Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1856-03-28
RANKING,

ana DrancneS. InlS DanK Is 10 De consul
tuted on nearly the same principles as the
present State bank, the place of which we
suppose it is designed to take. 1t is to be
under the control of central directory, at
Columbus. Branches may be organized
anywhere on complying with the provisions
of the bill No branch can have smaller
capital than 100000, one half of which
must be paid in before it can commence
business. Each branch is entitled to a cir
culation as follows:
On the first 100000 paid in, 5000, 900
On the second 100000 s175,OOO
On the third 100000 $I5o,OOO
On the fourth 100000 s125,OOO
On all over 100000 capital, the circu-
lation is only to be equal to such capital
The branch banks must take each others
paper for debts, and provision IS made for
the redemption of the currency of broken
branch by an assessment upon all the
branches.
The main features of the plan for indie
pendent banks are as follows: They may
be founded anywhere, but with notless than
100000 capital. They will be entitled
to receive from the officers Of State, circula-
ton equal to their capital, upon depositing
with the Treasurer of State, stocks of the
United States, of this State, of the States of
Massachusetts,, Indiana, Illinois, Kentucky,
Pennsylvania, Maryland, New York or
Michigan, to an amount equal to such cir
eulation; one half of which must be in the
stocks of this State or the United States
To this plan for independent banks we
have little to object. What we have to say
will relate to the Bank of Ohio. To the
incorporation of this bank on the plan pro-
posed by Mr.. Brazee, we have the following
objections.
l. The system is altogether too compE
Gated Mr.. Brazee has not yet learned that
the business of banking is, in the main,
simple thing; and that true policy requires
that this, and every other branch of legiti-
mate business, should be left to regulate it
self, with as few restrictions as possible
The business of banking no more requires to
be regulated by this bill of of II sections,
than the business of the merchant or manu-
facturcr. There is one point only where
special legislation in regard to banks is re-
quired, and that is in reference to their cir
culation. Inasmuch as their paper IS to
pass as money, and is to be received as such
by thousand, who neither do nor can know
anything concerning the solyency of the
banks, therefore that circulation ought to be
amply secured. Beyond this the II sec
tions of this bill are legal trumpery. We
did hope that the average intelligence of
this State, not to speak of the superior wis
dom which is supposed to be collected in
the legislature, had arrived at that stage
of advancement, that the old tinkering sys-
TEN oflegislation in regard to banks would
be given up; but here We have it all over
again. Will not some senatorof good sense
introduce bill that anybody may go
into the business of banking, with q
capital say of not less than $4,000, pro-
vided that the circulation shall be secured
as this bill proposes to secure that of the
independent banks.
2. We object farther that this bill is so
so constructed as to throw the whole bust
ness of banking into the hands of few
leading capitalists; and experience has
abundantly proved that these are not the
safest hands for the management of a bank
ing system. The capital of the branch
banks is fixed at too high figure. Men
of moderate means are not likely to engage
in the business. Further, men will not be
in haste to embark their capital in such a
system as is here laid down for the Bank
of Ohio, unless they can have leading in
fuence in its management The liability
for the circulation of broken branches will
and ought to keep men ofsmall means out
of the Bank of Ohio. The tendency, there
fore, of this system will be to build up a
barking oligarchy, under whose financial
rule all the interests of business will be
ground to powder.
8. We still further object that an unfair
advantage is given in this bill to the branch
cs of the bank of Ohio over independent
banks. An Independent bank must pledge
stocks to an amount equal to its circulation.
A branch of the bank of Ohio, can receive
a circulation of 100000 for 100000 cap
! ital paid in. 1t needsno argument to show
that this is greatly in favor of the branch
bank. If VIC are to have an old fogy sys-
tenn of banking, let it at least have equality,
to recommend it.
4. We object again that the name, "Bank
of Ohio" is a swindle. 1t is manifestly in
intended to carry the impression that it is
in a proper sense a State bank; that is, that
the faith of the State is pledged for its Is
sues. The same fraud attaches to the