The penny press. [volume] (Cincinnati [Ohio]) 1859-1860, 1860-02-11
Mechanics' and ManufacturerS Ex-
change Report Of the Committee
ON Banks and Banking.

Mechanic' and ManufacturerS Ex-
change Report Of the Committee
ON Banks and Banking.
The attendance st the Mech2nics' and
Manufacturer Exchange was remarkably
large, yesterday morning, and q more than
ordinary interest was manifested In the pro-
cesdings. President Runysn occupied the
chair; and, aftefthe minutes of the last meot-
ing had been read and approved, the follow
ing new members were proposed and
elected: ]. e.. Durbeck, coal-oil manufacturer,
proposed ,by Howell Il Evans. John Mack,
car-wheel manufacturer, proposed by II. II.
Corwin. Daniel Dash, bricklayer, proposed
by D. NJ. Fisher. P. Evans, jr., variety ma
chine works, proposed by ]. B. Elliott. W.
w. Cones, iron fOundery; J. A. Diet, same;
Washington Kemper, plumber; w. GlenDy,
druggist; proposed BY g. W. Runyan. Cow
Il Sharp, hose and belt manufacturers, pro-
posed BY J. B. Heich. Walters q Wilson,
architects; Graveson 4 Co., stone cutters; pro.
posed by ]. & D. Dscamp. Messrs. Asbury
& Co., ice merchants; proposed by G. W. Run.
yam. af flz
Mr.. Pierson then introduced to the Ex.
change Mr.. 8. 8. Rowe, who read the follow
ing paper on banks and banking:
"The Banking Law Of 1851 Is still.in force.
This 10 the law under which the Ohio VALLEY,
Bank is working, but inssmuoh as It has neve<
been very generally adopted in the State,
suppose 1t can not be considered 90 very
practicable System.
awe can not have really good working
banking law in Ohio until the constitution Is
changed. At present majority Of the votes
cast at any general election, where the lawis
submitted to tho people, must be expressed
directly in yfavor Of the lao--thus, if 100000
votes be cast, over so 900 must be given directly
in It's favor, and, although there may be no
nays, o neglect to vote being counted as against,
| 1t Is scarcely possible to obtain the required
number. If this provision Of the constitution
were SO amended that majority of the votes
| cast directly on the proposition were sufficient
to make the act of the Legislature become the
law, COED working general banking law could
be enacted, secure In all respects to the public
and profitable to the bankers; but pretty fair
law has been twice defested by the indiffsr-
ence Of the voters as to Its fate or their neglect
to vote at all. It would take an immense
amount Of labor TO so bring the subject before
them as to induce all to vote directly upon II
yea or nay; whereas II this provision Of the con-
Stitution were changed, / have no doubt that
good law might be passed at any general
election. l.tl
"My own theory, however, is, that we can
never have banking done on specie basic,
while the Legislature insists on either moor
porating banks ,oitb braaches, or prescribes
that notes issued by one bank, under any sys-
TEN, shall be taken at par by any other, un-
less such banks aro forced to redeem at par at
the commercial center Of the State, as we'll as
at their own counters. No bank in Cincin-
natl can even pay out its own notes OF its own
counter, while 1t Is compelled by law to take
the issues Of banks situated hundreds of miles
away, and very frequently at very inaocessi-
Bile points. The defiant issues will always
drive out the near ones, and currency becomes
the standard, and city notes and specie are ct
premium. If any one wants to see the legit.
innate effects Of the branch system fully illus
trated, ho has only to look at St. Louis, whore
the distant notes form the bankable funds, and
those payable at homo are worth premium
of from to l u per cent. a.-A --i''i - ~
| "If this matter were left to the Law Of trade,
as it ought to DO, all tho Legislature would
have to do would be to take care that the
notes were vsll secured and promptly redeemed
at home, and then 1t would not matter to the
holder whether the other banks received them
at par or not; The discount would only be
nominal, just enough to cover the cost of COL
lecting, and in that respect would not cost
the whole community any more than IL does
now, and eventually would result in all the
country issues being made equal to specie in
Cincinnati, either BY the free action Of the
banks themselves, or by the fact that their
home to them with accelerated speed. The
banks themselves can alone judge Of what
they can afford to take at par with their own
issues, and are always disposed to be as liberal
as they can in this way, SO as to obtain more
business. The natural competition, the one
with tho other, to secure as large deposit
account az possible, will induce them to make
the range as wide as they can afford.
"0ur former general banking laws have, as
near as csn now recollsct, limited the CAP
ital Of banks doing business under them to
100000. can see no necessity for this, and
would leave that question entirely open.
do not see why they should not have capitals
ranging from that amount up to $5, 900 900, IL
they find it profitable to do 80. The Bank of
Commerce in New York has paid capital of
over So 100000 and the American Exchange
Bank $1,000, 900; and so far as can Judge,
and have carefully looked over their reports
for several years, neither the community nor
the other banks suffer any inconvenience from
their size. would also advocate that the
rate of interest should be raised to per cent,
instead Of 8 as heretofore"
The Committee on Banks and Banking
then offered the above paper as their report,
which Was received and entered upon the
minutes Of the Board; after which, addresses
upon this subject were delivered by Messrs.
Rowe, Vallette, Pierson and Latta.
Mr.. R. NJ. White then offered the following
resolution, which was unanimously adopted:
Resoloed, That the thanks of the Exchange
be rendered to s. s, Rowe, ESQ.,, for his valu
able paper, and that tho daily papers Of the
city be requested TO publish the report In full.
The Exchange then rendered vote Of
thanks to Mr.. vallette, and adjourned, to meet
/ ,tc,v ~ q L. II Ia,