Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1861-01-18
eoVERNoR,s MESSAGE
BANKS AND DANK1Na.

BANKS AND DANKING.
Tho subjects of banking and currency, ad-
dress themselves with equal force and direct
ness to the people Of the State. Whatever
theories we may entertain on these subjects :;
whatever ingenious and beautiful visions of
a people without banks, aud gold and silver
their only currency, the practical realities
are before us. We have banks; we have
paper money. As matter OF fact, bank
ing is but ono of the divisions of labor into
which commerce is subdivded, and among
every commercial people the business proper
of tho banker is as indispensable as that of
the shipper, transporter, or consignor, in
in transacting the business of the country.
Tho practical question which addresses IT,
self TO the legislator is not whether the
State may or may not dispense with the
use of all banks, but what is the best sys-
TEN or plan Of banking for tho people, for
whose interests he is called upon TO act, and
how, and to what extent it should be ap-
piled.
And so also of the currency of the State
So long as the people of Ohio are in bust
ness connection with the people of other
States, we are and will be in the receipt
and use of the issues of the banks of other
States which circulate with the issues of
our own banks, Of which, to the extent of
their existence, they take the place and be-
como the substitute. The practical ques-
ton is not whether we are 10 have paper
money, or gold and silver as the common
currency of the State, but whether we are
to have the issues of foreign banks, or Of
banks existing in our own State, responsible
under our own laws, and regulated and con-
trolled by our 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 result-the introduction of a
debased foreign currency, inconvertible into
gold and silver, with all the disastrous and
demoralizing consequences of such cur
reney. We should learn wisdom from our
own experience as well 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
the payment of specie. 1t was to obtain
relief from such currency that our exist
ing system of banking was established un-
der the act of 1845, creating the State
Bank Of Ohio, and other banking companies.
1t appears from the quarterly report of
the Auditor, for November last, that Inc
entire banking capital of tho Incorporated
banks of the State is, viz:
H1,ron tl,nc ctoNo D., nj.
independent banks. .--.-----. 6S2 264
The entire circulation al the same time
Branches Of the State Bank. s7,4oasSS S''O''''''
FTesp FI4pspf&Gdn, Banhs DanA' ...:. s5Ss9s s5Ss9s
This amount of banking capital and is,
sue bears very small proportion as com,
pared with the population, wealth and bust
ness of this State, to the banking capital
and issues of most Of the other States, and,
as a consequence, we fnd our deficiency is
supplied by their excess of issues. 1t is
hardly an over estimate to say that the is
sues OF foreign banks now in the hands OF
the people of Ohio, are cgnsl 70 The issues
Of our own banks, or about eight and a
half millions of dollars. OF this sum. a
very considerable portion consists of the
issues of banks which have suspended specie
payments, embracing the banks Of Penn
sylvania, Maryland, Virginia, Missouri, and
parts Of the issues of other States. All
such issues have deprecated in the hands
of the people of Ohio, nt least ten per cent
amounting in tho aggregate to several hun
dred thousand dollars. When it is remem.
bered that in the fall of 1857, only three
years ago, like loss was sustained by the
people Of this State from the same source
it becomes a question of serious moment
TO consider whether any, and il any, what
measures can lie adopted to guard the peo
pie from such frequent and heavy pecuniary
disasters So long as the supply of circu
lating notes issued by our own banks, is in
sufficient for the transaction of tho bust
ness of the State, it will, in my opinion, bC
in vain TO attempt by legislative enactments
to expel the issues of foreign banks. The
laws of trade and the necessities of tho peo
pie will prove moro potent than statutory
restrictions and prohibitions. If the fac
may be considered as demonstrated, and
think it clearly may, that We must depend
chiefly for currency for the business trans
actions Of the people of the State, eithel
on the issues of foreign banks, or of tho
banks of our own State, think no either
of Ohio can hesitate moment as TO which
he would prefer, and especially in view o
the fact, that, while within three years, the
banks of nearly all the other States hav,
suspended the payment of specie, anC
many of them twice in that space Of time
the banks of Ohio have proved true to the
obligations, and equal to these tests of thei
strength, and now command tho universe
confidence of the people of the State.
respectfully submit to the consideration
of the Legislature the question whethe
any plan can be devised for the increase O
the banking capital, and consequent enlarge
ment of the issues of banks within our owl
State, as the only practicable means Of ex
+, pelling the issues of foreign banks, and o
/, protecting the people from the manifold
disasters of a debased currency. This ques
tion is also important in another view. 1
is but five years, from the first of May next
when the charters of the banks incorporated
/ under The act of February, ls45, will ex
pire. This embraces the thirty.s six branch
es of the State Bank, and the seven indie
: pendent hanks, the circulate of which be
ing Withdrawn, We would be practicall,
without an Ohio circulation, and dependent
upon foreign banks for our entire currency