Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-03-11

LII. Bishop. so 5,0O(
s. H. Mann, New York, $50 25,OO(
Total Capital, s5O,eOC
And on the Ist of June these stockholders me
and elected E. F. Gaylord, President, s. H
Mann, Secretary, aad then Resolved that the
Cashier be directed to make such provision fol
procuring Ohio State Stocks in conformity with
the act OF incorporation, and that he also make
such further financial and other arrangements
for an early commencement of business, as he
may be able and as he shall regard necessary
and important to promote the interests of stock
holders"
A code of by laws was also adopted, and on
the same day the stockholders swear to the ne
cessary legal certificate, and on the next day
follows that of the directors; which is again fol-
lowed on the succeeding day by the following
article in Cleveland paper
NEW BANK
"The Canal Bank of Cleveland was organized
in this city on the Ist instant as an independ.
ent Bank, with Capital of $4,000. The fol-
lowing gentlemen were elected and will com
pose the Board of Directors and officers for the
coming year.
Here follow the names already given above,
and then says: "The amount required to be
paid by the Act of incorporation has been paid
in Gold and Silver Coin. Arrangements were
made to organize the Canal Bank with Capt.
tai of 100000, but owing to the unsettled state
of business, it was deemed prudent to reduce
the amount to $50, 900.
"The direction of the Bank is in the hands
of several of our most active and careful and
sound business men; and we trust it will prove
a valuable auxiliary to the interests of commu-
nifty.
We have seen proofs Of the notes engraved
for this bank by Messrs Danforth, Spencer and
Hubby Of New York, and consider them exceed
ingly beautiful. Having compared them with
the notes issued by the other free banks, we re-
gard the work incomparably superior to any
thing of the kind, that has yet made Its appear
ance among US. We understand this house
was employed to do this work By special re-
quest, and the result has shown, that competi-
ton in bank note engraving is highly important
to secure the public against the issue Of coun-
terfeit notes.
In all this there is not one word of truth, un.
less it be fact, that the plates for the notes
were then already prepared; fact, that would
90 far to demonstrate, that Mr.. Mann had been
to Columbus, had seen the State Officers and
that they were priVy to his programme Not
one dollar of either gold or silver coin was then
paid in, and every stockholder was only nomi-
naily such
The testimony of Mr.. Gaylord, which follows
this as Document No. proves this conclusive
ly, and so do the books in which there are no
entries until July 9th, 1876, and the entries then,
look only as if $4,000, had actually been paid
in, while such is not the fact On that day,
Ansel st. John having become stockholder in
lieu of Mann, paid his first instalment on his
stock by a credit on Goddard d St. John in
Philadelohia, which credit really never was
drawn for, under arrangements which will here
after be fully explained.
During the month of June, nearly all the
stock of the bank has passed to s. II. Mainland
in July his stock, (S9O,000) is transferred to
Ansel St. John, and the above credit of$l0, 900,
being as we again would state, but q nominal
credit is the first payment on the stock. This
credit was on his own eastern house, and that
house really was the stockholder and A st.
John Is for it the imam of straw" as S. H.
Mann is for a. st John, for whose benefit he is
also Cashier, without any stock of his own
A. st. John came originally from Cooperstowu,
New York, and was afterwards connected with
the Susquehanna Bank d Delaware Bridge Com
pany, both exploded banking institutions
Neither were the $1,000 paid in, in fact, as
the cash account shows, that the only cash paid
in was deposit of SIS 900, by Mr.. Weddell of
Cleveland, not stockhoIder, the other $1,000
being in the bank only as stock notes. The
whole arrangement being this: s. d. Mann is
sent by Goddard and St. John of Philadelphia,
to Cleveland to start bank. He finds there q
few patriotic men blind as bats in their devo-
ton to paper money; and more than willing to
serve their country in supplying it with bank
capital. The bank is started, the charter se-
cured and publication made of the fact, and then
the Cleveland stockholders transfer (retaining
only nominal interest) their stock, to s. II
Mann, who, having secured the cashiership,
transfers it again to A. st. John, who represents
the eastern house. Thus the bank starts with
1000 subscribed, of which $4,000 or 80 per
cent should, under the law, have been paid In
cash; but, which is paid by credit as already
explained, and so far the bank is a mere skele-
ton of two entries, both of which represent
nothing.
Now comes q second operation. s H.
Mann, charged as he was on the first of June to
procure stocks, and to make "farther financial
and other arrangements" meets, either aeci-
dentally or by appointment, E. N Sill, Ohio's
great fnaneier, who, with ]. WhitehiIl and John
Woods, constitute the canal fund board of
Ohio, and without dollar of money, either
then in his purse or prospectively belonging to
him, he, or rafher-he having become bank
the Canal Bank-lends the State $4,000. No
money passes, in fact none could pass, as neith-
er party had any; but the bank issues certif
cate of deposit and the State issues promiso-
~ note, and two entries are again made in the
books, both again representing nothing
The bank had now made fair progress to
wards being bank. 1t had paper stockhold-
Il Officaro
''bills receivable" and paper deposits, but the
bank note plate with its beautiful engraving was
still unused, and a commerce hungry for paper
money remained still unsatisfed
| There are still no State stocks, and conse-
| quently no paper money-which is the paper
most needed after all. The fertile brains Of
Mann and Sill soon found remedy, and it COL.
sisted in placing with the promissory note 8
certificate of Ohio State Bank Stock for S2O,-
! GOO, as collateral to the note, This stock GER
tifcate went, it is to be supposed, to Treasurer
Whitehill, who understood the programme, and
becomes the basis for circulation. The note is
dated July 8; carries interest however, from the
lst of the month, and on the 10th of july the
bank gets upon this stock certificate SIC, 900 of
circulation.
The Bank has. July 26, ls4s, on its asset side,
Bills Discounted, being state Note with IN q.
EIpsases being or plates and fee ioi nswspa s'
Essen Tcha5ss, being the credit above ipo. III I
ken Of snd really due for stsrk 1000 %
fhs ast1s notes q he aE-. os q
SHIsoe. beng note. Of otH.i a1h. sfs sss e
T0aiOf s.ssII .
To stock holds5s. esPitsl stock. .,... sB.OOo 90
hese ;.s l2s5 q