Dayton daily empire. [volume] (Dayton [Ohio]) 1850-1865, 1859-09-20

while the Democracy utterly refuse 10 make
them q aoun1 ding 17etem, by which d.
per money cth oonvol "A into specio AZ nc
viii Of the holatrs, tht3 neveItheleas, pro
pose % compel sm 70 fty millisns OF taS6s
In gold apd ~ --Qa8lle % ~,
The above win do for buacombe, and NAY
be considered pretty good effort to divert
the mind from the true issue but we are
not now making banks neither Is that the
question before the people; we have the
banks already, and plenty Of them, and can
have more under existing laws, if We need
them. Win We sustain the present banks,
and put Osrselyes in condition to have
more, and enable them 10 supply US with o
currencY1 Thatis is the question now before
the people, and all the Lincolns Of hi,
noia, or the old fossil Whigs Of Ohio, With
all the speeches they can make by day OF
BY night on Negro Sovereignty from now TO
the second Tuesday Of October 1859, win
not lull the people into astultihcatiOn on the
Question now before them. And the best
and shortest way to contradict the repeated
assertion Of the Opposition about the De-
mocracy refusing 10 make safe banking
system, aud not making banks ,nOugh, Is %
give synopsis Of the banking laws now in
force, which will enable an honest constitu'
ency to see whether the bowling for more
and better banks is real or fictitious.
During the session Of ls44-5, the Legis,
lature passed an act 10 incorporate the
"State Bank of Ohio, and other banking
companies" the law to remain in force for
twenty years. r eas .
The State Bank system is managed BY q
Board Of Control consisting Of one member
elected by each Branch, which Board has
the supervision Of oil the Branches furnish.
es the notes for circulation, and decides on
the amount to be furnished from time Ia
time; has power by committee or special
agent 10 inspect their books and reduce their
circulation. 30. The Board is organised BY
;, 10 President, Vice President and Secretary
aud exercises Legislative aud executive iutis,
dictiOn over ali the Branches
Although this is called the State Bank ol
Ohio, it is not a State institution in fact the
State having no stock in It nor has she ans
: control over it, except that the Auditor
Treasurer and Secretary of state, act rs q
Board of Bank Commissioners, but exercise
no contro! over the institution, nor is there
. parent Bank. But their circulating notes
are secured to a great extent, by their pc
culiar organization; and by Salty Fund
paid over TO the Board Of Control, Of ter
D per cent on the amount of the notes deliy
d cred to them for circulation, besides this
each Branch is required TO contribute in tht
b. ratio Of the circulation IN which she is en-
titled, 70 the sum necessary for redeeminI
3 the notes of failing Branch. The law bene
a fits them in their circulation to double tn,
A., amount Of capital stock actually paid in, ex-
elusive of the Safety Fund
There is another system embraced in thi
r act known as the "lndependent Banks.'-
- These banks have no connection with tht
State Bnnks, nor with one another, they ar,
independent in every particular, save tina
they are bound to receive at par, the notei
= Of circulation, issued by any other indie
{ pendent bank, in payment for debts, if thu
, bank at the time shall redeem its notes il
gold and silver coin.
In order to SECURE the people against loss
3 es by the circulating notes Of these banks
I. they are required to deposit with, and trans
d.. fer to the Treasurer of State certificates o
: the funded debt of Ohio, or of the Unite,
!, States, who will in lieu thereof, deliver t,
i such bank notes for circulation to any amt
r not exceeding the amount of certificates 8,
a deposited; and at no time shall the amour
of their notes exceed more thon .hre 9 time
the amount of capital stock actually paid in
1t is plain that for every dollar these bank
} have in circulation, the Treasurer OF Stat
, holds an equal amount in good stock, in hi
right for the redemption of these notes :
There was another law passed in the sessiol
of 1S50'l, entitled ian act to authorize Ere
: Banking" These banks are known as tn
Free" or Stock Banks,n of which ffteel
or more, have gone inte operation under thi
law. Their circulating notes are also secur
: ed by the deposit of State of Ohio, or Unitet
States Stocks, with the Auditor of State
r who furnishes the plates, prepares and de
, liyers to them circulating notes to an equa
amount of stock SO pledged for their re
demption. Sixty per cent of the capita
d stock must be paid in; must DO in posses
d sion and bona fde the property of the banl
independent of the Safety Fund. The stock
, holders are liable, in their individual capac
ty, to an amount equal TO the amount
+ stock owned by them respectively, If
bank should at any time, suspend the pay
= ment OF its notes in coin, she will subiet
herself to damages, in lieu of interest,
. htteen per cent per Annum, during th
e time OF suspension, upon the notes
2 circulation The stockholders are ais
q held liable, in their individual capacity, fc
all losses sustained by the note holders,
I consequence OF the banks purchasing the
u nstes at any time below their par value, t
N gether with a penalty of twenty-five d.
! cent. upon such loss The Directors al
personally liable in their individual oapacii
II for all losses sustained by the public in cor
% sequence of aYiolation of any of the priv
o leges granted them by this law The 4ud
!, tor is authorised within twenty DAYS after
! bank fails, to dispose of the stock deposite
. and redeem the circulating notes.
1t 1t must be admitted that two of the
.e banking systems are fixed upon basis thl
!. no loss can possibly be sustained unless the
. should be a very sudden depreciation
= pledged stocks, which is not probable; n,
D. s there any danger, with State Bank syster
u unless an utter disruption Of confidence j
Il 4 the system itself and those connected vii
Il it, in one another should occur
! Now, it is plain that il is not true that '
have not, or cannot have banks enough III
der the present laws; nor is it true that Il
!, SYSTEM is not sound; but is true that the
banks are harrassed by set of money shar
who hang around like leecLes, sucking q
g life blood out of them from time to time
] his notorious that the banks cannot issl
: their own paper to an amount so as to ben
j. Rt the community, under such embarras
ments, and the question is simply thi
! Shall the banks be sustained, or shall Il
: Insurers be sustained7 Will the people ohool