in is about $s5 900. But If We de.
iuc, from this the premiums paid for the
stocks deposite'l with the State officers,
$s,COO)--the personal property, (Sl,.
OOO)-which should be charged away in
the expense accountable probable loss
from the Railroad bonds the Bank holds,
and also the probable loss from suspen.
ted bnrks and bankers, and the "uncur.
rent lunds," and the actual capital will
moi be much above $4,000. doubt
whether the bills discounted will be
paid at maturity, and whether ltey will
ultimately be collected. The returns
from them will at any rate be sluggard,
and they will all be rceded Us fast as
they accrue to keep even with deposilors
and note holders. Under these clrcum.
stances it was bad policy, if it does mol
deserve a harsher term, 10 declare five
per cent. dividend OIL the first Of this
month. The directors who declared il
own $4,000 Of the stock, and the Cash
ier WHO doubtless advised it owns S34,
) 900. The dividend was an unjuslifa.
BILE withdrawal Of means at this time
which knowledge Of the condition o
the Bank should have forbidden. There
we're in fact no profits to divide.
examined very carefully, as usual
the discount regis er Of the Bank. In i
the interest charged, and the fees 70
Z collecting bills are kept in the same col
umn, so that it is not very easy 10 deter
mine whether interest merely, or othe
I usurious charges heye been made; bu
! take the charges altogether, and ! hav'
4 no hesitancy in saying that more i
. charged at discounts than is legal o.
y customary. lmade the Cashier embod
. few cases out ofmany 10 his stateme nj
e and you may there see for yourself tha
> one half per cent. was charged in addi
. ton 10 legal interest for discounting Ney
\ York bills. This is positive vioIalio,
Of law and usage. Icould find but fe,
= notes payable at the counter Of tn
$ Bank, but in every asceryaned cas-
more than legal interest was charged. :
:. On noIe for 81, ,l03, having l44 days t
. run, 500 o. was charged, being doubl
4 the legal interest. On q note for $l39
i having 80 days 10 run, 81 O6 was chars
ed, being about nine per cent. | ais
G made calculations OF many bills di.
' counted on many places in the Wes
o and though | do not pretend to hav
u calculated every case, yet have n
:, doubt that the charges we're made arb
e trarlyin every case, and that in every iG
stance more was charged than law an
n usage will allow. The very ruar,le