The Cadiz sentinel. [volume], December 18, 1844, Image 1

About The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851

Image provided by: Ohio History Connection, Columbus, OH

                
- .j-m -: stat v.
VOLUME XI.
CADIZ, HARRISON COUNTY, OHIO, DECEMBER 18, iSli.
NUMBER 39.
0
GOVERNOR'S MESSAGE.
Gentlemen of the Senate
and House of Representatives:
On the fifteenth day of April last, Wil
on Shannon resigned the office of Gover
nor of this State, in consequence of which
the office, according to the terms of the
constitution, devolved on me, as the presi
ding olhcer ot tlie Senate. In obedience
to the requisitions of the constitution, I
have, since that period, exercised the du
ties enjoined on the supreme executive
officer of the State. In fulfilling the obli
gations of this trust, it is made my duty
upon your assembling as the Representa
tives of the people, to give you informa
tion of the state of the government, of the
manner in which the duties assigned to
the executive department of the State
have been performed, and to recommend
to your. consideration Jho measures which
I conceive to be expedient and proper in
the present posture of our public affairs.
Since the Representatives of the people
were last assembled, our country has con
tinued to be highly favored, in all the
elements which contribute to individual
comfort, and to national prosperity. The
unexampled growth of the State in popu
lation, wealth and resources, has been
unimpeded. And the intellectual, moral,
and social improvement of our people, and
their advancement in all the means which
appropriate the beneficence of Heaven to
felicitate the condition of human existence
on earth, evince that the never slumber
ing eye of an overruling Providence has
continued its guardian care over the wel
fare of our country, for which we cannot
too devoutly and fervently render the
homage of our gratitude.
The laws of the State have been exe
cuted, during the last year, with usual
promptness and fidelity. Detailed accounts
of the finances and condition of the seve
ral departments of the government will
be laid before you by tho several officers
who are required to make reports during
your session.
The amount of revenue receiv
ed for tho year ending the
15th November, 1844, from
the several sources o! revo-
nue for State purposes, as
distinguished from schoul
and canal purposes, $277,155 52
The amount remaining in the
Treasury, Nov. 15, 1843, 94,807 92
Total rev. for State purposes, 371,903 44
Am'nt applied to
the purposes of
the public insti
tutions in Co
lumbus, $'39,280 99
Am't for support-
' ing the Stato
government, 155,092 7
Ain't of transfers
from general
revenue fund
to canul and
school funds,
44,767' 52
239,141 27
Bal. remaining in Treasury, 132,822 17
The .following stater.cnt shows the
condition of the Canal Fund, which is ap
plied to the purposes of the public works
and public debt of the State:
Amount arising from taxation
and transfers from other
funds, $060,191 00
Amount of tolls, to wit
Ohio Canal, $338,367 31
Miami Canal, 74,904 20
Miami Extension Canal, 12,053 18
Wabash & Erie Canal, 49,266 50
Hocking Cunal, 4,925 90
Wulhonding Canal, 1,918 44
Muskingum Improvement, 28,241 11
W. Reserve & Maumoe Road", 5,817 18
Tu rnpike $ Canal dividends, 29,450 01
544,949 84
Am't from the other sources
of canal fund,
22,197 77
Total of canal fund, 1,233,338 01
Of this amount 25,000 is applied to
the sinking fund, $1,107,444 69 is ap
plied to pay the interest on the State debt,
and tho balance to pay for repairs, cj-c., on
the public works.
The aggregate amount of the valuation
of taxable property on the grand levy for
thoyear 1844, is .$136,142,606 00. The
rate of taxation for State purposes is one
mill on the dollar; for canal purposes,
five and a half mills; common school pur
poses, one half mill; and for county,
township, and other local purposes, eight
mills, making in tho aggregate fifteen
mills on tho dollar.
Tho revenue yielded to the several
funds, by this direct taxation, is as fol
lows :
For Stato purposes, $745,640 21
For canul purposes, 135,570 94
Common school purposes, 67,785 47
Total, 948,996 00
Tax on Lawyers and Physi
cians added, which goes to
common school fund, 6,473 39
Total, 955,470 02
I he items ot tho assessment
for 1844, for local purposes
aro i
For county and county school
lax, 642,532 13
For road, 178,559 81
For township and poor, 197,004 82
iror corporation, public build
ing and bridge, . 199,406 28
For school house, 15,382 21
Total am't taxation ior'44, 2,188,335 29
Amount of delinquencies for
all purposes for 1843, 152,307 96
Grand aggregate of liabilities
, for taxes in 1844, 2,340,663 25
- Tho public improvements which have
.boon undertukon by the State aro now
within a brief period of their entire com
pletion. The Miami Extension Canal is
finished, with the exception of about
thirty-four miles, which is in progress
and will be fully completed early the
next seasion. The VValhonding Canal is
entirely completed, with the exception of
the two short branches, neither ol which
have as yet been put under contract, and
one of which, at lea6t, is necessary in or
der to make the investment in the main
work productive.
The entire cost of all the
public improvements own
ed by the State, including
the estimated cost for com
pleting Miami Extension
Canal, is $15,577,233 18
The investments of the State
in the stock of canal and
turnpike companies is 2,431,430 88
Loans of credit to railroad
companies, 747,133 00
Total investment of State in
public works, 13,755,790 00
The product of this investment of the
Stute has amounted, the last year, to
$544,949 84. Some of the public works
will doubtless be more productive in the
course of a few years.
The present condition of our resources,
commercial advantages and otherclements
of national wealth and prosperity, are in
a high degree flattering. The people of
Ohio possess an area ot territory, in u
temperate and salubrious climate, with a
fertile soil, containing a fraction over
40,000 square miles, or 25,000,000 acres;
of which at least 20,000,000 of acres are
suitable for cultivation, and of which a-
bout 9,000,000 of acres, including mead
ow and pasture hinds, are now actually
cultivated. The actual value. of the real
property in the State, with all its im
provements, cannot be less than 420,000,-
000, and the value of all the personal
property and ellects, not less than one
hundred and eighty millions of dollars.
The population of the State is about one
million eight hundred thousand. The in
ternal commerce of tho Stato is aided by
the facilities which are afforded by eight
hundred and fifty-three miles of canal, one
hundred miles of railroad, in actual use at
this time, by one thousand one .hundred
and twenty miles of macadamised road,
ninetv-one miles of slackwutcr navigation,
and by over three hundred miles of
streams, now actually navigated, besides
four hundred and thirty-seven miles of
the Ohio river on tho eouth and cast, one
hundred and eighty miles of Lake Erie on
tho north bordered' iho Stute. The value
of the products of Ohio, during the last
yeur, us near as tliov can be ascertained
from tho data within our reach, is as fol
lows: Agricultural, 45,302,400; Manu
factures, 17.595,600; Commerce, 9,600,
379; Mineral, 2,931 ,2 18; Forest and lum
ber, 1,013,003; Fisheries, 10,525; making
in all, 76,483,105.-
1 he vniuc o' the products ol Ohio, ex
ported from the Stale, during the past
year, have been about 25,000,000 dollars.
1 lie.se estimates mav not approach per
fect accuracy, but they are computed from
the most accurate means which at this
time exists for ascertaining the true facts.
This immeiiij field for industry, enter
prise, human happiness ana national
greatness, has been created and opened
out upon a soil, which, hut little over fifty
years ago, was covered with an unbroken
wilderness. 1 he extensive, complex,
and rapidly increasing interests of the
people ol Ohio, properly lall under your
close and scrutuniziiig examination, and
cull for the exercise of your wisdom, as
the law-making power ol tho State. The
means, at this time, afforded for acquiring
full and accurate information of the coa
lition and growth of these great interests
in Ohio, are extremely imperfect and de
fective. Extensive statistical information
showing, annually, the condition of the
agriculture, manufactures and trade, and
the growth ofihe resources and wealth of
the State, would not only be of groat util
ity to the people, in order to enable them
the butter to appreciate- and understand
correct Legislation, hut it is of essential
importance to the Legislature, in order
that the extensive and complex interest of
the people may he fully comprehended.
which it is tho purpose of that body to
protect and promote. Hasty enactments
and legislation, based upon loose, partial
und imperfect information, often proves
oppressive, and inflicts wrong upon one
part ol community, when the desire is to
advance the interest of all. The effect of
legislation is not easily to be seen always
at its first enactment; and laws apparently
harmless at first, may, in the lapse ol
many years, carry with them consequen
ces of potent and fearful magnitude, For
tho purpose, therefore, of a more perfect
knowledge of the results of our institutions
and tho workings of our laws upon the
interests of tho people, I recommend to
your consideration the importance of a
dopling measures for obtaining annually
complete, compact, and woll digested sta
tistical statements of the various resour
ces and interests of tho State. This ob
ject can be, to a very great extent, effect
ed by the several township assessors, in
connection with their present annual du
ties. A prudent foresight and vigilant regard
for tho cause of humanity, teach us tho
importance of availing ourselves of the
opportunity afforded at a time of peace
and prosperity, to strengthen and forlify
tho foundations upon which tho fabric of
our liberties rests, and to erect barriers a-
gainst those evils which may at any time
in future endanger tho purity or perma
nency of our free institutions. This pro
pitious opportunity, in tho early age of our
Republic, should not bo neglected. For
when disturbed by civil commotions, or in
future, whon overburdened with a dense
population, far more difficult, if not utter
ly impracticable if now neglected, will be
tho task to stay tho inroads of curruption,
and provide securities against tho dange
rous devices and machinations of ambition
and cupidity.
The most certain reliance for the secu
rity and permanency of our civil institu
tions, is to bo found in an efficient and
well conducted system of common schools,
by which the benefits of education can,
upon liberal terms, be placed within the
reach of every person of suitable age in
the State, bvery citizen is entitled to a
voice in the management of our public af
fairs. Our laws are but the emanations
of popular opinion. It is a matter, there
fore, of vital importance, that popular o
pinion should be aided and enlightened by
int Hectual culture, and moulded by a
pure and elevated tone of moral feeling.
The European systems of education con
fine the means of instruction chiefly to the
favored and fortuuate classes, to the ex
clusion of the mass of the people, and
thus keep up and augment those artificial
and arbitrary distinctions in society which
constitute one great source of the oppres
sion and degradation of the great body of
thii people. The youth of this country
aro born to nobler privileges and higher
responsibilities. 1 be very genius and
spirit of our institutions require that a
public system of instruction should be
kept open and free to all; placing those in
the most humble walks of life upon the
same platform and equal footing with
those who are in more fortunate circum
stances; elevating the intellectual, moral
and social condition of the mass of the
people, and perpetuating that degree o!
moral, intellectual and social equality,
which is essential alike to the permanen
cy of our government, and the happiness
of our people.
The great conservative influence of a
public system of education on the future
destiny of our country was fully appreci
ated by the eminent statesmen who
framed the first elements of our civil in
stitutions. It was provided in the Ordi
nance of 1787, for the government of the
Territory northwest of tho Ohio river,
that "religion, morality and knowledge,
being necessary to the good government
and the happiness of mankind, schools &
tin-, means of ediicatioh shall forever be
encouraged." In the organization of our
Stato government, this provision was, in
substance copied into tho bill of rights,
and now constitutes a part of the Consti
tution of the State, imperatively enjoining
upon the representatives of the people,
that "schools and the means of instruction
should forever ho encouraged by legisla
tive provision, where not inconsistent with
the rights ol' conscience." The subject
of education has been urged upon the con
sideration of the Legislature in almost ev
ery annual message of the Governor since
the origin of the State Government. I. he
solemn injunctions of the fuudamental
laws of the State, which it is our sworn
duty to support, and the warning voics of
every successive supreme officer of the
State, ought not to be treated as mere cer
emonious formula, entitled to but slight
and superficial attention. They are the
authoritivc and livin,' promulgations of
public sentiment, expressed in characters
as visible and impressive as if wri'tcn in
stars on the arch of the firmament.
To the mode of instruction, discipline,
and I raining, given to the juvenile portion
of our population, we arc to look for the
model of the future character of our peo
ple, and the elements which will control
the future destiny of our Republic. It is
to this source we are to look for tho for
mation of that elevated standard of intel
lectual superiority, moral excellence; anil
public virtue, which shall preserve our
country from ignorance and superstition
stay the tide of corruption usually flow
ing from a dense population, and rescue
our posterity from the intellectual and
physical degeneracy so commonly produ
ced by luxury and its enervations, after
a continuance of national prosperity.
The system of common schools, in this
State, although productive of much bene
fit, and in its general provisions well a
dapted to tho accomplishment of its ob
jects?, is yet susceptible of very great im
provements. The .'act cannot easapo the
most superficial observation, that great
inefficiency and want of energy exists in
its execution and management, and that
during the last two or three years it has
been rotrogading, instead of progressing
towards a higher degree of perfection. 1
have no hesitation in saying, that if our
system of common school instruction were
conducted with proper efficiency, and un
der the improved regulations and modes
of teaching at this time in use in some
other places, that greater benefits would
be derived from half our expenditure of
tune and money. 1 he Secretary of State,
and several county auditors, to whom the
general superintendence of our present
common school system is at present in
trusted, have doubtless performed their
respective duties with fidelity, and done
all w hich could reasonably be expected
from them; but their time and attention
has been chiefly occupied by the other and
more appropriate duties of their offices.
I submit to your consideration the propri
ety of appointing a State Superintendent
ol common schools, mid ol authorizing the
election of a county superintendent, by
the people of each county, for tho purpose
of giving greater efficiency to the system
by having tho cxclusivo attention of tho
superintendents devoted to the manage
ment arid improvement of this important
branch of tho public service. I entertein
no doubt but that theappointment of these
officers, and tho payment of competent
salaries for thorn out of tho school funds,
would prove a matter of economy, in tho
management of tho school funds, for the
cause of education. A 'great want of
punctuality has existed in tho reports of
information required bylaw to bo made
from the several school districts and town
ships. This neglect of duty might be
effectually remedied, by a provision re
quiring the necessary reports to bo made
before a school district or township should
be permitted to draw its proportion of the
public money.
The subject of normal schools or smi
narics for the education of teachers, is at
tracting much attention in several of the
States of the Union, and in other countries;
and by the pre-eminent advantages affor
ded by this means for advancing the cause
of education, it comn ends itself to your
favorable consideration. Departments
for the education of professional teachers,
in the Ohio and Miami Universities, could
be established under tho authority of the
State, and by a part of the means derived
from the large endowments which these
institutions havo received from tho gov
ernment. The following statement will show the
product of tho State Common School Fund,
for the ypar ending 15th November, 18
44: '
Balance on 15th Nov. 1 84 i $40,132 47
Amount received arising frn)
interests on surplus revenue,
grand levy, tax on banks. &c. 195,600 69
Total
235,733
10
Amount apportioned and paid
the several counties
200, 000 00
Remaining balance in
treasury 35,733 10
In addition to the above, there has been
paid to eouiuies entitled to the following
funds :
Va. Military School Fund 11,718 07
II. S. Military School Fund 7,149 70
Conn. Western Reserve School
Fund 9,519 54
Section sixteen 56,133 92
84,521 89
This amount has been drawn from the
canal fund, being the interest on the prin
ciple of each fund.
It is apparent that special and local leg
islation in this Slate has been indulged un
til it has truly become an evil. Within
the last six years, two thousand and fifty
nine acts have been passed, of which sev
enteen hundred and forty-six are special
statutes, and three hundred and thirteen
fall under the denomination of general
laws. That there are eases involving pri
vate and local interests, which deserve
and should receive the attention of the
Legislature, no one doubts, but the chief
part of the time and expenditui'6 assign
ed to legislation, cannot be properly con
sumed in the enactment of special statutes.
Laws should be general and just, and like
the air and light of heaven, extend their
salutary and benign influence equally and
alike to all. Special exemptions, special
privileges, und local advantages produce
injustice and oppression, and arc always
more or less fraught with danger. In acts
for local and private purposes, the Legis
lature is very liable to be misled by mis
representations, and the importunities of
individuals. It is believed that genaral
regulations, which would supersede the
necessity of tho chief part of our special
legislation, could be adopted upon terms
and conditions fixed in a general law, and
afford all the just and rightful advantages
and protection which can be demanded.
Of the seventeen hundred and forty-
six special acts above mentioned,-, eleven
hundred and twenty-seven relate to cor
porations tho grants of exclusive privil
eges, aiul special immunities tu associa
tions ol individuals. 1 his class ol special
legislation has been continued in nearly
m equal ratio for the last ten veurs; and
should it be preserved in, and corpora
tions continue to multiply as heretofore,
lur the next twenty years the State will
be literally thatched with charters of in
corporation, and the past subtcr'uges, pre
tences, frauds and profligacy ol corpora
tions will form but a miniature epitome of
what will be exhibited in future. An o
vcrshadowiiig combination of artificial
persons and fucticious inteiests tvill be cre
ated, which will trample upon the rights
of natural persons, override the barriers
of justice, and annihilate the equality of
rights which forms tho corner stone of
our Ireo institutions. All experience has
taught us, that men will do things when
associated under the cover of a charter,
which they would shudder at tlio bare idea
of doing as private individuals. One of
the evil tendencies of the present age is a
venial spirit of adventure, stimulated by a
thrist to acquire property without earn
ing it, and a desire to transact- business
through thcagciicy of acts of incorpora
tion. Weuitli has its appropriate irillt:
once, and possesses naturally intrinsic ad
vantages over labor; but when associated
under charters, and favored with special
immunities, and exclusive privileges, it
builds up oppressive monopolies in the bu
siness of tlio country, and acquires an un
due ascendency over tho interests and
rights ot the private citizen.
Acts of incorporation are usually ob
tained under the pretence of advancing
the public interests, but the real object is
too often merely to obtain an exemption
from the responsibilities to which natural
persons are subjected, and a cloak for fraud
and deception. 1 lie only legitimate pur
poses for which nets of incorporation can
in most cases he sought, are simply to ac
qure the right of suing and leing sued in
a corporate name, and of taking, holding,
and conveying tho title to proporty
through the authority of the representa
tivesof the association. These objects con
bo fully and more conveniently attained
by a genoral law of joint stock partner
ships, for the benefit of all associations of
every description which may have a reg
ular organization, and a record thereof in
tho Recorder's office in the county in
which located. Such joint stock associa-
tions would not be corporations, but they
would possess all the necessary and legiti
mate advantages for the transaction of
thoir company business, without tho spo
cial exemptions and exclusive privileges
which render corporations objectionable
and dangerous.
The subject of banks and the currency
has occupied no inconsiderable share of
the attention of ine Legislature in this
State for the last ten years, and will prob
ably continue to do so for many years to
come. It involves considerations of par
amount importance and difficulty, and ei
ther for good or for evil, bearing directly
and extensively upon the various and com
plex interests of the community. The
diversity of opinion on the subject, is not
to be wondered at. Distinguished states
men, in different countries and ages, have
differed on few subjects more widely and
warmly than upon paper money and bank
ing Truth should be searched by a can
did consideration of tho views on both
sides of the subject. In the njustment of
the question, the great body of the people
have a common interest, and certainly, no
one can be governed by any other motive,
than a desire to sec it settled in the man
ner best calculated to preserve the safely
of our institutions, and advance the welfare
ind happiness of the country.
Within the last three years a majority
of the bank charters in the Stato expired-
In March 1812, an act was passed, design
ed to supersede the necessity of special
charters, fixing, in a general law, the pow
ers, liabilities and terms of future banks,
and imposing rigid restrictions on the a-
buses heretofore practiced in banking.
1 his law was alleged to be too severe, and,
in February, 1843, it was amended, and
a number of the promiuent citizens, be
longing to companies which had petition
ed the Legislature for a renewal of their
charters, were authorized to organize and
commence tho business of banking. They
declined, however, to engage in business
on the conditions imposed, on account of
the unsettled state of public sentiment on
this subject, and with a view of obtaining
banking privileges, at a subsequent per
iod, upon ternn more in accordance with
their own views.
The persons who desire to embark in
the business of banking in this State, are
requiring rrclusive privileges and special
exemptions from which the rest, of commu
nity are inhibited, and which the people
who are anxious to protect their rights
and preserve their liberties, should lully
understand and maturely consider before
they confer them, without the necessary
safeguards and limitations.
1st. It is claimed, that the banks shall
have their usual power to issue their cor
porate promissory notes to be made cur
rency by the authority of law, and to sub
stitute them for the circulating money of
the country
2d. That, in order to give their prom
issory notes more the appearance and au
thority of actual money, it is claimed that
they shall be received in payment of the
public dues ot every description by the
positive sanction of the government.
3d. It is claimed, that the banks shall
havo their usual powers to put out their
capital, ou loans or discounts, at interest,
and also, to lend out at interest their pa
per credits in the form of bank notes, and
thus receive an interest on their promis
sory notes, instead of paying an interest,
as does tho rest of community.
4th. It is claimed; that they shall have
the power to receive the funds of other
persons on deposit for which they pay no
nte est, but upon which they aro enable
to receive a profit, by loans and other
wise, j
5th. It is claimed that they shall havo
the authority to deal and speculate in the
exchanges and public stocks ol tho coun
try.
0th. That they shall have the author
ity to grant credits on their books, and
transfer the amount of tho credit from
one person to another; and to make loans,
without limitation, to themselves, their
officers, managers and favorites.
7th. That they shall have the author
ity to tako six por cent, interest in ad
vance, on their loans and discounts, and
thus bo enabled to realize compound in
terest instead of simple interest, to which
the rest of the community are restrict
ed. 8th. That they shall bo permitted to
transact business, through the interven
tion of brokors, according to the under
written code of "banking usage;" where
by, they are enabled to evade, with im
punity, the incouveniont restrictions of
law, and injunctions of integrity.
With these ample powers, banks can re
alize a compound interest on thoir capi
tal, tho chief part of which they usually
lend out, also, on that portion of their de
posits which they lend, and likewise on
their prommissory notes which they issue,
and lend out as money : and besides all this
they can have their profits arising from
their speculations in the exchanges and
the public stock of tho county, and their
illicit transactions through tho interven
tion of brokers, as well as the advanta
ges of liberal accommodations to their
own managers and particular friends, in
the exercise of these high prerogatives
and exclusive privileges, banks can fur
nish to their managers means of extraor
dinary efficiency lor tho acquisition of
wealth, and for controlling the business
and interests of tho country. Situated at
the various commercial points, they are
enabled to acquire an arbitrary control o-
ver what little gold and silvor remains in
circulation, and which they can gather up
and export out of the State, and, in a great
measure intercept its how into the State;
and thus compel the people to adopt their
promissory notes, a3 their almost cxclu
sivo circulating medium.
It would be but reasonable to presumo
that tho favored recipients of these exclu
sive and lucrativo privileges, would ex
pect to havo their responsibilities to the
public incroasod, which would bo but the
dictate of justice and a common regard
for public safety; but not so. Instead of
consenting to an increase of their obliga
tions, for the honest and faithful exerciao
of their spociul prerogatives, they roquire
important special exemptions from the lia
bilities to which other persons are subjec
ted. 1st. It is claimed that the stockholders
of banks shall be exempted from personal
responsibility for the payment of theii
debts, and the redemption of their notes.
It is difficult to conceive how any commu
nity, blinded by neither by prejudice nor
by interest, can be deluded into tho justice
o
thisclaims. V hy should bankers not
be made responsible for their bank debts
upon equal footing with the individual cit-
izen? 1 he business of banking is not a-1
ny more hazardous, indeed, if prudently
and honestly conducted, it is less so than
the mercantile or manutacturing business,
or other ordinary pursuits. If those who
own the banks, and have the entire con-
trol and management of them, are unwil-
ling to trust their safety themselves, they
ought not to be tolerated in asking the
community to trust them, and to adopt
their promissory notes as money. VV hen
a bank fails, the loss mrst fall either on !
the holders of its bills and creditois, or.
upon its stockholders. The former re
ceive none of the profits of the bank, and
have no voice in its management. Noth- j
ing can be more flagrantly unjust than -
that the bankers, who receive the profits, '
and have the entire management and con-i
trol of their institutions, should require I
tho community to run the risk and bear i
the loss of a failure. The individual citi
zen, who industriously follows his pur
suits, regularly continues to increase his
ability to discharge his liability as he ac
cumulates property. But not so with a
bank; it divides all its profits among its
stockholders as they accumulate. The
riches which are acquired by a bank are
not retained by the corporation, but are
regularly, at short periods, divided, and
left to accumulate as private property in
the hands of the individual stockholders.
The stockholders, therefore, may be poor
in their corporate capacity as a bank,
while they are immensely'woalthy in their
private capacity, as individuals, from the
profits received from their bank. 1 has a
bank may fail and become insolvent, either
fraudulently or otherwise, and tho peo
ple, with a large amount of paper in cir
culation bo left to suffer, while the stock
holders are living in affluence and sur
rounded by wealth, accumulated by means
of the bank. The exemption of the stock
holders from individual liability holds out
strong inducements to engage in exces
sive issues of bank paper, inorder to make
large profits, and lurnisu the means of
committing frauds with impunity.
2d : It is claimed that bank shall be ex
empt from liability to taxation upon their
capital, and he subject to be taxed merely
on their dividends or profits. All other
persons aro taxed for the support of the
Government, 'on ithe capital of their in
vestments. The private citizen who lends
at 6 percent, interest is taxed 1 per cent,
on his capital, while banks, with extra
ordinary privileges, claim that taxation
shall touch only their profits.
3d: It is claimed that the charters of
the banks shall be exempt from all liabil
ity to alteration, amendment or repeal, hy
the lawmaking power of the State. Pri
vate copartnerships, and all tho modes of
prosecuting other branches of industry,
are subject to the correcting hand of legis.
ttion. uut from analogy to the presu
med infallibility of the divine prerogative
of kings, the people are to be led to be
lieve that banks can do no wrong; and
that therefore, a certain sanctity should j
be thrown about their chartered rights
and proceedings, which will place them
above the reach of the rude arm of sover
eign power.
4th : It is claimed that they shall be pro-
tectedfrom any act on the part of the gov
ernment, or private citizens, calculated to
impair public confidence in them, inas
much as their success depends upon keep
ing suspicion asleep.
oth: It is claimed that their condition
and proceedings shall, at all times, be ex
empt from examination and inspection by
public officers. Although the public lins j tiir.y produced. Thirteen banks expired m
a deep interest in knowing their condition j ultancously on the first of January, '4'1 and
and mode of doing business, yet it is; instead of the ruin and disaster predicted
houg'.t necessary that tho mysteries of
the bank parlor should bo scrupulously
concealed from the public eye.
6th: frhas been claimed that in these
times extraordinary emergency and t'ryhas rcceivcanaw life. Industry and en
financial embarrassment and distress, they ternrizc. relieved from the boudaee of bank-
should be permitted in order to relieve
ihe people and prevent the gold and si vcr
from flowing out of the Stato, to suspend!
specie payments, and thus violate the on
ly condition upon which they were gran-i
ted the high privilege of converting their
nromisssorv notes into currency.
1 . f . - ? ..
Such are briefly the leiidinij privileges
exemptions demanded for banks in this'
State; and it is not a matter of surprise
the persons who set up such claims should
reject tho terms ofthe existing laws, and
even pronounce them impracticable. How
far these high prerogative shall be con-,ew 1 one, 11 win commana a proporuon
ferrod,and by what restrictions and safe-int0 I"-'01 in 01io although there be not
guards tho community shall be protected, 0110 tIo"ar of bank paper within the limits
is submitted to the wisdom of the Legis-, oftt)0 State. Oold and silver is now a
loturo. The banks themselves or those hundnnt in tho Atlantic cities, and tho val-
directlv interested in them, aro certain-
ly not the proper persons to prescribe the
terms on which they shall obtain extra-
ordinary privilege! and exemptions.
Kefloction and observation have tended to!
confirm my conviction that time and ex-'
penence will prove the wisdom of the
provisions of the general law, now in
forco, for the reputation of the banking
system. Banks of issue, if permitted to
exist ut all, cannot bo too cautiously guar- ever lias been, the currency ol the com
ded by restrictions. I rncirml world, and the standard of valua
1 he great orror which prevails on this
subject has its origin in the common
vguo impression that we are depondant on
the Hank paper system for tho supply ofa
sudicient quantity ofthe circulating mcdi-
urn; and that without bank paper, com-
morce would not flourish, business would
stagnat, and the country coase toad vanc
in prosperity and improvement. This
fallacy the chief cause of that supomti-
tious attachment to the paper saytem,
which with some, has become Idolatry.
It is produced by superficial observation
of the mere appearance of things, without
an accurate inquiry into the true element
which constitute the movine springs to
enterprize and prosperity. The occur
rences which have transpired under the
eyes of the people of Ohio, within the
last few years, will go far to dispel this
delusion. The following table will show
the extent with which the Deoolaofthhi
State are furnished with Bank facilities
and accommodations bv our own banka
each year, from 1836 to the nresent time.
with the exception of the year 1841;
when the banks nrinciDallv set the lawa
at defiance, and regular reports as to the
condtiion of them were not obtained.
n e o" g g
"2
, D
ST o"
o
CT 4
CO
5.
o
s
COCOCOCOCOCOCOCOC3COCOCCCCOCO
-uui9ioouuooimoiCi
JO W W Op C3
w"' .'t,oW"- To la oo To "w w
iooiOiWuoiootou-n.cna
.pjaji-ci --i -j w w toj- O-i to
cVio'ra'i-.'cjs'oTo'-j'"'
-IOC5W!Oiai.Cl-"C3!Oi.i(.
C303WOSO W CS Oi CO O OS 4
o
-a
30
J3JOij-i M -J CD 0C5 tO Ol
1. 1 en !o 1o C5'ra . coIo'cj'oo'os'cj
j-opjji japi j - oi "-'j.pi
i la Tc 1u t- T- co To ' To "co
9
I
3
9
3
JO JO JO KJ JO JO W JO
4 -I O 65 o"-l U tt Ci C5 ' W io tO
- U U O tS Oi C Oi - OI OiKJO
actio j- p je -i o, 4- w ci
"to "bt 'c: 'in ei -j To co o To "w to "-t
ocicdococ3-:;i w
Oi-iOoc;oO!J-oij.c)Oi
m
a
0 UjJ JS I Ol Cl op pi Oj O
co es " to j . o Ci cs wbi-bo
u a w to 10 to cs O -1 1 3
ti p a -i rf p cs ;o Cn ca to
w co bot clii to to cs b tn "i "Ja
cs co a iu w cs o to o o,
ii o t) co a M c o o ca la o o
'It appears -from these authentic facts,
which cannot be far from perfet accuracy,
that from 1S33 to '41 inclusive, the capital
invested in banking ranged from about eight
millions to'overeleven millions of dollars;
tho accommodations by loans and discounts,
from about nine millions six hundred thou
sand to four millions six hundred thousand.
And from June 'ii to the present time, the
capital has ranged from seven millions to
two millionsof dollars; the loans and dis
counts from seven millions to two millions
eight hundred thousand; and the circulation
from one to two millions. In the former
period there were from thirty-two to thirty
seven banks in operation in the State, and
dining that time, especially from '37 till '41,
with the immense amount of bank loans,
bank issues und bank capital then existing
in this and the surrounding States, pecunia
ry distress, embarrassments, and bankrupt
cies existing to an alarming extent. Not
withstanding the profusion of bank paper
and bank facilities, business and enterprise
were paralyzed public works stopped and gi
ven up. and improvements of all kinds re
tarded. And, at that very time, the clamor
for morn banks, more bank facilities, a new
and more enlightened banking system was
beyond measure. At the sessions of '35-6,
';JG-7, 3 -9, and 40-1, petitions for more
banks were crowded on the Legislature in
unequalled numbsrs. The delusion seemed
to hold a portion of the people spell-hound
with the idea that an addition to the bank
issues and bank loans, already existing to
an alarming excess, could relieve the coun
try. And the Legislature was even cen
sured as refusing to do anything for the good
of the country because the insatiate demand
I for banks vvus resisted. Hut during the lat
ter period of lime the banks have been redu-'
ced to tho number of ten since Janutry, '43
and eight since January '41; and the loans
and discounts of the banks, have been reduced
to less than one sixth, and the capital and
circulation to less than one fourth the aver
age amount during tho former period. Bank
ing operations at the same time, in the sur
romidins Suites, have been greatly curtailed;
and in Michigan and Illinois perhaps mor
thou in Ohio. The inordinate thirst fo'
bank accommodations and bank facilities
Las decreased as the banks have disappeared.
The embarrassments
i and distress of the for-
mr-r period are now to bo sscn only in some
nf flirt rfmainKnf ihp ciMiprnl wrerir wtiirh
I from the event, business and enterprize have
continued to revive unimpeded in their pro
gress. Thus, as the banHrtg system has lit
rally rotted down in the sink of its own fol-
lv unit rni-riml inn ih.inrnennrttv nf tha nim.
ing operations, ore recovering their energies
' wit'i renewed vigor; ana commerce, naving
in a measure thrown off the shackles of pa
per money, ha replum 'J us wings lor a ca
reer of prosperity.
Since the enchantment of bank paper
; has, in a measure passed off, the fact has
&;uecomc paipa.no mat me prices 01 our
.11 1 11. . 1 . .1 . r .
commodities in Uluo, depend upon the
prices wnicu iney win commana in me
; Aiinnuc cities ami cisewnere, nnu noi on
' profusion of tho paper bubble. When
: wheat will command a dollar a bushel m
ue of it cannot exceed tho worth of tho
currency witn which our prouucis nr.
now purchased more than the cost of trans-
portation.' t
Actuul experience has often exposed,
and that, too, with severe penalties, the
ompericism of all attempts to enlarge tho
circulating medium, and stimulate the
prosperity of a country by an issuo of
paper money. Gold uud ailver is, and
to which every thing must conform. 1 he
prices in the markets of every othorStata
and country in the commercial world,
have thoir influenco in fixing and regula-
ting the prices in the markets of Ohio,
So, also, that currency which is theuni-
versul standard of value of every other
State and nation with which we trade,
eithor directly or indirectly, must regu-
late nnd control (lie currency 0 Ohio.
i
if '
1
:?
1
1
f i