Holmes County farmer. [volume] (Millersburg, Ohio) 1857-1926, 1861-01-10

and gold and silver their only currency, the prac
tical realities are before us We have banks
we have paper money. As n matter of fact
! banking Is but one of the divisions of labor int
which commerce. is subdividoh, and among ever
commercial people the business proper OF tn
banker is 40 indispensable as that of the shipper
transporter, or consgncr, in transacting the bu
sincss of the country. The practical q, estol
which addresses itself to the legislator is not
! shethcr the state may or may not dispense will
the use OF all banks, but what Is the best systen
or plan of banking for the people for whose inter
ests he is called upon to act, and how, and I,
what extent, should il be applied.
And so also of the currency of the State. Sc
long a. the people Of Ohio are in business con
nection with the people Of other States, we mr.,
and will be in the receipt and use of the issues o
the banks of other States which circulate Will
the issues OF our own banks, of which to the cx
tent OF their existence they take the place ant
become the substitute. The practical question
is not whether we are to have paper money, ol
gold and silver as the common currency Of the
state, but whether we are to have the issues o
Foreign banks, or of banks existing within on,
own State, responsible under our own laws, anC
regulated and controlled by oar own action. The
experiment has been tried not only in Ohio, but
in several other States of dispensing with bank
Issues under State AUTHORITY, with one uniform
rency, incOnvertbe into gold and silver, with all
the disastrous and dcmoralizng consequences oI
such currency. We should learn wisdom from
our own experience as well rs from the experience
OF other States in this matter At this very time
Ohio is suffering great inconvenience and loss
from the deprecated currency of other States
whose banks have suspended tire payment of spc.
Gle. Ii was to obtain relief from such currency
that our existing system of banking was estab.
thu ot ac ~,
Bank of Ohio and other banking companies.
It appears from the quarterly report of the
Auditor, for November last, that the entire bank.
ing capital OF the Incorporated banks of the State
is, viz: S5,S6l 1864
SO branches of the State
Bank Of Ohio, S4,104,500
independent banks, 532, ,2G4
II free banks, l,l24,6OO
The entire circulation at tire same
time was, viz: sa,634,ss
Branches of the state bank, 81 ,4O3,95
Independent banks, 5,5,6s5
Free banks, 655,243
This amount Of banking capital and issue bears
"A very small proportion, as compared with the
population, wealth and business Of this State, to
the banking capital and iss' cs Of most of the other
States, and, rs consequence, We find our def.
clency is suppIiedby their excess of issues. 1t is
hardly an Over.estimate to say, that the issues OF
pie OF Ohio, are equal to the issues of our own
banks, or about eight and half millions ofdollars.
Of this sum, very considerable portion consists
o. the issues Of banks which have suspended spe-
Gle payments, embracing the banks of Pcnnsyya-
mia, Maryland, Virginia, Missouri, and parts of
the Issues OF other States. All such issues have
deprecated in the hands of the people OF Ohio, at
least ten per cent, amounting in the aggregate to
several hundred thousand dollars. When it is re.
n bp tll nf ,ply
years ago, n like loss was sustained by the people
of this State from the same source, it becomes u
question OF serious moment to consider whether
any, and II any, what measures can be adopted to
guard the people from such frequent and heavy
pecuniary disasters. So long as the supply of r
cnlating notes issued by our own banks, is INSULT
cent for the transaction of the business of the
State, it will, in my opinion, be in vain to attempt
by Legislative enactments to expel the issues Of
foreign banks. The laws OF trade and the neces-
sites of the people will prove more potent than
statutory restriction and prohibitions. If the fact
may be considered as demonstrated, as | clearly
think 1t may, that VIC must depend chiefly for cur
rency for the business transaction oi the people of
the State, either on the issues of foreign banks,
or our own Sta e, think no citizen of Ohio can
hesitate moment as to which he would prefer,
and especially in view ofthe fact that while with
i'll three years, the banks of nearly all the other
States have suspended the payment of specie, and
many of them twice in that time, the banks of
Ohio have proved true to their obligations, and
equal to these tests of their strength, and now
command the universal confidence of the people
of the State. | respectfully submit for ,the con.
sideration of the Legislature, the question wheth
er any plan can he devised for the increase of the
banking capital, and consequent enlargement of
the issues of banks within our own State, as
the only practicable means of expcllng the issues
olforeign banks and protecting the people from
the manifold disasters OF q debased currency -
This question is also important in another view.
1t is but five years from the first of May next,
when the charters Of the banks Incorporated under
the act of February, lS45, will expire. This en-
braces the thrty-six bran hes Of the State Ban'-.
and the seven Independent banks, the circulation
of which being withdrawn, we would be practically
without an Ohio currency The State may follow
the example Of the General Government in re-
sricting the circulation and disbursement of its
revenues in gold and silver. But, after all this
Will be found to exert but little influence over the
great business interests of the people The fact,
then, of the near approach of the time for five
years is hut bricfperiod in the history of State
when the existing banking system will tcrmn.
ate, and in view OF the very important consequent
ces which must follow this event unless provision
be made in time to meet it, are sufficient reasons
for recommending this important matter to your
consideration. There is abundant reason to be-
lieve that large majority of the people are not
only satisfied with their present system of banking
but that they would regard it as u great public
calamity to see il pass ont of existence. 1t has
met its obligations under all crcums tances, main
tanned its credit, and furnished a currency at all
times convertible into gold and silver. These
are advantages which the people duty appreciate
and would very reluctantly iorego. With amend
mcnts to the system which may be deemed desir-
able if any, for the better protection of the cred
itors OF the banks, and, in terms, subecting the
property of the banks to n taxation equal to that
imposed on the property ofinliyiduals, ~ provided
by our Constitution, do not doubt thr system
would. during its renewed existence, give as uni
,crsal satisfaction to the people of the State aS il
has heretofore, and is now giving.
| again invite your attention to our Public
Works. During the past year the expenses of
that department have considerably exceeded
The receipts. This, it is said, is mainly owing
10 the extraordinary floods of April, which
caused mu damag to n portion of the works
The fact that for the last five years tho result
las been the same, has induced tho opinion
HAT they will continue a permanent tax so
ong asihcy are controlled by the State; and
\ feeling prevails to considerable extent that
he entirc interest ofthe State in them should
10 disposed of. There are grave con sidera. |
ions connected with this subject, which will
toub less, receive your careful attention -
That the people of the state will demand the
'ale of these works, when they become salts. |
led that they cannot be made self sustaining, /
think admits of little doubt.
l am not insenSible to the great advantages /
heSe works have been to the State, in dovcl. |
,ping its resources and increasing its wealth. |
Ihcy havo created far more capital than they |