The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1906-03-08
BANKING BILL
Arguments Fsvorna Thomas Measure
Before House Committee.
March s, 3-w.

Before House Committee.
Columbus, O.--At The first hearing
before the banking committee OF the
house OF representatives upon the
Thomas banking bill a large numDer
OF bankers and business men were
present and the proposition was put
sQuarcly up to The committee that the
business interests and depositors of
the state are unit in the demand for
the enactment OF the measure. No op-
position developed on the part OF the
bankers themselves, who confined
their arguments chiefly TO the import
ance of the establishment OF an inde-
pendant banking department. DEPOSIT
tors, it was shown, were adverse TO
placing the superintendent of bankI
in too close connection with the tax
ing machinery of the state as would
happen were he mere deputy in the
Office OF the auditor as the MetZger
bill provides, or even under the state
treasurer. Amy feeling that there was
opportunity for collusion with the tax
inquisitors would initiate against the
state banks and in favor OF the nation.
al banks.
The great commercial Importance OF
the banks to the state was pointed out
with their $50, ,593.0S0 of capital and
$l52. 1872 ,S67.35 OF deposits in 1904.
Upon this capital they are assessed
for taxation on valuation of S24.1 1884,
PA or about 50 per cent, which 1t was
claimed is a higher valuation than is
placed upon any other class OF prop
erty within the state. In addition the
banks pay under the Willis act as
direct tax to the state one-tenth of one
per cent on their capital, tax which
the national bank doesn't pay, amount
ing annually TO $30.5S30S. This sum
is estimated to be in excess OF the en-
tire cost OF the maintenance of an in
dependent banking department
An interesting statement made by
one OF the speakers was that prior To
1860 Ohio and Indiana were generally
conceded To possess the best banking
laws In the Union, while the national
banking act was based upon the Ohio
act. Since then. however. all the com.
mercial states and many OF the social.
ed agricultural states had enacted
modern banking laws. Kansas and
Missouri perhaps leading in this re.
Epect. all with efficient banking de.
partment Indiana passed such . law
at the last session or its legislature.
while Ohio. once foremost, has lag.
ged behind Bearing on the question
as 10 whether the expenses OF main
taining an independent banking de-
partment should be paid from the gem
eral funds or by special tax OF assess.
ment upon the banks the point was
made that the Committee appointed by
the general assembly OF New York.
that Investigated the insurance COM
panies OF that state has recommended
that all fees for examinations be abol-
ished. experience proving that where
the expenses OF u department ara paid
by the companies under its regula-
tion. the companies soon came to feel
a ssnse Of ownership in the DEPART
ment which is demOralizing TO its en-
cheney and the public good. A similar
suggestion was made by Mr.. RldgeIy,
comptroller OF the treasury. in his
last annual report To congress. II is
unquestionable that an independent
banking department. maintained a. a
department OF state. Is essential for
safeguarding the interests OF the tens
OF thousands OF bank Dispositions
throughout ths stats.