The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1861-02-23

nois stocks only.
Sec. .. lmperative!y commands the Au
dItor to require additional security in the
case mentioned (after July l) Hitherto
the power of making calls by the bank
commissioners, has been discretionary
Your committee, not interfering with OIL
repeating this discretionary power in them
makes the call provided by this section
mandatory on the auditor.
article . This article is wholly occupied
with provisions as to central redemption
Sec J. Allows all banks, outside of the
redeeming points, Chicago and Spring
field to appoint an agent Tor redemption
and necessarily excludes banks located at
such points Bsnksat Chicago and Spring
field will therefore redeem only at their
counters, on demand and in specie; and,
to this extent, make the redeeming points
(; places of specie circulation.
Sec. 2 Provides for publication of notice
of appointment Of redeeming agent
Sec. 3 The rate Of discount for rademp-
ton.
Sec T. The penalty for failure to re-
deem, % per cent interest from demand
at which rate % days are allowed before
forfeiture.
Sec. 5 Revocation of agency can be
made, but another agent must be 8imuita-
! AeOusiy appointsu
Sec. 8. joint fund for redemption al
lowed
Sec. T. Premium for complying With the
provisions of central redemption, by al
lowing 10 all banks that do 30 thirty DAYS
after protest at home, instead OF ten, be-
fore liquidation and forfeiture, at six per
| cent. interest
Articts J. Provides for safe keeping Of
bonds, and the mode OF keeping bank
notes un=i gned, procuring notes, re-
ports from banks, examination and reports
on books Of Auditor, and the state OF So
cufities held in pledge tor-c.gcu!atiOn, and
fees Of public officers for such duties; and
as to most Of the sectors no controversy
+ can he had
Sec. II silows no bank 10 have more cir
culat!on than three time. It's actual capital
1t las been urged very earnestly that
some method should be adopted, either by
stamping the bonds &c proposed il one
biil before Us or indoTsing IN red ink, a.
proposed IN another. for tae purpose Of
preventing tie .rau,!GIsnt Use OF with
dra.4i Of the bonds depOslted from Their
lawful custodian. Your committee. both
in their own session and in joint commit
tee, heard much on this subject, ana re
cognize as . sound principle that all posi-
be checks should he placed around mis-
application ot these stocks Bat Il is GER
taIuiy equally true that, as these stocks a.e
the resource by which the bank must pay
their notes If presented IN large SUNS, and
this by sale Of the bonds, every cCulr.y
snce which tends 10 hinder their speedy
t. Withdrawal, to be converted into specie
/, funds, increases the iEcouyeFtILilty OF ths
Issues based on sad stocks and delays
prompt redemption. They understand
the fact 10 lie that redemption ii large
sums OF notes OF any bank is practically
{ made al Springfield \ banker under
protest within h.s tea days comes 10
Springfield, makes his arrangement with
come mOueyed person TO ~arA his draft on
New York. telesrapi.s to a broker IN New
\ oTk 10 sell such and such bonG-. takes
/. his specie. rsdceIns his notes wi;hdr3ESz
. his bonds, expresses them to New ors TO
meet his draft, and ;he operation Is closed
+ and that quickly. The bIllhoilcr receives
. ais money, the bills are retired and the
. stocks Withdrawn; aud 10 do tH.s eiIeCtg-
ally and safely the processes must be -
Iauiiaueous. To delay and hinder this .s-
lid exchange your committee and the
joint committee consider inj8rlous
The system proposed il Alr. SoaElIooa' :
h.ll ! altogether to- G.latogy IL tie opinion
Ut tn, committee.
The system OF stamping and releasing in
, time consumed, but a. i tends 10 Gs!.ce
{ the bonds and impair, to some extent,
their neect:sbI!i;y, and would impose on
10 every purchaser the necessity % Judging
OF the genuiuoness OF the signatures and
4 seals u.-d Tor tie release, IL wss abanoon
r ed. and the present system, a. presented II
. the bill, adopted
This is. in brief The bank vault to be
D inaccessible, except by the Treasurer and
+ Auditor, jointly quarterly official state
msnt. a. To such bonds, published by the
+ Auditor; quarterly personal examination
: and report by the Governor and Bank
1 Commissioners, which report shall be pub
lished; an examination, ty the last men
| toned officers, at any time, AZ TO the secu
rites of auy bank. az the request and COS;
t of such bank; an official statement, al any
time, on request OF any person from the
/ ! Auditor. OF the circulation ahd securities
e OF any bank OF banks
Your committee believe these sufficient
J. Arf'rIs T. Sec. |. This section requires IN
c any bank 10 be organized at least -, ,UOt
+ capital, and declares that bonds are &c
a evidence Of capital
: The committee are satisfied, and so re
D main. that small local banks, with actua,
q capital and doing All open business, IS pro
1 viied in section ,. will be far the safes.
{ aud with the prov sions in section i, arti
z Gle 3 will tend 20 the Investment of capi
1 tai in banking.
: Sec > limits the location Of banks.
: Sections and permit change OF loce
e tion and name, and provide necessary
; check. on confusion Of circulation.
Sec ), If obeyed or enforced, will tend
/ to force every bank into openly doing It's
/ business in its own name, and make al
/ secret agencies OF such bank. account tC
e creditors.
p Sec allows expansion and contraction
;. of circulation, by Withdrawing and replac
$. ing stocks, down to 5000, without forfeit
e ure of charter. BY the present law tho
= limit Of contraction is $4,000.
Y Sec. simply enscts as law what has
7 been the uniform custom OF the auditor 5
r Office
o .Arhels 5 Sections ], ., 3, 4, and 3 are G
# substantial copy OF the bill OF that sutjeci
! which passed the House, and are deemed
$ of vital Importance.
: Sec g, provides penslty for obstructinG
j. legal protest Of bank.
d Sec. !, provides that after sixty days from
d the passage of the act. any bank that has
,e no local officers, or redemption agency, ol
a. place of business shall be deemed bank
rupt and forfeit its charter,
IS Sections and 9, provide penalties fo
3. non-performance OF duties imposed by Law
}, on officers and bankers.
a -frtcie 6 Sections |, 2, 3, 4 5, g. and :
h proper and efficient modes and process 70
is rendering the personal liability clause Q
the constitution elective.
Sec s, allows banks that have gone int
= voluntary liquidation the benefit of tht
a lapse Of time that has elapsed since th
&c repeal of that part of the statute which
,r Drizsd and reu,liral niiIlitat a
q fully as if they had published under sucl
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