The Tiffin tribune. [volume] (Tiffin, Ohio) 1848-1859, 1858-01-01

IL will be seen from the above statement, that
the condition Of these banks. so TAR as il Is test.
ed by comparison Of specie aud other cash
means with immediate liabilities was stronger
~ November than II had been ia August The
laws under which these institutions we're or
gained we're framed with especial reference TO
the security Of the bill-holder. All the branches
Of the Stale Bank are made sureies f,r the cir
culdtion Of each and the convertblhty Of tho
noies OF the others is required TO be guaian tied
by pledges Of State or United States bonds
These salulary provisluns have protected the
people against serious losses from depreciation
OF The notes OF the hanks organized under them;
aud IL s highly eteditable 10 their management
that they have passed through the recent crisis.
made doublY perilnus to many Of them by the
emhezzlement Of their cash balances aud col
lection bills at New York, without suspension
Of specie pay ments
Still, is cannot be denied that the danger Of a
general suspension has been Imminent, or that
some of these institutions have actually been
IN condition Of legal, while others have heem
10 Condition Of virtual suspension. These
facts must necessarily direct your attention to
the Legislation necessary 10 protect the people
against the hazard Of 80 great an evil.
How Tar the provisions Of the charters Of the
Banks organized under the act of l845 will ad.
init Of additional guards against suspension, il
matter Of doubt. The decision of the minority
OF the Federal Supreme Court, that the chart er
OF Bank by Legislative enactment is a con 10
tract and cannot therefore be modified by sub
sequent legislation, makes the reformation ol
evils IN credit currency always difficult aud Of
ten impossible.
AZ the present moment however, it seems moi
"probable that IN act might be framed accep-
table to these institutions aud beneficial 10 the
community, by which a much larger specie ba-
sis would be provided for circulation and depos.
its than Is nov required aud other additional
securities obtained against suspension.
The act Of 1851, under which the other Banks
are organized, is amendhble at the discretion Of
The Legislature. Their circulation is secured
by the deposit Of equal amount in Slate or Fed
eral Bonds. II Is PLAIN that IN a financial cn-
sis. when bonds Of all descriptions are deprecl.
aied. this security becomes spadequaio / rec
ommend the provision OF adequate guards
against such contingency by an increase O
the proportion Of bonds 10 circulation, and by q
prohibition Of the deposit of any other bonds
than those Of the State or Of the United States.
The experience Of the last few years has dem
omstraled. how ever, that the greatest financial
disasters 10 Ohio have not been occasiOned by
legally authorized banks Of issue Most Of the
calamities which have recently fallen upon the
business community Of this Slate, have oriRina-
Ted 10 The failure Of private bankers aud of The
Trust Company, issuing no notes Of circulation
Many OF the6e bankers, aud perhaps the Trust
Company also. however, we're borrowers, from
hanks outside Of the State. Of foreign notes. al
low rates Of interest, TO bo circulated in Ohio,
and redeemed, when returned 10 tho issuing
banks. by the borrowers. The effect of these
arrangements was 20 introduce into the Stale a
mass Of foreign bank paper which expelled
from circulation not only nearly all the coin.
hut also nearly all the notes OF our own banks.
and exposed the community TO great ineonyeul.
ence and loea. suggest the expediency Of So
modifying the act Of February 24lh, 1888 rela-
ting 10 the circulation Of unauthorized ba, ne
per, as 70 prevent eiieetually this mischiei-
Additional protection 10 the business communi-
~, % we'll as substantial benefits 10 the sound
aud etrong banks themselves, would result from
The establishment " a Clearing house 10 Oin-
ciunati for the banks ofoIIb, KedIncky and
Indiana, either thrpUgh nni0I. tciion II
the lnstito1iobs eopce urteni
legislation Of ~
Ia formor Dh % General
Assembly, wb. ing the q once Of
mixed currency 6Oin and con uDies
and the impfobah|hty that ntiraly
Of coin viii bo soon adopted IbfFy, j
expressed my own opinion 0IA cufreD.
ey Of coin loF ordinary tranaaollons. and Of
large notes for tho convenience 81 commerce
and at the same time urged the necessity Of tbs
mnet stringent legislative gu6rds against sue.
pension oi apecie laymonia aud against q ,ner,
papsr money system.
eahsaqusut iefeo.ion and observation have
aanAsne4 ~ - tAaal viaua