The Jeffersonian Democrat. [volume] (Chardon, Ohio) 1854-1865, 1861-01-18

of all banks, but what is tho best system or
plan Of banking for tho people for whose in
tercsts hc is called upon TO act, and how
and to what extent should !. be applied.
And 80 also Of the currency Of The State So long
as the people OF Ohio nre in business connection
with the people OF other States, we are and will be
in the receipt and use OF the issues OF the banks o
other Slates which circulate with the issues OF our
own banks Of which to the extent Of their exist
ence they take the place and become the substi.
tute The practical question is not whether we
are tohuve paper money, or gold or silver, us the
common currency OF the state, but whether we
arc TO have the issues OF foreign banks, or OF
banks existing within our own State, responsible
under our own laws, and regulated mud controlled
by our own action. The experiment has been
tried not only in Ohio but in several other StaIes
OF dispensing With bank issues under State au.
thcIiiy, with one uniform resu't--tLc introduction
Of debased foreign currency, inconvcrtible into
gold and silver, with all the disastrous and de-
moraliZing consequences OF such currency. We
should learn wisdom from our own experience, as
well as from the experience Of other States, in this
matter At this very time, Ohio is suffering great
Inconvenience mud loss from the deprecated cur.
rency OF other States whose banks have suspended
!he payment Of specie. 1t was to obtain relief
from such currency that our existing system OF
banking was established under the act Of lSij
creating the State Bank Of Ohio and other bank.
ing compunies
1t appears from the quarterly report Of the Au.
ditor. for November last, that the entire banking
capital Of the incorporated banks ol the State, is,
s5,s6l,s
SO branches OF the State Bank
OF Ohio.... .............. "A ,l04 SOC
Independent Banks. G32,264
II Free Banks ..... ......I, ,l2l,6l0
The entire circulut'n the same
time was. viz ......... .......... 1854 ,SST
Branches of State Bank ......7 400, $50
Independent Banks.......'. 575,GS5
Free Danks... 6j5,243
This amount of banking capital and issue
bears very small proportion, as com.
pared with the population, wealth and
business Of this State, 10 the banking cap.
tai and issues Of most of the other States,
and, as a consequence, we find our deGci-
ency is supplied by their excess Of issues.
! 1t is hardly an oyer.estima:e 10 say, that
the issues OF foreign banks now in tie
hands Of the people Of Ohio, are equal TO
| the issues OF our own banks, or about
eight and half millions of dollars. or
this sum, very considerable portion con
sists Of the issues Of banks which have
suspended specie payments, embracing
the banks Of Pennsylvania, Maryland,
Virginia, Missouri. and parts of The issues
of other States. All such issues have de-
preciated in the hands of the people OF
! Ohio, al least ten per cent, amounting in
the aggregate TO several hundred thou.
sand dollars. When ii is remembered
that, in the TALL OF 1857, only three years
ago, a 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, wha:
measures can be adopted TO guard the
people from such frequent and heavy Pc
cuniary disasters. So long as the supply
Of circulating uotes issued by our own
banks. is insufficient for the transaction Of
the business Of the State, it will, in my
opinion, be in vain to attempt. by egisla-
tive enactments, 10 expel the issues OF
foreign banks. The laws OF trade and
the necessities OF the people will prove
more potent than statutory restrictions and
prohibitions. II the fact may be consd.
cred as demonstrated, as l clearly think it
may, that we must depend chiefly for
currency for the business transactions OF
the people Of the State, either on the
issues Of foreign banks, or Of the banks Of
our cwn State, think no citizen OF Ohio
can hesitate moment as 10 which he
would prefer, and especially in view Of
the fact, that, while within three years,
the banks Of nearly all the other States
have suspended the payment Of specie,
and many Of them twice in that space OF
time, the banks Of Ohio have proved true
10 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 consider
alton Of the Legislature, the question
whether any plan can be devised for the
increase of the banking capital, and con-
sequen, enlargement of the issues Of
banks within our State, as the only prac.
ticable means Of expelling the issues of
foreign banks, and of protecting the peo-
pie from the malifold disasters Of de-.
based currency. This question is also
important in another view. tits but FIVE
years llom the first of May next. when the
charters of the banks incorporated under
the act of February, 1916, will expire
This embraces the thirty.six branches Of
the State Bank. land the seven independent
banks, :he circulation of which being
withdrawn, We would be practically with
out an Ohio circulation, and dependent
upon foreign banks for ourentre currency.
The State may follow the example of the
General Government in restricting the
circulation and disbursement of its reve-
nues in gold aud silver. But, after all,
this will be found 10 exerI but little infu-
ence over the great business interests OF
the people. The fact, then, Of the near
approach Of the time-lor FIVE years is
but brief period in the history OF Stale
when the existing banking system will
terminate, and in view OF the very i'm
porant consequences 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 10 believe that large majority OF
the people are not only satisfied with their
h. k,,t a, IL