Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-06-04

fraudulent con veyances to save something for
fsriag families and the country is demoralzsds and
the land SLED with litigation, fraud, and perjury
Let it not Be said that such extreme cases are
rare The system may work out such results st
shy time, for We know that there is not bank in
Tennessee but what has been suspended and all the
old ones mere than once; and We know that the
amount of paper currency in Tenasssee in 1885,
was about nine millions, and in the following year
four, and nothing but speedy recovery secured
the country from the most disastrous results.
In 1870 there were thirty-seven banks in Ohio,
with capital of $500, 900; in 1886 there were
only eight banks. with capital of s. 1900
Homans ooi ., p. 1853
What the actual change in the circulation was l
have not The of ascertaining but it resulted
in the most extensive injuries to the people of that
State There is now not single bank in existence
10 Ohio, which was authorized prior t. 1916. These
disasters worked out legislative results. In 1916,
they adopted the system of requiring each bank to
pay given sum to redeem the notes Of broken
banks; aud not being satisfied with that, they
adopted the system of free banking, subjectipg
bankers to personal responsibility, and requiring
security. They therefore determined that bank
notes should not be issued unless they were based
on real available capital. placed in the hands of
public officer TO make IT certain. Nor was this all
For the frs. time in the history of the Stale, they
seemed to have walked up to the idea that it was
necessary to have some money to bsss notes on !
that it would not do to trust banks With discre-
ton as to the money they should keep; that banks,
regarding specie lying in their vaults dead stock,
would keep none il they could avoid IT. The law,
therefore, required them to keep 80 per cent of their
circulating notes in coin, its equivalent, on de-
poste in eastern banks, the last however, enabling
the banks to evads the Law, and keep not q dollar
! of specie whatever 1t was, therefore, in meas-
urs worthless, though it indicated a correct view
and purpose.
During the progress of these changes, the Stale
had controversies with the banks to the power Of
TIE legislature to alter their charters, cut off small
notes, and sstO the power TO tax them. The loss by
banks, the resistance to the public WILL the runous
fluctuations in the amount end value of The curre1-
cy, induced the assembling of g convention to amend
! the constitution.
| A convention was called in 1851, and that con-
vention declared
1st The General Assembly shall pass no special
| acts conieIrng corporate powers.
| ID. Corporations may be formed under general
laws, that all such laws may from time to time, be
altered or repealei.
Cd Bues frum corporations may be secured by such
Individual liability, and other means as msy be pre-
soribed by Law, but in ali cases each stockholder
| shall be liable ever and above the stock owned by
him or her to farther sum, least equal in amount
| TO such stock
4th. TheprOperty of corporations now existing or
hereafter created, shall be forever subject to taxa
ton, the same as the properly Of individuals
The hftA provides for the payment for real estate
taken by corporations.
9Th. The General Assembly shall provide for the
organization of cities and incorporated villages by
general laws and restrict their power of taxation
borrowing money, contracting debts, and loaaiDg
their credit, 80 as TO prevent the abuse Of such
power.
9TH No act Of the General Assembly authorizing
associations with banking powers, shall take effect
until it has been submitted TO the people at the gen.
eral election next succeeding the passage thereof
and be approved by majority of ell those voting
| at such election"
30 the State Of Ohio has redeemed her sovereignty
from the domination Of corporations; she has res
Cued the taxing power from sale; she has cut up by
the roots the system of corporate monopolies, and
charter contracts and left the legislature free to
correct abuses, And she has laid down the princi-
pie Of legislative determination as to the amount of
specie bank should keep to make its paper con-
Vertible Ohio has, therefore, done something in
the way of averting corporation abuses
1 shall notice hereafter the Law suit between The
State of Ohio and the bank corporations, on the
subject of their exemption from taxation.