The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1879-12-11

bankR anu bAnkelY OF I'M ylden Time-HOW
They TrIedtO OOerce eeharter from the
staln IA Failing, How fllsS Tried to Ruin
~ and Came Near Succeeding.
I in every community men
WEI 700 much for their own good.
and their neighbors-eager to
pi6N h If found, expose them. l
ha9, h men who doubt, nay ut
ter an assertion of mine, that
.Ohia were ever sold for anything
like on the dollar, or anything
neas siia h amount. Ohio credit was al
ways good good as gold, and such a
charge, they declared, was slander on
the fair fame of the State. Such q de-
probation could never have happened
without their knowledge; and hence, as
one of them aaid, the charge was. a
blank lie, out Of the whole cloth. Such
talk was really hard to submit to,zand
as I did not feel willing at the time to
avow myself the author, or to knock the
fellow down for his insolent denial of a
fact, submitted to his insolenGe, for he
suspected the authorship, with the best
grace l could. The facts he denied, and
which Iafirmed, form so interesting an
episode in Ohio's "0ld.Time Politics"
that 1 give them in full. 1t is fair spec
linen Of the patriotism and honesty of
banks and bankers
The time 1OaS, and it is feared that the
time is, when the banking interest of the
country ruled it. In the case in point,
failing to rule the State, they attempted
TO ruin its credit, and came near sue.
Ceeding.
In May, 1887, to break tie Admins
+v'' SMr., Van Buren,, by simulta,
ana, GTb oheut from Maine to .Louisi-
nonor alike at = set honesty, law aud
redeem .Bsis'" "'ef lance, and refused to
many many OF these hsisr promises. In lS41
Among this brog INKS had not resumed
Iicofbe The 81 vas the Bank of Chill
was forcaA L .Fate needed money, and
,,andad RI Ncdrt to loans. The sus-
-I-s'' - ,,s.t. ~ 49, Chillicothe, wishing to
cosrce a'fecRarter from the State, made
= Joan to theSSstate, principally in its de.
p5esIS1 on terms disgraceful to
al couceraed' son April 10Th, 1841, 80.
seph s. Lake, Noah H. swayne and AL.
fred Kelly, as Commissioners of the
,0hio Canal Fund, and acting in their
official capacity, and not otherwise 1--WE
quote per contract) of the first part. and
the President and Company of the Bank
of Chillicothe of the second part" bor-
rowed $5Sl 900, to be paid back, 100000
on the 1st day of May, lS42, 10000 on
Dec. 1st of the same year, 100000 on
March LIST, 1843, and the remaining $751;
600 on May 1st of the same year, with
this remarkable proviso in the contract;
"Provided, that if the charter of the
said bank shall not be renewed, or fur
ther time given for closing up the bust
ness thereof prior to Dec. 1st, 1842, then
the two last mentioned installments to
be paid, also, on Dec. lst, 1912, and the
SSldpaymeats, as they respectively fall
due, shall be made at such bank as may
be designated in the city of New York;
and,
s"Whereas, (the contract goes on to
aay) The party of the first part (Lake.
ylype ) and Kelly, Commissioners Of
{. tsgal FUND.-, has issued to the party
n ofgond part THE ChilIicothe bank,
fa tifiCates which will enable said
"a, the second part to receive from
ont of said Fund Commissioners,
event of their failure to meet said
lments, or either Of them, as they
S,tively become due, negotiable
,atS~iEock, bearing per cent interest,
payable semi annually in New York;
the principal, also, to be payable in New |
York, at the pleasure of the State, after
the year 1860, as follows, to.wit: On the |
first day of May, 1842, $1l5OOO; on the |
day of December, 1912, $3.50, 900; on the |
first day of March, 1843, or the first day |
of December, 1912, as may be, $l15,000; |
on the first day of May, l843, or the first |
day of December, 1842, as may be, $208.
O00."
The contract then pledged the Fund |
said loan of $5S1 900 from thetwentleth |
day of April lGst'-dsting the payment
of interest one full year back of the time
the contract was made or the money re-
Ceived-"at the rate of per cent annu-
ally, on the first day of November, DUR
ing the continuance of said loan, in cur
rent bank notes at the Treasury of State |
&c"
The contract further provides, that in |
case of failure to punCtually pay said in
stallments as they become due, at such |
bank as may be designated in the city of |
New York, and that if said payments be |
not made, the Bank of Chillicothe may
receive the stock above referred to, and,
after thirty days public notice in the
city of New York, sell the same, or 30
much as may be necessary, at auction, to |
the highest bidder, and if the amount for
which the stock bonds of the State 1868 |
900 to pay 1851 ,000) then the Commits
sioners of the Canal Fund, within sixty
days after due notice, are to pay the de-
fCiency, with interest, to the Chillico.
the Bank, or such bank in New York as
may be designated.
Was there ever so one-sided a con.
tract against the interest Of the people |
NADER If 80, the annals of swindling
and folly contain that of which honest |
men never dreamed. 1t is signed by |
Cadwallader Wallace, President of the |
Bank, and by Joseph s. Lake, Noah H. |
Swayne and Alfred Kelly Commission
ers of the Ohio Canal Fund"
A similar contract was made by the |
same Canal Fund Commissioners dated |
May 1st, 184l, for the esum of $5O0,OOO, to
be reimbursed, 5000 on Nov. 1st, lS4l;
100000 on May 1st, 1S42; 100000 on |
Dec. lst, lS42; $25O,OOO on June lst, 104S, |
kbr.n k6ck Gtsf ,L,