The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1858-01-13

/, JANUAkI Is, 1905.
The act of 1851, under which the 9th.
|er Banks are organized, is amsudabls ct
the discretion of the Legislature. Their
circulation is secured BY the deposite of
equal amount in State or Federal Bonds.
It is plain that in financial crisis, when
bonds of oil descriptions are deprecated,
this security becomes inadequate. I rec
emmend the provision Of adequate guards
against such q contingency by an increase
Of the proportion Of bonds to circulation,
and by prohibition of the deposit Of any
other bonds than those of the State or Of
tho United States. ssrr,5...s
The experience Of the last few years has
demonstrated, however, that the greatest
financial disasters in Ohio have not been
cceasioned by legally authorized banks Of
issne. Most Of the calamities which have
recently fallen upon the business commu-
nifty Of this State, have originated iu the
failure Of private bankers and Of the Trust
Company, issuing no notes for circulation.
Many Of these bankers, and perhaps the
Trust Company also, however, were bor-
rowers, from banks outside of the State,
lof foreign notes, at low rates Of interest.
lsc pee oe circuia.eo VIA IL Onlo' sno .soesnso'
when returned to the Issuing banks, by
the borrowers. The effects Of these ar
arrangements was to introduce iuto the
State q mass Of foreign bank 3hper which
expe'led rem circulation not only nearly
ail the eoin, ops Also nearly all the notes
OF our o"h oaa.s' sno exposed .ne con-
"n.''y 20 great 'ncenssnlenes ane loss. :
Suggest tue e1Pediehsy OF 70 "oo!IyinS
the act OF February 14th, 1913, rsiat'ng
70 the eircuistion OF nnautnorizeo Da.k
paper a. 70 prevent euecssally tn's MIS-
chle1. Aoai'ionai protec.ion 10 the ousi,
ness community, as wen a. saostans,a'
oenents 10 tos soahd ana strong oanas
themselves. wonlo result from the estao-
iishment OF Clearing House 10 Cnc'n.
natl for the oaaks OF ONO, Aentncky ana
! INDIANA, eitner tnrongh the volen.ar! ac-
tioa OF 'ae An.s'tutlons concernsu' OF "
the concurrent rent ies'slla1lon oi the o.ates,
In former communication e 10 the uen'
erai Assembly, whiie aomittihg tne con,
venlence OF . mixed currens! oi com ano
convertible notes. ana sne i"prooaon.y
thai currency entirely OF com N'h Ds
soon adopted IN the count:' expressed
my own oplaion IN ia'or of 2 currency O
coin tor ORDINARY transactons' sa' ano o. 'arge
no.ss LOT ing eonven'snee = somns..
ano .. tue . saae .ims urgse sus nesess..,
oi tue Aoss s'f."sens ies''.."s kuH..'
against suspshs'on VI sPsc'o p@y u.e"''
ana aga'us' . nsse paper .olsy sy'.:m
i Subsequent reuecsion ano epssrvas'o'
nave confirmed me ~ .nsse views.
A ieading oo)ect 10 al !rtegulauon .
currency should be 70 secure the INTEREST,"
OF the masses OF the people, oy sucn pro
visions as viii ensure TO laoer Just com
) pensation in actual value. This canno
S DO sHscted while the laoorer is palo u
PaPsr' suole.sa ~ SYus'u1ou n.."c"
.no eAposeu - ~ 'Ao .A1a'u' ~ .uen''e
dlsorael. sd 4. I.
8 "nalsser can % consa.at'ou.'y e1sc1
Cd oy state lsgislas'on' towards .ne e1
cius'oa ol tne sma''er usnomIsa.on 9
notes lot cllea'asion, ana sns suoss'uao'
4 OF com 70 tneir p'ace, snouio % eArnes.'
sstemPtea. Ine auant'sy 81 coin n sn
! conn'r! = nov 90 grea', ana 90 s'eeal'
. increasing 'nas 40 nyuly ane s'.os' 8
inconvenience cosld arse % any interes
: from ludiclous legislation Tor this object