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Federal Reserve Bank of St. Louis

6611-5cci-16^.1

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OHIO
Additional material pertaining to insurance of bank obligations in
Ohio, 1845-1866, can be found in the following folders filed with
this binder:


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Federal Reserve Bank of St. Louis

Condition of independnnt old anc"] free banks
Condition of branches of State Bank

4111

MAIERIALS REGARDING INSURANCE OF BANK OBLIGATIONS
IN OHIO, 1845-1866

Contents

Legisla—ion

Audit Reports

Correspondence and memoranda

Statistical data

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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

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,

24
organized and supplied with suitable apparatus for the
use of
their respective companies, be and the same is hereby repea
led.
JOHN M. GALLAGHER,
Speaker of the House qif Representatives.
DAVID CHAMBERS,
February 25, 1845.
Speaker of the Senate

AN ACT
To Incorporate the State Bank of Ohio
and other Banking Companies.

SECTION 1. Be it enacted by the General Asse
mbly of the
State of Ohio, That it shall be lawful
for natural individual
persons, not fewer in number, in any case than
five, to associate and form companies for the purpose of
carry
ing on the
business of banking, each in such place in this
designated in its articles of association, and state as shall be
hereinafter required to be made, subject, howein the certificate
tingencies, restrictions, conditions, and liabil ver, to the conities prescribed in
this act.
Maximum of
Sue. 2. The aggregate amount of capit
al
capital staca•
companies, authorized by this act to be form stock of all the
on the business of banking within this state, ed, and to carryshall not, until an
additional amount shall be authorized by law,
ion one hundred and fifty thousand dollars; exceed six millwhic
not, however, be construed to include the capit h sum shall
al
companies, as, by name, shall be authorized stock of such
to continue or
to resume the business of banking, subject
to the provisions of
this act.
The state didSEC. 3. For the purpose of securing to the
several sections
ded into twelve of
the state, a fair participation in the privileges
de.tricts,
granted by
this act, the state shall be divided into twelv
banking capital authorized by the second e districts, and the
portioned among such districts, and the section, shall be apnumb
companies to be formed therein, shall be limit er of banking
ed as provided in
this section, that is to say—
The counties of Hamilton, Clermont, Brow
First district;
n,
ren, and Butler, shall compose the first distri Clinton, Warnumber of banking companies to be formed ct, in which the
shall not exceed
five, with an aggregate capital not excee
ding one million two
hundred thousand dollars.
The counties of Greene Montgomery, Preble,
Second;
Miami. Darke,
Shelby, Mercer, Allen, and Vanwert,shall comp
ose
district, in which the number of banking companie the second
ed shall not exceed five, with an aggregate capit s to be formal not exceeding six hundred thousand dollars.
The
counties of Putnam, Paulding, Williams, Henry,
Third;
Lucas,
Wood,and Hancock, shall compose the third distri
ct, in which
the number of banking companies to be formed
shall not exWho, and how
newly may engage In banking,


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Federal Reserve Bank of St. Louis

25
ceed four, with an aggregate capital not exceeding three hundred thousand dollars.
The counties of Ottawa, Sandusky, Erie, Huron, Richland, Fourth ,
Seneca, Wyandott, and Crawford, shall compose the fourth
district, in which the number of banking companies to be formed shall not exceed four, with an, aggregate capital not exceeding four hundred thousand dollars.
The counties of Hardin, Marion, Delaware, Franklin, Union, rum.
Logan, Champaign, Clark,and Madison, shall compose the fifth
district, in which the number of banking companies to be formed shall not exceed six, with an aggregate capital not exceeding five hundred thousand dollars.
The counties of Pickaway, Fayette, Ross, Highland, Adams, Sixth.
Scioto, Lawrence, Gallia, Pike, and Jackson,shall compose the
sixth district, in which the number of banking companies to be
formed shall not exceed five, with an aggregate capital not exceeding five hundred thousand dollars.
The counties of Meigs, Athens, Washington, Monroe, Mor- Seventh;
gan, Muskingum, and Guernsey, shall compose the seventh
district, in which the number of banking companies to be formed shall not exceed six, with an aggregate capital not exceeding
five hundred thousand dollar.
The counties of Hocking, Perry, Fairfield. Licking, and Eighth;
Knox, shall compose the eighth district, in which the number
of banking companies to be formed shall not exceed four, with
an aggregate capital not exceeding four hundred thousand
dollars
Ninth;
The counties of Wayne, Stark, Holmes, Coshocton, and
the
which
in
numdistrict,
ninth
the
Tuscarawas shall compose
ber of banking companies to be formed shall not exceed three,
with an aggregate capital not exceeding two hundred and fifty
thousand dollars.
The counties of Belmont, Harrison, Jefferson, Carroll and Tenth;
Columbiana shall compose the tenth district, in which the number of banking companies to be formed shall not exceed five,
with an aggregate capital not exceeding five hundred thousand dollars.
The counties of Trumbull, Ashtabula, Lake, Geauga, and Eleventh;
Portage shall compose the eleventh district, in which the number of banking companies to be formed shall not exceed five,
with an aggregate capital not exceeding three hundred thousand dollars.
The counties of Summit, Medina, Lorain and Cuyahoga, Twelfth.
shall compose the twelfth district, in which the number of
banking companies to be formed shall not exceed eleven, with
an aggregate capital not exceeding seven hundred thousand
dollars.
of hankSec. 4. The number of banking companies which shall be iNumber
inignaccor[Ina=n.
formed and permitted to engage in the business of banking,
under the provisions of this act—in the county of Hamilton ties designated.
shall not exceed four. In the county of Cuyahoga, six.
4—G. I..

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In the county of Franklin, three. In the county of Ross,
two. In the county of Muskingum, two. In the county
of Jefferson, two. In the county of Summit, three. In
the county of Lucas, two. In the county of Miami, two.
In the county of Montgomery, two; and in no other county in the state shall there be more than one company
formed under the provisions of this act, and permitted to
engage in the business of banking, except under the circumstances mentioned and provided for in the twelfth section
of this act; provided that not more than two companies shall
be authorized to commence and carry on the business of banking, as branches of the State Bank of Ohio, under the provisions of this act, in any one of the counties named in this section, excepting the county of Hamilton, and in the county of
Hamilton, not more than three such branches shall be so authorized; and if a greater number of companies, formed for
the purpose of banking in any such county, shall elect to become a branch of the State Bank of Ohio, the commissioners,
hereinafter appointed, shall reduce such number to the number
in this section limited, in conformity to the rules prescribed in
the eleventh section of this act.
Who shall conSEC. 5. To carry into effect the provisions of this act, John
'Mute the taard
of bank councils W. Allen, Joseph Olds, Daniel Kilgore, Alexander Grimes and
@loners ;
Gustavus Swan, shall be and they are hereby appointed commissioners, and they, or a majority of them, after taking an
oath diligently, faithfully, and impartially to perform the duties
assigned them by this act, a certificate of which oath shall be
filed and carefully preserved in the office of the secretary of
state, shall constitute a board to be designated the board of
continue In bank commissioners;
which board shall continue for one year
office one year.
from the date of this act, and thereafter the duties which they
are required, by this act, to perform, shall devolve on, and be
performed by, the auditor, treasurer and secretary of state,
who shall be commissioners to perform such duties; and if any
of said commissioners shall refuse to serve, shall die, or resign,
his place shall be filled by the general assembly, by joint resolution, if in session,and, if not, by the governor.
Governor to sp•
SEC. 6. Said commissioners shall meet in the city of CoP°Int first nieet.
L'mbus, at such time, within thirty days after the passage of
ing under this "
act, and notify this act, as shall be
each member. each member of hisappointed by the governor, who shall notify
appointment, and of the time and place of
meeting; they shall, when met, appoint one of their number
to be their president, who shall, under the order of the board,
sign all official documents; and they shall cause a fair and true
record of all their official proceedings to be kept in a book,
provided for that purpose.
Bankers to make
SEC. 7. Persons associating to form a banking company,
certificate, spedf)ins the name shall9 under their hands and seals, make a certificate, which
Of company.
shall specify:
First—The name assumed by such company, and by which
it shall be known in its dealings, in which name shall be in


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Federal Reserve Bank of St. Louis

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on
nd
}an
lel
be
I
ear
heY
be

V.1.•
:•(..
of
Ity

of
her 1
rd.
rue
4
'

ded the name of the city, village, or town, in which its banking operations shall be carried on;
Second—The amount of the capital stock of such company, Anent of stock.
and the number of shares into which the same is divided;
Third—The name and place of residence and the number of
'
,,x2,17.
1 "
shares held by each member of the company;
Fourth—The time when such company shall have been The time when
the company
formed;
was formed, and
Fifth--That such company has elected to carry on its ope. whether an hide.
rations as an independent banking company, or, as a "branch .7.drea"tbra":„ of
of the State Bank of Ohio," as the case may be, which certifi- the State Bank.
cate shall be acknowledged before a justice of the peace or
notary public, and shall be recorded by the recorder of the
county where such company is to be established, in a book to
be kept by him for that purpose, which shall at all times during
office hours be kept open for the inspection of any person
wishing to examine the same; one copy of which certificate Said e
duly certified shall be transmitted to the secretary of state, be reccorrtdir"
ed,t&
erto
who shall record and carefully preserve the same in his office, 1"
..
and another to the board of bank commissioners.
SEC. 8. No company shall be permitted to commence or Capiltal stock of
ndent
carry on the business of banking under the authority of this Ve'nkndteopehe at
act, as a branch of the State Bank of Ohio, unless its capital least t50.000,
of
stock shall be at least one hundred thousand dollars, nor as an ofdtt
an
a tbarnakn h
independent banking company, unless its capital shall be at silK),000, and
least fifty thousand dollars, nor in either case shall the capital 17,„cicarptiotaleiocfeed
stock' of any such Company exceed five hundred thousand do!- s.:otwoo.
lars; provided however, that the certificates of the funded
debt of this state, or of the United States, deposited with the certifiece.of
treasurer of state, as collateral security for the redemption of funded de tnootr
;art
the notes of circulation of any independent banking company cdaeep'
n
itaeldsatock.
part
of
the
capital
shall not be deemed a
stock of such company, within the meaning of this act. At least thirty per centum
of the capital stock of each company shall be paid in gold and Amount of
silver coin, or their equivalent, one half of which, thirty per the capital stock
each company
centum, at least, shall be in gold and silver coin, and shall be in of
to be paid to gold
the actual possession, and bona fide, the property of the corn- or silver coin, or
pany at the time of the commencement of its banking busi- their equivalent ;
ness, and at the place designated for carrying on such business,
and the remainder of the capital stock of such company shall
be paid in,in installments each of at least ten per centum,on the
whole amount to which the company is limited, as frequently
as one installment at the end of each succeeding ninety days,
from the date of the commencement of its banking operations, How and when
until the whole amount of capital stock is paid in; but when to be paid.
any banking company formed under the provisions of this act,
shall have paid in at least sixty per cen turn on the gross amount The boardofconor governor,
of its capital stock, and shall deem a further extension of its trot
may, under cercapital at such time unnecessary, such company may, if a tain circumstan•
extend the
branch of the State Bank of Ohio, apply to the board of con- cos,
time of payment
trol, or, if an independent banking company, to the governor, of stock.


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Federal Reserve Bank of St. Louis

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t

for an extension of the time for paying in the remaining installments on its capital stock, and if, after a careful examination of the facts, the board of control or the governor, as the
case may be, shall be satisfied that public convenience does
not require an increase of the capital stock of such company
as rapidly as required by the foregoing provisions of this section, the board of control, or the governor, as the case may require, shall authorize such further extension of the time for
paying in the remaining installments as shall be deemed compatible with the public interest; and this section shall not be so
construed as to prevent any independent banking company
that, previous to commencing its business as a bank, shall have
paid in on its capital stock not less than thirty thousand dollars,
and shall have deposited with, and transferred to,the treasurer
of state, certificates of funded debt, as required by this act, to
any amount not less than seventy thousand dollars, and shall
also have complied with all the provisions of this act, other than
such as relate to the amount of its capital stock, from 'commencing and carrying on its business as an independent banking company; and, in such case, such company shall not be
required to have or pay in any additional amount of capital
stock.
SEC. 9. If any shareholder, or his assignee, shall fail to pay
Upon failure, on
the part of as- any installment on the stock, when the same is required by the
signees or shareholders, the di- foregoing section to be paid, the directors may sell said stock,
rectors may tell at public auction, having given three weeks previous notice
their stock.
thereof, in a newspaper published in the county where the company is located, to any person who will pay the highest price
therefor, and not less than the amount then due thereon; and
the excess, if any, after paying the expenses of sale, shall be
refunded to the delinquent stockholder. If no bidder can be
found, who will pay for such stock the amount due thereon, to
the company, and costs of advertisement and sale, the amount
previously paid shall be forfeited to the company; and such
stock may be subsequently sold, in such manner as the directors may order.
SEC. 10. After the expiration of two months, and within
When and where
the board ofbank
months from the date of this act, the board of bank comthree
commissioners
may examine the missioners shall examine the certificates of the formation of
certificates of
banking companies, transmitted to them as required by the
banking companies, and the du- seventh section of this act, and shall, by one of their own memties and quallfi- bers,or other special agent appointed by them for that purpose,
cations of a,gents
appointed to es• who shall not be a stockholder in ari: of the companies formed
amine the condi- under this act, immediately proceed to examine the condition
lion of banks,
of each of the banking companies which shall have transmitted
to the said board the required certificate; and it shall be the
especial duty of such agent to carefully count, or otherwise
ascertain, the amount of money paid in on account of its capital stock; to ascertain the name and place of residence of each
of the directors of such company, and the amount of capital
stock of which each is the bona fide owner; whether such


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company has complied with all the requirements of this act,
necessary to entitle the company to engage in the business of
banking; and he shall cause to be made, and attested by the
oath of the majority of the directors, and by the cashier of such
company, a statement of all the material facts necessary to
enable the board of commissioners to determine whether such
company is lawfully entitled to commence the business of
banking under the provisions of this act; and such agent shall
immediately report to the board of bank commissioners such
statement, and his proceedings in the premises.
SEC. 11. If, upon a careful examination and comparison of .Only cf.^^lis
the certificates of association, and the reports and statements et°,entei7:4;:emeli
of the special agents, appointed to ascertain whether the bank- ine'd ihe "UM'
ing companies, authorized by'this act, have complied with its catieswletnedmrecrerowr
provisions, it shall appear that any number of companies have their agent or
been formed, and are lawfully entitled to commence the business of banking, provided the number of such companies, and
the amount of their capital,collectively, in any district, shall
not exceed the number and the amount of capital assigned to
such district, nor in any county the number assigned to such
county, the commissioners shall certify the same to the governor, who shall, if he be satisfied that the law has, in all
respects, been complied with, issue his proclamation, setting
forth that such compatiies are authorized to commence and
carry on the business of banking, at the places severally designated in their certificates of association; but if the commission- when more
ers shall find that a number of banking companies shall have banking compee mn
es hatvhanbee
t fmed
l:wen formed, and shall have complied with all the requisitions t
of this act, preliminary to the commencement of the business of &Wined bY this
banking, in any district, greater than the number assigned to Itar:;,int haer Yrodmin:
such district, then the commissioners shall determine which of MI"kMe" omit
eavnnto
such companies are to be preferred, and certify the same to r
the governor, as in this section provided; and, in forming such r000tke. where
determination, they shall apply the following rules,in the order been formed.
which they stand:
First: They shall avoid depriving any county,in which one
or more of such companies are formed, of at least one.
shalli pre.
Second: They shall prefer such companies as have the ;They
mi
hearr
largest capital, provided at least thirty per centurn thereof shall
gest capital;
have been paid in.
Third: They shall prefer the company or companies whose —The largest
stock is in the largest proportion, owned by citizens of the itwrk
the "w""and
in the state;
county in which such company is formed.
Fourth: They shall prefer the company or companies
whose stock is in the largest proportion,owned by the citizens
of the state.
Fifth: They shall prefer companies constituted by the most — And having
responsible stockholders. And in case more companies shall 117e natTerrold7r;
have been formed,and shall have complied with all the requirements of this act, preliminary to the commencement of business
in any county, than the number assigned to such county, the
f011fil V,

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commissioners, in determining to which a preference shall be
given, shall observe the foregoing rules, excepting the first, in
And if, after reducing the
When the corn- the order in which they stand.
perm.. in any itis- number of banking companies in any district to the number
Inn t have,collectively, A larger assigned to such district, it shall be found that such companieii
amount of card- have, collectively, a greater amount of capital than the amount
tat than that as.
portioned to,each apportioned to such district, then the commissioners shall bring
district, the a- the aggregate capital within the prescribed limits, by reducing
mount shall be
the capital which each company shall be authorized to employ,
reduced by an
equal ratio,
in equal ratio, on the amount thereof,over the minimum amount
prescribed for such companies.
After the end of
SEC. 12. After the end of two years from the date of this
two years from
the date of this act, any banking company formed in any district may increase
act, companies
its capital stock to any amount not exceeding five hundred
may increase
thousand dollars, nor exceeding the amount of capital assigned '
their capital
stork, under eer- to such district, and remaining unappropriated; and in case
tam n specified remore than one banking company shall apply for an increase of
strIctions,
its capital stock, and the amount of the proposed increase shall
exceed the whole amount of capital unappropriated in such
district, then the commissioners shall assign such unappropriated capital, equally, to the companies demanding the same; but
any new company,formed in any county having no banking
company in the same, shall be preferred at any time before
such capital is finally appropriated.
IN RELATION TO THE STATE BANK OF OHIO.

SEC. 13. Whenever, from an inspection of the certificates
Whenever any
number of corn' transmitted by banking companies to the board of bank companies, not lees • •
than seven,shall missioners, it shall appear that any number of said companies,
elect to coin.
not less than seven, inclusive of such existing companies as are,
mence banking is
this act, especially authorized to resume or continue bankoperations.
branches ofState ing operations under its provisions, have made their election
Bank, they shall
transact their banking operations, as branches of the State
appoint members to
of the board of Bank of Ohio, and have complied with the requirements of this
control,
act, preliminary to the commencement of banking operations,
then said commissioners shall immediately notify each of said
companies thereof; and within ten days after receiving such
notice, they shall each appoint,in such manner as the directors
thereof shall prescribe, one person to be a member of the board
of control of the State Bank of Ohio; and any two or more of
such banking companies may unite in the appointment of the.
same person. But no person, who is not a citizen of the Uni-•
Qualification, of ted States, and a resident of this state,and who has not resided
members of the
board of control. within this state at least two years next previous to his appointment, shall be a member of the board of control.
SEC. 14. The members of the board of control, who shall
When the board
of control shall have been appointed agreeably to the provisions of the next
meet; how, and
In what manner preceding section, shall meet in the city of Columbus, at such
organized.
time as shall be designated by the board of bank commissioners,
who shall give ten days previous notice to each branch of the
time of such meeting; they sharl each take on oath diligently,


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Federal Reserve Bank of St. Louis

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es

at
•

faithfully, and impartially to perform the duties imposed on
them by this act, a certificate of which oath shall be filed and
preserved in the office of the secretary of state. They shall
organize, provided two thirds of the whole number shall be
convened, by electing some suitable person as president, whose
duty it shall be to preside at the meetings of the board, and
sign its official documents; they shall appoint a secretary, who
shall keep a fair and true record of the proceedings of the
board. They shall keep an office in the city ofColumbus,which,
together with their books, papers, records, and accounts of
every description, shall, at all times, be open to the inspection
of any committee of the general assembly, or either branch
thereof, and of any commissioner or commissioners,especially
appointed for that purpose by the general assembly,and of any
person appointed by any one of the branches. They shall
shall fur•
procure and furnish each branch with notes for circulation,and They
nish notes for
decide on the amount to be furnished, from time to time, to eulation ,
each, within the limits, and agreeably to the rules and restric_ _Pr rib, rules
tions prescribed by this act. They may prescribe rules for the for
the settle.
of
fourths
three
,
branches
the
settlement of balances between
rtanTi:
rwteoern bba.
the votes given, according to the rule of voting herein prescribed, concurring. They shall have power, by themselves, es ;
or by a committee of one or more members of their own board,
or by a special agent appointed by them for that purpose,
shall have
whenever, and as often as they shall think proper, to visit any And
power to visit,
evithe
all
and
,
accounts
and
records
y or by
personall,
branch,inspect its books,
intents, the varl•
dences of debts due to, and securities held by, such branch; 0115
branches,
examine and ascertain the amount of money and other prop- and exantine
erty held by such branch; examine, on oath, the president, their affairs.
directors, cashier, and all other officers, agents, clerks or servants of the branch, touching its condition, means and liabilities. They shall have power to require any branch to
reduce its circulation, or other liabilities, within such limits as
they shall, after full inquiry into its condition, deem necessary
to secure from loss,either the dealers with such branch,or the
other branches of the State Bank of Ohio. They may require
the officers of each branch to make out, under oath, and transmit to the office of said board, at Columbus,statements of the
condition thereof, in such form as such board shall prescribe,
and as frequently as they shall deem proper; which statements
shall be recorded in a book or hooks to be kept for that pur- They may at,
pose. They may appoint an executive committee, of not less P°Int an exer ucommittee,
than five, of whom the president shall be one, to act in behalf live
&e.
of the board in all such cases, and perform all such duties as
shall be prescribed by the bylaws of said board, not inconsistent with this act.
Compensation of
SEC. 15. The president and secretary of the board of con- members of the
as
services
their
for
ation
board of control,
trol shall each receive such compens
the expense
said board shall allow, which shall be assessed upon the several ad
of printing notes,
capitheir
of
ratio
the
in
Ohio,
Sce.; how raised.
branches of the State Bank of
tal stock. The board may also allow the executive committee


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Federal Reserve Bank of St. Louis

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such compensation as they shall deem just and reasonable, to
be paid by the several branches, in the same manner; and the
expenses of procuring plates and printing notes of circulation
shall be paid by the several branches, in the ratio of the notes
of circulation received by each.
-SEC. 16. The board of control, from the time of its organThe board of
(
control shall be
until the first day of May, in the year one thousand
ization,
a body corporate
until the lat day eight hundred and sixty six, and thereafter, until the affairs of
of May, nee,
the several branches of the State Bank of Ohio shall be finally
closed up, shall be a body corporate, with succession, and by
the name of the State Bank of Ohio, capable of contracting
and of prosecuting, and defending in suits or actions at law,or
in chancery, as fully as natural persons, and of doing all other
acts and things necessary to effect the object contemplated in
this act by the formation of said board.
SEC. 17. Each member of the board of control shall conRegulations as to
tho term of office
in office until the first Monday of February, next after
tinue
of members of .
the board of con• his appointment, and until his successor shall be appointed and
trol vacancies ; qualified;
vacancies in the board shall be filled by the branch
and the president
by which the appointment vacated was made; in voting each
of said board,
member shall be entitled to one vote,and to one additional vote
for every fifty thousand dollars of the amount of notes of circulation, to which the branch or branches represented by him,
is, or are entitled, at the time of such voting; the president of
the board shall hold his office for one year, and until his successor shall be appointed, but may be removed by a resolution
of the board; he shall take an oath, faithfully, diligently and
impartially to fulfil the duties of his appointment,and not knowingly violate any of the provisions of this act; he may be required to give bond in such sum, and with such securities, as
the board shall prescribe; and all vacancies in said appointment shall be filled by the board.
All notes issued by any branch, intended to cirNotes issued by /Sm. 18.
any branch, pay• culate as money, shall be payable at the branch by which they
able at said
branch in gold are issued in gold and silver coin, the lawful currency of the
and silver coin. United States, or either, at the option of the branch, on demand; they shall be signed by the president of the board of
How notes to be corktrOl, countersigned by the cashier of the branch by which
signed and coon. they are issued, made payable to bearer, and shall be negotiatersigned,
ble by delivery; all other evidences of debt, issued by any
branch, shall be negotiable or transferable in the same manner
as if issued by a natural person, and shall be binding on the
branch, whether under seal or not, and all such evidences of
debt, other than notes of circulation, shall be payable to the
order of some person therein named.
SEC. 19. No branch of the State Bank of Ohio shall, at
The proportion
of notes in chew any time, have in circulation notes in the similitude of bank
lation to the capital stock, to be notes, to an amount bearing a greater proportion to the capital
by the stock of said branch, actually paid in, and at the time remainfollowing ratio: .
ing undiminished by losses or withdrawal, exclusive of its portion of the safety fund, than the ptoportion hereinafter specified, that is to say:
rerUlate4


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Federal Reserve Bank of St. Louis

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Ia.

IS

On the first hundred thousand dollars, or any lesser amount
of its capital, not more than twice the amount of such capital.
On the second hundred thousand dollars,or part thereof, not
more than once and a half of the amount of such capital, over
one hundred thousand.
On the third hundred thousand dollars, or part thereof, not
more than once and a quarter the amount of such capital, over
two hundred thousand.
On the fourth hundred thousand dollars, or part thereof, not
more than once the amount of such capital, over three hundred
thousand; and,
On any amount of capital, over four hundred thousand dollars, not more than three fourths the amount of such capital,
over four hundred thousand, and on its portion of the safety
fund an amount equal thereto.
SEC. 20. Notes designed for circulation shall be delivered How notes, de
lotio
ned
o,ftoor he
riredu
by the board of control, to each branch on a written order, lig
e:
signed by the president, and a majority of the directors of such IIv.red, Are.
branch; such orders shall be carefully preserved by said board
in their office; an accurate account of all the notes so delivered,the amount of the notes of each denomination so delivered,
and the date of such delivery, shall be kept by the board of
control, in a book or books, to be provided and kept in their
office at Columbus; all'notes so worn, defaced or mutilated as
Regulations as to
to be unfit for circulation, shall be returned by the branch by delayed
or mullwhich they were issued, to the board of control, and an equal Iced notes.
amount of new notes received therefor; all such notes so returned by a branch shall be credited, and all new ones delivered in their stead shall be charged to such branch, on the
books of said board; and the notes so returned shall be burned
to ashes, in the presence of the president, and at least two of
the members of said board.
/ SEC. 21. Before the board of control shall deliver to a% Every
re.
branch, notes for circulation, they shall require such branch q.:1"dotbranch
rodPay
to pay over or deposit to the credit of said board, as said
to the ered
e it ot
f
board shall order, either in money or in certificates of the stocks "
thei'Tr^ of con
of this state, or of the United States, at their current value
in ;:t.1,',.
° nr7corue:tnot
the city of New York,but in no instance above their par value, notes
given for
an amount equal to ten per centum on the amount of the notes circulation,
for circulation, which shall be delivered to such branch. And so
from time to time, as any branch may, by the paying in of an
additional amount on its capital stock, or by not having received the amount of notes for circulation to which it was previously entitled,be authorized to demand an additional amount
of notes for circulation, such branch shall deposit with the
board of control ten per centum on the amount of notes so reStacks and moo
quired, and the stocks and money so deposited shall be denomi ey
so paid and
nated the "safety fund," and shall be invested as hereinafter doexis,,itoetde;i tdhee.
prescribed, and held by the board of control, as the propert .•safely fund."
of said board, in trust for the benefit of the several branch y
es of
the State Bank of Ohio, and as a fund for the redemp
tion of the
5--G. L.


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34
notes of circulation of any one or more of said branches that
may fail to redeem its notes, to be applied to that purpose in
the manner pointed out by this act.
In what manner
SEC. 22. All money so deposited or paid to the board of
eaeh branch may
on account of the safety fund, by any branch, shall be
control
Invest its portion
or the safety under the direction of said board, invested by such branch,
fund,
either in the stocks of the state, or of the United States, or in
bonds secured by mortgages on unincumbered real estate situated in the county where such branch is located, or in adjoining counties, of at least twice the value in each case of the
amount secured thereby, exclusive of buildings or other fixtures subject to be destroyed by fire, by floods or accidental occurrences, or of timber, mines or minerals, subject to
waste; which bond shall be made payable on demand to the
State Bank of Ohio, and shall bear such rate of interest as shall
be agreed on by the parties, not exceeding seven per centum
per annum, payable semiannually. Each branch shall be enThe branches
entitled to retitled to receive the interest accruing on the stocks or bonds in
ceive interest
which its portion of the safety fund shall have been invested;
accruing on its
stocks or bonds, and in case of the insolvency of any branch, the stocks and
bonds in which the money of such braneh shall have been invested as aforesaid, if the proceeds of such stock and bonds
shall be sufficient to redeem its outstanding notes of circulation, shall as far as practicable, be first converted into money,
and applied to that purpose, before any part of the safety fund
belonging to other branches shall be so applied.
SEC. 23. The stockholders,collectively,of any branch shall
To what amount
stockholders and at no time, be liable to such branch,either as principal debtors,
direcnas may be
both, to an amount exceeding one third part of
liable, either as or sureties, or
debtors or sure. the capital stock of such branch then actually paid in and remaining as capital stock. Nor shall the directors, collectively,
be so liable to an amount exceeding one fourth part of the stock
actually paid in, standing in theie names, and of which they
are collectively the bona fide owners in their own right; pro.
vided that such directors may be further permitted to become
liable, as drawers or indorsers of bona fide foreign bills of exchange,drawn in this state, and payable at any place out of this
state,to an amount,when added to their other liabilities, not exceeding one third of the capital stock actually paid in,and standing in the names of such directors; and the stockholders may
become liable, in like manner, in such sum as. when added to
their other liabilities, will not exceed one half of the capital
stock of any such branch actually paid in.
SKC. 24. If any branch of the State Bank of Ohio shall reIf any branch re.
to pay its notes of circulation, or any of them, in gold or
fuse
redeem
rusk."'
Its notes, it shall
be deemed insol- silver coin, the lawful currency of the United States, On
sent, ate,
which payment shall be lawfully demanded at its banking
house, or customary place of doing banking business, during
usual banking hours, such branch shall be deetnel to have committed an act of insolvency, and thereupon all its property,
credits, securities, liens and assets of every description, shall


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A

25
forthwith vest in, and be the property, credits, securities, liens
and assets, of the board of control, for the uses and purposes
declared in this act.
Sc. 25. The board of control, on receiving information The board or
":;:::::',7,rth•
.
that any branch of the State Bank of Ohio has committed au riz
act of insolvency, shall forthwith appoint a committee of one any brawl', to
or more of its members, who shall make immediate inquiry into
the truth of such information, and report thereon to the board;
.1,..,1 or the
and if the board shall be satisfied, from the report of the coin- .01
raarrie,,elioveiropor
mittee, that such branch has suspended the payment of its notes
in gold and silver, they shall forthwith appoint a suitable re- ceivera, /kr.
ceiver or receivers, who shall take immediate possession of the
books, records, money, choses in action, and property of said
branch of every description, and hold the same for the joint
use and benefit of the other branches of the State Bank of
Ohio, and the creditors of said failing branch; and said board
of control shall immediately provide money, and place the
same in such solvent branch or branches, as may be most
convenient for the purpose of redeeming the notes of such failing branch, and shall give public notice thereof in some newspaper, printed in the place where such failing branch is located,
and also in some newspaper of general circulation published at
Columbus.
SEC. 26. Each solvent branch shall contribute, in the ratio Each solTent
of the circulation to which it is entitled, to the sum necessary buhrateneLtoteheontrrel:
for redeeming the notes of the failing branch, as provided in demotion of the
tw of a falling
the preceding section, on the requisition of the board of con- iwiyh
trol, and may be remunerated for such contribution, from the
safety fund, as soon as money sufficient can be raised from
that fund, by a sale or hypothecation of the stock, funds, or
other securities belonging thereto.
SEC. 27. The receiver or receivers, appointed as provided imetiver er rein the twenty fifth section, shall be required to give bond in "'""0^1
such sum, and with such securities, as the board of control
shall judge sufficient; and, under the direction of the said board, 1„„ha
shall proceed to settle up its affairs, and convert its assets into whiaws7 omit by
reeeheis to is
money; the money so made shall be applied—
First: To reimburse all moneys which shall have been
advanced by the several branches for the redemption of the
notes and bills of the insolvent branch, and which may not
have been previously reimbursed (torn the safety fund.
Second: To reimburse all moneys advanced from the safety
fund, other than moneys derived from that portion of the safety
fund furnished by the failing branch.
Third: To the payment and discharge of all the remaining
liabilities of such branch; and—
Fourth: The residue shall be divided among the stockholders of the failing branch, in proportion to the stock by them
respectively held.
Sac. 28. If any branch, against which the board of control Ifsay140 foot re
shall have instituted proceedings, on account of any ;opposed ...batiri of WNW

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Federal Reserve Bank of St. Louis

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36
act of insolvency, as prescribed by the twenty fifth section of
this act, shall deny having committed such act of insolvency,
such company may apply to any court of competent jurisdicsuspend
tion for a writ of injunction to said board of control toinsolvent
an
as
branch,
such
all further proceedings against
company; and such court, after citing said board of control to
appear and show cause why such writ should not be granted,
and after the finding of a jury that such branch has, at all times
•
continued, and still continues to redeem,in gold and silver
enjoining
order,
an
make
shall
circulation,
of
its notes
board of control, from all further proceedings against such
branch, on account of the supposed act of insolvency,
all
which such proceedings were instituted, and thereupon
to i
restored
be
shall
branch
such
of
assets
property and
directors.
e• Sgc. 29. If the board of control shall, in any' case, fail to
The hoard of
control may be
manner prescribed in the foregoing sections oft
romi.elie,i, by proceed in the
the payment of the outs
holders of notes this act, and providing for
no
the affairs of any
closing
or creditors,
in
and
circulation,
of
tes
UP'
on application to
insolvency, the holder o
of
act
an
that shall have committed
the court, to
comply with the any of its notes of circulation, or other creditor of such branch•
pen, mons of prepayment of such notes of circulation or other'
ceding sections. may, in case
claim, has been refused when lawfully demanded, and remains
unpaid, apply to any court of competent jurisdiction, for its
writ, commanding the board of control so to proceed; hnd it
shall be the duty of such court, after citing such board to
appear and show cause why such writ should not issue, and
upon the finding of a jury that such act of insolvency has been
committed, to issue their writ, commanding said board of control forthwith to proceed, in the manner pointed out in the
preceding sections of this act, to provide for the payment of
the outstanding notes of such branch, close up its affairs, and)
make application of its assets.

geney, it may
apply to any
mp
court of coe•
tent Meta fiction
for a writ of in.
Junction. &e.

IN RELATION TO INDEPENDENT BANKING COMPANIES.

Sec. 30. Each company that shall have elected to carry
on its business as an independent banking company, and shall
have complied with the requirements of this act, preliminary t the commencment of banking business, shall, before it shall
of commence such business,and before it shall be held to have ac-.
quired corporate powers,deposit with and transfer to the treesurer of state certificates of the funded debt of this state, or ofthe
United States, at least equal in amount to the amount of its cap.
ital stock, at such time paid in; and,from time to time,as an ad- ,
ditional installment, or portion of its capital stock,shall be paid,
in, additional certificates of the funded debts above specified,
at least equal in amount to the amount of such additional pay
meats of capital stock, shall, within thirty days after such payment, be deposited with and transferred to the treasurer of
state, but no such certificate of funded debt shall be received

Independent
banking comp&
nice to deposit
with treasurer of
certificates -0
of funded debt of
Ibis state, or
the United States
equal in amount
to the amount of
their capital
stock.

state.


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Federal Reserve Bank of St. Louis

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by said treasurer at a rate or price above the average selling
price of such certificates at the New York stock exchange,
for the four weeks next preceding the time of the receipt
thereof by the treasurer, nor shall any certificate of the funded debt of this state be received at any rate above its par
value, exclusive of the unpaid interest that may have accrued
thereon; and if such company shall fail to make deposits and
transfers of stoc.k, as in this section required, all its franchises
and powers derived from this act, except such as may be necessary to settle up its affairs, shall immediately cease and
determine.
SE.c. 31. The treasurer of state shall deliver, from time to Treasurer of
time as he may be prepared so to do, to any independent sitt.adteepi.tontideettl,vi er to
banking company that may have entitled itself thereto,on the banking ronipa•
written order of the president and a majority of its directors,
notes for circulation to any amount not exceeding the value &r. rotation,
of the certificates of funded debt deposited with, and transferred to him by such company, as prescribed by the preceding
section; but at no time shall the total amount of such notes,
delivered to any such company,exceed three times the amount
at such time actually paid in on its capital stock,and remaining
as capital stock, undiminished by losses or otherwise.
SEC. 32. In order to furnish suitable notes for circulation Authority given
to such independent banking companies, the treasurer of state °tor ittliieie,tiroeaszez
is hereby authorized and required to cause to be engraved and to he engraved,
printed, in the best manner to guard against counterfeiting,
such quantity of circulating notes in the similitude of bank rotating notes.
notes, in blank, of the several denomiaations provided for in
this act, as he may from time to time deem necessary to furnish to such independent banking companies, according to the
provisions hereinafter set forth; which notes shall be countersigned, numbered, and registered in proper books, to be provided and kept for that purpose, in the office of said treasurer,
under his direction, by such person or persons as he may
appoint, so that each denomination of such circulating notes
shall bear the uniform signature of one of such registers; and
all the notes of each separate denomination shall bear the same
device, and bear a general similitude; and the notes or bills to
be so countersigned shall have stamped or printed on their
face the words, "secured by the pledge of stock."
SEC. 33. The plates, dies, and materials to be procured by The plates, dies
the treasurer of state, for the printing and making the circulating notes, provided for in the thirty second section of this act, king circulating
shall remain in the custody of said treasurer, and under his notes, to he in
the care of the
direction; and the expense necessarily incurred by him, in treasurer;
executing the provisions of this act, shall be audited and settled by the auditor of state, and paid out of any moneys in How expense
the treasury, not otherwise appropriated; and, for the pur- paid.
pose of reimbursing the same to the treasury, the said treasurer
is hereby authorized and required to charge against, and receive
from, each company receiving such circulating notes, such
(
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Federal Reserve Bank of St. Louis

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38
rate per centum thereon as may be sufficient for that purpose,
and shall, from time to time, equalize said expenses among the
companies to whom such circulating notes may be furnished.
When a compa.
Sc.34. After any such independent banking company shall
ny may issue
and circulate its have caused to be executed and signed, by the president and
notes as money•
cashier thereof, the circulating notes received from the treasurer of state, in such manner as may be requisite to make
them obligatory notes, payable on demand,at its place of business, such company is hereby authorized to issue and circulate
the same as money.
Mutilated circu.
SEC. 35„ It shall be the duty of the treasurer of state to retatini notes to be
•
ceive
.
mutilated circulating
notes, issued by him to any of such
destroyed.
independent banking companies, and to deliver in place thereof
other circulating notes to an equal amount; and the said mutilated notes, after a memorandum shall have been entered in
the proper book or books, shall be burned to ashes by the said
treasurer, in the presence of the secretary of state and the
officer or agent of said company by whom the said notes shall
have been delivered to the said treasurer, and a certificat of said burning, signed by said treasurer, shall be made in t
books of the register, and a duplicate thereof given to said
agent.
euntso
/'
ur t o
tih
,
te"u Itatrio
SEc. 36. The treasurer of state shall give to any company,
by whom any stock shall have been deposited, according to
divIdinerL upon
stock deposited the provisions of the thirtieth section of this- act, powers
•
and pledged.
attorney to receive the interest or dividends thereon, whic
interest or dividend such company may receive and apply to its
own use; but such powers of attorney shall become void upon
any such company failing to redeem the circulating notes
issued by such company; provided, however,that whenever the
price of any of the stocks pledged for the security or redemption of the circulating notes issued by any such company, as
aforesaid, shall be at the stock exchange, in the city of New
York,for four consecutive weeks, at a price or rate less than
the value of which such stock shall have been estimated, when
so deposited and pledged, the treasurer shall receive and retai ,
the interest or dividend on such depreciated stock, so pledge
until the interest so received, when added to the market valu
of stocks so pledged,to be ascertained as in this section befo
provided, will be equal in amount to the amount for which su
stocks were pledged, and he shall deposit the amount so r
ceived with any solvent banking company in this state, at sue
rate of interest as shall be agreed upon, or, at the option
the company by which such stocks were deposited, inve
such interest or dividends in any of the stocks by this act a
thorized to be pledged, in the name of the treasurer of stat
in trust for the banking company by whom the stocks, on whi
such interest or dividends may have accrued, shall have bee
pledged, and whenever the price of such depreciated stocks, a
the New York stock exchange, shall rise to the price at which
they were pledged by the company,and so remain for four


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• •.

consecutive weeks, such investment shall be assigned to such
company,and all accruing interest on such pledged stock shall
thereafter be paid to such company.
SEC. 37. The stocks 'transferred to the treasurer of state, Stocks given u
by an independent banking company, for the security of its recurity held exy by the
u'uetle,
circulating notes, shall be held by him exclusively for that etrtou stt
purpose, until such notes shall be redeemed, except as hereinafter provided.
SEC. 38. If any such independent banking company shall What to be dnne
fail to redeem, in gold or silver coin, any of its ciiculating
pwe'LninatnbYaniknidneg.
notes, issued in pursuance of the provisions of this act, when company
fads to
payment thereof shall be lawfully demanded, during the usual
Wing
notes.
hours of business, at the office of such company, the holder of
such note or notes may cause one or more thereof to be protested by a notary public, who shall, on protesting the same,
forthwith forward notice of such protest to the treasurer of
state, and after such protest suffered, it shall not be lawful for
the company thus suffering ptotest, to pay out any of its notes,
discount any notes or bills, or otherwise engage in the business
of banking, except to receive and safely keep moneys belonging to it, and to deliver special deposits; provided, however,
that if satisfactory proof be produced to such notary public
that the payment cif any such note or notes is restrained or
delayed by order of any court of competent jurisdiction, such
notary public shall not protest the same; where the holder of
such notes shall cause more than one to be protested on the same
day, he shall not receive pay for more than one such protest.
SEC. 39. In case any such independent banking company When any Ind'.
shall fail to pay, and redeem its circulating notes on demand, pendent banking
e ; rreadiei.r
in gold or silver coin, as specified in the next preceding section l
of this act, the treasurer of state shall, within thirty days after the treee"Ter of
he shall have received notice of such failure, cause the stocks Lt otof mt0 kh
pledged by such company, or so much thereof as may be ne- Pledged.
cessary to redeem the outstanding circulating notes of such
company,to be sold either at the stock exchange in the city of
New York, after giving notice of such sale to such company,
and also advertising the time and place of sale, with a pertinent
description of the stocks to be offered for sale, in two or more
newspapers published in the city of New York, for not less
than ten consecutive days before the day of sale, or at the state
treasury in the city of.Columbus, giving notice to said company, and also advertising, in one or more newspapers published in the city of Columbus, and one or more newspapers in
general circulation in the county where the office of such failing company is situated; which advertisements shall contain
the same particulars as are required herein, where sales are to
be made in the city of New York; and out of the proceeds of Hre procieedsdiof
such sale the treasurer shall pay, in a ratable proportion, the itraibeutt:d
circulating notes of such company, of which due notice shall
be given,calling upon the holders of such notes to present them
for such payment, at the state treasury; provided that if any


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Federal Reserve Bank of St. Louis

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of the circulating notes of such failing company shall not be
presented, for redemption, at the state treasury, until after the
term of two years from the date of the first publication of the
notice to the holders of such notes, to present the same at the .
state treasury, the treasurer may pay,ratably, to the holders of
the notes previously presented, if such notes shall not have
been previously paid in full, whatever of the proceeds of such
sale, remaining in his hands, may be needed to fully discharge
such notes so presented.
Treasurer with
h
SEC. 40. The treasurer of state may, if he shall deem that
the advice of the
secretary and au. the interests of the noteholders of any insolvent banking com•
ditor, may hr pany will be best promoted thereby, with the advice
of the
potherate or sell
at private sale auditor and secretary of state, hypothecate, or sell at private
deposited stocks. sale, any of the stocks transferred to, and deposited with him,
by such company,to any other independent banking company,
or to any individual person or firm,and receive therefor, either
money, or the circulating notes of such failing company; pro.
vided that no such stock shall be sold, by private sale, at less
than the par value thereof, nor at less than its selling price, at
the New York stock exchange,at the date of the last receiv
information, nor shall any such stock be sold on credit.
How a special
SEC. 41. On receiving notice that any such independ
e
'
gent 1° be ar" banking company shall have committed an act of insolven
pointed after the
Insolvency of an as hereinbefore defined, the treasurer of state, the secretary
state, and the auditor of state, or a majority of them, shall
Independent
banking compa•
point a special agent, who shall immediately proceed to as
ny,
tam n whether such company has refused to pay its notes in g
and silver coin, when lawfully demanded, and report to
said treasurer, secretary and auditor, the facts so ascertain
and if, from the report so made, said treasurer, secretary
auditor, or a majority of them, shall be satisfied that such c
pan)' has suspended the payment of its circulating notes, w
lawfully demanded,in gold and silver coin, they shall forth
appoint a receiver or receivers, and require of him or
such bond and security as they shall deem proper, who s
proceed to take possession of the books, records and assets,
every description, of such company; collect all debts, dues
other claims, belonging to such company;settle, and, with
approbation of an agent, to be appointed by the stockhold
for the protection of their interests, compound for all bad
doubtful deb's; sell all the real and personal property of
company and to pay over all moneys so made, to the treas
of state; and the treasurer ofstate shall cause notice to be gi
by advertisement, in one or more newspapers published in
city of Columbus, and also in one or more newspapers,in
eral circulation, in the county where the office of such i
vent company shall be situated, for six consecutive mon
calling on all persons who may have claims against such ,
pany, to make legal proof thereof; and, after the end of:
year from the first publication of such notice, the tre
after full provision shall have been made for redeeming


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r.
if.- •
nt115.
r.

one
•u rer•

he cit.-

culating notes of such company, shall make a ratable dividend How proceeds of
of the moneys so paid over to him by such receiver or receiv- tiiminniknnviei.
onet d of
ers, inclusive of moneys received by him on sales of stock transferred to, and deposited with htm by such company, on all
such claims as may have been so proved; and from time to
time,as the proceeds of the assets of said company shall be paid
over to him, the said treasurer shall make further dividends, as
aforesaid, on all claims previously proved; and the remainder,
if any thing, shall be paid over to the stockholders of the company, or their legal representatives, in proportion to the stock
by them severally held; provided, however, that if any independent banking company, against which proceedings have
been instituted, as prescribed in this section, on account of any
supposed act of insolvency, shall deny having committed such
act, such company may apply to any court of competent jurisdiction to enjoin further proceedings in the premises; and such Proceedings may
and
court, after citing the treasurer, secretary and auditor of state, beeien,enjoined
ayettrkord;Inoolto show cause why further proceedings should not be enjoined,
and, after the finding of a jury,that such company has not suspended the payment of its mates, when legally presented, in
gold and silver coin, shall make an order, enjoining said treasurer, auditor and secretary of state, and any receiver or receivers appointed by them, from all further proceedings on
account of such supposed act of insolvency.
Sc. 42. If the original capital stock of any of such inde- No dividends to
pendent banking companies shall, in any manner,be diminished,
or any portion thereof be withdrawn for any purpose what- any I nl.is or deever, while any debts or demands against such company remain """
"""
unsatisfied.
unsatisfied,no dividends shall,thereafter, be made on the shares
of the capital stock of such company, until the original amount
of the capital stock shall be restored, either by contribution of
the shareholders, or out of the profits of the business of such
company; and in case any dividend shall be made while the
capital stock shall remain so diminished or withdrawn, it shall
be the duty of any court, having competent jurisdiction, to
issue the necessary orders and decrees for closing the affairs of
such company, and dividing its effects among its creditors and
shareholders,as in this act provided.
SEC. 43. All fees for protesting the notes issued by any Fees for protest.
such independent banking company, shall be paid by the per- Ing'"ow Paulson procuring the protest to be made, and such company shall
be liable therefor; but no part of the stocks pledged by such
company to the treasurer, shall be applied to the payment of
such fees; and all expenses incurred in conducting the sale of
any such pledged stocks, and advertisements thereof, shall be
paid out of the proceeds of such sales.
SLc. 44. The stockholders, collectively, of any independ- To what amount
ent banking company shall, at no time, be liable to such cornpony, either as principal debtors or sureties, or both, to an ly, be
. liable
amount greater than three fifths of the amount of capital stock
actually paid in, and remaining undiminished, by losses or other6—o. t...


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Federal Reserve Bank of St. Louis

42
wise; nor shall the directors be so liable,except to such amount,
and in such manner,as shall be prescribed by the bylaws of such
company. adopted by its stockholders, to regulate such liabilities; and it shall be the duty of the auditor, treasurer and secretary of state, or a majority of them, as often as once in each
year, to appoint some suitable person, in the vicinity of each
independent banking company, who shall not be a stockholder
in any bank of this state, who shall have power to make a
Independent
thorough examination into all the affairs of the bank which he
banking ronipa•
Mee to be visited may be appointed to examine, and, in so doing, to examine
and examined, any of the officers and agents of such bank on oath; and such
once, annually,
agent shall make a detailed report of the condition of such bank
to the auditor of state; and the banking companies, deriving
their powers and privileges from this act, shall not be subject
to any other visitorial powers than such as are authorized by
this act, except such as are vested in the several courts of law
and chancery; and every agent appointed, as in this section
provided, shall receive, for his services, at the rate of two dollars for each day by him employed in such examination, and
two &liars for every twenty five miles he shall necessarily
travel in the performance of his duty, which shall be paid by
the banking company by him examined.
SEC. 45. Whenever any independent banking company,
Whoa and an.
Ms IOW condi. being desirous of diminishing the amount of its circulating
dosa certificates
of funded debt notes, shall deliver to the treasurer of state any portion of
may be rattans. such notes, not less in amount at any one time than five thouhned to lodepoilent ban king sand dollars, to be destroyed, the treasurer shall destroy the
companies
same, as prescribed in section thirty five, and shall, thereupon,
retransfer and deliver to such company certificates of funded
debt deposited with him by such company to an amount equal
to the amount of notes so delivered up; provided that
_
amount of such certificates remaining with the treasurer s
not, thereby, be reduced below the amount of the capital stock
of such company at that time paid in, nor in any case bel.,
the sum of fifty thousand dollars, nor in value, estimating t
same at their then current price in the city of New York,below
the amount of circulating notes still retained by such company;•
nor shall the treasurer be required to retransfer such certificates in fractional sums of less than one thousand dollars; and
whenever any such company, being desirous of relinquishing
its banking business, shall have paid at least ninety per centum
of the maximum amount of its circulating notes, and shall have
delivered the same to the treasurer of state, to be destroyed, .
and shall have provided means and given security,to the satisfaction of the treasurer, secretary, and auditor of state, for
the redemption of its outstanding notes of circulation, at the .
place where the office of such company was established, and
shall have given notice thereof by advertisement, for six consecutive months, in two newspapers of general circulation, ,
published at Columbus, and at least one published in the city,
town, or village where the office of such company is located,


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Federal Reserve Bank of St. Louis

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it shall be lawful for the treasurer of state to retransfer and
deliver to such company. all the certificates of funded debt,
previously pledged with him by such company,and,thereupon,
all the corporate powers of such company, except such as
shall be necessary to close up its affairs, shall cease.
GENERAL
SEc.

he

I

ror.•

e
ocateil.

raovisioss.

46. The capital stock of each banking company shall 100 dollar,

thethhe

4c
be divided into shares of one hundred dollars each, and shall :;:e.
be assignable on the books of the company, in such manner as
its bylaws shall prescribe; but no shareholder shall have power No shareholder
to sell or transfer any shares, held in his own right, so long as to receive Myi•
or profits
he shall be liable, either as principal, debtor, surety, or other- den&
so long u he
wise, to the company, for any debt which shall have become may be in debt
due, and remains unpaid; nor in such case shall such share- to any company.
holder be entitled to receive any dividend, interest, or profit
on such shares so long as such liabilities shall continue; but
all such dividends, interests, or profits, shall be retained by
the company,and applied to the discharge of such liabilities;
and no stock shall be transferred, without the consent of a
majority of the directors, white the holder thereof is indebted
to the company.
e
SEC. 47. No banking company shall take, as security, for No Minket:L eo:tl.
its
part
of
capital stock, cPealnyYe as sec urlty,
any loan or discount, a lien upon any
upon any
but the same security, both in kind and amount, shall be re- aeptiterlien
!
et f t rc.Li:tette
quired of shareholders as of persons not shareholders; and no
any purcbase of
banking company shall be the holder or purchaser of any por- sdieorcke,02citeioptniun•
tion of its capital stock, or of the capital stock of any other
incorporated company, unless such purchase shall be necesary specified.
to pi even t loss upon a debt previously contracted in good faith,
on security, which at the time was deemed adequate to insure
the payment of such debt, independent of any lien upon such
stock, or in case of forfeitures of stock for the nonpayment of
installments due thereon, as provided in the ninth section; and
stock so purchased shall in no case be held by the company,
so purchasing, for a longer period of time than six months, if
the same can be sold for what the stock cost, at par.
SEC. 48. In all elections of directors, and in deciding all Stockholders en
(
re
it eeder
toh oeihi1;7te
questions at meetings of stockholders, each share shall entitle
the owner thereof to one vote. Stockholders may vote by
proxies duly authorized, in writing; but no officer, clerk, teller
or book keeper of the company shall act as proxy• and no
stockholder, whose liability to the company is past'
due and
unpaid, shall be allowed to vote.
SEC. 49. The affairs of every company, formed and organ- The number and
qualifications of
ized to carry on the business of banking under the provisions directors.
of this act, shall be managed by not less than five, nor more
than nine directors. Every director shall, during his whole
term of service, be a citizen of the United States, and a resiii dent of this state. At least three fourths of the directors bhall
have resided in this state two years next previous to their


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Federal Reserve Bank of St. Louis

44
election as directors; each director shall own in his own name
and right, at least one per cen turn of the capital stock of the
company, up to two hundred thousand dollars, and the half ot
one per centum on its capital, over two hundred thousand dollars. The directors of each banking company, collectively,
shall own at least one tenth of its capital stock. Each director
shall take an oath that he will, so far as the duty devolves on
him, diligently and honestly administer the affairs of the company, and not knowingly violate, or willingly permit to be violated any of the provisions of this act—that he is the bona fide
owner,in his own right, of the stock, standing in his name on
the books of the company,and that the same is not hypothecated, or in any way pledged as security, for any loan obtained,
or debt owing; which oath, subscribed by himself, and certified
by the magistrate before whom it is taken, shall be filed and
carefully preserved in the office of the recorder of the county .
in which the banking company is located.
The time for
SEC. 50. The directors of any banking company first
ilrtnni
which der
may be eeeted; elected, shall hold their places until the first Mond;iy in Januhow v ,canewe ary, next thereafter, and until their successors shall be elected
may orrur and and qualified. All subsequent elections shall be held annually,
now filled.
on the first Monday of January, and the directors so elected,
shall hold their places for one year, and until their successors
are elected and qualified. But any director, removing from
the state or ceasing to be the owner of the requisite amount of
stuck, shall thereby vacate his place. Any vacancy in the
board shall be filled by appointment by the remaining directors. The director so appointed shall hold his place until the
next annual election; and if, from any cause, an election of
directors shall not be made at the time appointed, the company
shall not, for that cause, be dissolved, but an election may be
held on any subsequent day, thirty days' notice thereof having
been given in a newspaper printed in the county where the
company is located.
SF.c. 5 1. Every banking
Banking rompscompany, authorized to carry on
alas body cor ps
rate limit the 1st the business of banking, under the provisions of this act,
of May 1866
whether as a branch of the State.Bank of Ohio, or as an independent banking company,shall be held and adjudged to be a
body corporate, with succession until the first day of Max', in
the year one thousand eight hundred and sixty six, and there.
after, until its affairs shall be closed, and by its corporate name
shall be competent to contract, prosecute and defend suits and
actions of every description as fully as natural persons; and
process against such company may be served upon its president or cashier, or by leaving a copy thereof at its usual pl
of business during usual business hours. Each of said bank'
companies shall, until the first day of May, in the year one
thousand eight hundred and sixty six, if so long it shall comply.
with the provisions of this act, have power to loan money, buy,
Their powen
and privileges.
sell and discount bills of exchange, notes, and all other written evidences of debt, except such as it shall be prohibited by


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Federal Reserve Bank of St. Louis

45
(1,

•

•

i

this act from buying, selling, or discounting—receive deposits
—buy and sell gold and silver coin and bullion—collect and
pay over money, and transact all other business properly
appertaining to franking, subject, however, to the provisions
and restrictions contained in this act; may acquire, hold and
convey such real estate as may he necessary to the convenient
transaction of its business, and no more; •but may, however,
acquire title to any real estate pledged to secure any debt
previously contracted, or purchased on an execution or order
of sale, to satisfy any judgment or decree in its favor,or which
shall have been conveyed to it, in payment of any previous
debt; but shall not hold any real estate, so acquired, longer
than is necessary to avoid a loss of any part of the debt, interests and costs, for the collection or security of which it was
acquired; but at any time before selling the same, upon being
tendered by the last preceding owner, or his legal representatives, such sum as shall be necessary to save such company
from loss of any part of the debt, interest, taxes, costs and
other necessary charges for the collection or security of which
such real estate was acquired, such company shall release to
such owner, his legal representatives or assigns, all its right
title and interest therein.
SEC. 52. Notes of one dollar, two dollars, three dollars, The denom naof notes to
five dollars, ten deollars. twenty dollars, fifty dollars, and one tons
be i.eued and tr e
hundred dollars each, and no note of any other denomination, amount ot each
may be issued by any banking company deriving any of its denomination.
powers or privileges from this act. 01 the notes issued by any
such banking company, not more than ten per centum of the
amount shall be in notes of one dollar each; not more than five
per centum in notes of two dollars each; not more than ten per
centum in notes of three dollars each; not more than twenty
per centum shall be in notes of all denominations under five
dollars; not more than fifty per centum in notes of all denominations under ten dollars.
SEC. 53. No banking company, deriving any of its powers Nothing to be
or privileges from this act, shall at any time issue, or have in Zr:nucri eTeev,
circulation, any note, draft, bill of exchange, acceptance, cer- such notes as
have been do.
tificate of deposit, or other evidence of debt, which, from its
or
be
to
shall
intended
calculated
appearance,
character or
circulate as money, other than such notes of circulation as are
by this act described, and which such companies are expressly
authorized to issue for the purpose of being circulated as
money.
SEC. 54. Each independent banking company shall receive Each company
Attihie
at par, at the office or banking house of such company, in :i°oteriofeeant:
payment for debts due for notes of hand, bills of exchange, or er independent
at
other evidences of debt, discounted or purchased by, or be- epoairtipanies
longing to, such company, the notes of circulation issued by
any other independent (ranking company, authorized to issue
such notes by thi3 act, which shall, at the time, redeem its
notes in gold and silver coin; and every branch bank of the


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Federal Reserve Bank of St. Louis

46
Each branch of State Bank of Ohio shall receive at par, at the office or bank- 7
State Rank to re- ing house of such company, in payment of debts due for notes
ceive, ap
t ar,the
notes of other of hand, bills of exchange, or other evidences of debt disbranches.
counted or purchased by, or belonging to, such branch bank,
the notes of circulation issued by any other branch of the
State Bank of Ohio.
Each banking
SEC. 55. Each banking company shall, at all times, have
all on hand, in gold and silver coin, or their equivalent, one half
"Pa"Y'
tiines, shallathave
on hand, in gold at least of which shall be in gold and silver coin in its vault,
and silver, or an amount equal to at least thirty per centum of the amount of
their equivalent, .
at least 30 per its outstanding notes of circulation; and whenever the amount
ct. of the amount of its outstanding notes of circulation shall exceed the above
or its °meteor!.
log notes, &c. named proportion, for the space of twelve days, or whenever •
the said gold and silver coin, or their equivalent, shall at any
time fall below the amount of twenty per centum of its circulation, no more of its notes shall be paid out, or otherwise put in
circulation, by such banking company, nor shall such company
increase its liabilities by making any new loans or discounts other than discounting or purchasing bills of exchange, payable at
sight, nor make any dividend of its profits, until the required
proportion between its outstanding notes of circulation and
gold silver coin, or their equivalent on hand, shall be restored.
Actual deposits with any solvent bank or banker ot established
credit in the cities of New York, Boston, Philadelphia, or -,
Baltimore, subject to be drawn against at sight, payable in
gold and silver coin, shall be deemed equivalent to gold and
silver coin, wherever these terms are used in this act.
To what extent SEC. 56. No banking company deriving any of its powers
banks may
or privileges from this act, shall at any time be indebted, or in
liable.
any way liable, to an amount exceeding,if a branch of the State
Bank of Ohio, two thirds, or, if an independent banking company, the whole amount of its capital stock at such time
actually paid in, and remaining as capital stock, undimmisned
by losses or otherwise, except on the following accounts, that
is to say:
First—On account of its notei of circulation;
Second—On account of moneys deposited with,or collected
by, such company;
Third—On account of bills of exchange or drafts drawn
against money actually in deposit to the credit of, or due to,
such company;
Fourth—Liabilities to its stockholders on account of money
paid in, on capital stock and dividends thereon.
Prohibitions up- SEC. 57. No banking company shall either directly or indion banking corn- rectly pledge, hypothecate, or exchange any of its notes of
panles.
circulation for the purpose of procuring money, to be paid in
on its capital stock, or to be used in its ordinary banking opera.
tions, or for the purpose of purchasing certificates of sta
stock, to be deposited with the treasurer of state, or with
board of control; nor shall any banking company apply, eti
permit to be applied, hypothecated, or pledged any portion 4


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Federal Reserve Bank of St. Louis

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4

its capital stock to the purchase of certificates of state stock,
to be deposited with the treasurer of state as collateral security
for the redemption of its notes of circulation.
Loans to stockSEC. 58. No banking company shall, during the time it eh:elder,'
shall continue its operations as a bank, withdraw, or permit to
6Litnti::
be withdrawn, either in form of dividends, loans to stockhold- —and dividends
ers for a longer period of time than six months, or in any oth- a„1,:nr,„")n beihe
er manner, any portion of its capital stock; and it' losses shall net rents,ae•
at any time have been sustained by any banking company
equal to or exceeding its undivided profits then on hand, no
dividend shall be made, and no dividend shall -ever be made
by any banking company while it shall continue its banking
operations, to an amount greater than its net profits then on
hand, deducting therefrom its losses, bad and suspended debts;
and all debts due to a banking company, on which interest is
past due and unpaid for a period of six months, unless the
same shall be well secured, and shall be in process of collection, shall be considered bad or suspended debts within the
meaning of this act.
SEC. 59. The directors of each banking company shall, When dividends
semiannually, on the first Monday in May and November, to be declared.
declare a dividend of do much of the net profits of the company as they shall judge expedient; and, on each dividend day
the cashier shall make, and verify by his oath, a full, clear, and
accurate statement of the condition of the company, as it Statements to be
shall be on that day, after declaring the dividend; and similar made twice, an•
nuttily. contain
statements shall also be made on the first Monday of February ing
the follovt ing
and August, in each year; which statement shall contain—
particulars.
stock
capital
actually
paid in, and
First—the amount of the
then remaining, as the capital stock of the company;
Second—The amount of the bills or notes of the company,
then in circulation, specifying the amount of each denomination;
Third—The greatest amount in circulation at any time,
since the making of the last previous statement, as shall have
been exhibited by the weekly statements of the cashier,
specifying the times when the same occurred;
Fourth—The amount of balances and debts of every kind
due to the branches of the State Bank of Ohio, the amount
due to other banking companies of the state, and the amount
due to banks not of this state;
Fifth—The amount due to depositors;
Sixth—The total amount of debts and liabilities, of every
description, and the greatest amount since the making of the
last previous statement, specifying the time when the same
occurred;
Seventh—The total amount of dividends declared on the
day of makinF the statement;
Eighth—lhe amount of gold and silver coin and bullion, belonging to such company, and in possession, at the time of
making the statement, designating the amount of each;


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Federal Reserve Bank of St. Louis

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Ninth—The amount subject to be drawn at sight, in g
and silver, then remaining on deposit with solvent specie pa
ing banks, or bankers in the cities of New York, Philadelph'
Boston and Baltimore;
Tenth—The amount then on hand, of bills or notes, issued
by branches of the State Bank of Ohio, the amount issued b
other banking companies of this state, and the amount issu
by banks not of this state;
Eleventh—The amount of balances due from branches
the State Bank of Ohio, the amount due from other banki
companies of- this state, and the amount due from banks not
this state, excluding, in the latter case, deposits in the cities
New York, Philadelphia, Boston and Baltimore, subject .
sight drafts, payable in specie;
Twelfth—The amount on hand of bills, bonds, notes, and
other evidences of debt, discounted or purchased by the co
pany, specifying particularly the amount of suspended de
the amount considered bad, the amount considered doubtf
and the amount in suit or judgment;
Thirteenth—The value of the real and personal property,
held for the convenience of the company,specifying the atno
of each;
Fourteenth—The amount of real estate taken in pa
of debts due the company;
Fifteenth—The amount of the undivided profits of the c
pany;
Sixteenth—The total amount of the liabilities to the c
pany by the directors thereof,collectively, specifying the gr
amount of such liabilities as principal debtors, and the gr
amount as indorsers or sureties;
Seventeenth—The total amount of liabilities to the corn
fly of the stockholders thereof, collectively, specifying
gross amount of such liabilities as principal debtors, and
gross amount as indorsers or sureties; which statement
be forthwith transmitted to the auditor of state.
Banking compaSEC. 60. Each banking company, organized under this
Mee, on the days
or accepting thereof, and complying with its provisions, sh
designated for
declaring dirt- semiannually, on the days designated in the fifty ninth sec
dendp, to set olY
for declaring dividends, set off to the state six per centum
to thstate
e
sis
per cent. on it. the profits, deducting therefrom the expenses and ascertai
prow, Ake.
losses of the company, for the six months next precedi
which sum or amount, so set off, shall be in lieu of all taxes
which such company,or the stockholders thereof, on ac
of stock owned therein, would otherwise be subject;
cashier shall, within ten days thereafter, inform the au&
state of the amount so set off, and shall pay the same to
treasurer of state, on the order of said auditor; but in corn
the profits of the company, for the purposes aforesaid,
terest received on the certificates of the funded debt of
state, held by the company, or deposited with, and tran
to the treasurer of state, or to the board of control by
company, shall not be taken into the account.


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Federal Reserve Bank of St. Louis

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SEC. 61. Every banking company,deriving any of its pow- Every banking
company may
ers and privileges from this act, may take, reserve, receive and charge
6 per cent
charge,on any loan or discount made, or upon any note or bill 0. discounts,
notes, Ire.; but
of exchange, or other evidence of debt, at the rate of six per any
great.r rate
centum per annum on the amount of any such note, bill of ex- of interest shall
raupearorfelture
change,or other evidence of debt, so discounted, and no more; of tits debt or deprovided, however, that interest may be reserved, or taken in mend,&e.
advance, at the time of making the loan or discount, according
to the usual rules of banking,or as calculated in Rowlett's tables; and the knowingly takicig, reserving or charging, on any
debt or demand payable to such company,of a rate of interest
greater than that allowed by this section,shall be he;d and adjudged a forfeiture of such debt or demand; but the purchase,
discount or sale, of a bill olexchange payable at another place
than the place of such purchase,discount or sale,at the current
discount or premium, shall not be considered a taking, reserving or receiving interest; provided no agreement or understanding shall be made that the same shall be paid at any other
place than that at which it is made payable.
SEC. 62. The total liabilities of any person,or of any corn- Extent of 1141)11l.
pany or firm (including, in the liabilities of a company or firm,
the liabilities of the sveral members thereof) to any banking
company, deriving any of its powers or privileges from this act,
inclusive of liabilities as acceptor or acceptors of bona fide bills
of exchange, payable out of this state, shall at no time exceed
one half, exclusive of liabilities as acceptor or acceptors, one
fifth, and exclusive of liabilities on such bills of exchange, one
tenth part of the amount of the notes which such company is
authorized to circulate, at the time of such liabilities.
mobil'tee'
SEC. 63. No banking company shall, at any time, pay out ;tanks
arnoymn tlei
r ti‘liautti
on loans or discounts, or in purchasing of drafts or bills of exthe
or
notes
change, or in payment of depositors; nor shall it, in any other par.
mnaktps.ou
ort
an
t hye ha
notes
of
any
the
bank
circulation,
or
banking
"
0
fr
mode, put in
company, either in or out of this state, which notes shall not, less denomina•
at that time, be receivable at par in payment of debts, and by con that, *5.
the company so paying out or circulating such notes; nor shall
it knowingly pay out or put in circulation,any notes issued by
any bank or banking company which, at the time of such paying out or putting in circulation, is not redeeming its notes in
gold and silver; nor any notes issued by any bank, out of this
state, of a denomination less than five dollars.
or
SEC. 64. All notes, bills, and other evidences of debt, ex- No evidences
re:iceeip,:ainn:,
cepting bills of exchange,discounted by any banking company,
shall be made by the terms thereof, or by special indorsement, assignable, but
payable solely to such company; and no such evidence of debt
shall be assignable, except for collection, or for the following purposes
purposes:
First: To pay and redeem the circulating notes of such
company.
Second: To pay other liabilities of the said company; and,
after such liabilities shall have been discharged7-0. L.


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Federal Reserve Bank of St. Louis

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Third: To divide among the shareholders on their stock.
See. 65. All transfers of the notes, bonds, bills of exchange,
and other evidences of debt owing to any banking company,
or of deposits to its credit; all assignments or mortgages or
other securities on real estate, or of judgments or decrees in
its favor; all deposits of money, bullion, or other valuable thing
for its use, or for the use of any of its stockholders or creditors; all payments of money to either, made after the commission of an act of insolvency or in contemplation thereof,
with a view to prevent the application of its assets in the
manner prescribed by this act,or with a view to the preference
of one creditor to another,except in payment of its circulating
notes, shall be held utterly null and void.
If the directors,
SEc..
66. If the directors of any banking company which
directly, or Ind"
rectly, knowing. shall have availed itself of any of the privileges grante
d by this
ingly violate any act, shall
knowingly violate, or knowingly permit any of the
of the provisions
of this act, such officers, agents or servants of such company to violate any
of
violation shall the provisions
of this act, all the rights, privileges and francause a
rte'c
hises
of said company, derived from this act, shall thereby be
nre o
privlieges.
forfeited; such violation shall, however, be determined and
adjudged by a court of competent jurisdiction, agreeably to
the laws of this state and the practice of such court, before the
corporation shall be declared dissolved; and in case of such
violation every director who participated in, or assented to the
same, shall be held liable in his personal and individual capacity
for all damages which the company, its shareholders, or any
other persons, body politic or corporate, shall have sustained in
consequence of such violation.
Officers of banks,
SEC. 67. Every president, director, cashier
for certain epecl•
, teller, clerk or ,
agent of any banking company, who shall embezzle, abstrac
fied offences,
t,
°be" be deemed or willfully misapply any of
the moneys,funds, or credits of
guilty or a mis.
such company, or shall, without authority from the director
demeanor, etc.
issue or put in circulation, any of the notes of such company
or shall, without such authority, issue or put forth any certi&
cate of deposit, draw any order or bill of exchange, make any
acceptance, assign any note, bond, draft, bill of exchang
mortgage, judgment or decree, or shall make any false entry
on any book, report or statement of the company with
intent in either case to injure or defraud such company, or t
injure or defraud any other company, body corporate or
politic, or any individual person, or to deceive any officer or
agent appointed to inspect the affairs of any banking company ,
in the state, shall be deemed guilty of a misdemeanor,and,upon
!
conviction thereof, shall be confined in the penitentiary at t
i
hard labor, not less than five nor more than ten years.
Other banks, opSEC. 68. The stockholders of the bank of Geauga—of
the!
on certain conditions, may be Western Reserve Bank—of the Columbiana Bank of New Lie.
authorized to re- bon—of the Lafayette Bank
of Cincinnati, and of the
commence bankLife Insurance and Trust Company shall, in each case, be c
Ing.
sidered as having associated and formed a company for
purpose of banking under the provisions of this act, with
All transfers
made after the
commission of
an art of ingot.
vency, except In
payment of its
circulating notes,
to be held null
and void.


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Federal Reserve Bank of St. Louis

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4

amount of capital stock, by such name and at such place,
within the county where such banking company is now located, as shall be determined on by a majority of the directors
or trustees; and after making, acknowledging and filing with
the county recorder a certificate setting forth the name,
amount of capital, and the place of banking of such company,
and transmitting to the board of commissioners a copy thereof,
AS prescribed in the seventh section, and after said commissioners shall have examined the condition of such company,
and found that as to the amount of its capital, its gold and
silver coin, or their equivalent, on hand, the requirements of
this act have been complied with, such company shall be
authorized to recommence, and,during the time limited by this
act, carry on the business of banking,subject to the limitations,
restrictions and liabilities herein prescribed; and on depositing
with the treasurer of state, (subject, in case such company
shall elect to become a branch of the State Bank of Ohio, to
the order of the board of control,) certificates of funded debt,
or money, to an amount equal to the amount required of the
new companies formed and brganized under the provisions
of this act, as compared with the amount of their circulating
notes, such company may immediately proceed to issue its
notes of circulation to any amount within the limits in such
cases prescribed by this act. But when the board of control or
the treasurer of state, as the case may be, shall be prepared to
furnish notes for circulation, the notes pieviously issued by
such company shall not be reissued or in any way put in circulation by such company, but shall be transmitted to the
treasurer of state, or the board of control, to be destroyed, as
in the case of defaced or mutilated notes, and new notes received in lieu thereof; provided, however, that the capital set
apart for banking purposes by the Ohio Life Insurance and
Trust Company, and the capital of the Lafayette Bank of Cincinnati, may each extend to any suni not less than three hundred thousand dollars, nor exceeding one million dollars; but the
circulating notes of neither of said companies shall at any time
exceed six hundred and fifty thousand dollars. In determining the number, qualifications and liabilities of the directors or
trustees of the two last named companies, they shall each be
governed by their respective acts of incorporaion; and the
Ohio Life Insurance and Trust Company shall in all things,
except as to its banking operations, be governed by its original
charter.
Sm. 69. That the Bank of Wooster,at Wooster; the Bank The Bank of
of Massillon, at Massillon; the Bank of Norwalk, at Norwalk; nr,
the Bank of Circleville, at Circleville; the Clinton Bank of Co- rorporated hanks
lumbus, at Columbus; the ,Bank of Xenia, at Xenia, and the:
hi tdhe"
ir
)
;,
aor:
Bank of Sandusky, at Sandusky, may, within one year from visions, and do•
the passage of this act, and whenever two thirds of the direc- teidhet.tyl mteh
tors, or the owners of a majority of the capital stock of any act, provided that
such bank, shall elect to do so, become an incorporated bank they he governed


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under the provisions and during the time limited by this act,,,
and,as such, be entitled to use and enjoy all the privileges, and
be subject to all the liabilities and restrictions of the same;
provided that the banks named in this section may, as far as
the liabilities of their directors incurred previous to their acceptance of the provisions of this act, and as to their qualifications, be governed by the provisions of their several original..
acts of incorporation until the expiration of their respective
charters; provided, also, that the acceptance of the provisions,
of this act, by the Ohio Life Insurance and Trust Company
shall not be construed to take away, or abridge, the banking
powers now enjoyed by said company, under its act of incorporation, after the franchises granted by this act shall have expired.
The banking in.
SEC,, 70. That before any banking instituti
on named in the
'Motions named
In the 69th sec. next preceding section shall be entitled to the provisio
ns grant.
lion, to be exam- ed by
this act, the board of commissioners, or the board of
tiled bere
fo they
control, as the case may be,shall appoint some suitable person
can enjo y the
privileges grant. to examine the
assets, moneys, credits, effects and liabilities of
ad by this att.
such bank, and report the same to the commissioners, or board
of control; and every such bank shall be considered as having
a capital equal to the amount of its existing capital not exceeding the amount authorized by the act incorporating the
same, deducting any amount of losses, bad debts, or debts not
well secured, that may exist, greater in amount than the surplus property of said bank, undivided and on hand; provided
that each of the banks named in the preceding section shall be
allowed to fill up its capital stock by new subscriptions or
otherwise, to the amount authorized by the law creating
same; and provided further, that the bank of Xenia, and the
the
bank of Sandusky, shall be authorized to receive subscriptions
to the capital stock of their respective institutions, to any
amount not exceeding one hundred thousand dollars, in addition to the amount authorized by their respective acts of incorporation.
The amount of
SEC. 71. That before any banking institution, named in
the
Ztfierth 47,11.1 sixty ninth section of this act,shall be entitled
to enjoy the
to be deposited privileges in this act
granted, it shall deposit, with the proper
ibiyonsttien
board, the amount of safety fund required by this act; and every
69th section,
such banking institution shall, whenever seven or more institutions shall have been formed for that purpose,including those
designated by name in this act, that may have accepted and
complied with its provisions, become, and thereafter be considered, a branch of the State Bank of Ohio; and, as such, enjoy all the rights and privileges, and be subject to all the linbilities and restrictions provided for in the same; provid
that any of the banks named in the sixty ninth section of this
act, may, after examination and report, as provided in the next
preceding section of this act, elect to become an independent
bank, and upon compliance with the rules and regulations prescribed for the government of independent banks, as far as
by the provisions
of their original
acts until thetaOration of their
respective chartens.


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may be applicable, such banking company shall be entitled to
all the privileges, and be subject to all the restrictions of this
act.
SEC. 72. That whenever any branch of the State Bank of
Ohio shall desire to close the business of such branch, and consent of the
withdraw the capital thereof, it may be lawful to do so with '")ard or control.
the consent and under the direction of the board of control,
but not otherwise.
SEC. 73. The commissioners appointed by the fifth section comp....won or
of this act shall each be entitled to receive two dollars for each commissioners.
day actually employed, and the like sum for each fifty miles
they shall travel in the performance of the duties enjoined on
them by this act, which compensation shall he paid out of any
moneys in the treasury not otherwise appropriated, on the
order of the auditor of state, and the auditor shall assess an
equal portion of the amount so paid, on each banking company
that shall have availed itself of the privileges granted by this
act; and each special agent appointed by said commissioners
to examine and report the condition of any company, as provided in the tenth section,shall receive the same compensation
as is allowed to a commissioner for his services, which shall be
paid by the company whose condition he was appointed to
a
examine.
SEC. 74. Whenever, by the terms of this act, it shall be Notice; oath ;
required to publish a notice in a newspaper of any particular funded debt, &c.
county,and there is no newspaper at such time printed in such
place, a notice printed in a newspaper of general circulation
in such county for the time required, shall be considered as
sufficient notice; and whenever, to comply with the provisions
of this act, an oath is required, an affirmation shall, in all such
cases, be considered a sufficient compliance with the same;
and whenever the term funded debt is used in this act, as applicable to the debts of this state, it shall be construed to mean
all debts of this state due upon certificates of debt on state
bonds, and drawing not less than five per centurn per annum
interest.
SEC. 75. The act entitled "an act to regulate banking in Arts repealed,
and provisos.
Ohio," passed March seventh, one thousand eight hundred and
forty two, and an act entitled "an act to amend the act entitled 'an act to regulate banking in Ohio,'" passed February
twenty one, one thousand eight hundred and forty three, are
hereby repealed; provided,that the bank of Sandusky,the Lafayette bank of Cincinnati, the bank of Xenia, the bank of Wooster, and the bank of Norwalk, shall be subject to all the provisions of their respective original charters, and all amendatory acts relating to the same, respectively, not heretofore, or
by this act repealed, until they respectively conform to and
accept the provisions of this act; provided, further, that nothing contained in this act shall be so construed as to permit any
of the banks of this state to issue notes of a less denomination


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54
than five dollars, except such banks as shall accept of and
comply with the provisions of this act.
JOHN M. GALLAGHER,
Speaker of the House of Representatives.
DAVID CHAMBERS,
Speaker of the Senate.
February 24, 1845.

AN

ACT

In addition to the act entitled ,
.An art to provide for the appointment of Wrecnmasters and
define their duties." passed February 13, 139.

Stranded property.

Persons net lect•
lea to give notice.
Now punished.

Concealment of
stolen goods.

Bow punished.

Suc. I. Be it enacted by the General Assembly of the State of
Ohio, That when any person shall discover any shipwrecked
property in the waters, lakes, bays, inlets, rivers, creeks, or
harbors of this state, or on or near the shores of the same, he
shall forthwith give information thereof to the commissioner
of wrecks as required in the ninth section of the act to which
this is an amendment, and the same proceedings shall be. had
therewith as is required by said section in case of stranded
goods or other property; and should any person discovering said
shipwrecked property conceal or convert the same to his own
use,or fail to give information to the commissioner within four
days as directed above, he shall be subject to be dealt with,and
to the same penalties and damages prescribed in said section
for similar delinquencies in case of stranded goods or other property.
SEC. 2. If any person shall steal or embezzle any shipwrecked property or conceal the same, knowing it to have
been stolen or embezzled, he shall be subject to the same suits,
penalties, damnges, liabilities and prosections provided in the
tenth section of the aforesaid act in case of the stealing, embezzlement or concealing of stranded goods or other property.
JOHN M. GALLAGHER,
Speaker of the House of Representatives.
DAVID CHAMBERS,
Speaker of the Senate.
February 28, 1845.


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Federal Reserve Bank of St. Louis

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Talen from "Ohio btate Laws" - - Revised btatutes of Ohio (1853) - Curwen.

Ch. 402.

An Act to regulate banking in Ohio. Passed iliarch 7, 1842.

Sec. 21. Safety fund to be created. There shall be created from the
capital Aock of such banks as may be incorporated under this act, a safety fund,
for tile purpose of promptly redeeming the circulation of any such bank as may
become insolvent, which fund shall be paid into the state treasury and inve:- +-c'
for the purpose aforesaid, in such manner as shall be prescribed by law.
Repealed February 24, 1845.

Ch. 558. An Act to incorporate the btate bank of Ohio and other Banking
Companies. Passed February 24, 1845
In lorce

•

Sec. 1.

Who may engage in banking.

Sec. 2.

Maximum of capital stock.

Sec. 3.

The State divided into twelve districts.

Sec. 4.

Number of banKing companies limited in counties designated.

Sec. 5.

Board of bank commissioners. (Modified)

Sec. 6. Governor to appoint first meeting; President of Board
Sec. 7.

Bankers to make certificate.

Sec. 8.

Capital stock of independent bank; branch of State Bank.

Sec. 9.

Upon failure, on the part of assignees or shareholders, the
directors may sell their stock.

Sec. 10.

Board of bank commissioners may examine the certificrtes of
banking companies.

Sec. 11.

1-)uty of commissioners.

bee. 12.

Companies may increase their capital stock.
IN RELATION TO HE STATE BAN:, OF OHIO

0

Sec. 13. Appointment of members of the board of control. Whenever,
from an inspection of the certificates transmitted by banking companies to the
board of bank commissioners, it shall appear that any number of said companies,
lot less than seven, inclusive of such existing companies as are, by this act,
especially authorized to resume or continue banking operations under its provisions,
have made their election to transact their banking operations, as branches of the
State bank of Ohio, and have complied with the requirements of this act, preliminary


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to the commencement of banking operations, then said commissioner shall immediet*
notify each of said companies thereof; and within ten days after receiving such
notice, they shall each appoint, in such manner as the directors thereof shall
prescribe, one person to be a member of the board of control of the State Bank
of Ohio; and any two or more of such banking companies may unite in the appointment of the same person. But no person, who is not a citizen of the United States,
and a resident of this State, and who has not resided within this State at least
two years next previous to his appointment, shall be a member of the board of
control.
Sec. 14•

Meeting of the board of control; powers of board.

Sec. 15.

Compensation of members of the board of control;
printing notes.

Sec. 16.

Board of control a body corporate until the 1st day of lay, 186E-

Sec. 17.

Term of office of members of the board of control; vacancies;
president of board.

Sec. 18.

Notes payable in gold and silver coin.

Sec. 19.

Ratio of notes in circulation.

expense of

bec. 20. liotes delivered on president's order; defaced or mutilated notes.
Sec. 21. Every branch required to pay ten _per cent, on the amount of notes
given for circulation. Before the board of control shall deliver to any branch,
notes for circulation, they shall require such branch to pay over or deposit to the
credit of said board, as said board shall order, either in money or in certificates
of the stocks of this State, or of the United States, at their current value in the
city of New 'York, but in no instnnce above their par value, an amount equal to ten
per centum on the amount of the notes for circulation, which shall be delivere''. to
such branch. And so from time to time, as any branch may, by the paying in of an
additional amount on its capital stock, or by not having received the amount of
notes for circulation to which it was previously entitled, be authorized to demand
an additional amount of notes for circulation, such branch shall deposit with the
board of control ten per centum on the amount of notes so required, and the stocks
and money so deposited shall be denomincted the "Safety Fund," and shall be invested as hereinafter prescribed, end held by the board of control, as the property
of said board, in trust for the benefit of the several branches of the State Bank
of Ohio, and as a fund for the redemption of the *notes of circulation of any one
or more of .redd bfanches that may fail to redeem its notes, to be applied to that
purpose in the manner pointed out by this act.
Sec. 22.

investment of the safety fund; interest on its stocks or bonds.

All money so deposited or paid to the board of control on account of the safety
fund, by any branch, shall be under the direction of said board, invested by such
branch, either in the stocks of the tate, or of the United States, or in bonds
secured by mortgages on unincumbered real estate situated in the country where such
branch islocated, or in adjoining counties, of at least twice the value in each
case of the amount secured thereby, exclusive of building or other fixtures subject
to be destroyed by fire, by floods or accidental occurrences, or of timber, mines
or minerals, subject to waste; which bond shall be made payable on demand to the
State hank of Ohio, and shall bear such rate of interest as shall be agreed on by


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the parties, not exceeding seven per centum per annum, payable semi-annually.
Each branch shall be entitled to receive the interest accruing on the stocks or
bonds in which its portion of the safety fund shall have been invested; and in
case of the insolvency of any branch, the stocks and bonds in which the money af
such branch shall have been invested as aforesaid, if the proceeds of such
stock and bonds shall be sufficient to redeem its outstanding notes of circulation, shall as far as practicable, be first converted into money, and applied to
that purpose, before any part of the safety fund belonging to other branches
shall be so applied.
Sec. 23. To what amount stockholders and directors may be liable, either
as debtors or sureties. The stockholders, collectively, of any branch shall at
no time, be liable to such branch, either as orincipaldebtors, or sureties, or
both, to an amount exceeding one-third part of the capital stock of such branch
then actually paid in and remaining as capital stock. Nor shall the directors,
collectively, be so liable to an amount exceeding one-fourth part of the stock
actually paid in, standing in their names, and of which they are collectively
the bona fide owners in their own right; Provided that such directors may be
further permitted to become liable, as drawers or indorsers of bona fide foreign
bills of exchange, drawn in this &tate, and payable at any place out of the State,
to an amount, when added to their other liabilities, not exceeding one-third of the
ital stock actually paid in, and standing in thc names of such directors; and the
stockholders may become liable, in like manner, in such sum as, when added to their
other liabilities, will not exceed one-half of the capital stock of any such
branch actually paid in.

•

Sec. 24. If any branch refnzes to redeem it notes, it shall be deemed
insolvent.
If any branch of the &tete 'tank of Ohio shall refuse to pay its notes
of circulation,(1) or any of them, in gold or silver coin, the lawful currency of
the United States, on which payment shall be lawfully demanded at its banking
house, or customary place of doing banking business, during usual banking hours,
such branch shall be deemed to have committed an act of insolvency, rnd thereupon all
its propbrty, credits, securities, liens and assets of every description, shall
*forthwith vest in, and be the property, credits, securities, liens and assets, of
the board of control, for the uses and purposes declared in this act.

Ill

Sec. 25. Board of control, upon insolvency of any branch, appoint a
committee of examination. The board of control, on receiving information that
any branch of the State Bank of Ohio has committed an act of insolvency, shall
forthwith appoint a committe of one or more of its members, who shall make
immediate inquiry into the truth of such information, and report thereon to the
board; and if the board shall be satisfied, from he report of the comAttee, that
such branch has suspended the payment of its notes in gold and silver, they shall
forthwith appoint a suitable receiver or receivers, who shall take Limediate possession of the books,(2) records, money, choses in action, and property of said
branch of every description, and hold the same for the joint use and benefit of
the other branches of the State Bank of Ohio, and the creditors of said failing
branch; and said board of control shall immediately provide money, and place the
same in such solvent branch or branches, as may be most convenient for the purpose
of redeeming the notes of such failing branch, and shall give public notice thereof
in some newspaper, printed in the place where such failing branch is located, and
also in some newspaper of general circulation published at Columbus.


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Sec. 26. Each branch to contribute to redeem the notes of a failing
branch.
Each solvent branch shall contriubte, in the ratio of the circulation
to which it is entitled, to the sum necessary for redeeming the notes of the
failing branch, as provided in the preceding section, on the requisition of the
board of control, and may be remunerated for such contribution, from the safety
fund, as soon as money sufficient can be raised from that fund, by a sale or
hypothecation of the stock, funds, or other securities belonging thereto.
Sec. 27. Receivers to give bond. The receiver or receivers, appointed
as provided in the twenty-fifth section, shall be required to give bond in such
sum, and with such securities., as the board of control shall judge sufficient;
and
under the direction of the said board, shall proceed to settle up its affairs,
and convert its assets into money; the money so made shall be applied-First: To reimburse all moneys which shall have been advanced by
the several branches for the redemption of the notes and bills of the insolvent
branch, and which may not have been previously reimbursed from the safety fund.
Second; To reimburse all moneys advanced from the safety fund, other
than moneys derived from that portion of the safety fund furnished by the failing
branch.
Third: To the payment and discharge of all the remaining liabilities
of such branch; and-Fourth:

The residue shall be

among the stockholders of the
by them reapectively held.
•failing branch, in proportion to the stockdivided
Sec. 28. If any branch denies the insolvency, it may apply for injunction. If any branch, against which the board of control shall have instituted
proceedings, on account of any supposed aact of insolvency, as prescribed by the
twenty-fifth section of this act, shall deny having committed such act of insolvency
such company may apply to any court of competent jurisdiction for a writ of injunction to said board of control to suspend all further proceedings against such
bre-inch, as an insolvent comaeny;and such court, after citing said board of control to
appear and show cause why such writ should not be granted, and after the finding
of a jury that such branch has, at all times continued, and still continues to
redeem, in gold and silver coin, its notes of circulation, shall make an order,
injoining the board of control, from all further proceedings against such branch
on account of the supposed act of insolvency, on which such proceedings were
instituted, and thereupon all the property and assets of such branch shall be restored to its directors.
Sec. 29. Board of control may be compelled to comply with the orovisiouo
of preceding sections. If the boaa-d of control shall, in any case, fail to proceeC,
in the manner prescribed in the foregoing sections of this act, and providing for
the payment of the outstanding notes of circula-tion, and in closing the affairs
of any branch that shall have cohimitted .an act of insolvency, the holder of any of
its notes of circulation, or other creditor of such branch may, in case payment of such
notes of circulation or other claim, has been refused when lawfully demanded, and remains unpaid, apply to any court of competent jurisdiction, for its writ, comaanding
the board of control so to proceed; and it shall be the duty of such court, after
citing such board to appear and show cause why such writ should not issue, and upon
the finding of a jury that such act of insolvency has been committed, to issue their

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writ, commanding said board of control forthwith to proceed, in the manner 'pointed
out in the preceding sections of this act, to provide for the payment of the outstanding notes of such branch, close up its affairs, and make applicatioa of its
assets.
IN RELATION TO INDEPENDENT BANKING COMPANIES
Sec. 30. Independent banking companies to deposit certificates of funded
debt of this State, or of the United States, to amount of their capital stock.
Each company that shall have elected to carry on its business as an independent
banking company, and shall have complied with the requirements of this act, prelimimmy
to the commencement of banking business, Shall, before it shall commence such business
and before it shall be held to have acquired corporate powers, deposit with and
transfer to the Treasurer of State certificates of the funded debt of this State,
or of the United States, at least equal in amount to the amount of its capital
stock, at such time paid in;and, from time to time, as an additional installment,
or portion of its capital stock, shall be paid in, additional certificates of the
funded debts above specified, at least equal in amount to the amount of such
additional payments of capital 3tock, shall, within thirty days after such payment,
be deposited with and transferred to the Treasurer of State, but no such certificate
of fueled debt shall be received *by said treasurer at a rate or price above the
average selling price of such certificates at the New York stock exchange, for the
four weeks next preceding the time of the receipt thereof by the treasurer, nor
shall any certificate of the funded debt of this State be received at any rate
above its par value, exclusive of the unpaid interest that may have accrued
thereon; and if such company shall fail to make deposits and transfers of stock,
as in this section required, all its franchises and powers derived from this
act, except such as may be necessary to settle up its affairs, shall immediately
cease and determine.

•

Sec. 31. Treasurer of State to delver to independent banking companies
their notes for circulation. The Treasurer of State shall deliver, from tile to
time as he may be prepared so to do, to any independent banking company that may
have entitled itself thereto, on the written order of the president and a majority
of its directors, notes for circulation to any amount not exceeding the value of
the certificates of funded debt deposited with, and transferred to him by such
ection; but at no time shall the total
company, as prescribed by the preceding ,
amount of such notes, delivered to any such company, exceed three times the amount
at such tine actually paid in on its capital stock, and remaining as capital stock,
undiminished by losses or otherwise.
Sec. 32.
lating notes.

Treasurer of btate to cause to be engraved and printed circu-

Sec. 33. Plates, dies, and materials for printing and making circulating notes, to be in care of treasurer.

4"

Sec. 34. When a company any issue notes. After any such independent
banking company shall have caused to be executed and signed, by the president and
cashier thereof, the circulating notes received from the Treasurer of State, in
such manner as May be requisite to make them obligatory notes, payable on demand,


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at its place of business, such company is hereby authorized to issue and circulate
the same as money.
Sec. 35.

DAutilated notes to be destroyed.

Sec. 36. The interest or dividend upon stock deposited and pledged.
The treasurer of State shall give to any company, by whom any stock shall have
been deposited, according to the provisions of the thirtieth section of this act,
powers of attorney to receive the interestor dividends thereon, which interest
or dividend such company may receive and apply to its own use; but such pc4ers of
attorney shall become void upon any such company failing to redeem the circulating
notes issued by such company; Provided, however, that whenever the price of any
of the stocks pledged for the security or redemption of the circulating notes
issued by any such company, as aforesaid, shall be at the stock exchange, is
the city of New York, for four consecutive weeks, at a price or rate less than
the value of which such stock shall have been estimated, when so deposited and
pledged, the treasurer shall receive and retain the interest or dividend on such
depreciated stock, so pledged, until the interest so received, when added to the
market value of stocks so pledged, to be ascertained as in this section before pro—
vided, will be equal in amount to the amount for which such stocks were pledged, and
he shall deposit the amount so received with any solvent banking company in this
State, at such rate of interest as shall be agreed upon, or, at the option of the
company by which such stocks were deposited, invest such interest or dividends in
any of the stocks by this act authorized to be pledged, in the name of the Treasurer
of State, in trust for the banking company by whom the stocks, on which such interest
or dividends may have accrued, shall have been pledged, and whenever the price of
such depreciated stocks, at the New York stock exchange, shall rise to the price
at which they were pledged by the company, and so remain for four *consecutive
weeks, such investment shall be assigned to such company, and all accruing interest
on such pledged stock shall thereafter be paid to such company.

•

Sec. 37. Stocks given as security held exclusively by the treasurer. The
,
stocks transferred to the Treasurer of State, by an independent banking company,
for the security of its circulating notes, shall be held by him exclusively for
that purpose, until such notes shall be redeemed, except as hereinafter provided.
Sec. 38. When any independent banking company fails to redeem its notes.
If any such independent banking company shall fail to redeem, in gold or silver
coin, any of its circulating notes, issued in pursuance of the provisions of this
act, when payment thereof shall be lawfully demanded, during the usual hours of
business, at the office of such company, the holder of such note or notes may cause
one or more thereof to be protested by a notary public, who shbll, on protestinF.the same, forthwith forward notice of such protest to the Treasurer of State,
and after such protest suffered, it shall not be lawful for the comonay thus
suffering protest, to pay out any of its notes, discount any notes or bills, or
otherwise engage in the business of banking, except to receive and safely keep
moneys belonging to it, and to deliver special deposits; Provided, however, that
if satisfactory proof be produced to such notary public that the payment of any
such note or notes is restrained or delayed by order of any court of competent
jurisdiction, such notary public shall not protest the same; where the hrdder of
such notes shall cause more than one to be protested on the same day, he shall not
receive pay for more than one such protest.


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Sec. 59. When any indeRtpdent banking company fails to _pay or redeem,
the Treasurer of State may sell stocks 21edgadi_proceeds of sale distributed.
In case any such independent banking company shall fail to pay, and redeem its
circulating notes on demand, in gold or silver coin, as specified in the next
preceding section of this act, the Treasurer of State shall, within thirty
days after he shall have received notice of such failure, cause the stocks
pledged by such company, or so much thereof as may be necessary to redeem the
outstanding circulating notes of such comoany, to be sold either at the stock
exchange in the city of New York, after giving notice of such sale to such
company, and also advertising the time and place cf sale, with a pertinent
description of the stocks to be offered for sale, in two or more newspapers
published in the city of New York, for not less than ten consecutive days before the day of sale, or at the State Treasury in the city of Columbus,
giving notice to said company, and also advertising, in one or more newspapers
published in the city of Columbus, and one or more newspapers in general circulation in the county where the office of such failing company is situated;
which advertisements shall contain tiasame particulars as are required herein,
where sales are to be made in the city of New York; and out of the proceeds
of such sale the treasurer shall pay, in a ratable proportion, the circulating notes of such company, of which due notice shall be given, calling upon
the holders of such notes to present them for such payment, at the State
treasury; Provided, that if any *of the circulating notes of such failing
company shall not be presented, for redemption, at the State treasury, until
after the term of two years from the date of the first publication of the notice
to the holders of such notes, to present the same at the State treasury, the
treasurer may pay, ratably, to the holders of the notes previously presented,
if such notes shall not have been previously paid in full, whatever of the
proceeds of such sale, remaining in his hands, may be needed to fully discharge such notes so presented.

•

Sec. 40. Treasurer may hypothecate or sell deyosited stocks at private
sale. The Treasurer of State may, if he shall deem that the interest of the
noteholders of any insolvent banking company will be best promoted thereby,
with the advice of the Auditor and Secretary of State, hypothecate, or sell
at private sale, any of the stocks transferred to, and deposited with him,
by such company, to any other independent banking company, or to any individual person or firm, and receive therefor, either money, or the circulating
notes of such failing company; Provided, that no such stock shell he sold, by
private sale, at less than the par value thereof, nor at less than its selling
price, at the New York stock exchange, at the date of the last received information, nor shall any such stock be sold on credit.
Sec. 41. Appointment of special agent after the insolvency of an independent banking company; proceeds of an insolvent bank disposed of; proceedings
injoined and the fact of insolvency tried. On receiving notice that any such independent banking company shall have committed an act of insolvency, as hereinbefore defined, the Treasurer of State, the Secretary of State, and the Auditor
of State, or a majority of them, shall appoint a special agent who shall
immediately proceed to ascertain# whether such company has refused to pay its
notes in gold and silver coin, when lawfully demanded, and report to the said
treasurer, secretary and auditor, the facts so ascertained; and if, from the report so made, said treasurer, secretary end auditor, or a majority of them, shall
be satisfied that such company has suspended the payment of its circulating notes,

when lawfully de:aended: in gold and silver coin, they shall forthwith appoint a

•

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410

receiver or receivers, and require of him or them such bond and security as they
shall deem proper, who shall proceed to take possession of the books, records
assets, of every description, of such company; collect all debts, dues and oth
claims, belonging to such company; settle, and, with the approbation of an rant.
to be appointed by the stockholders for the protection of their interests, (
pound for all bad and doubtful debts; sell all the real and personal property Jr
said company and to pay over all moneys so made, to the Treasurer of State; and
the Treasurer of State shallause notice to be given, by advertisement, in one
or more newspapers published in the city of Columbus, and also in one or more
newspapers, in general circulation, in the county where the office of such insolvent company shall be situated, for six consecutive months, calling on all persona
who may have claims against such company, to make legal proof thereof; and, after
the end of one year from the first publication of such notice, the treasurer, after
full provision shall have been made for redeeming the *circulating notes of such
company, shall make a ratable dividend of the moneys so paid over to him by such
receiver or receivers, inclusive of moneys received by him on sales of stock
transferred to, and deposited with him by such company, on all such claims as may
have been so proved; and from time to time, as the proceeds of the assets of
said company shall be paid over to him, the said treasurer shall make further
dividends, as aforesaid, on all claims previously proved; and the remainder, if
anything, shall be paid over to the stockholders of the company, or their legal
representatives, in proportion to the stock by them severally held; Provided,
however, that if any independent banking company, against which proceedings have
been instituted, as prescribed in this section, on account of any supposed act of insolvency, shall deny having commited such act, such company may apply to any court
of competent jurisdiction to injoin further proceedings in the premises; and such
court, after citing the Treasurer, Secretary and Auditor of State, to show cause why
further proceedings should not be injoined, and after the finding of a jury, that
such company has not suspended the payment of its notes, when legally presented,
in gold and silver coin, shall make an order, injoining said Treasurer, Auditor
and oecretary of State, and any zceiver or receivers appointed by them, from all
further proceedings on account of such supposed act of insolvency.
Sec. 42. No dividends to be made on shares while any aebts or demands
remain unsatisfied.
Sec. 43. Fees for protesting paid.
Sec. 44.

O

To what amount stockholders may be liable; visitation of banks.

Sec. 45. Certificates of funded debt may be re-transferred to independent
banking companles. Whenever any independent banking company, being desirous of
diminishing the amount of its circulating notes, shall deliver to the Treasurer
of State any portion of such notes, not less in amount at any one time than five
thousand dollars, to be destroyed, the treasurer shall destroy the same, as prescribed in section thirty-five, and shall, thereupon, re-transfer and deliver to
such company certificates of funded debt deposited with him by such company to an
amount equal to the amount of notes so delivered up; Provided that the amount of
such certificstes remaining with the treasurer shall not, thereby, be reduced below the amount of the capital stock of such company at that time paid in, nor
in any case below the sum of fifty thousand dollars, nor in value, estimating
the same at their then current price in the city of New York,


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411

below the amount of the circulating notes still retained by such company; nor
shall the treasurer be required to re-transfer such certificates in fractional
sums of less than one thousand dollars; and whenever any auch company, being
desirous of relinquishing its banking business, shell have paid at least ninetyper centum of the maximum amount of its circulating notes, and shall have delivered the same to the Treasurer of State, to be destroyed, and shall have
provided means and given security, to the satisfaction of the Treasurer, Secretary, and Auditor of btate, for the redemption of its outstanding notes of
circulation, at the place where the office of such company was established,
and shall have given notice thereof by advertisement, for six consecutive
months, in two newspapers of general circulation, published in Columbus, and
' at least one published in the city, town, or village where the office of such
company is located, it* shall be lawful for the Treasurer of State to retransfer and deliver to such company, all the certificates of funded debt,
previously pledged with him by such company, and, thereupon, all the corporate
powers of such company, except such as shall be necessary to close up its
affairs, shall cease.
GENERAL PROVISIONS
Sec. 46.

Amount of shares.

bee. 47. No bank shall receive as security, a lien upon any part of its
capital stock, nor make any purchase of stock.
•

Sec. 48.

Stockholders entitled to one vote for each :hare.

Sec. 49.

The number and qualifications of directors.

Sec. 50.

Term of directors; vacancies.

Sec. 51. Banking companies body corporate until the 1st of May 1866;
their powers and privileges.
Sec. 52.

Denominations of notes; amount of each denomination.

Sec. 53. Nothing to be circulated as money, except such notes. No
banking company, deriving any of its powers or privileges from this act, shall at
any time issue, or have in circulation, any notes, draft, bill of exchange, acceptance, certificate of deposit, or other evidence of debt, which from its
character or appearnance, shall be calculated or intended to circulate as money,
other than such notes of circulation as are by this act described, and which such
companies are expressly authorized to issue for the purpose of being circulated
as money.
Sec. 54. Each company to redeem the notes of all other independent
companies at Dar. Each independent banking company shall receive at par, at the
office or banking house of such company, in payment for debts due for notes of
hand, bills of exchange, or other evidences of debt, discounted or purchased by,
or belonging to such company, the notes of circulation issued by any other independent banking company, authorized to issue such notes by this act, which shall, at
the time, redeem its notes in gold and silver coin; and every branch bank of the
State* Bank of Ohio shall receive at par, at the office or banking house of such
company, in payment of debts due for notes of hand, bills of exchange, or other
evidences of debt discounted or purchased by, or belonging to, such branch bank,

the notes of circulation issed by any other branch of the State Bank of Ohio.

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Sec. 55. Proportion of Specie to notes. Each banking company shall,
at all times, have on hand, in gold ano silver coin, or their equivnlent, one
half at least of which shall be in gold and silver coin in its vault, an amount
equal to at least thirty per centum of the amount of its outstanding notes of
circulation; and whenever the amount of its outstanding notes of circulation shall
exceed the above-named proportion, (1)* for the space of twelve days, or whenever
the said gold and silver coin, or their equivalent, shall at any lime fall below tii
amount of twenty per centum of its circulation, no more of its notes shall be paid
out, or otherwise put in circulation, by such banking company, nor shall such company increase its liabilities by making any new loans or discounts other than
discounting or purchasing bills of exchange, payable at sight, nor make any
dividend of its profits, until the required proportion between its outstanding
notes of circulation and gold (and) silver coin, or their equivalent on hand,
shall be restored. Actual deposits with any solvent bank or banker of established
credit in the cities of New York, Boston, Philadelphia, or Baltimore, subject to
be drawn against at sight, payable in gold and silver coin, shall be deemed
equivalent to gold and silver coin, wherever these terms are used in this act.
tent banks may be liable.

Sec. 56.

To what

Sec. 57.

Prohibitions upon banking companies.

Sec. 58. Loans to stockholders not to exceed six months, and dividenoL
made upon the net profits.

•

Sec. 59.
annually.

When dividends to be declared; statements to be made twice

Sec. 60.
profits.

Banking companies to set off to the State six per cent. on its

*Sec. 61. Jay discount at six per cent.
Sec. 62.

Amount of debt to banks.

Sec. 63.

Not to pay out depreciated notes.

Sec. 64. No evidences of debt, excepting bills of exchange, nssignable,
for
collection, or for the following purposes:
but
Sec. 65. All transfers made after the commission of an act of insolvene7.
except in payment of its circulating notes, null and void.
Sec. 66. Directors knowingly violate any of the provisions of this act,
charter forfeited.

•

Sec. 67.

Officers embezzling funds; making false entries.

Sec. 68.

Other banks authorized to recommence banking.

Sec. 69. (no heading)
Sec. 70.


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Banking institutions named in the 69th section to be examined.

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Sec. 71. 4pount of safety fund tg be depuited, That before any banking
institution named in the sixty-ninth section of this act, shall be entitled to
enjoy the privileges in this act granted, it shall deposit, with the proper board,
the amount of safety find required by this act; and shall have been formed for that
purpose, including those designated by name in this act, that may have cepted and
complied with its provisions, become, and thereafter be considered, a branch of
the State Bank of Ohio; and, as such, enjoy all the rights and privileges v end be
subject to all the liabilities and restrictions provided for in the same; ijrovided
that any of the banks named in the sixty-ninth section of this act, may, after
examination and report, as provided in the next preceding section of this act,
elect to become an independent bank, and upon compliance with the rules and regulations prescribed for the government of independent banks, as far as *may be
applicable, such banking company shall be entitled to all the privileges, and be
subject to all the restrictions of this act.

•

Sec. 72.

Any branch may close business.

Sec. 73.

Compensation of Commissioners.

Sec. 74.

Notice; oath, funded debt.

Sec. 75.

Acts repealed, and provisoes.

NOTES:
Sec. 21. * 43 Laws, 34, - 1844.

Sec. 24. (1) For mode of enforcing the reduction of liabilities of
banks, see chapter 862.
Sec. 25. (2) After the allowance of an injunction against a bank, as
provided for in chapter 862, the property of the bank vests in the board of
control, who shall appoint a receiver.
Sec. 28 *43 Laws, 36, - 1844.
Sec. 30. *43 Laws, 37.
Sec. 36. *43, Laws, 39.
Sec. 41. # The case of Commonweblth v. Farmers' and gdechanics1 Bank,
21 Pickering's R. 542, might be consulted for analogies.
Sec. 41. *43 Laws, 41, - 42.
Sec. 54. *43 Laws, 46.
ec. 55. (1)* Amended, see chapter 1023 sec 6.

•

Sec. 71. *43, L-ws, 52.


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- 1-

From Swan's hevised Statutes of Ohio of a General Nature in Force August 1, 186u
Vol. 1
Law of 1845 is printed in full as being still in force.
supplementary acts, among which is the following:

There are several

STOOKS, ETC., DEPOSITED BY BANKS

CErwen's h. S.,
1098, 1609; Curwen's Laws, 857,
928.

An Act to provide more effectually for the safe kcn of
the securities deposited by banks, and for the redemption
of their notes (Passed and took effect April 5, 1859.
56 vol. Stat. 162.)

Certificates of
funded debts-their deposit with
state treasurer,
transfer, etc.

(149.) Sec. I. Be it enacted by the General Assembly of
the State of Ohio, That the certificates of the funded debt:
Of this state and of the United States, required to be deposited with and transferred to the treasurer of state as
security for the redemption of the circulating notes of
independent banking companies, agreeably to the provisions
of the act to incorporate the state bank of Ohio and other
banking companies, passed February 24, 1845; and the
certificates of the funded debt of this state, of the
United States, and of other states, required to be trasnferrer3
to the auditor of state as security for the redemption of
the circulating notes of banking companies, agreeably to
the provisions of the act to authorize free banking, passed
March 21, 1851, and of the act supplementary to the last
mentioned act, passed April 11, 1856, shall hereafter be deposited with the treasurer of state, and be carefully preserved
by him in the state treasury; and all of such certificates
shall have heretofore been transferred to the auditor of s.
shall be by him deposited with the treasurer of state, and L
carefully preserved by him in the state treasury. All such
certificates, so deposited, as shall be transferrable at any
agency or office of this state, of the United States, or of any
other state, shall be transferred and made payable to "the
treasurer of the state of Ohio, and the comptroller of the
treasury of the state of Ohio, for the use of" (naming the
particular banking company owning or depositing the same);
and such certificates so deposited, and that have heretofore been deposited, shall be subject to sale and transfer
upon the written authority of the treasurer of state, the
comptroller of the treasury, and of the president or cashier
of the particular banking company owning or deoositing the
same, and not otherwise, except as hereinafter provided;
and all of such certificates so deposited, as shall be payabk
to any person or persons, corporation or banking company, or
order, or assigns, or bearer, or as shall be transferable by
delivery, shall, by special indorsement thereon, be assigned
to the treasurer and comptroller for the use of the banking
company owning or depositing the same, in manner aforesaid;
and such certificates as shall be so assigned and deposited,
such as have heretofore been deposited, shall be transfble

•

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S

by indorsement of the treasurer and comptroller, by special indorsement,
to the banking company owning or depositing the same, or to such
person or persons, company or corporation, as the president or cashier
of the proper banking company shall authorize in writing, and not
otherwise, except as hereinafter provided; but no such transfer or
assignment shall be made, unless the banking company owning or depositing
such certificates, shall be entitled thereto, agreeably to the provisisions of the act under which the banking company shall have been
organized.

(150.) Sec. II. It shall he the duty of the treasurer of state, and
of the comptroller of the treasury, forthwith to make, and thereafter t
keep in their respective departments, accurate accounts of all certificates
of debt so deposited as aforesaid, end of all certificates hereafter
deposited as security for the redemption of circulating notes of banking
companies; and the treasurer shall forthwith inform the register of the
bank department of the certificates that have heretofore been, and that
--And by reg- may hereafter be deposited; and it shall be the duty of the register
ister of bank to keep accurate accounts thereof; and such accounts, as also all other
accounts pertaining to banking companies, shall, at all reasonable
department.
times, be open to the inspection and examination of any officer or agent
Accounts open of any of said banking companies; of the governor, auditor of state,
treasurer, comptroller, and attorney general, or either of them, or any
to
commissioner appointed by the governor for that purpose, and of any
inspection.
committee of the general assembly, or either branch thereof, thereunto
authorized by resolution.

Accounts
thereof to
be kept by
treasurer and
comptroller.

•

Engraving
plates and
printing
aotes -duties of
comptroller
and
treasurer.

Registered
notes -delivery
thereof to
banks, etc.

•

(151.) Sec. III. Whenever any banking company shall desire to
have any plate or plates for circulating notes engraved, or any blank
circulating notes printed, and shall notify the comptroller thereof
in writing, the comptroller shall issue an order to the treasurer of
state to cause the same to be engraved or printed, specifying particularly in the order the denomination or denominations of the plate
or plates to be engraved; or the several denominations of the blank
notes to be printed, with the amount of each denomination; and the
treasurer of state shall strict15, observe such order in causing such
engraving and printing to be done; and upon the delivery to the
treasurer of any blank printed circulating notes, the treasurer shall
notify the comptroller and registere thereof, and they, in the presence
of the treasurer, shall carefully examine the same, and make an account
thereof in their respective departments.
(152.) Sec. IV. When a banking company shall be entitled to
receive any registered notes, the comptroller of the treasury shall, on
the written appliction of the proper officers of the bank, issue en
order on the treasurer of state therefor, and deliver the same to the
register, specifying in such order the amount of each denomination of
unregistered notes, to be delivered to the register; and on the presentation of such order, and ascertaining from the accounts in his
office that the banking company is entitled to the same, the treasurer
of state shall deliver the notes specified in such order to the


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3
register, who shall forthwith register and deliver the
same to the agent of the banking company, and make an
account thereof; but such notes shall not be registered
or delivered unless it shall appear from the accounts in the
register's office that the bank is entitled thereto.
Burning of returned circulating
notes

(153.) Sec. V. Whenever a banking coapany shall return any
of its circulating notes to be burnt, the same shall be
burned to ashes by the treasurer of state, in the presence
of the comptroller of the treasury and the agent of the
bank, and four certificates thereof be made and signed by
the treasurer, comptroller and agent of the bank, specifying
the amount of each denomination of notes so burned to ashes;
one copy of which certificate shall be delivered to the agent
of the bank, and one each to the treasurer, comptroller and
register.

The register--his
accounts of stock
and circulating
notes delivered to
banks and returned
to be burnt.

(154.) Sec. VI. The auditor of state shall appoint some
suitable person as a clerk in his office, who shall be
styled the register, and be under the supervision and control of the auditor. The register shall, without delay,
make and keep in his office accurate accounts of all certificates of debt now deposited, and that may hereafter be deposited with the treasurer as security for the redemption of
circulating notes of banking companies; he shall also make
and keep an account of the amount of each denomination of
the notes of each banking company, delivered to such bank,
and of the amount returned and burned, so as to.show the
balance of notes chargeable to such bank; and he shall also
keep accurate accounts of all notes hereafter registered and
delivered to each bank, and notes returned to be burnt, so
as at all times to exhibit the true amount of each denomination of registered notes delivered to each banking company,
and the amount thereof returned.

The sale of stock
to redeem notes of
failing bank.

(155.) Sec. VII. Whenever it shall be necessary to sell any
of the certificates of funded debt so deposited as aforesaid,
for the redemption of the notes of a failing bank, the
auditor, treasurer and comptroller shall make an order on the
treasurer to sell such certificate and certificates, and at
such time and times, place and places, as may be necessary
to redeem the outstanding circulating notes of such bank, as
the same may be presented for redemption, and produce the
largest sum that may be obtained for such certificates; and
when it shall have been determined to make such sale, the
comptroller shall issue an order to the treasurer specifying
what certificates shall be sold, and the tine and times, place
and places of selling the same; and in making such sale the
treasurer shall be governed by the provisions of the act under
which such bank shall have been organized, except as provided
by this act. iihen any such sale shall be made, the tre surer
shall forthwith report the same and the amount of money thence
arising, to the comptroller and the auditor, who shall cause
an account thereof to be made in their respective departments,
and the treasurer shall be charged with the money as a redemp-

Report of sale and
proceeds--accounts thereof


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/
Payments for redemption of notes
--how made

//di

Burning redeemed
notes.

tion fund, and all payments made by the treasurer for the
redemption of the notes of a bank, shall be upon the warrant of the auditor, as in other cases; all notes, presented for
redemption at the treasury, shall be burned to ashes by the treasurer in tne presence of the comptrolled and register, and
certificates of such burning, signed by the treasurer, comptroller
and register, shall be made, and account thereof kept, as in
other cases.

Proceedings on
quo warranto
against banks.

(156.) Sec. VIII. If any banking company shall fail to transfer,
and keep deposited with the treasurer of state, the amount of
securities for the redemption of circulating notes required to be
deposited by the act under which such banking company shall have
been organized; or shall fail to make the quarterly returns of
the condition of the bank, or to keep on hand the amount of coin
and its equivalent required by the act aforesaid; or if any
other violation of any of the provisions of the act under which
such banking company may be organized shall come to his knowledge, the auditor of state shall forthwith notify the attorney
general thereof; and the attorney general shall thereupon, and
also for any such violations that may otherwise come to his
knowledge, proceed by quo warranto, in the proper court, against
such banking company as for a forfeiture of the corporate
franchises thereof.

Fraudulent use or
disposition of securities punished
as embezzlement;

(157.) Sec. IX. If the auditor of state, treasurer of state, or
comptroller of the treasury, or any clerk in either of their
offices, shall knowingly and purposely, and with intent thereby
to cheat or defraud any person or persons, or body corporate,
use or otherwise dispose of any of the securities deposited by
any banking company, whether the same be registered or unregistered, and which may have come into his possession or under his
control, for any of the purposes named in this act, 'ae shall
be deemed and held guilty of embezzlement, and prosecuted by
indictment in any court having jurisdiction of the offense, and
upon conviction thereof shall suffer the same punishment or
penalty as is or may be provided by law for the punishment of
persons guilty of the embezzlement of the proper securities and
moneys of the state: and in all prosecutions for embezzlement
under the provisions of this act, the securities and the notes
aforesaid, whether registered or unregistered, shall be deemed and
held to be of the value denominated on the face thereof.

•

--Prosecutions,
etc.

55 Laws, 94,959
Post Chap. 120.

410

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(158.) Sec. X. Sections seven, eight, and nine of the act entitled
'an act to further provide for the better regulation, and receipt,
disbursement, and safe keeping of the public revenue, passed
April 12, 1858, are hereby repealed: Provided, that the repeal
thereof shall not affect the existing rights or liabilities, civil
or criminal, of any person or person, arising under the sections
so repealed.
Sec. XI.

This act shall take effect on its passage.

-5This Volume also contains a Free banking Act enacted in 1851
from which the following marginal notes and sections are taken.

Who may engage in banking.
Certificate to be made.
Copy to be deposited with secretary of state.
Sixty per cent. of stock to be paid in.
Governor, auditor and secretary of state to furnish company a certificate.
Auditor of state to cause notes to be engraved, etc.
Auditor to furnish
notes on deposit
of stock.

•

Such notes to be
circulated as
money;

•

Sec. 7. Whenever any company, formed for the purpose of
banking, under the provisions of this act, shall lawfully transfer
to the auditor of state any portion of the public stock issued,
or to be issued by the state of Ohio, or by the United States,
such company shall be entitled to receive from the auditor an
equal amount of such circulating notes of different denominations, registered and countersigned as aforesaid; but such
public stock shall in all cases be, or be made to be, equal to
a stock of this state, producing at least five per centum
interest per annum; and it shall not be lawful for the auditor
to take such stock at a rate above its par value, nor above
its current market value; Provided, that the auditor shall not
furnish to such company circulating notes to an amount more
than three times the amount of the capital stock of such company, actually paid in and remaining in such bank, undiminished
by losses. The plates, dies and materials to be procured by tae
auditor for the printLng and making of the circulating notes
provided for hereby, shall remain in his custody and under his
direction; and the expenses necessrily incurred in executing
the provisions of this act shall be audited and settled by the
auditor, and paid out of any moneys in the treasury not otherwise appropriated; and, for the purpose of reimbursing the same,
the said auditor is hereby authorized and required to charge
against and receive from such company applying for such circulating notes such rate per centum thereon as may be sufficient
for that purpose, and as may be just and reasonable.
Sec. 8. Every such company is hereby authorized, after having
executed such circulating notes in the manner herein required,
to make them obligatory promissory notes, payable on demand,
at its place of business within the state; to loan and circulate
the same as money, according to the ordinary course of banking
business, as regulated by the laws and usages of this state.

--To be signed by president and cashier.
Powers' the
company


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//////Stock to be personal oroperty, &c.
No lien to be taken on capital stock.
Who may vote at elections.
Officers, and who eligible.
Term of office of directors.
Denomination of notes, and their proportion.
No bank to issue
any other notes,
&c.

Sec. 17. No banking company, hereby authorized, shall
at any time issue, or have in circulation, any note, draft,
bill of exchange, acceptance, certificnte of deposit, or
other evidence of debt, which, from its character or appearance, shall be calculated or intended to circulate as
money, other than such notes of circulation as are by this
act described.

All banks under
Sec. 18. Each banking company herein authorized, shall
this law to receive receive at par, at the office or banking house of said comthe notes of each
pany, in payment for debts due such company, the notes of
other at per.
circulation issued by any other banking company authorized
to issue such notes by this act, which shall, at the time, redeem
its notes in gold and silver coin.

•

Thirty per cent.
of coin to be kept
on'hand.

Sec. 19. Each banking company shall at all times have on
hand, in gold and silver coin, or their equivalent, one-half
at lest of which shall be in gold and silver coin, in its
vault, an amount equal to at leE,st thirty per centum of the
amount of its outstanding notes of circulation; and whenever
the amount of its outstanding notes of circulation shall exceed the above named proportion for the space of twelve days,
or whenever the said gold and silver coin, or their equivalent,
shall, at any time, fall below the amount of twenty per centum
of its circulation, no more of its notes shall be paid out, or
otherwise be put in circulation, by such company; nor shall such
company increase its liabilities by making any new loans or discounts, other than discounting or purchasing bills of exchange
payable at sight, nor make any dividend of its profits, until
the required proportion between its outstanding notes of circulation and gold and silve coin on hand, shall be restored; actual
deposits with any colvent bank or banker, of established credit
in the cities of New York, Boston, Philadelphia or Baltimore,
subject to be drawn against at sight, payable in gold and silver
coin, shall be deemed equivalent to gold and silver coin, wherever
these terms are used in this act.

Liabilities

•

Notes not to be exchanged fOr 'Acek:,, nor cupital stock to be hyi,othecuted foi
certificates of stocks.


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Federal Reserve Bank of St. Louis

-7-

Capitnl stock not to be withdrawn.
Dividends, when declared, and oath of cashier thereon.
Interest to be charged, &c.
Liabilities to any other company not to exceed one-third its circulation.
Uncurrent notes not to be paid out.
Notes, &c., to whom payable.
That transactions are void.
2enalty for violation of the provisions of this act.
Officers who are guilty, to be imprisoned, &c.
MutilEted notes to be exchanged and burnt.
Powers of attorney to be given by auditor.
Auditor to hold
stocks for security, &c.

Sec. 33. The stocks transferred to the auditor of state_
by any banking company, for the security of its circulating
notes, shall be held by him exclusively for that purpose,
until such notes shall be redeemed, except as hereinafter
provided.

Delinquent banks
--how dealt with,

Sec. 34. If any such banking company Shall fail to redeem,
in gold and silver coin, any of its circulating notes issued in
pursuance of the provisions of this not, when payment thereof
shall be lawfully demanded, during the usual hours of business
at the office of such company, the holder of such notes or notes,
may cause one or more thereof to be protested by a notary public,
who shall, on protesting the same, forthwith forward notice of
such protest to the auditor of state; and after such protest
suffered, it shall not be lawful for the company thus suffering
protest, to pay out any of its notes, discount any notes or
bills, or otherwise engage in the business of banking, except
to receive and safely keep moneys belonging to it, and deliver
special deposits; and where the holder of such notes shall
cause more than one to be protested on the same day, he shall
not receive pay for more than one such protest.

3ame

Sec. 35. In case any such banking company shall fail to pay
and redeem its circulating not.s on demand, in gold or silver
coin, as specified in the next preceding section of this act,
the auditor of state shall, within twenty 6ays after he shall
have received notice of such failure, cause the stocks pledged
by such company, or so much thereof as may be necessary to redeem the outstanding circulating notes of such company, to be
sold either et the stock exchange in the city of New York, after
giving notice of such sale to such company, and also Eovertising
the time and piece of sale, with a pertinent description of the
stocks to be offered for sale, in two or more newspapers


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Federal Reserve Bank of St. Louis

-8-

•

published in the city of New York, and in general circulation,
for not less than ten consecutive days before the day of sale;
or at the office of the auditor of state, in the city of Columbus,
giving notice to said company, and also advertising in one or more
newspapers, published and in general circulation in the city
of Columbus, and one or more newspapers in general circulation
in the county where the office of such failing company is
situated, which advertisements shall, contain the same particulars
as are required herein, where sales are to be made in the city of
New York; and out of the proceeds of such sale, the auditor shall
pay on the circulating notes of such bank, as the same may be
presented, a ratable proportion of the proceeds of such sale,
not exceeding the amount due on said notes; and due notice shall
be given by the auditor, that said notes will be paid at the office!
of the auditor of state: Provided, that if any of the circulating
notes of such failing company shall not be presented for redemption at the office of the auditor of state, until after the term
of two years from the date of the first publicatioh of the notice
to the holders of such notes, to premit the same at said auditor's office, the auditor may pay ratably, to the holders of the
notes, previously presented, if such notes have not been previously
paid in full, whatever of the proceeds of such sale, remaining
in his hands, may be needed to fully discharge such notes so
presented. Whenever default shall be made in the payment of the
circulating notes of any banking company, established under the
provisions of this act, every stockholder shall, for Mich notes
be individually liable, in proportion to the stdck held by such
stockholder in such bank, to the extent and to the full amount
of the respective shares of stock owned in such bank by such
stockholder. Where a bank is owned by less than six stockholders,
they shall be individually liable, as natural persons, for all
debts and liabilities of such bank.

Same

Sec. 36. The auditor of state may, if he shall deem that the
interests of the note holders of any insolvent banking company
will be best promoted thereby, with the advice of the treasurer
and secretary of state, hypothecate, or sell at private sale,
any of the stocks transferred to and deposited with him by such
company, to any other banking company, or to any individual
person or firm, and receive therefor either money or the circulating notes of such failing company: Provided, that no such
stock shall be sold, at private sale, at less than the par value
thereof, nor at less than its selling price at the New York
stock exchange, at the date of the last received information;
nor shall any such stock be sold on credit.

Special agent to
be appointed, &c.

Sec. 37. On receiving notice that any such banking company
shall have committed an act of insolvency, as hereinLefore defined, the treasurer of state, the secretary of state, and
the auditor of state, or a majority of them, shall appoint a
special agent, who shall immediately proceed to ascertain
whether such company has refused to pay its notes in gold and
silver coin, when lawnilly demanded, and report to the said
treasurer, secretary and auditor, the facts so ascertained;
and, if from the report so made, said treasurer, secretary

•

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•
Federal Reserve Bank of St. Louis

- 9and auditor, or a majority of them, shall be satisfied that such
company has suspended the payment of its circulating notes, when
lawfully demanded, in gold and silver coin, they shall forthwith
appoint a receiver or receivers, and require of him or them such
bond and surety as they shall deem proper, who shall proceed to
take possession of the books, records and assets, of every description
of such company; collect all debts, dues and other claims belonging
to such company; settle, with the approbation of an agent, to be
appointed by the stockholders for the protection of their interests;
compound for all bad and doubtful debts; sell all real and personal
property of said company, and to pay over all moneys so made to the
auditor of state; and the auditor of state shall cause notice to
be given, by advertisement, in one or more newspapers published
in the city of Columbus, and also in one or more newspapers in general
circulation in the county where the office of such insolvent company
shall be situated, for six consecutive months, calling on all persons
who may have claims against such company, to make legal proof
thereof; and after be end of one year from the first publication of
such notice, he auditor, after full provision shall have been made
for redeeming the circulating notes of such company, shall make a ratable
dividend of the moneys so paid over to him, by such receiver or
receivers, inclusive of moneys received by him, on sales of stock
transferred to and deposited with him by such company, on all
such claims as may have been so proved; and from time to time,
as the proceeds of the assets of said company shall be paid over to
him, the said auditor shell make further dividends, as aforesaid, on all
claims previously proved, and the remainder, if anything, shall be
paid over to him, the said auditor shall make further dividends,
as aforesaid, on all claims previously proved, and the remainder,
if anything, shall be paid over to the stockholders of the company,
or thei-legal representatives, in proportion to the stock by them
severally held; Provided, however, that if any banking company,
against which proceedings have been instituted, as prescribed in
this section, on account of any supposed act of insolvency, shall
deny having committeed such act, such company may apply to any court
of competent jurisdiction, to enjoin further proceedings in the
premises; and such court, after citing the treasurer, secretary and
auditor of state, to show cause why further proceedings should not
be enjoined, and after the finding of a jury that such company has
not suspended the payment of its notes, when legally presented, in gold
and silver coin, shall make an order, enjoining said treasurer, auditor,
and secretary of state, and any receiver or receivers appointed by them,
from all further proceedings on account of such supposed act of
insolvency.

•

No dividends to be made when capital stock is diminished.
Fees for protests.
Stockholders shall not be liable to bank beyond two-fifths of capital stock.
How a company may diminish its circulation.

•

Damages for refusal to redeem notes.

List of shareholders and amount of stock to be kept and filed with recorder of
county.

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Federal Reserve Bank of St. Louis

-10 -

*hen banking company may commence business
Penalty for circulating mauthorized notes;
--And usury.
No bank to purchase its notes at a discount
Conflicting laws repealed.

•

•

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Federal Reserve Bank of St. Louis

STATUTORY PROVISIONS OHIO GUARANTY PLAN OF BANK OBLIGATIONS
(Act of Feb. 24, 1847)
Assessments and Contributions in Bank Obligations
Initial
Contribution

Annual
Assessment

Special
Assessment

Ten percent of amount of circulating
notes, in money,
.
.stocks of the Stately*WJL11.00f New York or of the
United States. (Sec.21)

Proportionate share, based
on authorized circulation,
of sum necessary to redeem
the notes of a failing branch. a/
(Sec. 26)

Statutory Limitations on Operations of Insured Banks
Responsibility of Directors and Stockholders:
Directors

Stockholders

In personal and individual capacity
for all damages which the company,
Its shareholders or any other persons,
body politic or corporate, shall have
sustained in consequence of any violation of the act or provisions of charter
knowlingly permitted. (Sec. 66)

••••

Limitations on Loans and Investments b/
To officers
and employees

To directors

To stockholders

Collectively
one-fourth of
capital stock
paid-in and
owned by
directors. c/
(Sec. 23)

Collectively
one-third of
capital stock
paid-in and
remaining. c/
(Sec. 23) -

Maximum to
Total loans
single borrowers and discounts

One-tenth of
authorized
circulation.
A/ (Sec. 62)

•••

Maximum
length of
loans
To stockholders
six months
(Sec. 58)

a/ i3ranah*s to be remunerated for such contribution from safety fund as soon as mom:
could be obtained by the sale or hypothecation of the stocks or other securities there
in. No provision made for restoring safety fund to its former amount. (4„,
bie No loans bade on basis of own stock as security (Sec. 47).
of In case of directors, one-third and of stockholders, one-half of capital stock
pail in, including liabilities, as drawers or indorsers of bona fide foreign bills of
exchange, drawn in this State and payable out of this State.
d/ Inclusive of liabilities as acceptor or acceptors of bona fide bills of exchange,
one-half of circulation, exclusive of liabilities as acceptor of above, one-fifth of
circulation.


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Federal Reserve Bank of St. Louis

•

z

STATUTORY PROVISIONS OHIO GUARANTY PLAN OF BANK OBLIGATIONS (continued)
(Act of Feb. 24, 1847)
Statutory Limitations on Operations of Insured Banks (cont.)
Limitations on Ownership of Property:

Banking house
and fixtures
Such as may be
necessary to
convenient
transaction of
Its business.
(Sec. 51)

Time limit on real estate acquired
by collection of debt

Ownership
of other
real estate

No longer than
necensary to avoid
loss,(Sec. 51)

Forbidden
(Sec. 51)

Ownership of
corporate stock
Forbidden, except to
prevent loss on debt
previously contracted.
(Sec. )i7)

Limitations on Circulation, Deposits and Borrowings:
Maximum
circulation
Specified rates-to capital stock:
First $100,000, twice
3.‘2
Second $100,000 1 1
Third $100,000 1 1
Fourtb$100,000.1 once
Additional, 3/4
(Sec. 19)

No specifications re maximum deposits, rate of
interest on deposits, or maximum borrowings.
No notes put into circulation if reserve impaired
for 12 days, or if falling below 20 percent at any
time. (Sec. 55)

Required Reserves:
Proportior of reserve
required to be actual cash

Total amount

Thirty percent of
outstanding notes
of circulation,
and current
deposits. (Sec.55)

One-half in gold and
silver coin in its
vault. (Sec. 55)

Character of
balance
Actual deposits with any
solvent bank or banker of
established credit in cities
New York, Boston, Philadelphia
or Bnitimore, subject to be
drawn against at sight. (Sec. 55)

Limitations on Payment of Dividends:
Percentage of
earnings to be
carried to
surplus prior
to dividends


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Federal Reserve Bank of St. Louis

If losses
exceed undivided profits, or in
excess of
net _profits
Forbidden.
(Sec. 58)

If reserve
is impaired

If capital is
impaired

No dividends if
Not to be paid if
losses equal or exceed
reserve falls below
20% of execution or
undivided profits. (Sec. 55)
toir 3,
for 12 days.

•

3
STATUTORY PROVISIONS OHIO GUARANTY PLAN OF BANK OBLIGATIONS (continued)
(Act of Feb. 24, 1847)
Character and Povers of Supervisory Authorities Over Insured Banks
Character of Supervisory Agency:
Name of Board

Composition and method
of appointment

Board of control
of the State Bank
of Ohio. (Sec. 13)

One member appointed by each branch. (Sec. 13)

Opening of New Banks:
Conditions to be taken into consideration
in approval of charters or issue of certificates to begin business

Authority approving
opening of new banks
Board of control of State,
Bank of Ohio a/. (Sec. 13,14)

Certificate may be refused if condition of
nevly formed company unsound; character of
stockholders or directors, for responsibility and
integrity, such as not to entitle such company to
pane confidence; if admission vill jeopardize
safety of other branches or of individuals who may
deal with such company. (!)./ (Sec. 11)

Examinations and reports:
Number of required
examinations each year

Additional examinations
by supervisor

Minimum number of condition reports each year

Whenever and as often
As frequently as ie deemed
as they think proper. (Sec.140 proper by board of controls
(Sec. 14)
Character of Assets and Management:
Circulation and liabilities

Other powers

May require any branch to reduce
circulation or other liabilities within
limits necessary to secure from loss
either dealers vith such branch, or other
branches. (Sec. 14)

May give orders to do or cease to do
any thing Which board of control may
deem necessary for security of such
branch or any other branch or branches.
(Sec. 14)

a/ For first year after passage of act, Board of bank commissioners, composed of five
persons named in the Act had sole power to approve organization of branches. Powers
of Commissioners transferred to board of control by Act of Jan. 6, 1846, except that
refusal of certificate to commence business by Board of Control might be overruled
by the board of commissioners. (Sec. 5)
.12/ Branches were also limited in number, not to exceed two in any county except
Hamilton, in Which not to exceed three. (Sec. )1.)
c/ Cashier required to make four reports each year, two after payment of semi-annual
dividends. No provision requires publication, however. (Sec. 57)


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Federal Reserve Bank of St. Louis

STATUTORY PROVISIOIS OHIO GUARANTY PLAN OF BANK OBLIGATIONS
(continued)
(Act of Feb. 24, 1847)
Character and Powers of Supervisory Authorities
Over Insured Benkse
Closing and Liquidation of Banks:
Power to close
for violation
of law
18h8-If any

order of board
of control not
complied with,
may apply to
court for injunction to
close branch.


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Federal Reserve Bank of St. Louis

Power to close
for unsatisfactory:condition
If branch fails
to pay notes
in gold or silver
coin. (Sec. 24)

Definition of
insolvency

PoVers of

liquidation

If payment of notes
Upon act of insolvency,
of circulation refused
or 1848 granting of
in gold or silver coin. injunction all pro(Sec. 24)
perty, etc., of bmanch
is vested in board of
control, which appoints
receiver. (Sec. 25)


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Federal Reserve Bank of St. Louis

•

From Appendix to Annual Report of
made on the Condition of the Ohio
Charles Reemelin,_E_Ag.., acting as
ment of the Auditor and Secretary
pp. 345-572)

XXV.

Auditor of State; Series of Reports
Stock Banks,_ as ascertained by
special examiner under the appointof State (Ohio Documents, 1854,

MR. REEMELIN'S GENERAL REVIEW.

Dent, near Cincinnati, October 15, 1854.
Hon. Wm. D. Morgan, Auditor of State, Columbus, Ohio:
Sir:--I have, in pursuance of the appointment conferred upon me by
yourself and the honorable Secretary of State, examined all the Banks
named in your favor of the 27th of June last, except one--the Iron Bank
of Ironton, which I shall visit as soon as the river opens--and have forwarded immediately succeeding each examination the special report for
each, as required by law. As soon as I shall have examined the Ironton
Bank, I shall transmit to you the report in that case. As that bank
will not vary the general conclusions, you will now please to accept my
general report herewith submitted.
I shall not discuss the general question of paper money banking except where it becomes unavoidable, but I may be permitted to remark
once for all, that I regard all paper money as unconstitutional; and
that in my humble opinion this seductive form of credit is the principal
disturbing element in all our financial relations, and that it constitutes one of the two great social and political evils of this republic.
Hence, I suggest remedies from the fact of the existence of a
paper currency among us, and not because I admit either the propriety
or constitutionality of such a currency.
With these prefatory remarks I will at once enter into the
subject matter of this report.
I.

•

THE SAFETY OF THE BALKS EXAMINED.

Every dollar issued by them is more than amply secured. The
stocks deposited for their security with the State Officers are worth
10 per cent. more than the actual circulation. And yet we should not
3uffer ourselves to be lulled into a false security, nor should we forget that the uninterrupted redemption is of the4ighest importance to
every note-holder. Several of the banks have, presuming upon this ultimate safety (for which see the tabular statements annexed to each report)
frequently permitted both their specie and eastern exchange to ran down
below legal and safe limits. Such a presumption, when it leads to carelessness, has a most mischievous tendency. It endangers the note-holder
and throws discredit upon the whole system. The mere deposit of dollar
for dollar in stocks, of which the interest accrues to the banks, is no
plea for neglecting the other safe-guards required by law.


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Federal Reserve Bank of St. Louis

PP'

-2-

As to depositors, the question of safety is more intricate and
more difficult to solve. There the money on hand deserves less consideration. There safety rests upon the bills receivable. Of the character of
these, an examining agent has but little opportunity to judge, except
from circumstantial evidence. If there are but few renewals, and the
number of debtors be large, and the amount be well distributed amongst
them, and they are all bona fide discounts for short dates, then this indebtedness to the banks may generally be regarded as good. It is well
to inquire also whether the officers and stockholders are large borrowers:
and whether the respective banks have favorites, who control a disporporUbnate share of its funds. The accounts with other Banks and Bankers,
from the indefinite and extensive character which the latter word now
has in Sank reports, are an item requiring careful scutiny, as through
it we may learn their "entangling alliances." Thus investigating the
question and inquiring of the cashier as to the general character of the
debts due,--and also specially into all matters bearing a suspicious
character, I have passed upon this question and given my opinion in each
special report. I regard the depositors in nearly all the Banks as safe;
But it is due to truth to add, that in several of them they are in more or
less danger. This does not affect such persons as are depositors and
debtors at the same time, nor those favored depositors--quasi stockholders
--who would doubtless be warned in time.

•

In connection with this matter, I must be pardoned for making
the remark, that under the Stock Bank system, all those creditors which
are not note-holders are necessarily placed at a disadvantage, because
such banks must employ a disppoportionately large share of their capital
for the protection of their circulation. This produces a strain upon the
deposits for all banking purposes, which disturbs the equilibrium of the
operations. Very often the deposits are used to increase and to protect
circulation, and that this weakens the security of the depositor needs
no farther argument.
The safety of the stockholders must be judged by far different
rules. A Bank unsafe to the public may be safe to the stockholders.
This is the case where the latter owe as much or more than their stock;
or where the stockholders of the Bank are also partners in a broker or
banking firm, by which the funds of the Bank are absorbed; or where the
funds of the Bank are made subservient to the interests of stockholders
in other localities,--in all such instances, (and that there are such in
Ohio you have learned from the special reports,) th4 stockholders are
safe--the public not. There are also a few Banks where there are heavy
well ascertained losses, and in these the stockholders are sufferers.
Acting on the foregoing premises, I have classified the Banks
into three classes, referring you to the special reports for the speciE'
reasons in each case.


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Federal Reserve Bank of St. Louis

No. 1.

Safe and doing a legitimate business-1. Franklin Bank of Zanesville.
2. Bank of Geauga in Pa nesville.
3. City Bank of Cleveland.

-3

•

4.
5.

6.

•

Bank of Commerce, Cleveland.
Mahoning County Bank at Youngstown.
Western Reserve Bank at Warren.

No. 2.

Guilty of some one or other improper practice-1. Champaign County Bank, at Urbana.
2. Commercial Bank, at Cincinnati.
3. Merchants' Bank, at Massillon.
4. Bank of Marion.
5. Franklin Bank of Portage County.
6. Fickaway County Bank, Circleville.
7. Springfield Bank.
8. Canal Bank of Cleveland.

No. 3.

More or less liable to censure and loss-1. Savings Bank of Cincinnati.
2. Stark County Bani,epf--8*11410telcy...../1-(2;,,..,
3. Union Bank of Sandusky.
4. Forest City Bank of Cleveland.
5. Sandusky City Bank.
6. City Bank of Cincinnati.
7. City Bank of Columbus.

The Miami Valley Bank at Dayton, and the Seneca County Bank,
are not in active business. The Iron Bank of Ironton is not yet
examined.
II.

THE MANAGERS OF OUR BAH'S, AND THEIR CHARACIreR.

The person character of the officers and the stockholders of
these Banks is intimately blended with their safety. A good system works
badly in bad hands, and even a bad system might work well with good men.
At the start, good intentions prevail as a general rule, and the directors
pay strict attention to business. Gradually, however, the management
passes into fewer, and in fact too often, into the hands of one man.
Trade in money has its peculiar effect upon character, like all other
occupations and avocations, from which effect only the mast sterling men
escape. Such men however exist. Malpractices will grow as care and diligence slacken; so from neglect and undue anxiety to do business spring
losses. This is the general feature of all banking,--it applies to Ohio.
Much of the safety of banks lies in the unremitting attention of directors
and stockholders to the affairs of the bank.
We have in Ohio, as elserthere in corporations, too much of the
ell-prevailing control of one man. The boards of directors are generally
mere cyphers. They, with some very honorable exceptions, meet seldom,
and are, so far as the affairs of their banks are concerned, "know
nothings." The Presidents, with one or two exceptions, pay some attentior
to business, but they are superficial observers of its operations, and
they exercise but little control over the Cashiers. The latter officers
are in fact the managers of our banks. They are all good accountants, and
possess much mercantile and financial experience, and so far are well


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Federal Reserve Bank of St. Louis

-4

•

fitted for their positions. Nearly all of them are anxious to have the
reputation that they adhere to what they call "legitimate banking," and
I will not gainsay but what 'lost of them deserve such a reputation.
Too great an anxiety for large profits prevails amongst them,
and this, once in a while, leads them into improper practices. Nearly
all these gentlemen are citizens of this State, intimately connected
with its prosperity through themselves and families. They have all the
notions peculiar to their class, of the insuperable importance of their
institutions to the communMy at large, and of the necessity of using ti
law making power through banks as a lever to prosperity. They desire,
next to making good dividends, the prosperity of their neighborhood, and
they are very often useful laborers in every thing calculated to advance
its general welfare.

•

Most of them are timid, financially speaking,--but there are
among them also, a few as bold spirits as ever dictated to States their
bank policy. Unfortunately for our State, our bolder bankers are the
chief agents in that policy which has deprived Ohio of a home currency,
and which imposed upon it a depreciated currency standards. Herein the
greater part, if not all, of our banks participated--many from timidit:.
From this, practices have sprung up approaching criminality, if not
actually criminal, at which our banks connived, or which they at least diC
not expose and put down as they might have done. Latterly, however, a
better and more independent spirit has prevailed. Otherwise, the officers
of our banks deserve, with few exceptions, the public confidence. For the
exceptions, I refer you to the special reports.
The prevailing system of book-keeping lacks, in many cases,
perspicuity and uniformity. Too much is left to memory, and the books
seldom convey within themselves, their own explanation. The discount
registers are often defective. The books are frequently not fully posted
up. Errors are carried along for months, and losses concealed beneath
the fair looking accounts. In all, I found one or the other of these
faults, in none all combined. The best set of books and the most perfect
order and regularity I found in the Bank of Commerce in Cleveland. Our
bank officers should ever remember, that in money dealings, order,
promptness and regularity are the roads to profit, and that the banks
which pursue the strictest path of duty are the soundest. All the injuries
to banks, worth speaking of have sprung either from the careless-ness, the
fanciful speculations, or the improprieties of bank officers. No bank
ever yet broke, but what was actually broken from causes within hereelf.
During the examinations, I have devoted much attention to the
character of our bank managers, and must here repeat my earnest warning
against a farther uncontrolled buying and selling af chartered privileges.
Bank managers may thus slip out of difficulties, and by concealing the
change, abuse public confidence. I must also regard as most reprehensible,
the modus operandi employed by the Miami Valley Bank at Dayton, and the
Seneca County Bank at Tiffin, by which their chartered privileges were
placed in abeyance in the hands of their principal stockholders--brokers,
who used the circulation and enjoyed all the advantageous part of the


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Federal Reserve Bank of St. Louis

5

•

charter, but escaped all the legal restraints, especially as to interest.
I think it ix a grave error in our bank legislation, that proper safeguards are not provided against irresponsible stockholders. Every change
in stockholders should be publicly known; then, as one set of men would
leave, the public would be put upon its guard. With this purpose in my
eye, I have reported all the stockholders in the respective banks. A mere
sale of the franchise should be prohibited altogether. I would also, in
concluding this subject, state the general fact that but few of our bank
officers give bond and security. Why this old practice has been abandoned
in Ohio, I am not informed.
III.

THE PROFITS OF BANKS.

The banks examined, make their profits from three sources, viz:
1.
2.

3.

The interest of the stocks deposited.
The interest derived from both bill and note discounting.
The premiums and profits from Eastern exchange.

Upon the first point but little need be said. It is well, however, always to remember that while the stocks are deposited with the State,
their productiveness to the holders is not diminshed, and that the power
to have a circulation upon them is an additional privilege conferred by
the State upon its creditors,--facts which these bondholders would do
well to remember, who accuse the State of a violation of plighted faith
for taxing these stocks, while they quickly protect the 5 to 10 per cent.
additional value which the above privilege imparts to them.

stood.

The profits arising from the second item are also well underThey do not constitute more than three-fifths of bank profit.

The chief profit is the premium realized from Eastern exchange,
over and above the legal interest. This subject has the most important
bearing upon our banks and all their operations, because unfortunately
the laws give to it an extraneous importance far beyond the preceding
causes, and hence it has become the key to the bank question.

•

New York is the great centre of moneyed affairs in the United
States. Ohio there buys the greater part of all it needs from abroad-an4there the settlement of balances is ultimately made for both our
exports and imports. Little specie is used in these settlements. Ohio
labor produces, and has always produced enough to pay all its needs from
abroad. Eastern exchange arises from this labor through drafts and bills
drawn by Ohio traders upon products either shipped, or to be shipped
East. These drafts or bills are discounted at our banks and bankers, and
at the time of the discount, simple interest is charged for the time they
have to run. They cost little or nothing to transmit and collect them
East. When matured, our banks and bankers draw against them, and being
more convenient and less liable to risk than specie, command properly a
small preimium. At Cincinnati and Cleveland, there is much transient
exhhange which is purchased in market, and from which very considerable
profits are realized. These premiums and profits are (from an Ei ,,hth to


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a quarter per cent.,) the result to be expected from legitimate causes.
But our brokers and bankers are adroitly playing into the hands of
Eastern brokers and bankers--often they are the same persons--and they
have succeeded in making New York, Boston and Philadelphia, which have
always adhered very near to the specie standard, the moneyed regulators,
to a far greater extent than the real facts would justify. This undue
advantage has been aggravated by mischievous Ohio legislation, which
makes Eastern indebtedness to Ohio, the basis of Ohio paper money, and
hence the currency standard, and at the same time authorized larger
profits from such discounts than from loans. This produces certain
financial peculiarities which it is well to notice. The first is that
those borrowers of a bank who offer the bank the better investment, are
actually made to pay a higher profit for the use of money, than those
who offer the bxxixemaxx less. The Eastern trader is deprived of a portion of the natural profits of the business. The premium from the exchange
he creates, the banks and bankers take as a matter of course. The majority
of these Eastern bills are sixty day drafts. We have seen that the bank
charges for these, regular interest in advance, being equal to seven per
cent., and in addition they receive on maturity the current rate of exchange, which ebr the last nine months past has never ranged less than one
per cent. Consequently, the banks have made on such bills, thirteen per
cent. per annum at least--and in all cases where the rate has been onehalf per cent. they have made 16, and this has latterly been the ruling
rate. With a thirty day bill, or one having still less time to run, the
interest made is still higher,--being not less than 25 per cent. and as
high as 30 per cent. There is not a bank nor a broker in the State that
has not discounted some $OU such bills, and made the profits indicated,
and according to my construction of the law, all have violated the act
"to restrain banks from taking usury." Whether all the banks of the StPt-.
or what portion of them is liable to the provisions of this act, I will
not undertake to say. The branches of the State Bank, and the independent
banks organized as they are under one act, will plead an exemption from
the above restraining act, but I doubt the success of such a plea in a
court of justice. I may as well however here remark, that one of the independent banks, and also one of the free banks (see special reports)
have violated their own charter in this particular, by charging and receiving a discount in additiolito regular interest. This whole matter may be
easily tested by some prosecuting attorney brippig suit for the usurious
interest provided by statute. I would earnestly recommend such a course
at the earliest possible date.
The other profits from eastern exchange business arises from
buying and selling transient eastern drafts. One fourth per cent. is made
in every such transaction, and it frequently happens that the bill is sold
on the same day as purchased. If the capital employed in such business be
turned once a week it amounts to a profit of 13 per cent. per annum, if
twice, to twenty-six, and if every day to seventy-five. That many exchange
discounts and purchases, are kiting operations by mutual tacit agreement,
where no funds are East, nor expected to be there, and that many such are
paid at the counter, and exchange added, I strongly suspect, but have no
certain knowledge except where reported.


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Another peculiarity springing from our eastern exchange policy,
lies in the fact, that in pursuance of it, Ohio is constantly loaning to
New York about two millions of dollars; for that amount is according to
the last quarterly bank report due to our Banks in the east. The reverse
would be the more natural position. This amount is loaned to New York,
in part without interest, and in part, at low rates of interest. To put
that self-same indebtedness there, costs our citizens from 10 to 25 per
cent.
Another grievous evil springs from this policy; it is the gradual
extinction of all home discounting, and the absorption of nearly all bank
capital in bill discounting. By reference to the tabular statements,
you will find that ten millions of the bank discounts are for bills, and
only four millions for notes. Note discounting was driven to the brokers,
because they were allowed to charge ten per cent. A still greater
injury of this policy, arises from the fact that in consequence of it,
all reliable currency standard was obliterated. Eastern exchange left
fluctuating to every financial trick, was made the standard,i1 No wonder
that adroit bank managers should use so fair an opportunity for forcing
upon us a depreciated currency, and as a natural result high exchange,
and a constant run upon our banks. I reserve further remarks upon this
for the succeeding chapter.

•

•

I cannot conclude the subject of bank profits, without adverting to a subject, which some may deem not within the range of the duties
of an examining agent, but which nevertheless in my humble opinion has
had any unmistakeable influence upon our whole bank policy. I allude to
the notorious ten per cent. interest law.
During the examinations, it became early evident to me, that
the existence of two rates of interest had a most significant effect
upon all banking operations. Formerly, banks and bankers were content
with seven to eight per cent. dividends. Now they complain of any less
rate than ten per cent. Cashiers hear this, and fearing a stampede of
their stockholders into private banking, strain every nerve to come up to
the coveted ten per cent. Hence, profits were divided closer than safe
banking would justify: hence, we find no contingent fund in our banks,-hence, too, are well known
and A.U.4*AAA,410,11.1PVIE41401.ArAilk14112
losses carried forward, instead of being wiped out. All the operations
of the banks were forced into the more profitable position of bank
operations. Many of the banks ceased in a great measure to discount
home paper, and this, along with the tempting ten per cent., fostered
into existence all over the State, private Bankers and Brokers, of but
little real capital. These offered six per cent. and more interest for
deposits, amd banked upon them. They also entered the exchange market,
and operated without restraint as to discount or premium. All this
deranged regular banking operations. The light-footed brokers soon
ruled the banks, which were cumbered by the restraints of law. The first
named regulated our exchange,--forced a depreciated currency upon us.
Many of the bank managers became interested in broker establishments, and
many brokers in Banks, both in and out of this State; and the people were
given over to a policy, in which at every turn they were shaved, and from
which they saw no relief. What was paid to the depositors, was doubly


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lost in discounts and exchange. Having two rates of interest, produced
some very curious results. In a certain locality (for which see special
reports,) a few men organized as a bank on one side of the street, and
were confined to six per cent.--and the same men, as a broker partnership
on the other side of the street, were allowed to charge ten per cent.-both dealing with the self same money. In Cincinnati, the managers of a
foreign bank were loaning the notes of that bank at ten per cent., while
the Ohio banks whcb circulated the same notes by arrangement, and were
furnishing eastern exchange for it, could not legally charge more than six
per cent. And again--a certain bank on the lake could not charge more
than six per cent for its loans,--but when it sent its capital, improperly and in violation of law, to a broker's firm in Cincinnati, who
were its stockholders, ten per cent. could be charged for the same money.
Such absurdities and gross improprieties occur, when the law-giver first
violates equality by granting special privileges; and, when looking
through his false optics, he attempts to patch up the created inequality.

•

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In other parts of this report, I shall have occasion to again
sneak upon this and kindred matters, and will close with this single
remark, that a careful and dispassionate examination of the special
reports must satisfy every reasonable mind that all well conducted banks
now make, in spite of the much complained of taxes, more, or at least as
much profit as they every did. In every case where profits or dividends
have been lessened, the cause will be found to lay in some loss brought
upon the bank by its own act and volition.
IV.

THE COST OF BANKS AND PAPER MONEY.

This item is, in my humble opinion, one of more importance than
is generally believed. Banks are public corporations (as yet at least,
though not necessarily so,) to whom the most important powers are entrusted.
Hitherto, the power to create a currency has been deemed one of the most
subtle Government functions, and such is in fact the theory upon which
our bank laws are passed. Banking thus being a matter of government, it
is well to inouire into its cost, just as much so as in any other governmental department. The mereitem of expense for Bank officers is proper
in such a calculation. There are sixty-two Banks in our State, each of
which costs on an average for various expenses, $2,000--$124,000. This
amount is not too large for the amount of labor performed. Very few of
our bank officers receive any more pay, when compared with otter similar
occupations, than they actually earn. The mere clerks are in fact paid
too little. The political bearing of the patronage, which is thus enjoyed
by these moneyed corporations is about as large as that of our entire
State government. This government patronage excites much public attenticn. Why not that of corporations, which in Ohio, is ten-fold that of
the State? While these corporate bodies are political bodies,--all of
them entrusted with some public functions, which in other countries are
performed by government, and while our corporation policy is more or less
an unsettled public question,--it is well to ascertain their cost and the
amount of power they wield. I would suggest with this view, either the
passage of a law requiring all corporations, including Banks, to rqport
once a year their general condition and expenses; and a discontinuance
for two years of such report to be considered a non user or forfeiture of
all chartered rights.


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The amount of profits made by our banks is also an item of
cost well worthy of public consideration. They cannot fall much short of
an average of ten per cent., which on a capital of a little over six
millions is at least $600,000. Very nearly half of this is the result of
the chartered privilege; as six per cent. is the standard of bank interest.
There are in the State not less than one hundred broker shops
and private banking houses, whose cost cannot be much less than $150,000,
for officers and similar expenses. This kind of private banking is inseparable from paper money. While we have government, we must have
politicians; and while we have paper money banks, we must have brokers.
Politicans are useful so long as they agitate for the public, political
questions. In a similar way, brokers are useful in banking matters--the
only danger from either is, when the first rule/State, or the latter rule
the banks.
the

•

The foregoing items are however but the smaller portion of the
cost of Banks, and it may perhaps be impossible to havd our monetary
affairs conducted under any less expensive system. Then ooly will they
be conducted cheaper, when we shall have no system at all, and when each
man having money to lend will be his own banker. The greatest cost of
paper money banking arises from the use of a paper currency. The more
depreciated this currency is, the greater the cost; the nearer specie,
the less. The large eastern cities are the currency standard/ for the
United States. That standard may in general be assumed to be from onefourth to one-half per cent. below the actual specie standard,--this
depreciation being concealed beneath the premium paid for European exchange. Our Ohio currency should at least not be below the New York
standard, except so far as may be unavoidable from causes inherent in
any paper currency,--and eastern exchange should never exceed in Ohio
one-fourth per cent., that being about the expense of transporting
specie east. All above that must be charged to the use of a depreciated
currency. How much that amounts to cannot be calculated very closely.
Having examined only twenty-four of the sixty-two banks in the State,
and much exchange being sold by brokers, actual calculation was not within my reach. I have endeavored to arrive at it by two modes, each producing the same amount. The first was to ascertain the nrofit made by
Banks upon eastern exchange, which I estimated at $240,000; of which I
charged $200,000 to the use of a depreciated currency. I then calculated
the profits made by brokers on exchange, which I estimated at an amount
equal to that made by the banks--leaving also $200,000 to be charged to
a depreciated currency standard--making 1,400,000 in all.
That I have not over calculated this amount, may be learned
from a fact of which I was cfedibly informed,--that one of our bank
managers, who has an outside broker business, and who used an Indiana
bank as a part of his operations, made $47,000 in one year out of that
foreign bank. Another method was to take as correct the estimate made
by others of the amount of business done and exchange sold annually, at
forty millions--for every dollar of which one per cent. more is paid
than would be under a currency standard, making also $400,000. I think
this amount, then, is not far from the truth.


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How much is lost in Ohio annually from the shaving of bank
notes and getting them redeemed, I can but guess at; I think it will,
for 1854, not fall short of $100,000.
The loss by broken or suspended banks must also be more or
less conjectural. I cannot estimate it for Ohio in 1854, at mu01
$250,000.
By way of recapitulation, we may then put down as what
called the legitimate expenses of banks:-$124,000
For officers and incidental expenses
360,000
Six per cent. profit from the banking capital employed
Officers and incidental expenses of broker establishments 150,000
$634,000
Illegitimate Cost.
Extra premium paid for eastern exchange
Shaving bank notes
Loss by broken banks

$400,000
100,000
250,000
. $750,000

Total cost of our banking system for one year

$1,384,000

Of this, full one-half might be saved by returning and adhering
to the specie standard.
V.

THE USE OF BANKS.

It is claimed--lst, that our banks furnish us with a good currency; 2d, that they regulate trade; 3d, tht they furnish us with capital;
--to all of which I most respectfully demur.
That our banks did not furnish Ohio with a good home currency,
is beyond all dispute; that they failed to regulate exchanges, is equally
clear; and that all the capital they lend to our people is but the capital
they borrowed from the same people, is easily demonstrated. Banks do
not create values; hence they could not redeem their vaunted pledges,
because all their creations of money or capital are but financial illusions. The bank managers feel these their miserable failures, but insterw
of abandoning their principal financial errors, they persist in them;
and rather than search for the real cause within themselves, they charge
our moneyed troubles upon our law makers, and what they please to call
"the anti-bank policy." Let us see with what justice.
The assertion is very often made, that "there is not banking
capital enough authorized by our laws."
In 1844 and 1845, one of the, if not the ablest banker in this
drafted
the system of banking which may be found in the law "to inState


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corporate the StateBank of Ohio and other banking companies." In that law,
the maximum of bunk capital fixed for Ohio up to 1865, for both the socalled State Bank and Branches and the independent banks, was $6,150,000.
Several additional, then existing, banks were re-organized by
that law, whose acceptance of the law might have swelled the capital to
$8,000,000. None then dreamed of any necessity for a larger bank capital
than this--a great many supposed it to be too great.
Of the capital authorized by that law-The State Bank and branches have taken up $4,059,675
The independent banks
558,000
Total
$4,6171.625
None of the specially recognized banks, antecedent to 1845,
could (I take it for granted) now avail themselves of the grants of that
law, nor could new banks be organized under it. But any of the present
branches of the State Bank, or any of the independent banks, might (at
least I have not seen it questioned,) absorb the capital not yet taken up
in the respective districts. This unabsorbed capital is about $2,000,000.

•

In addition to the law of 1845, we have the free bank law, under
which thirteen banks have organized with a capital of $805,790. The
Attorney General has, in 1852, given it as his opinion that no new banks
can be established under that act, under the new constitution--an opinion
the correctness of which all admit. But that officer has not decided, nor
has any legal authority held as yet, that there is any bar to the further
increase of the capital of banks already organized, to the limit fixed for
them by that law. That limit is $500,000 for each, or a total of $6,500,000
of bank capital--leaving an unabsorbed bank capital under the free bank
law of
$5,694,210
Add to this that not taken up under the law of 1845
2 000 000
And it leaves an unabsorbed banking capital of
$7,694,210
Add to this the capital of existing banks
issuing paper
5,423,465
Making a total of paper money bank capital now
authorized by law, of
$13,117,671
This is exclusive of the Ohio Life Insurance and Trust Company,
whose powers to introduce capital into the State are well known to be
very extensive. Nor does this include any of the banks about to expire.
The amount of circulation capable of being issued under this
capital and the law, cannot be short of twenty millions--in fact, it could
be forced to twenty-five millions. The banks now organized under the free
bank law alone, if they had their full capital, (six and a half millions,)
might issue three times that amount, being nineteen and a half millions.

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Cincinnati has been singled out as the place where it is said
the State has not provided banking capital and circulation enough. And
yet, when we examine the matter, we will find that this is a grievous
error. Leaving the Trust Company out of the question, and there are in
Cincinnati three banks, the Commercial Bank, City Bank, and a branch of
the State Bank, organized under the law of 1845, which three bkilks might
have a capital of $1,200,000; and leaving the branch bank out/the question,
then each of the independent banks might have a capital of $500,000, or a
total of
$1,000,000
The Savings Bank (free bank) might also increase
500,000
her capital to

$1,5oo,000

Maldng a total capital of

Upon this a circulation of four and a half millions might be
had. This is outside of the branch of the State Bank. Want of capital,
nor opportunity to maintain such a circulation, cannot be plead, because
the following Indiana circulation was maintained chiefly from Cincinnati
capital:

•

Connersville Bank
Steuben County Bank
New York & Virginia State
Stock Bank
Kentucky Trust Company
Branch of the State Bank,
Lawrenceburg

B. F. Sanford
S. W. Torrey & Co.
Atwood, Dunlevy & Co.
B. F. Sanford
S. W. Torrey & Co.

$834,875
150,000

236,000
1,000,00p
not known
$2,220,875

This is in addition to the Ohio circulntion.
The Commercial Bank protected for some time a large Tennessee
circulation, and all the Cincinnati banks and brokers aided in the circulation of foreign notes; and the same money that maintained a foreign,
would have maintained a home circulation. The same may be said of other
places in Ohio, whose bankers started foreign banks.
The Central Bank at Indianapolis, (Judge Bowen,) circulated
II
Upper Wabash Bank, (Marfield, of Circleville) "
It
Wayne Bank at Richmond, (Beckel, of Dayton,)
It
North Western Bank, (Tallmadge, of Lancaster,)

•

$323,000
195,000
100,000
300,000

There were also various Illinois and even more distant banks used
for circulation, for which Ohio capital and exchange was the basis--showing
the capacity of Ohio capital and means to maintain a full circulation.
That this circulation was not Ohio paper, lies not in a want of authority
to circul‘te--nor is there too little capital in the State. It mu9t be
sought in other reasons. Before examining these, it may be well, however,
not to leave one point unobserved, and that is, that at no time since 1845,
has all the capital authorized by law been taken up; showing conclusively
that Ohio legislation, whatever faults may properly be laid at its door,
cannot be charged with not authorizing banks enough, both in number and
capital.


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The banks and their friends say that the reason why the capital
and circulation authorized by Ohio laws was not made available, arises from
the fear of our general tax laws. I do not doubt the sincerity of those
who put forth this plea, but I deny its correctness to the extent claimed.
Banks are proverbial for having ready at all times some scape goat, upon
which, in a financial crisis, they heap their anathemas. Let us, however,
dissect this matter coolly for ourselves, and we will find that it is
not taxation, but causes inherent in our kind of paper banking, which has
induced Ohio banks to pass by disdainfully the plentiful supply of bank
capital tendered by Ohio laws.
The complaint of a want of bank capital is an old one. It
existed under legislatures favorable to banks, as well as under such as
were deemed hostile to them; and as we have seen, it always existed without foundation. Ohio law-makers never yet could suit the fastidious taste
ef our bankers. The complaint was as loud before the new Constitution and
our present tax law, as it is now. And it will exist--not until the tax
law is repealed, for repeal that to-morrow and it would produce no change-but until Ohio bankers return and inflexibly adhere to the specie standard.
You will ask what that has to do with the question? Much, as I will
show.

•

It is said Ohio needs twenty millions of a circulation, of either
Ohio or foreign bank notes. Admitting this exaggerated demand for paper
money, for argument sake, and we may safely go farther for the same purpose, and claim that that amount was circulated in Ohio during last summer, for never were our currency manufacturers and borrowers busier than
lately. Ohio bank notes alone were neglected. Indiana, Illinois,
Kentucky, Virginia, Michigan, etc., etc., were ransacked for banks when
established, with a view to borrow circulation of them; or muckxim
where practicable, to establish new banks. And yet money never was
scarcer; and not only money--Eastern exchange still more so. Ohio borrowed, and borrowed every body's credit, and called it money--and the more
she borrowed the less real money she had. Certain Ohio bankers, connected
as they were with foreign banks, played adroitly upon this borrowing propeniity, and the rest of them lacked either the courage to resist it, or
the good sense to perceive its tendency. At last, as October came, light
began to dawn, and now it was all at once seen by a few bankers, that insteadof having money loaned to us we have been borrowed from, and that in
a common sense view, it after all made but little difference whether a
bank note was issued by Ohio bankers on one side of the State line or the
other. By reference to the special reports you can easily find to which
category each Ohio bank belonged. At any rate, it was through them that
foreign bank notes were circulated among us. The brokers aided it, and
many of them became the worst species of banks of issue. Thus, a depreciated currency standard was imposed upon Ohio--as the currency fell,
Eastern exchange rose; and as exchange rose, thece came most inevitably a
rush for the redemption of such Ohio paper Xas was easily accessible, and
which therefore was constantly presented for redemption. The exchange
thus drawn from Ohio supplied new foreign issues, and through them a draft
upon Ohio was most constantly kept up by brokers, who were playing into
the hands of those half Ohio and half Indiana bankers. Ohio paper had
therefore to be redeemed five or six times and oftener a year, in Eastern


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exchange. Each redemption cost at least one per cent., and hence Ohio
circuiRtion cost some six to ten per cent. annually to maintain it. This
cost, and not tae tax, is, and has been, the great obstacle to Ohio circulation. With a specie standard in Ohio, all this would have been
impossible.
To avoid this constant draft upon them, banks resorted to those
pitiable shifts, so to pay out their own paper as to drive it from the
very homes for which the bank was established. Instead of their own paper.
they circulated about home foreign paper. A reference to the special
reports presents the sad proof of all this. The connivance or the timidity
of Ohio banks gave us a foreign currency. The tax law makers are innocent of this injury. Let us illustrate tais matter farter. The highest
tax to which any bank was subjected in the State was one and three-fourths
per cent.. This tax is not equal to two redemptions in a year, which
would have cost two per cent. Now there is not a banker in Ohio, or elsewhere, that will not circulate freely his own paper, if he can be sure that
it will not return under three months; or in other words, if his circulation does not cost him over four pr cent. per annum. How absurd, if not
wicked, is it then to assert that a one and three-fourths per cent. tax
is the obstacle to a circulation, when they know that it is the cost of
the circulation, as above explained. They are perfectly willing to pay
double the tax, in the cost of exchange, for their circulation. Exchange
at one-half per cent., with a tax of two per cent., and three redemptions
a year, is cheaper to the banks than no tax and six redemptions a year,
and exchange at one per cent. With a specie standard, a circulation would
cost Ohio banks, including the tax, only about three per cent--with a
depreciated currency it costs six Pa ten per cent. All banks are willing
to pay four per cent. or more for deposites, or any other capital left
with them over ninety days. Why should they not use their circulation,
(and what is a circulation, otherwise, than a loan of capital,) if it cost
them no more? I have shown whence the increased expense arises, and therefore demonstrated the real cause of the difficulties in the way of Ohio
bank capital and circulation.
You may ask, if this be true, why did not the banks see it, they
being generally so alive to their interests? I answer, some of those
who understood the game did not wish to see it, and the others were silent
followers for reasons already indicated. It is an astonishing fact, that
while our bankers are good and intelligent business men, they are usually
the blindest of the blind upon questions requiring a train of reasoning
different from that they are used to. They ever confound debt for capital,
borrowing for loaning, and like every body else, they prefer that mode
of relief best which they are used to. A bank is but a borrowing establishment, and hence it is natural that banks should see no wrong in a system so
completely in accordance with their views. Ohio bankers have, like all
other bankers, a most pernicious hankering for always circulating among the
people that currency which the people have the least chance to get redeemed;
and they seem to regard it as a part of their "esprit du corps" to drive
all bank notes as far as possible from home. They like an irredeemabl ,currency. To this we find the natural antagonism of constant habit,
acquired by interest, for the people have a leaning towards a different
result.


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Another propensity, one always in the way of bank reform from
within the banks, is the blind fatuity with which bankers will repeat
those clap-trap terms which any of the great bank oracles may put forth
upon the difficulties of the hour. An aversion to think and act for themselves, and a fear to stand alone amidst their class, must not be omitted
in contemplating the uniformity with which the tax law is held up by
banks as the scape goat of all our financial troubles. Nor can I help
being persuaded that interest also blinds their better judgment. The
sequel will prove that their present tax policy is a most unwise one.
They tell us what we already know, that taxes are enormously
highl Will not taxing Banks, lessen their aggregate amount? And if not,
is it any relief to Ohio capital to exempt one and not all? Show us the
way to get the taxes themselves down, but do not blame a mere law, which
regulates the manner of taxation, for the tax itself. If high taxes
drive out one species of capital, it will surely drive out all others,
because as one leaves the rest arc) .only burthened the heavier. Those
last left mat eventually begin the only real remedy--they must reduce
the tax, and cease talking about the tax law, which really has little to
do with it. If herein lies the eventual remedy, why not all unite in it
before any of us leave? The twenty-five millions of acres of excellent
land in our State will always remain, and I rather guess, they will always
be populated. That population pays the taxes, and that population, Bankers included, may and should see that taxes are lowered. The necessities of a young people account for some of our taxes--the carelessness of
our people to watch and check their local governments properly, accounts
for more. We want the bankers far more to help us all to get an economicEL
government, than we want the tuxes they will have to pay. We watt their
help in the present heavy burtheno, and they ought to share them; but we
particularly want them in our efforts to -eform. With their aid, they must
be successful. The banks have overrated not only the present taxation,
but also its future exaction. They are the allies of those elements laboring for tax exemptions and a reduced duplicate. It cannot take much reflection to convince them, and every body, that equal and exact justice is
the best and safest rule for them and for all. Nor can it be wise to rely
upon the special tax clauses in their charters. The guarantee of a constitution, backed b: a wise judicial decision, in favor of equil taxation,
is a safer anchorage than all their charters. Let arbitrary taxation be
banished from Ohio, and let the banks share so great a boon. I think the
time propitious for a mutual good understanding upon this matter. Let the
banks each and all scan closely their acts for a twelve month, and I am
sure they will find acts whose penalties they know beat. Let them ponder
upon and taxxfoudahdeirebachigucknair complain, with justice,
of the fact of two rates of interest in the same State. The State cannot
in honor recede from its tax law--it is a question of sovereignty. The
banks may acquiesce, saving all the principles they contend for. I am
sure, if they will but codly examine and reflect upon the matter, they will
see that the high taxes impede all business, theirs included; but theirs no
more than others. The good will/ of the community is worth to them more
than they suppose.

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The truth is, the laws of the State are not in the way of successful banking. Let Ohio pass what laws it 'abases, remove to-morrow
the last vestige of either law or other restraint, and as long as banks
favor influences which impose upon Ohio a depreciated currency, just 51
long will we have the worst of banking. DA let the baaka of Ohio do
their duty, let them be faithful to their part of the so called contract,
let them elevate the currency standard, making it at least equal to the
States eastlof us, and Ohio will cease to be the plunder ground of foreign
trash. Such an effort is feasible--not only feasible, it must be made
and succeed, or else the indignation of a free people will sweep away tI
faithless institutions who misuse the paters conferred upon them. A few
good bankers I know, see this in its true light; may they very soon imrress
their sound views upon their brethren.
To return to the question involved in the heading of this arts
cle, we may say that our bunks have beenlof but little use to us in givina
Ohio a home currency, nitaittizaaRaadvaatagx or exchange at fair rates. What
use then are banks? Their chief, and in fact their only use in the preaatz
state of business in Ohio, is in furniahing a gathering place where surpluses may be deposited, to be loaned to such as need temporary accommodations. It is important that our people, our law-makers, and our banks,
should know and act upon this self-eVident truth. The capital of '
citizens, and not that of our banks, has for months done the busine_
Ohio, and it does not re;:juire one dollar of mis-called foreign capital tdo our business. The worst borrowing is when we borrow othcr people's
credit; and that alone do we borrow by the usual process employed throu.
banks. This we must quit at all and every hazard. We want banks where
men may meet month after month, and day after day, as debtors ore,
'
creditors perhaps a few weeks after. We want depositories for i
surpluses, and to supply temporary warts. Very little of Ohio bank capi
tal is now owned abroad. It might all be owned at home. Ohio now loan:
unnecessarily to New York and the East, two millions of dollars thexchange. Let that necessity be done away with. Every day adds ta
wealth as a people. Why then be tributaries to a false system based
upon a false theory. That I am right in claiming for Ohio a stifficiena
of capital, I submit the following data:
The banking capital of Ohio (already accepted in Ohio) is
The discounts from this capital are
Showing a surplus of discount over capital
Whence does this arise? It arises from the deposits
which amount to
And so much of the little Ohio circulation as remains after
supplying the specie and exchange required by law, say

•

$6,000,
14,500,000
8,500,00r
6,200,00r
12,300,000

All this is Ohio capital. With brokers and private bankers tai
illustration is still more true. Their loans are entirely the result of
deposits. I look upon it as the most deceptive perversion of language,
to call it lending us money, when a banker, by circulating his shinplasters'
among us, absorbs our exchange, or when a bank gets the deposits of a ti
on the Lake, and lends it (without interest) to a broker in Cincinnati.


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•

And less yet is it furnishing us with capital, when an Eastern banker or
broker takes stock in one of our banks, with an understanding that an
amount larger than his stock is to be kept on deposit with him. Such
lenders are but borrowers, and the less we have to do with them the
better. Those terms which we hear so often, "more banking capital,"
"more currency," and "relief to the business community" are mere flash
phrases of the trade. They should deceive no body any longer. Capital
comes from honest labor and not from financiering,--currency is a curse
when not based on specie; and relief never comes by borrowing when we
are in a financial crisis--it comes either by paying or by wiping out.
The use of a bank consists in its being the hand-maid of commerce, and it
mistakes its vocation when it regulates trade. Industry creates capital,
commerce circulates it, and banks are properly a part of the machinery
of commerce, and not its masters. When banks get above and beyond this
their proper sphere, they become unsafe and enormously expensive.
That credit will always exist in some easily portable and
negotiable form, I know; and I am equally aware that commerce needs some
such lighter forms of credit, but they should arise with the temporary
demand, and expire after the occasion has passed which called them forth.
Banks can aid by being the places through which balances are settled,
and so far they are commercial conveniences. Commercial and financial
derangements must however always be expected in a country where there is
so much to tempt to commercial activity, and so little to restrain
speculation. I think these revulsions would be lessened and mare shortlived, if we would not attempt to regulate what is better left to
itself.
VI.

REMEDIES.

I am fully convinced that we may, under the existing bank
laws of Ohio, have good banks as the phrase goes, and as many as we
need, if the bankers themselves will it; and I know equally well that
good banks are never made by mere banking systems--hence I reluctantly
suggest any remedies. It is ciltimed that our people are not ready for
those efficient radical measures, which would take banking out of politics, and make it what it should be, a business of every day life like
all other business, at least I deem their advocacy in this report unnecessary--but until we are ready to adopt them, we should continue to
amend the bank laws we have, so as to render them as nearly perfeet as
the nature of circumstances will admit of. With tliis view I would
recommend as follows:
1st. That more stringent laws should be passed against the
neglect of having the requisite amount of specie.
2d. That no bank pay out at its own counter any thing, but itL•.
own notes or specie, and that all notes below twenty dollars be abolished.

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3d. That no non-resident of Ohio be permitted to hold any
stock in any bank in Ohio.
4th. That no Ohio stockholder be permitted to be a stockholder,
officer, or agent in any other bank in or out of this
State.


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5th. That the provisions against excessive borrowing of
directors and stockholders be more clearly defined.
6th. That the provisions against too large an amount of indebtedness from any one firm, should be held to include banks and bankers.
7th. That the system of book-keeping, especially the naming
of accounts, be rendered more perspicuous, and proper penalties fixed
for failing to post the books regularly each day.
8th. That weekly statements be made out by the banks, and
copies thereof sent to the Auditor, subject to publication through the
press. These statements should give the name of every private or public
bank to whom or from whom balances are due, and there should be heavy
penalties against deceitful reports. No ephemeral values, nor any
ascertained losses should remain on the asset side.
9th. That regular meetings of the directors be held each week,
and their attention to business secured by suitable liabilities for all losst.
resulting from their neglect.
10th. That every officer entrusted with funds by a bank shoulL
give full security.

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11th. I unhesitatingly recommend that the maximum rate of
Eastern exchange be fixed by law at one-auarter per cent., And that all
laws which make Eastern exchange the basis of circulation be repealed.
12th.. That there be but one legal rate of interest for both
banks and the community at large.
These remedies are suggested, not as panaceas for the evils
springing from banking, but aeipractical amendments of our bank law,
and I think they would to some extent prove safe guards against some of
the defects in the banks examined by me, and which I have noted in my
reports. The reasons for them may be found in the preceding pages,
and I trust they will meet Nith favor from those who have the power to
enforce them.
I have no special banking system to write up, nor do I feel
any inclination to write any one in particular down. All banks are good,
financially speaking, which have actual capital and sensible and honest
men to manage them. The first cannot be supplied by the most adroit
borrowing; nor will the kind of men just named stay in a bank which has
no actual capital. The severest trials a bank officer has to undergo,
are the peculiar temptations of his business. Against these, vigilant
directors and stockholders are the best remedy.

•

It may surprise some that I recommend the fixing by law of the
maximum rate of Eastern exchange. And yet every reason which can be
given for fixing the rate of interest for banks, is still stronger for
fixing the rate of exchange, and I am sure no less positive law will secure
and preserve to Ohio a paper currency based upon the specie standard. No


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one is more fully convinced than the writer of this, that natural laws
are the best regulators, and that in fact they eventually enforce
their decrees by bitter experience, upon those who violate them. But
it is also true, that where legislators invade these "higher laws," they
must even patch up their errors as best they may. Our law-makers have
committed two great errors; they have authorized a fluctuating paper
currency, based upon Eastern exchange; and have established two rates of
interest within the same State. My suggestions are based upon the facts
around me, and in my opinion it is wrong to allow the same persons who
give us our supply of currency, also to fix the rate of exchange. This
is handing our business men over to them for the grossest spoliation.
In conclusion, I would beg your indulgence if I have devoted
more space to my report than may be justifiable. Accept for yourself
and the Hon. Secretary of State, my most respectful thanks for the confidence placed in me. I fear that I have not fully met your expectations, but I assure you that I have honestly endeavored to examine
strictly, and report truthfully.
I remain, with high regard,
Most respectfully yours,
CHARLES REEMELIN.

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Excerpts from Ohio documents relative to banking
From Third Annual Re:ort of the Bank Commissioners, December 17, 1842, pp.
8-16.

A very limited review of the past is sufficient to convince any
one that banking, if continued by further legislative enactments, should be
placed on a basis affording greater security to the public. To effect this
security, a radical change in the system is deemed indispensably necessary.
The want of proper restrictions and checks, to guard the public against
imposition and loss, may be traced to the peculiar circumstances which
brought banks into existence.
Banking first originated in a public debt, and was established
upon that kind of indebtedness now known under the popular name of State
stocks. As might be anticipated, under such inauspicious circumstances,
the creditors of the government dictated the terms on which their privileges should be granted. Hence, the public good was made subservient to
the private interest of individuals.

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At the present period, political economy is so well understood,
relates to banking, that many of the errors of former legisit
as
so far
avoided. The theory of banking has always rested on the
be
may
lation
assumption that it augments the active or productive capital of the country.
Hence, Mr. Hamilton, the Secretary of the Treasury, in his report to the
House of Representatives, on the 14th day of December, 1790, laid down the
position, that "Gold and silver, when they are employed merely as the instruments of exchange and alienation, have been, not imiltperly, denominated
dead stock; but when deposited in banks, to become the basis of a paper
circulation, which takes their character and place, as the signs or
representatives of value, they then acquire life, or, in other words, an
active and productive quality."
The experience of more than half a century since this opinion was
expressed, has failed to convince the American people that gold and silver
are to be regarded as dead stock, except when placedin banks as a basis
for the issue of their paper. This idea, that gold and silver acquire
life, activity and productiveness, only when placed in banks, as a basis
for paper issues, rests upon the assumption that bank notes, to an indeterminate extent, may be thrown into circulation, and that a proportionate
increase will be given to the commercial, manufacturing and agricultural
interests of the country.
The excess of bank notes over the specie basis, that may be safely issued, has been variously estimated at two or three to one. It is
probable that no ratio of bank notes, as two, three or four for each dollar
in specie, can be determinately settled upon as safe at all times and under
all circumstances.

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Various causes might be enumerated which would produce essential
changes in the amount of bank notes in circulation. Among these causes
are, a demand of specie for exportation; the collection of specie to establish


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new banks, or to supply eastern banks; the demand for exchange, after excess of trade or speculation; and over issues of any kind will be followed
by a return of the circulation for redemption. It seems to be a conceded
point that banks cannot do what is denominated a regular banking business,
without the confidence of the community in which their notes circulate.
From this fact alone, the conclusion may be drawn that the system is radically imperfect. A bank, established on a safe and permanent foundation,
with real and adequate capital, should be able to meet such of its liabilities as were, or could, at any one time, be presented for payment or redemption; but, on the other hand, if its capital were fictitious, consisting
of stocks, stock notes, certificates of deposit, etc., the institution
would require the factitious aid of public confidence to carry on its
regular banking operations. The objection is not tolthe existence of public
confidence, where the means of a bank are ample, but that it should sustain
a bank in which they are wanting. Public confidence should not be permitted
to form too great a proportion of banking capital. It cannot be said that
in this State confidence has been unjustly withheld from the banks. The
error has been on the other side, and the loss to the community has, in
many instances, been severe in proportion to the degree of confidence
bestowed. We lay down the broad proposition that a banking institution
properly conducted, and having the means to meet its liabilities as presented.
will find itself in the enjoyment of all the confidence it needs or desires.
We have been led to the conclusion, from the examinations made
during the presentAyear, that the banking capital in the State has paid but
a very inconsiderng amount of tax in proportion to the sum total of property
thus invested. The rate of assessment, for State, canal and school purposes,
is five mills on the dollar.
The capital stock of the twenty two specie paying banks, at the
period of the first examination this year, was $6,894,989.03. If to this
we add the capital stock of the Franklin Bank of Columbus, which is $412,280,
the total amount is $7,307,269.03. On this amount of other taxable property,
the taxes assessed would be $36,536.34, whilst the total sum received by
the State, for taxes on bank capital, between the first day of December,
1841, and the first day of December, 1842, is $14,712.13. The tax collected
on the capital stock of banks, is, therefore, considerably less than half
the tax on other property; yet the money so invested has probably been as
productive as that employed in other branches of business. The necessity,
as well as the equity, of placing bank capital on the tax list, and taxing
it in the same manner as other property, is apparent.

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The charters of banks, heretofore incorporated in this State, are
altogether too vague and indefinite in relation to capital stock. It is
suggested that the amount of capital should be definitely fixed, without
the power of increasing or lessening it, except by consent of the legislature. The amount of capital required can be ascertained with greater
certainly at the time the grant is made, than by any estimate of what the
future wants of the community in which the bank is located would probably
be. It would be more safe to legislate for the present, and require a
definite amount to be paid before the institution commences banking business,
than to authorize a capital of a certain amount, with the privilege of
this
increasing it to four or five times that sum. One objection to


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indefinite amount of capital, is the uncertainty that rests on the public
mind as to the true condition of the institution. When the charter authorizes
a capital of one hundred thousand dollars, with the privilege of increasing to five hundred thousand dollars, the bank, unless prohibited, will
probably commence business when a portion of that amount is subscribed and
paid, and the subsequent instalments, or increase of stock, will be made
by an application of the dividends to that purpose, or by loans and discounts, which are, in substance, stock notes, whatever may be their forms
or terms of payment.
A reference to the reports submitted to the Legislature in February and July last, will suggest the propriety of prohibiting, by strong
penal enactments, the directors and stockholders from making any assignment, transfer or surrender of stock, to the bank, in payment of debts,
until the entire liabilities of such bank to the public have been discharged.
The frauds of this kind have been enormous, and, in some instances, of the
most aggravated character.
In view of these frauds, and the danger of their repetition, it
is questionable whether stock should, at any time, until the public creditors
have been provided for, be received in payment of debts. This practice of
assignment has been so common, that is prohibition may be supposed to
operate unfavorably to the interest of the banks. The necessity for its
adoption originated in the large amount of indebtedness by the directors
and stockholders, and it may be dispensed with by avoiding the wrong which
brought it into existence. If loans to directors and stockholders were
limited within reasonable bounds, and such security given as should be
required in other cases, there would be no great advantage accl'uing to the
banks from the exercise of the right to r)urchase in their own stock.
If it should be deemed advisable still to vest the banks with the
power to purchase or receive their stock in payment of debts, it should be
under proper restrictions and limitations.
1st. It should not be permitted when a bank is not regularly
and permanently redeeming its notes in gold and silver.
2d. It should not be permitted when a bank is in an insolvent
failing
condition, or with a view to insolvency.
or
3d. After failure, it should not be allowed until the liabilities of the bank to the public have been satisfied.
4th. In no case, except where a bank had no other means of
securing a bad or doubtful debt.
An effectual prohibition of loans on stock and stock securities,
would supersede, in a great measure, the necessity for receiving stock in
payment of debts. These loans and discounts are rarely paid, and by continuation from year to year, the capital of the bank is exhausted. The
practice is a fraud upon the public. The capital stock is authorized as a


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basis upon which its issues are to be made. If it be withdrawn upon stock
notes, or stock security, the bank has no permanent available means to meet
the redemption of its paper.
We would particularly direct attention to the necessity of keeping
the capital stock unimpaired, and to effect this object, all stock received
in discharge of debts should be immediately sold.
If instances occur in which the interest of the bank may be advanced by a transfer of stock in payment of debts due the institution, we
have on the other hand cases of glaring fraud upon the public in the exercise of such a power by order of the board of directors. Perhaps stronger
illustrations of this practice cannot be given than those heretofore submitted in relation to the German Bank of Wooster and the Bank of Steubdnville.
That adequate protection has not been given to the billholder,to
secure him against loss and imposition, is a plain and evident fact that
cannot be controverted. The bank explosions in 1841, and the beginning of
the present year, have demonstrated it so clearly that it cannot be overlooked. The assets of the broken banks, if judiciously and honestly
applied, are, in most cases, inadequate to the redemption of their paper
in circulation, and the discharge of their other liabilites. But even
these means, limited as they are, have, in some instances, at, or about the
time of failure, been fraudulently withheld from the public, by sales,
assignments, transfer cf worthless stock in discharge of real indebtedness,
replevin, and other devices.
Whatever the nominal capital of a bank may be, its real banking
capital consists in specie, and such funds as are immediately available in
redeeming its paper, and these should in no case be so diminished as to
render it incapable of meeting any demands that may be made upon it.
Perhaps no subject has exercised the mind of man more than that
of substituting paper for gold and silver, as a circulating medium. As
yet, no plan has been devised which has furnished a paper currency uniformly
and permanently equivalent to specie. Bank notes have, in many instances,
obtained a high degree of credit; but that credit, by leading to over issues
and improvident speculation, has too often been the cause of subsequent
suspension or failure.
All experiments to keep bank notes uniformly of the same value as
gold and silver, have proved abortive; and the position, whether true or
false, has long since been laid down, "that it is impossible to organize
secure banks of issue." So far as we are enabled to trace the subject,
the history of banking has rather tended to confirm, and establish, the
truth of this position.

•

Theoretically, it would appear to be impossible to make bank notes,
as the representatives of gold and silver, take their place as a circulating
medium, to the extent of two or three times their amount. The amount of


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notesEuspended in circulation, is subject to great and sudden changes;
and whenever doubts arise as to the solvency of a bank, or its ability to
redeem its notes, there will be a demand for specie, and this demand is
most likely to take place at the very time the bank is least able to
sustain itself under a heavy call for the precious metals.
Whatever the cause may be which operates to impair the confidence
of the public in a banking institution, its tendency is to throw its paper
back for redemption; an over issue is sure to produce an exportation of the
precious metals; a large amount of bank notes in circulation will excite
fears and insecurity in the public mind, and the inevitable consequence is
a run for specie.

•

The history of banking, as well as the facts connected with recent
failures, furnish proof in corroboration of the position already quoted,
th:..t, banks of issue, perfectly secure, and able at all times to redeem their
notes in gold and silver, cannot be organized. The Bank of England was
chartered in 1694, and suspended the payment of its notes in 1696. In 1745,
the bank was so reduced in specie, that the directors resorted to payments
in shillings and sixpences, in order to gain time. In 1797, Parliament
agreed to a restriction, prohibiting the directors from paying their circulation in specie; and a suspension of specie payments, under this restriction, continued for a period exceeding twenty four years. The amount of
notes in circulation at the commencement of the suspension, Was 8,601,964
pounds sterling. Instead of diminishing the amount of circulation, it was
increased, in the first twenty years of the suspension, to 30,099,908 pounds
sterling. During the continuance of this suspension, the paper was greatly
depreciated. The depreciation was small for a few of the first years, but
gradually increased, until it amounted to twenty five per cent. In 1825,
soon after the resumption of specie payments had taken place, the Bank of
England was again nearly drained of specie, and, as a temporary expedient,
made an issue of about a million of one and two pound notes.
In France, the failure of the Royal Bank produced an amount of
ruin and distress that is probably unparalleled in the history of banking.
When the circulation of this bank became enormous, and a heavy demand for
specie unavoidable, edicts were passed making the notes a legal tender in
payment of rents, customs and taxes; restricting payments in specie to
small sums, and prohibiting any individual or company from having more than
five hundred livres in coin, under penalty of fine, and the confiscation of
the specie found in his or their possession.

•

The standard of gold and silver was several times altered, to
make it correspond with the depreciated condition of the notes in circulation; and these alterations were continued, until it was reduced to half
its value, at the time the bank was established. Successive edicts were
passed, gradually reducing the value of the notes, until they sunk to half
their nominal value. All confidence in the Royal Bank was destroyed by these
acts, as other edicts might declare them worthless. That something might
be saved to the holders of these notes, the demand for redemption became
general, and the bank closed its doors in preference to paying out its coin.
So great was the distress that followed this revulsion, that it
was difficult to obtain a sufficient amount of specie to purchase the


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necessaries of life.
explosion took place,
made a proposition to
cent., and closed the

The Royal Bank had a circulation, at the time the
equal to 2,235 millions of livres. The government
fund these notes, at an interest of about two per
scene b. prohibiting their circulation.

In the United States, the failure of banks has formed no inconsiderable part of their history, and we have become accustomed to the suspension of specie payments. It would be useless to enumerate the instances
of bank explosions and suspensions in Ohio, as there is scarcely an individual who has not suffered from their frequent occurrence.
The great and fundamental error in the banking system, may be
traced to the want of individual liability of the directors and stockholders,
to pay the debts they contract, and redeem the paper they put in circulation. Heretofore, in granting bank charters, it has been deemed sufficient
to make such property only, as already belonged to the corporation, instead
of the property of the members, liable for the redemption of its notes
issued, and the payment of other debts. With this exemption,of the persons
composing the corporation, from all liability in their natural or individual
capacity, there were no effectual checks against fraud, or the conversion
of corporate into private property, in the hands of the same person. The
same man, in his corporate capacity, might be poor, but, as an individual,
he might be rich; and his wealth, in a great measure, drawn from the profits
or spoils of the corporation of which he was a member. That which he held
asan individual, although, perhaps, derived from the profits of the corporation, could not be taken to discharge the debts which the corporation owed.
It is apparent that some effectual remedy should be applied to
the evils and abuses of banking in this respect. As, between the bank and
the billholder, whether legally so or not, the power rests with the former.
Single-handed, the billholder cannot contest, successfully, his rights
against the moneyed influence 4 a bank. Payment on a bank note in his
possession, which, to be the representative of money, should at all times
be equivalent to specie, is refused. While kis he is proceeding, in the
ordinary forms of law, to enforce payment, the corporation, so far as its
means of discharging the debt is concerned, may have changed its form of
existence, or utterly and hopelessly failed. The property of the corporation may have passed through so many mutations, and become so essentially
changed, as to elude the vigilance of the sheriff in obtaining and identifying it as the property of such corporation; and none but those interested
in defeating the creditor of the bank would be able to recognize it in
its new form of existence.

•

The whole bank may have been sold to some petty insurance or other
incorporated company, and the property, as the assets of such company,
assigned to individals who claim and exercise a control over the portion of
it, which cannot be concealed from the public. And still it may be ,
2ossible
that the individuals, who claim the property as trustees or assignees, may
have been, not only the members and managrs of that company, but also the
officers and stockholders of the purchased bank--the agents of the sale-the authors of the assignmant, and the receivers of the goods. The property
after all its changes, is still in the same hands that, it was while in the


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bank; and the individuals who control it, are bankers, corporators, trustees
or assignees, as circumstances require, with the same private interests
to subserve in each of those capacities.
Again, after the capital of a bank is exhausted, its specie exported, its doors closed, and the redemption of its notes refused, the
directors authorize a surrender of the stock to the bank in payment of
debts, by which the stockholders discharge their own direct liabilities to
the institution, by a transfer of stock, which would not sell for one per
cent. in market.
The history of the past has proved that frequent and heavy losses
have occurred from bank failures. This loss mist fall upon one of two
classes of men--upon the bankers, or the billholders; and it would appear
to be the duty of the legislature to decide upon which of these classes it
should rest. To determine this question, would lead to an examination of
the relations which the stockholders and the community bear to each other.
If those relationa are reciprocal, then the losses diould be borne equally
by both; but if the management devolve, exclusively, on one party, and the
profits also inure to the same, it is clearly right to fix the responsibility
upon that party having both the control and the profits.

•

In the organization and management of the banks, the control over
their discounts, and the decision as to what persons or classes of persons
shall be accommodated, the people have no more direction than in the
affairs of private individuals. On the contrary, the transactions of
banks are kept with greater secrecy than the ordinary business of private
persons. The names of individuals indebted to the banks are scrupulously
concealed from the public, and the commissioners, authorized to examine
their condition, are prohibited by law, except in certain cases, from making
a disclosure of the names of debtors.
The principal objection urged against the propriety of making
the stockholder liable, in his individual capacity, for the debts contracted under his corporate name, rests upon the ground, that the corporation is a distinct and separate body, acting under a charter granted for
specific purposes; and, as such, the stockholder of a bank incurs sufficient
risk from the danger of losing that part of his property invested as
bank capital.

•

Notwithstanding, the bank may be regarded as having a distinct
and separate legal existence, yet the charter was granted for the benefit
of the stockholders, consequently, the accruing profits, instead of being
kept as a fund to discharge the debts of the corporation, or to meet its
losses, are, semiannually, divided among the stockholders, and, thereafter,
become private property beyond the reach of an execution against the bank.
And here is the distinction between a natural person and a corporation.
The natural person retains his accumulated profits, and they become a part
of his property, and are liable, at all times, for the pyryment of his
debts; but the corporate body, instead of retaining these profits to pay
its debts, or meet any losses that may occur, divides them among the stockholders. Individual liability, instead of dividing the profits among the
stockholders, and the losses among the people, proposes to divide the losses,


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Federal Reserve Bank of St. Louis

8

41/

as well as the profits, among the persons composing the body corporate.
Our last report furnished one case, in particular, which will
illustrate the views above expressed. The Lancaster Ohio Bank, now closed,
by mandamus, as an insolvent institution, declared dividends from 1817 to
1839, averaging thirteen per cent. If the balance of these profits, after
paying the stockholders six, or even ten per cent., had been retained by
the bank as its corporate property, the necessity of suspension and failure
would have been avoided, and the institution at this time, would have been
able to redeem its notes in gold or silver.
The issue of notes at points distant from the place of payment,
by a part of the banks. In some instances this is
continued
still
is
effected through the agency of the banks, themselves, by a mutual exchange,
for the purpose of paying out each others notes at their respective
counters. In many cases the money is paid out through the agency of
individuals, who receive it in sealed packages, and render an account to
the bank of the time the packages are broken for the purpose of paying
them out. When the bank is informed that a package is broken, the amount
is charged to circulation. Large sums are thus placed in the hands of
individuals, and in banks, to be paid out in the purchase of eastern bills,
and for other purposes. In one instance a single banking institution had
$140,000 sent abroad, which were not set down as notes in circulation.

•

In this system of exchanges, whether through the agency of banks
or individuals, the bank cannot know the exact amount of its circulation.
The agent becomes the issuer, and between the time of issue by him, and the
receipt of intelligence SF from him, the bank is unable to ascertain the
exact amount of outstanding notes. If the agent withhold the information,
the paper may be long in circulation without the knowledge of the bank.
The propriety of prohibiting the exchange of notes for circulation; of
prohibiting the employment of agents to pay them out at places remote from
the bank; of requiring banks to adopt a well regulated system of settling
balances, and of paying out, at their counters, mile but their own paper,
is suggested for the consideration of the General Assembly.


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

Cri:do

411

May 1, 1953

Aiss Elizabeth C. Biggert
Manuscript Librarian
The Ohio State Archaeological
and Historical Society
Ohio State Museum
Columbus 10, Ohio
Dear Miss Biggert:
Thank you for your letter of April 29.
describe may well be of importance to our study.

The material you

We would like to obtain additional information regarding this
material so as to be able to decide when someone should be sent to
Columbus and approximately how long it would take. Could you arrange
to have the material spot-checked by one of your staff or perhaps by a
part-time worker? The information we desire should not take more than
several hours or, at most, a day to secure and we would, of course, be
willing to pay whomever you hire at the regular hourly rate.
Specifically, we would like to know: (1) approximately how
are included in the packages of correspondence (no more
letters
many
estimate) (2) whether the letters are to p or from,
rough
very
a
than
(3) what kind of letters are involved i.e., do
Control
of
the Board
routine letters or do they cover a range of
brief
be
they seem to
of material is included in the packages desigkind
what
subjects (4)
"Bank deposits and receipts of banks in Ohio.
as
letter
your
in
nated
can be answered after examining one or
questions
these
I assume that
would not be necessary to go through
that
it
and
packages,
the
two of
them.
of
all
So far as items (3) and (4) are concerned, I think in addition
to an opinion it would be helpful if several photostatic copies were
made. I imagine that it would be sufficient to photostat two or three
of the more typical letters and one or two of the sheets included in the
second group of packages. It would not be necessary to make positive
copies; negatives are sufficient. The bill for photostating, along
with the bill for necessary labor, should be sent to Edison H. Cramer,
Chief, Division of Research and Statistics.
Let me express again our appreciation for your thoughtfulness
in informing us of the existence of this material. Also, I am very
grateful for the kind assistance you gave me while I was at your library.


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Very truly yours,

Carter H. Golembe
Financial Economist
Division of Research and Statistics


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Federal Reserve Bank of St. Louis

THE OHIO STATE ARCHAEOLOGICAL AND HISTORICAL SOCIETY
Ohio State Museum
Columbus 11

April 29, 1953

Mr. Carter Golembs
!admiral Deposit Insurance Corp.
National Press Bldg.
Washington 25, D. C.
Dear Mr. Golembe,
Since your visit here, I have found a number
of packages of material of the Board of Control of Ohio banks.
It was moved and stored in with a large group of Ohio canal
papers.
Following is a list of what I have found:
Correspondence of the Ohio Board of Control,
1846-49,
1850-53,
1852,
1853,
1855,
1856,
1858,
1862,

1
1
1
1
1
1
1
1

package
package
package
package
package
package
package
package

Bank deposits and receipts of banks of Ohio,
Board of Control.
1838-39, 1 package
1844-54, 1 package
1847-51, 1 package
1854-58, 1 padkage
1859-63, 1 package

I made a fairly thorough search, but there may
be additional material which fills in the gaps in the years given
above.

If you decide to come back to look at this material, please

let me know, so that I can be on hand to show you where it I.
Sincerely yours,
(Miss) Elizabeth C. Bier'
Manuscript Librarian

CO:ls

Stet

April 20, 1953

MEMORANDUM
TO:
Dr. Cramer
FROM:

Mr. Golembe

SUBJECT:

Trip to Columbus, Ohio, April 12-17

The trip to Columbus, Ohio, was for the purpose of securing
information re1atin4 to the operation of the State Bank of Ohio
between 1845 and 1865. This information is available only from
actual records of the State Bank, many of which were deposited in
1936 at the library of the State Archaeological and Historical
Society or at the State capitol building.
Not all of the records deposited with the library of the
State Society are still available. Some are presumed to have been
lost in a fire in 1951 and, because it was necessary to move the
records a number of times since 1936, some others could not be found,
either :41 me or by the library staff. Hovever, a group of important
records was located, including:


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(1) Two bound volumes containing written copies of letters
from officials of the Board of Control of the State
Bank to the Branch Banks, 1848-55 (approximately 1,100
pages).
(2) Eight volumes of letter-press copies of similar correspondence, 1856-65 (approximately )4,000 pages).
(3) Two volumes of monthly reports of condition of the
Branch Banks, 1846-48 (approximately 75 pages).

(4) Reports of examination of the Branch Banks, 1860-65
(not complete for all dates or all Branch Banks).
(5) Miscellaneous papers of the State Treasurer which
included some papers of the Board of Control, various
dates.

(6) Miscellaneous records of the Board of Control relating
to, e.g., cash accounts with Branch Banks, mutilated
notes, stock retirement, cancelled notes.

-2-

Material described in items (1), (2), and (3) viii be of
great assistance in the preparation of our study. I arranged to
have the volumes described in items (1) and (3) microfilmed and
sent to us. The total cost of the microfilming is estimated to be
approximately 00, and, in my opinion, represents a saving to the
Corporation over what it would cost for me to remain at the library
for from three to five additional days.
The eight volumes described in item (2) are being loaned
to our library for a period of one month, the time to be extended
if necessary. As you knov, manuscript volumes are rarely permitted
to leave a library and this action by the library of the Society
vill result in a considerable saving to us, both in time and expense.
Consequently, I suggest that a letter to Miss Martin, head librarian,
or Mt. Zepp, director of the State Society, thanking them for their
kindness in this matter, might be appropriate.
Records described under items (4), (5), and (6) were
examined by me at the library and the necessary information taken
from them. For the most part, they contained little which can be
assistance to us.
Of the records known to have been at the library of the
State Society in 1936, only two which would appear to be of interest
were not located: the letterbook volume covering the first three
years of operation of the State Bank, 1845-48, and, second, the
monthly reports of condition of the Branch Banks, 1849-65. It is
opinion of Miss Biggert, librarian in charge of manuscripts, that
these records may be included in the mass of severely burned and
Charred records which were salvaged from the 1951 fire. These
records, which are not now usable, will eventually be restored and
Miss Biggert has agreed to notify um if the State Bank volumes
described Above are located.
Despite a thorough search by myself and Mr. Rutherford of
our Columbus office, records stored in the State capitol building
could not be located. Our information was that the records were
placed in storage room number 2 in 1936. Unfortunately, in the subsequent reconstruction of the basement of the State capitol building
soon arterward, all trace of the records, and even of storage room
number 2, disappeared. Present storage rooms of the State Treasurer,
State Auditor and the Governor, were searched by us bUtno records
could be found. Mr. Creviston, assistant State Treasurer, Mr.
Bartholomew of the State Auditor's office, and Mts. Hammel of the
Governor's office, were exceedingly helpful and assisted in the
research but neither they nor several other people in these offices
knew of the existence or present location of the records.
Mr. Rutherford and I also visited other State offices and,
further, interviewed several building custodians and contacted the
building superintendent, but without success. I also visited Mr.


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Federal Reserve Bank of St. Louis

MOM


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Federal Reserve Bank of St. Louis

-3-

Defenbacher, Commissioner of Finance, and Mt. Brehm, head of the
library at the State Office Building, Mr. Hazard, Superintendent
of Banks, and Mr. Hampton, vice-president of the Huntington National
Bank, but could secure no information as to the records.
Apparently these records were either lost during the
period when the capitol basement was being reconstructed, and will
come to light only by chance in some future shift of records, or, as
Mr. Hazard suggested, were destroyed in a fire a number of years back
which consumed some records which his department had accumulated.
However, it is important to note that the bulk of the records important
to us had originally been moved to the library of the State Society
and, as described earlier, most of these have been located.
While at Columbus, I had the opportunity of meeting with:
Mt. B. G. Huntington, Chairman of the Board of the Huntington National
B,tnk; Mr. Belford P. Atkinson, executive manager of the Ohio Bankers
Association; Mr. Thurman R. Hazard, Superintendent of Banks; and Mr.
L. A. Stoner, president of the Ohio National Bank. All of these
gentlemen shoved marked interest in the study we are making and were
particularly helpful in suggesting sources of information on the State
Bank. Unfortunately, because of a conflict in dates, I was not able
to meet with Mt. Tracy, State Treasurer, or Mr. O'Neil, Attorney
General, but, as noted, I did visit their offices in the course of
searching for records at the capitol and received very friendly
assistance.
During my entire stay at Columbus, Supervising examiner
Mounts rendered all possible assistance to aid in the work. The very
friendly cooperation extended to as by Mr. Mounts and his staff was
particularly heartwarming and made the task of locating information
easier and more pleasant.

MEMORANDUM
Dr. Golembe
TO:
FROM:

Helen Thompson

SUBJECT:

Behavior of circulation and individual deposits in relation
to changes in reserve requirements, Ohio, 1853-1857

Actual orders pertaining to reserve requirements issued by
supervisory authorities appear to be somewhat vague. However, a few
evidences of resolutions passed in this regard may be found in extracts
from the correspondence of the Board of Control, State Bank of Ohio.
On August 23, 1852 a communication indicates that a resolution
of the Executive Committee was put forth as follows:
"Resolved: That the President...ascertain whether it is
deemed best in view of the cheapness an abundance of money to
enforce the orders of the Board at last session directing a
withdrawal of circulation and an increase of specie basis."
During the five months following the above resolution circulation
continued to increase and did not contract until February 1853, or six
months after the resolution was brought out. In the case of individual
deposits there was a contraction immediately following issuance of the
resolution but as of October and subsequently, the tendency was toward
an expansion.
On January 23, 1854 it was noted that several branches were
deficient in the amount of the required specie reserve and it was further
pointed out that 20 percent in specie in vault was the requirement at the time.
Following this reminder to branches there was a contraction in circulation
for the next seven months and an even sharper contraction in the amount
of deposits.
On Novetber 21, 1857 a communication to a member of the Board
of Control pointed out that a resolution was adopted which ordered that
coin be brought up to "20 percent on circulation in 60 days and thereafter
1/2 percent per month until the amount is to 30 percent."
The reaction of circulation (which had been declining since
October) vas further contraction for the next three months and thereafter
a trend toward expansion. The reaction of deposits (which were declining
since the middle of 1857) was continued contraction until the end of the
year, and thereafter irregular fluctuations.


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December 14, 1954

MEMORANDUM
TO:
Dr. Golembe
FROM:

Helen Thompson

SUBJECT:

Supplement to memorandum dated December 13-.:Behavior of
circulation and individual deposits in relation to changes
in reserve requirements, Ohio, 1853-1857

Despite the August 1852 recommendation to increase the
specie base and contract circulation, circulation shoved a continued
expansion (as was also the general trend of individual deposits) for
the next five months while specie continued in its decline for the
next two months. Beginning November 1852 and through January 1853
specie Aid increase but in February 1853 again proceeded to decline
rather markedly to the middle of 1853. It was not until February
that circulation began to decline, and then at a rate considerably
lower than that of specie.
After the January 1854 reminder of the 20 percent specie
requirement there was an immediate contraction in circulation and
deposits but also a general decline in specie held.
The November 1857 order requiring an increase in the specie
held was followed by an increase in the specie for five months, a
contraction in circulation for the next three months and a small
contraction in deposits for one month.


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LIST OF ITEMS REGARDING THE BOARD OF CONTROL OF THE STATE BANK OF OHIO
INDEXED AT THE OHIO STATE MUSEUM AMONG MATERIALS FROM THE TREASURER'S OFFICE
(Materials are located at the Museum, except those marked "Capitol,'

0

President's accounts with branch banks
Report of Branch banks--1844-66
Statistics of Bank and Branches--monthly, 1846-64
Stock certificates--record with Treasurer of State for security of circulation 1856-69
Register of drafts and certificates--1848-59
Correspondence--1840-77 (partly at Capitol)
Receipts of deposit --reports of daily deposits, 1838-39, 1844-63
Cash journals, cash account ledgers, and expense ledgers, 1842-59
Safety fund ledger--1855-62
Letters--1846-76
President's correspondence to bank--letter book
Miscellaneous papers--1844-67
Miscellaneous reports-1848-54, 1860-68, 1850-55 (partly at Capitol)
Cancelled checks and bank notes--1837-60, 1851-63 (partly at Capitol)
Protested notes--1850-54 (Capitol)
Ledger of unidentified and mutilitated notes
Order book--ordering notes, 1856-62
Receipt book
Report of receivers (especially Commercial Bank of Toledo)--1855-69
Stockholders' register-1855-56 and 1862
Resolutions and minutes of meetings-1850,1857,1861-66 (Capitol)
Vouchers, records, and oaths of election-1852-61t- (Capitol)
Invoices, receipts, vouchers--1849-67 (Capitol)
Warrants and vouchers-1558,1864
Weekly statements--1846-51--Canal Bank

•

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Federal Reserve Bank of St. Louis

FEDERAL DEPOSIT INSURANCE CORPORATION
WASH I NGTON

May

3,

MEMORANDUM

•

TO:

Clark Warburton

FROM:

Carol Colver

SUBJECT:

Guaranty of bank obligations in Ohio

The State Bank of Ohio played a major part in the banking
system of Ohio during the two decades preceding the Civil War, but
it did not immediately supplant the old banks in existence when it
was authorized or prevent the growth of a system of independent and
free banks authorized during the same period. Private bankers and
brokers also performed a considerable proportion of the banking
business in Ohio during the period, although the actual extent of
this business is unknown. Judging from the statistics available
and from the comments of writers of the period, the State Bank of
Ohio appears to have been safer than the other classes of banks in
operation during its existence, and just about as profitable.
I.

HISTORICAL BACKGROUND

The act providing for the State Bank of Ohio and the
independent banks marked the close of a period of haphazard and
contradictory legislation and bank supervision which had not provided
a safe and adequate banking system. Of the thirty or forty banks
chartered by special acts of the legislature between 1811 and 1834)
eight were in active business in 1845, and the legislature was face,,
with a choice between renewing the charters of these banks and a few
others which had started liquidation or of setting up an entirely
new banking system. Up to this time, the efforts of one legislature
to regulate by law capital, specie reserves against circulation, and
banking practices in general had been nullified by acts of the following legislatures repealing this restrictive legislation. Many of
old banks failed after the panic of 1837 when they could not redeer
their notes which were secured only by loans and discounts depreciated
in value in the depression years. Others suffered because of the
failure of the State government to repay the money It had borrowed
from them, and still others were organized for purely speculative
purposes and fraudulently issued large quantities of circulation without
any security whatever.


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PP-

Memorandum to Clark Warburton

-2-

May 3, 1940

A law providing for the incorporation of banks and for a
safety fund for the redemption of their circulating notes was passed
in 1842, but there is no record of any banks organized under this act
and it was repealed February 24, 1845, the day the act providing for
the incorporation of the State Bank of Ohio and other banking companies
was passed. The Board of Bank Commissioners, established in 1839,
continued until the law of 1845 went into effect. In their annual
report of the condition of banks under their supervision for 1842, the
commissioners made many recommendations which were embodied in the law
of 1845, particularly with respect to fixing the maximum capital stock
to be paid in before the banks could commence business, reqairing
individual liability of stockholders, regulating loans and discounts,
and requiring security against circulating notes.
II. TIT LAW OF 1845

•

The act of 1845 creating the State Bank of Ohio and providing
for the incorporation of independent banking companies continued in
force without important amendments until the National Banking act of
1863 supplanted it. The free banking law of 1851 did not modify the
provisions of the earlier act affecting the banks chartered under its
authority.
Organization of banks. The banking act of 1845 created two
banking systems which were to operate side by side, the ,State Bank of
Ohio and the independent banks. The State was divided into twelve
districts, the maximum number of banking companies for each district
was fixed, and the Board of Commissioners, composed of five persons
named in the act, was given sole power to a_prove the organization of
banking companies either as independent banks or branches of the State
Bank. In 1846, the Boird of Control of the State Bank c;as given the
power to issue certificates to newly organized branches, except that
its refusal to issue a certificate to commence business might be overruled by the Boar' of Commissioners. With the exception of provisions
relating to the safety fund and the Board of Control created to supervise
the operations of the branches, the restrictions and regulations imposed
on the branches of the State Bank and the independent banking companies
were practically identical. A minimum capital of $100,000 was required
for the organization of a branch of the State bank, while independent
banks could organize with a capital of $50,000.
The branches of the State Bank were really individual commercial
banking units, not brunch offices of a single bank, as we use the term
"branch" today. Each branch had its own board of directors and capital
stock and received deposits and made loans independently of the other
branches. The Board of Control, which consisted of one member appointed
by the board of directors of each branch, was a superviaory body and


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Federal Reserve Bank of St. Louis

Memorandum to Clark Warburton

-3-

also administered the safety fund. Banking companies whicn elected to
become branches of the State Bank were required to deposit ten percent,
in cash or in certain stocks, of their authorized circulation with
the Board of Control as a safety fund.
New branches or independent banks could be organized by arv
group of individuals "not fewer in number in any case than five", sub,ea,
II
III
I I!
II I
III
I
to the restrictions and conditions
of the act,
or existing
banks could
avail themselves of the opportunity to continue their business after
the expiration of their charters by meeting the requirements of the
act. The aggregate amount of capital of newly organized companies of
either type which could be authorized under the act was $6,150,000,
but this did not include the capital of existing banks which might be
authorized to continue operations. A number of old banks which had
begun to liquidate following the expiration of their charters in the
early 1840's availed themselves of this opportunity to become branches
of the State Bank or independent banking companies, but eight old banks
cIItinued under their old charters.

•

Seventeen branches of the State bank and ten independent banks
were organized during 1846 with deposits and circulation of $3.6 million
in the branches and $1.5 million in the independent banks. Deposits
and circulation in the old banks for that year aggregated $4 million.
By 1850, 41 branches had been organized, but there were still only
twelve independent bunks. After the passa,;e of the free banking law in
1851 permitting banks to organize with capital of $25,000 to $50,000
and to issue circul-ttion based upon public stocks of Ohio or the United
States deposited with the Auditor, a number of free banks were organized.
For about six years, until the last old bank failed in the panic of
1857, there were four banking systems in operation in Ohio. Four savings
banks, modelled on the New England mutual savings banks, were also
organized during this period but there is no data regarding the volume
of business done by them since they were not under state supervision.
Deposits guaranteed. Under the provisions of the 1.Jw of
1846 regarding the safety fund of the State Bank, only the circulating
notes of the branches were guaranteed. There was no provision for the
mutual guarantee by the branches of deposits or other bank obligations.
Until 1863, however, circulating notes formed more than two-thirds of
the deposit obligations of the branches.

•

Assessments. Each branch was required to make an initial
contribution to the safety fund of ten per cent of its authorized
circulation and if it increased its paid-in capital, and therefore its
circulation, it wao required to make an additional contribution of
ten per cent of the increase. There were no annual assessments. If
necessary a special assessment, based on the authorized circulation of
each branch, could be liteviel on the branches to make up the sum requi
to redeem the notes of the failing branch. The branches were to be


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-Iemorandum to Clark Warburton

•

-4-

remunerated for such contributions as soon as the failed branch could
be liquidated, and if sufficient money remained, the safety fund was
to be reimbursed.
Administration of the fnnri and method of liquidation. al,.
Board of Control was responsible for the custody and operation of t_
safety fund. The contributions were paid to the Board at the time it
issued circulation to the branches. The fund was to be invested in
stocks of the State or of the United States, or in bonds secured by
mortgages, subject to certain restrictions. Income from the fund was
to be paid to the branches according to the proportion of their contributions invested.
A branch was to be declared insolvent if at any time it
failed to redeem its notes in gold and silver, and the Board of Control
was to appoint a receiver immediately upon verification by an examining
committee of the suspension by the branch of payment of its notes. Aft r
1848 the Board was also empowered to close the branch and appoint a
receiver if any of its orders was not complied with and the court granted
it an injunction. If the money derived from the sale of stocks deposited
by the failed branch with the safety fund was not sufficient to redeem
its notes, the special assessment was then to be levied on Lhe solvent
branches. Returns thereafter received from the liquidations of the
assets of the failed branch were to be applied first to reimburse all
moneys advanced by the branches for the redemption of the notes and
bills of the insolvent branches; second, to reimburse the safety fund;
third, to discharge the remaining liabilities of the branch; and fourth,
to be divided among the stockholders proportionally.
The salaries of the members Of the Board of Control . dere to
be paid by the respective branches. No specific provision was made for
other expenses of administering the fund.
Supervisory powers of the Board of Control. In addition to
the powers to issue certificates to brunches commencing business and to
appoint receivers, the Board of Control had supervisory powers over bank
operations designed to safeguard the branches from losses resulting from
unsafe and speculative practices. The Board had the power to examine the
branches whenever and as often as the members deemed proper, and specifically
when it had received information that a branch had committed an act of
insolvency. It could require any branch to reduce its circulation or other
liabilities within the limits necessary to secure from loss either the
dealers with such branch or other branches. It might give orders to do or
cease to do anything which it might deem necessary for the security of
such branch or any other branch or branches. This last provision permitted
broad discretionary powers over all operations of the branches. According
to information available from all sources, the Board exercised these
powers conscientiously, on one occasion keeping two branches under close


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Federal Reserve Bank of St. Louis

•

-5--

May 3,

of years, and ultimately

5 of the

41 branches.
Statutory limitations. The principal statutory limitations
on the operation of the branches of the State Bunk, under the 1846
law, are summarized below.
Responsibility of officers, directors and stockholders:
Losses resulting from violations
In personal and individual
of the act or provisions of the
capacity for all damages
charter knowingly permitted
sustained by the company,
shareholders or any other
persons, body politic or
corporate
Limitations on loans and investments:
Loans to directors

Loans to stockholders

•

Maximum to single borrowers
If reserve is impaired

Limitations on ownership of property:
Maximum value of banking house and
fixtures
Time limit on real estate acquired
by collection of debt
Ownership of other real estate
Ownership of corporate stock

Collectively one-fourth of
capital stock paid in and
owned 1/
Collectively one-third of
capital stock paid in and
remaining 1/ Period not to
exceed six months
One-tenth of authorized
circulation
No new loans if specie reserve
falls below 20 per cent of
circulation or below 30 per
cent for 12 days

Such as may be necessary to
convenient transaction of its
business
No longer than necessary to
avoid loss
Prohibited
Prohibited, except to prevent
loss on debt previously
contracted

Limitations on circulation, deposits, and borrowings:
Maximum circulation
May be
twice first $100,000 capital stock
it " 1 1/2 times second 100,000
tr
"
t1
Tt
Tr
1 1/4 times third
100,000
"
It
tt
" IT I
once fourth 100,000
II
It
II
?I
each
additiona
3/4
l 100,000
;IaX1MUM deposits
No provision
Maximum borrowings
No provision
In case of directors, one-third, and of stockhnliors. one-half of
capital stock 'aid in, including liabilities, as drawers or indorsers of
born fide foreign bills of exchange, drawn in this
State and payable out of
this State.


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Federal Reserve Bank of St. Louis

II/

Memorandum to Clark Warburton

-6-

Required reserves:
Total amount of required reserves

May 3, 1940

30 per cent of outstanding
notes of circulation
One-half in gold and silver
coin in its vault
Actual deposits with any
solvent bank or banker of
established credit in New
York, Boston, Philadelphia
or Baltimore, subject to be
drawn against at sight

Proportion of reserve required to
be actual cash
Character of balance

Limitations on paYment of dividents:
If losses exceed undivided profits
or net profits
If reserve is impaired

If capital is impaired

Required reports:
Assets and liabilities

III.

Prohibited
Not to be paid if reserve falls
below 20 per cent of circulation
or 30 per cent for 12 days
Not to be paid if losses equal
or exceed undivided profits

To be filed with Auditor four
times a year, twice after
semiannual payment of dividends

NUMBER AND DEPOSITS OF BANKS IN OHIO,

1846-64
Because of the lack of accurate information for some years and
the existence of conflicting information from several sources for other
years, only the crudest estimates of the number of banks of any type in
existence each year were possible, and no estimate can be made of the
number of private banks operating during the period. Table I was built
up from all available sources to give a rough idea of the trend in the
number of State-chartered banks over the entire period and the proporation
of all banks participating in the safety fund (i.e., the branches of the
State Bank of Ohio).
Sources of information. The primary sources of information as
to the number of branches and banks in active operation were the annual
or special reports of the Auditor of State relating to banking. Since
the Auditor nowhere published lists of suspended banks, such a list was
compiled from Knox' History of Banking. and sc,veral magazine articles
about banks in Ohio during the period, and banks on this list were
excluded from the number of operating banks after the year of their
suspension whether they appeared in the Auditor's reports for that year


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Federal Reserve Bank of St. Louis

S

Memorandum to Clark Warburton

-7-

May

1940

or not. In some cases it was apparent from an inspection of the
statement of condition given in the Auditor's report that the bank
was in liquidation. The secondary sources were also used to determine
the number of banks in operation for the period 1847-55 when the
Auditor's reports did not publish statements for all types of banks.
Number of participating banks. The proportion of branches
of the State Bank to all banks in the State increased rapidly from
less than 50 per cent in 1846 to 71 per cent in 1850. After the
passage of the free banking law in 1851, the percentage dropped to
about 58 per cent following the organization of a number of free
banks, but these were small banks and did not take a proportional
share of deposits away from the State Bank as Table 3 shows. During
the period 1854-57, when a number of bank failures occurred and many
banks discontinued active operations, the proportion of branches to
all banks in the State again increased although the total number of
branches had declined from 41 in 1851 to 36 in 1854.

•

Deposits of _partici_.pating and non-participating banks. For
purposes of comparison with the types of bank obligations insured
today, circulation was included in the computation of total deposit
obligations of Ohio banks. Table 2 gives the amount of deposits and
circulation held by each type of bank in Ohio for each year during
the period. The only deposit obligation guaranteed by the safety
fund was the circulation of the branches of the State Bank. Table 3
gives the percentage ratios of deposit obligations held by each type
of bank to the total held by all banks in Ohio, the ratio of insured
deposit obligations to the total deposit obligations of all banks
and of the branches of the State bank.
Until 1851, the proportion of total deposit obligations of
all banks held by branches of the State Bank was not as high as the
ratio of their number to the total number of banks. Despite the
organization of a number of free banks in that year, deposit obligations
of the State Bank thereafter represented a much larger proportion of
total deposit obligations thcn the number of branches to the total
number of banks, particularly after the bank failures of 1854-57.
Circulation represented the bulk of deposit obligations of the State
Bank from 1846 to 1862 when it was forced out of existence by Federal
taxation. During the period 1857 to 1861, circulation of the branches
represented more than half the total deposit obligations of all banks
in Ohio.
Concentration of bank deposits. Table 4 gives a distribution
of branches of the State bank according to amounts of deposits and
circulntion for the years 1855 and 1862. A distribution of branches


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Federal Reserve Bank of St. Louis

•

Memorandum to Clark Warburton

-8-

May 3, 1940

on the basis of circulation, the only figure available for 1850 and
1852, reveals substantially the same grouping. There was little
concentration of risk with respect to guaranteed obligations during
the period, as Table 4 shows. In 1855, nearly all of the branches
had circulation between $100,000 and $250,0001 and most of these
branches had circulation very close to the group average of $193,000.
A higher degree of concentration was shown in other deposit obligations,
but this did not affect the distribution based on total deposits and
circulation much, since circulation amounted to approximately twothirds of total deposit obligations.
IV.

OPERATING RESULTS OF THE SAFETY FUND LAW

There is little in the records of the operations of the State
Bank of Ohio to indicate that the system was not completely successful
and a fairly adequate answer to the banking needs of the State during
the twenty years of its existence. The incidence of bank failures
appears to have fallen most heavily on banks not participating in the
safety fund, and the losses from the comparatively few branch failures
do not appear to have been very great. Furthermore, while many banks
in Ohio voluntarily liquidated or became private banks, presumably
because their operations under State charters were not profitable,
the branches with one exception continued to operate profitably
throughout the period.
Bank failures. Between 1846 and 1865, at least seventeen
suspensions of State chartered banks occurred in Ohio, or about 21
percent of the total number of banks organized during the period. Of
these, only five, or 12 1/2 per cent of the total number, were branches
of the State Bank. One writer states that 6 branches failed, but
according to other sources, the sixth branch closed, the Franklin Branch
of Cincinnati, became Groesbeck & Co., a private bank. Apparently
the Toledo branch, which suspended in 1853, reopened in 1855 since it
is listed as an operating branch by several sources after that date and
is reported to have converted to a national bank in 1864. Figures
for total deposit obligations of the failed branches at date of suspension
are not available, but none of them had circulation of more than $270,000
according to their reports to the Auditor in 1852. No loss was sustained
by the holders of circulating notes of these branches and they were
redeemed at par by the other branches or the safety fund. There is no
information as to whether depositors of the failed branches suffered
any loss or whether the other branches had to pay special assessments
to the safety fund.
The failures of other types of state-chartered banks during
this period appear to have been more serious. Five of the eight old
banks continuing in existence after 1846 and six of the twelve independent

•

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Federal Reserve Bank of St. Louis

S

Memorandum to Clark Warburton

-9-

May 3, 194C

banks organized in 1846 failed between 1848 and 1857. The Ohio Life
Insurance and Trust Company of Cincinnati which failed in August, 1857,
had deposit obligations in 1856 of $2.1 million and its failure was
a grave blow to the Ohio banks, even jeopardizing the existence of
the State Bank, according to Knox. A large number of private banks
failed during this period also. The total amount of losses to depositors
and creditors in these failures cannot be determined, but one writer
states that the notes of two old banks, with deposits of nearly
$500,000 each, which failed in 1850, circulPted at a discount of 50
and 75 per cent. Charles Reemelin, who conducted special examinations
of independent and free banks under the Auditor of State during 1853
and 1854 estimates the loss from all suspensions in 1854 at $250,000.

•

The chief causes of failure both of branches and other types
of State-chartered banks in Ohio appear to have been speculative and
self-serving managements, illegal connections with private bankers and
brokers in Ohio or in the East, and the issuance of circulation on
the basis of deposits in Eastern banks instead of specie reserves.
These were the chief criticisms directed against the banking system
in Ohio by Charles Reemelin in his discussion of the condition of free
and independent banks, and he implied that the same weaknesses were
to be found in the branches of the State Bank although he did not have
the authority to examine them. It is known that until 1850, the
branches of the State Bank at Cuyahoga Falls and Toledo were under close
surveillance by the Board of Control because of illegal arrangements
with privcite bankers in New York, and the Toledo branch was later closed.
Table 5 shows the number and deposit obligations of each
type of State-chartered bank failing in Ohio during the period.
Other terminations prior to 1863. In addition to the
terminations listed above, eight banks disappeared from the records
during the period 1846-63. Two old banks became private banks upon
the expiration of their charters, in addition to the branch of the
State Bank already mentioned, and continued their banking operations
throughout the period. One old bank, two independent banks and two
free banks, stated by various authorities to have "closed" or
"discontinued business", and One free bank about which there is no
data, are assumed to have gone into voluntary liquidation rather than
to have suspended. One independent bank in liquidation in 1856 later
resumed active business and converted to a national bank in 1864.
Conversion to national banks. The Comptroller of the
Currency reports 38 national banks in Ohio in 1863, 84 in 1864 and 13(
in 1865. Nearly all of these were conversions of branches of the State

•

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Federal Reserve Bank of St. Louis

•

Memorandum to Clark Warburton

-10-

May 3, 1940

Bank, other State-chartered banks or private banks. The chief reason
for the conversion of the branches of the State Bank into national
banks was that their charters would expire automatically in 1866 and
they could no longer issue circulation under State charters only. Knox says
also that national banks enjoyed the reputation of being more secure because of supervision by the Federal government.
V.

FINANCIAL HISTORY OF THE SAFETY FUND
No data available

VI. ELEMENTS OF STRENGTH AND TEAKNESS IN THE OHIO GUARANTY PLAN
The State Bank of Ohio should not be considered a failure;
although it may have had elements of weakness which would have prevented
its continued successful operation on a large scale had its charter been
renewed in 1866. There is little reason to doubt that it would have
continued in existence if the rational banking system, which embodied
many of the principles which had made the State Bank successful, had
not replaced it. Its failure to survive after 1866 is not attributable
to any financial difficulties with the safety fund or to any serious
inadequacies in the operation of the branches during the period 1846-66.
One reason for the success of the safety fund was that the
obligations insured were well secured. Circulation outstanding was
limited by the amount of paid-in capital, and the greater the capital
the higher its ratio to circulation must be. The aggregate amount of
capital outstanding, as well as the capital of individual branches, was
also limited. The branches did not vary much in size and the risk of
loss by holders of circulating notes was distributed almost equally
among them.
The branches were also well distributed geographically, as
the map shows. The law apportioned the maximum number of branches
permitted in the twelve districts of the State among the counties. This
prevented serious threats to the system because of local economic
difficulties and the reduction of profits through excessive competition.
Although the law creating the State Bank did not contain many
restrictive provisions regarding specific banking practices, it did
grant broad supervisory powers to the Board of Control. Because of the
representative character of this Board and the relatively small number
of branches under its supervision, it appears to have been able to
exercise these powers effectively and to prevent the losses which might
have occurred through speculative practices or incompetent management.

•

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Federal Reserve Bank of St. Louis

•

Memorandum to Clark Warburton

-11-

May 3,

The State Bank withstood a major financial crisis in 1857 whel
the failure of the Ohio Life Insurance and Trust Company, which handle-1
the eastern deposits of many Ohio banks through its New York agency,
threatened its existence. It is not known what, if any, drastic measure,
were taken at that time to insure the safety of the branches, but it must
be noted that the weaker and less profitable branches had been eliminated
in earlier years and that close surveillance was exercised over the branches
with respect to their Eastern connections in the earlier period.

•

Although the State Bank was successful in its time, it would
have had to be remodelled if its charter had been renewed and if it
was to play a major part in protecting the deposit oblig-tions of the State.
The mutual guarantee of circulation applied to a portion of the deposit
obligations which was fixed with comparative rigidity and could not
expand 4ith new commercial demands unless an excessive amount of capital
was tied up. Other deposit obligations of the branches, which were not
guaranteed, increased very rapidly from 1857 to 1863, and after the
national banking law went into effect, total deposit obligations doubled
within three years indicating the need for additional banking facilities
in the State. Under the law of 1846, a progressively smaller proportion
of banks, deposit obligations could be guaranteed as they expanded in
size and the guar&nty system would have come to play only an insignificant
part in the banking business of the State.


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Federal Reserve Bank of St. Louis

0

-12-

LIST OF TABLES
(Tables not submitted with this
copy because of length)

1.

Number of banks in Ohio 1846-64

2.

Deposits and circulation guaranteed and not
zuaranteed in Ohio Banks,1846-64
P,I.centaLo,: (]': deposits of all banks in Ohio
held by the branches of the State Bank and
other classes of banks, and proportion of
deposits guaranteed, 1846-65

4. Number and deposits of branches of the State
Bank of Ohio, Nove:aber 1855 and 1862
5. Bank suspensions in Ohio, 1846-65
MAP
State chartered banks in existence in Ohio, 1846-63

•

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Federal Reserve Bank of St. Louis

March 21, 1J40
MEMORANDUM
TO:

Dr. Warburton

FROM:

Carol Colver

SUBJECT:

411

Statistical information available for the history of the
insurance of bank obligations in Ohio before the Civil Aar

In connection with the proposed history of insurance of bank
obligations in Ohio before the Civil War, you requested me to obtain
statements of assets and liabilities for the individual branches of
the State Bank of Ohio and for each of the other types of banks operating
in Ohio during the period 1645 to 1866. xititamk Totals of asset and
liability items for the branches of the State Bank and for other banks
in the State may be obtained for each year during this period from one
or more of the various sources I have examined so far. I have not, however
been able to find anywhere detailed statements of assets and liabilities
for individual banks for the years 1847 through 1852 and for individual
branches of the State bank for the years 1647 through 1854.
A combination of sources must be used to obtain detailed
combined balance sheets for the State bank and for all other banks for
each year during the period. The annual or special reports of the Auditor
of State in Ohio, or reports of special examinations required by the State,
give both combineo andAndividual bank statements for the years 1644 to
1846 and 1855 to 1566, but only partial statements for the intervening
years. Other sources which may be used to su41ement the State aocuments
arc homans, Bankers' Almanac, an article by Charies C. Huntington entitled
"A History of Banking and Currency in Ohio before the Civil War" in the
Ohio Arehaelogical and hIstorical Quarterly, and Knox' History of Bankilg
in the United States. The tabular summary attached indicates the extent
of the statistical information given in these sources and the years for
which it is available.

In order to determine the extent to which the figures given
in the other sources may be substituted for the years in which the State
documents are not complete, I have prepared tables comparing the number
of banks, capital stock, circulation, and total resources of branches of
the State bank and of all hther banks in Ohio as reported by the State
documents, Romans, and Huntington for each year during the period. I did
not include Huntington's figures after 1854 since the Auditorts figures
appear to be complete for the rest of the period. These tables are attached,
also a table comparing the number of banks, loans and discounts, specie
capital stock, circulation, and deposits for all banks intthe state as
reported by Knox and by the other three sources for the years 1544, 154J,
1854, 1555 and 1865


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Federal Reserve Bank of St. Louis

S

Administration of the State Bank Safety Fund
I have not been able to find any published statistics regarding
the administration of the Safety Fund maintained by the State Bank of
Ohio in the State Documents or in the books and articles on the subject.
An item called "Safety Fund" or "Permanent Reserved Fund" is included
in both sides of the balance sheet in the individual reports of banxs
to the Auditor each year, but this does not give apy idea of the total
amount collected by the Board of Control or of the amounts expended in
connection with the liquidation of failed branches. There are
references in some of the magazine articles to the fact that five of
the 41 branches of the State Bank failed but that their circulating
notes were received by all the branches at par with the notes of
solvent branches and were eventually redeemed without loss or inconvenience,
while noteholders and depositors in other State and private banks in
Ohio failed during the same period did suffer losses. There is no
information as to whether debts other than circilation of the failed
branches were paid off without loss.

•


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Federal Reserve Bank of St. Louis

4110
ear

Of,
JG TnE ASSLT6 Lir.) LIABILITIES OF THE STATE IH
•044-66 kVkILABLE FROM THE VARIOUS SOURCES

TOULAR
OF OHIO ,

t.te (.0c-Iments 1/
Informati24
:uqu of
given
-7-

1844 Annual Report Banks: Complete
statements
of Board of
Bank Comm'rs
1845 "Condition of Banlis and Branches:
-Certain banks"Comolete state
Banks and Branches:
1846 Special
Complete statements
Report of
Auditor
1847 Annual Re2ort Banks and Branches:
Capital stock
of Auditor
ti
ft
1648
1849

Information giv nby other sources V
Kru1iiisOry_of Bank.in
omans& Bankers' Almanac.ij
All banks combined:
Loans and discounts,
specie, capital
stock, circulation,
deposits

I

.
0
1o
article
,
Huatingt

••

••

••

••

Banks and branches:
Complete statements

••

11

11

IT

11

11

11

It

11

••

••

All banks combined
Same as for 1844

Banks and Branches:
Capital stock,
average ciuulation,
specie and real estate
1851 Annual Report Banks and_Branches:
Capital stock
of Auditor

1850 Special
Report of
Auditor

Banks: Taxable valuation aoans & discounts)
Special Rep't Branches:
Circulation
of Auditor
and branch:
Banks
Report
1953 knnual
and undivided
Capital
of Auditor
profits, taxable valuation, total liabilities excluding capital
and circulation
Complete
Banks:
examSpecial
Statements
rep'ts
ination

••

••

••

Banks and Branches:
Capital stock, circulation, specie

11

19F'i


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Federal Reserve Bank of St. Louis

.•

11

11

•

Year

41_ _

wary -- 2

Tabul-

1/
State documents
_
_
Information
Kind of
Aiven
report

Banks: Complete
1854 Special
statements
examination
reports

1855 Annual report Banks and branches:
Cpmplete statements
of Auditor
TV
Vt
1856
Vi
ii
1857
1858
1859

All banks combined:
Loans and discounts,
specie, capital
stock, circulation,
depesits

it

Banks and Branckes: Loans
and discounts, specie,
capital stock, circulation,
deposits
Banks and Branches:
Complete statements

••

Vt

It

IV

••

••

All banks corvbined:
Complete statements

••

Same as for 1854

11

••

11

11

Ti

II

11

II

II

11

II

1864

1865
1866

Banks and Branches:
Capital stock, circulation, specie

Huntington's article

Ii

It

1860
1861
1862
1865

Information .given by other sources 2/
Knox' nistory of Bankin Homans' Bankers' Almanac 1/

It

II

Vt

ii

••

••

bame as for 1654
••

11

Banks and Branches:
Capital stock, circulation, specie
All banks combined:
Complete statements

••

Banks and Branches:
Complete statements
Banks and branches:
Capital stock, circulatiun, specie
Vt
Vt

••

All information in state documents is given for individual banks or branches of state bank.
The term"bank"refers to old, independent and free banks operating in Ohio; "branch" refers to branches of the
State Bank of Ohio
L/ Special examination reports with complete asset and liability statements are bvailable for only 6 baaks.
A/ The information listed is given for all banks combined; homanspi also gives Capital for individual banks and
branches for each year.

1/


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Federal Reserve Bank of St. Louis


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

'
10

Exhibit of the state of the Franklin Bank of Cincinnati.
Domestic bills and notes discounted
Bills ofexchange
Due from banks
Incidental expenses
Permanent do
Personal property
Notes of other banks
Specie

997,113 59
514,621 52
115,250 13
4,484 90
4,000 00
2,124 05
139,743 00
181,825 23

Cash on on hand

993,900 00
150,931 00
45,686 23
64,992 92
13,016 32
458,591 02
1,14000
17,517 99
213,386 94

Capital stock paid in Bank notes in circulation
Discount and premium account
Due banks J. H. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
Contingent fund
Individual deposites

321,563 23
$1,959,162 42

$1,959,162 42

AUGUSTUS MOORE, Cashier.

CINCINNATI, June 14, 1834.

Exhibit of the state ofthe Franklin Bank, Cincinnati.
1
Bills and notes discounted
Bills of exchange do .
Due from banks
Incidental expenses
Permanent do
Personal property
Notes of other banks
Specie
Cash on hand

...1:37,725 00
188,802 97
--

997,203 64
526,185 50
103,472 32
'4,482 80
4,000 00
2,124 05


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Federal Reserve Bank of St. Louis

993,900 00
151,352 00
47,917 49
65,920 63
12,538 00
460,816 02
1,110 00
17,517 99
212,929 15

326,527 97
$1,964,001 28

CINCINNATI, June 21, 1834.

Capital stock paid in .
Bank notes in circulation
Discount and premiim account Due to banks
J. H. Groesbeck, pension agent
Treasurer of the United States Dividends unpaid
Contingent fund
Individual deposites

$1,964,001 28

AUGUSTUS MOORE, Cueliier.

Exhibit of the slate of the Franklin Hank of' Cincinnati08
BM.and notes discounted
Bills of exchange do .
Due from banks
incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

1,024,604 03
517,204 08
144,393 51
6,381 09
4 000 00
2,124 05

GO

181,049
220,327 67

401,376 67

Capital stock paid in
Rank notes in circulation
Discount and premium account
Due to banks
J. 11. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
Contingent fund
Individual deposites

993.900 00
162,755 00
52,520 73
90,990 22
11,449 33
543,307 65
1,08000
17,317 99
226,602 31

$2,100,283 43

C,100,283 43

CINCINNATI, July 5, 1834.
%((.3STUS 1110012E. Cashier

Exhibit of the state of the Franklin Bank,
Cincinnati.
Domestic bills and notes discounted
Bills of exchange
Due from banks
Permanent expenses
Personal property
Notes of other banks
Specie

i
: Capital stock
r Bank notes in circulation
I Discount and premium account
Doe to banks
J. II. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
382,335 08 Contingent fond
Individual depositea

1,037,932 63
513,494 43
132,238 88
4,000 00
2,124 05
155,365 00
226,990 08

!

$2,072,145 07

$2,072,145 07

CINCINNATI, July 12, 1834.

htal;"_
Neu. /111....
Omma•1111..., ••••••••
INOMMONNWr •


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Federal Reserve Bank of St. Louis

997,630 00
178,445 00
1,352 37
66,327 41
10,244 82
531,923 82
28,218 50
30,267 31
227,713 84

AucusTus

11100RE, CasAier

'

WNI,

F,.thibit of the slate of the Franklin Bank of Cincinnati.

Domestic bills and notes discounted Bills of exchange
Due from banks
Incidental charges
Permanent expense,
Personal property
Notes of other banks
,speco.

'
•

1,047,579 21
5.30,762 62
117,918 65
21 60
4,000 00
2,124 05

145,576 00
234,827 34
380,403 34

Capital stock
Bank notes in emulation Discount and premium account
Doe bunks
•
Dividends unpaid
J.11. Groesbeck, P. Agt•
Treasurer of the United States
Contingent fund
Individnal cleposites

00
174,528 00
3,076 47
67,148 37
23,138 00
9,140 17
545,548 82
30,267 31
232,312 33

997,640

-

$2.082,809 47

$2,082,809 17

A(JGUSTUS MOORE, Cashier.

CIWCIRNATI, Joky 19,1834.

Exhibit of the slate of the Franklin Bank of Cincinnati.
Domestic bills and notes discounted •
Bills of exchange
Hue from banks Incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

CtlicialaTh July26,1834.


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Federal Reserve Bank of St. Louis

•

•
'
•
183,514 00
230,332 05

Capital stock
Bank notes in circulation account
Discoititt and premium
Due to banks I)i v Mends unpaid
.1. Ii. Groesbeck, pension agent
: Treasurer of the United States
: Contingent fund
413,846 05 ., Individiial depostes
----.1
$2,110,255 34 II
1,056,305 44
547,928 19
84,068 75
1,982 86
4000 00
2,124 05

-

997,650 00
163,879 00
6,055 44
74,439 23
22,615 00
8,840 77
576,518 03
.30,267 31
229,972 56
$2,110,255 34

AUGUSTUS MOORE, ellshier.

Exhibit of the slate qf the Franklin Rank of Cincinnati.
DotiiestictIlls and noes discounted
Bills of efehange
Dee from banks
Incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

I

'

Awe,898 .54; 1
sf#7,172 Ill
11:1,862 46
4 _50H, 15
I ,000 00
2,121 05

140,767 00
198,7.57 81
339,5e4 81

i'apitsl stock
ihnk Imo s in einalitouai
Discount and premium account
hanks riN ten.I, unpaid
J. II. Groesbeck, pension agent
l'reasurer of the IJoited States
(inft
sits
'

•
.I
- I

$1,973,880 04 L

993,9J0 00
154,161 00
30,209 00
67,612 98
1,110 00
12,059 53
478,379 88
17,517 99
198,929 66
$1,973,880 04

1
CIN,INNATI, June 28, 1634.
AUGUSTUS MOOR F, Cashi•P'

Exhibit
Bills and. notes discounted
Bilk of exchange ,Ii counted
Due banks
Incidental charges
Permanent expenses
Personal property
Notes of other basks
9pecic

,v/ale of the Franklin Bank of Cincinnhti.
1,054,639 77
538,077 68
113,371 14 !
2,283 61 '1
1.000 00 !!
2,12k 05 '

158,179 00
238,141 77
;0)6,120 77

Capital stock pi(' iii
Bank notes in circulation
Discount and premium accolit,t
Dime Irons banks
J. It. Groesbeck, penUon agcnt
Dividends inipaul
Contingent finvd
Infilvidiialdeposites
Treasurer of the t!iiited Suites

•
•
•

997,650 00
174,780 00
8,217 62
65,977 86
8,499 12
20,933 00
30,267 31
262,370 15
541,115 96
'• $2,110,811,02

42,110,811 02'

CINCINNATI, August 2, 1834.
•4•1440:4.41,4•4....;.•
•'
• ;• ••
• ••••••,......


AUGUSTUS 41001114:, Cashier.
•

.• • • • .

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

••

Exhibit of the state qf the Franklin Bank of Cincinnati.
Bills and notes discounted
Bills of excliang,c discounted
Due from banks
Incidental charges
Permanent expenses
Personal property
Notes of the U. States and +liter banks
Specie

1,052,699 38
822.783 41
123,543 98
2,289 27
4,000 00
2,124 05
160,133 00
243,242 75
403,375 75

eapitalstock paid in
Bank notes in circulation "
Discount and premium account
Due to banks
J. IL Groesbeck, pension agent
Treasurer of the United States
•
Contingent fund
•
Dividends unpaid
Individual deposites

997,650 00
185,220 00
10,580 22
67,752 50
8,383 61
529,770 17
30,267 31
20,483 00
262,629 03

32,112,735 84

42.112,735 84

Cult I so: Ay'. .ingurt 9. 1834.
AUGUSTUS /100111E, Cashier.
Ca'

Exhibit of the slate qf the Franklin Bank of Cincinnati.
Bills and notes dhicomited
Bills of exchange discounted
Due from banks
Incidental charges
Permanent expenses
Personal property
Bills of oilier banks
Speck
Casts

136,519 00
256,306 .12

..
1,061,102 04 1 Capital stock paid in
•
519,110 40 ,I Bank notes in circulation
119,250 91 ' Discount and pre ' in account
2,288 02 ' Due to hanks
4,003 00 *; .1. It. Groesbeck, pension agent
2,121 05 1 Treasurer of the United States
I Contingent fund
Dividends tinpsalcl
•
j Individual deposites
392,825 32 'I
I
52,100,700 74 I

997,600 00
179,459 00
12.253 95
83,448 02
8,343 61
.525,301 04
30,207 31
5,3 IS 30
256,716 31
52,100,700 74

r-1
flJ

CINCINNATI,:brig 16, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

AUGUSTUS MOORE, Cashier.

Exhibit q.lAc stabs

f!/

the Franklin Bonk of Cincinnati.
--

Bills and notes discounted
Bills of excalinge do
Due from banks
Incidental charges
Permanent do
Personal propert)
Notes of other bank.
Specie

f
i
i
11,
"
I
:

Capital stock paid in •
Bank notes in circulation
Discount and premium account
Due from banks
J. H. Groesbeck, pension agent
Treasurer of the tinted States
Contingent fund
11 Dividends unpaid
412,680 42 Individual deposites

1,076,131 37
519,951 16
112,876 53
2,3
29 90
4,000 00
2,124 03
148,709 00
263,971 42

997 ,C)30
186,054 (Y)
14,340 57
93,466 75
7,89373
541.301 04
30,267 31
:;,870•
25.3,231 03

•
•
•

I

$2,130,077 45

$1,130,077 45

AUGUSTUS MOORE, Coshire

Exhibit of the stale of the Franklin Rank of Cincinnati.
••••

Domestic bills and notes discounted
Bills of exchange discounted
Due from banks
Incidental charges
Permanent espens:-•
Petaional property
Notes of the United States Bank
.
other banks
Specie

1,083,895 57 1
520,636 35
515,260 30
2,297 63
4,000 00 1
2,124 05
'

72,585 00
38,875 00
293,389 95

•1

Capital stock paid in
•
Bank notes in circulation
Discount and premium account
Due banks •
J. 11. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
Contingent fund
Individnal de osites

995,650 00
178,148 00
16,873 33
527,359 58
32,040 43
430,737 3.1!
279900
30,267 SI
317,188 90

404,1349 95 i!

Cash on hand •

$2,331 ,063 87

I

$2,531,063 87

AUGUSTUS MOORE, CaMier.

Olt*
,
. •
,
•••••••. •.•
.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

I ••
••-•
I

0•11110
••••
PO •

•••
•
S•

111111.19

Exhibit of the state of the Franklin Bank of Cincinnati.
•

Bills and notes discounted
Bills of exchange
Incidental charges
Permanent expensed
Personal property
Due banks
Notes of other banks
Specie

1,103,598 04
529,864 49
2,29333
4,0•
2,124 05
112,901 31

•
•
107,927 00
287,578 62

395,505 62
----, $2,150,087 06

Cask on hand -

Caphil stock paid in Bank note. in circulation
Discount and premium account
Due banks Interest account
J. U. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
Contingent fund
Individual depositcs

997,650 00
200,739 00
19,245 20
153,164 81
275 61
29,102 86
394,631 21
2,099 00
30,267 31
322,892 06
$2,150,087 06

AUGUSTUS blOGRE., Ot.hier.

Exhibit qf the state of the Franklin Bank of Cincinnati.
Bills and notes discounted
Incidental expenses
Permanent
do
Personal property
Due from bunks
Notes of other banks
Specie
Cash
Bills or exchange discounted

I
-

1,109,432 17
2,39540
4,000 00
2,124 05
109.966 44

114,939 00
293,610 58
408,579 58
544,537 22

Capital stock paid in •
Bank notes in circulation
Discount and premium account
J. H. Groesbeck, pension agent
Treasurer of the United States
Dividends unpaid
Contingent fund
Due banks Individual deposites

997,650 00
206,552 00
22,053 94
24,001 27
591,454 87
1,889 00
30,267 31
184,723 14
322,461 f.r.
$2,181,034 86

$2,181,034 86
-------------

CINCINNATT, September 13, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cr,
dds

AUGUSTUS M0011E, Cashier.

r-s
ott

Exhibit of Me state ofthe Franklin Bank of Cincinnati.

Dome,tic bills and notes discounted
Bills of exchange
Incidental charges
Permanent expenses
Perbonal propert3
Due from bank,
Notes of otlicr banks
Specie

•
•
•
105,676 00
298,200 72

1,097,430 69 Capital Mock •
$35,125 25 Bank notes in circulation
2,595 43 ! Discount and premium account 4,000 00 John II. Groesbeck, pension agent
2,121 OS Treasurer of the United States .
152.293 04 !, Dividends unpaid
Contingent fund
Due banks
403,876 72 Individual depositcs
$2,217,243 18

997,650 00
212,200 00
24,578 42
17,690 41
389,954 87
1,784 00
30,267 31
231,113 47
312,004 70
, $2,217,245 18

_
Sip/ember :":0, 1834.

A UG UST US MOORE, Cashier.

Exhibit of the state of the Franklin Bank of Cincinnati.
Domestic bills and notes discounted
Bills ofexchange
Due from banks
Incidental charges
Permanent expense Personal property
Notes of other bank,
•
Specie


06... • .
https://fraser.stlouisfed.org
411•&•
Federal Reserve Bank of St. Louis

1,100,760 87
551,914 51
128,398 61
2,420 23
4,000 00
2,124 OS
150,661 00
229,133 33
579,794 33

Capital stock
Bank notes in circulation
.
Discount and premium account Due hanks Dividends unpaid
John It. Groesbeck, pension agent
Treasurer of the United States Individual deposites
.
Contingent fund

999,100 00
209,741 00
27,17957
209,955 90
1,284 00
15,205 SO
428,107 15
248,57457
30,207 31

$2,169,412 60

AUGUSTUS MOOR}, Cashier.

(Is

Exhibit of the slate Id the Franklin Bank of Cincinnati.
Bills and notes discounted
Bills of exchange
Due from banks
Incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

1,107,255 98
550,385 95
106,581 50
4,179 73
4,000 00
2,124 05
178,369 00
234 412 6.1
412,781 6.;

Capital stock •
Bank notes in ciroulation
Discount and premium account
Due f‘oin banks
Dividends unpaid
J. II. Groesbeck, pension agent
Treasiirer of the United States
Individual depositcs
Contingent fund

999,100 00
214,294 00
30,764 75
208,353 78
1,249 00
12,505 01
136,861 81
253,913 17
30,267 31
••••11.•1•••F

$2,187 ,:308 83

1.2,187,308 83

•-•
AUGUSTUS MOORE, Cashier.

Oetubfr 1, 1834.

41110

Exhibit of Mediae Id the Franklin Bank of Cincinnati.

• Bills and notes discounted
Bills of exchange discounted
Incidental expenses
Permanent expense,
Personal property
Due from banks
Notes of other banks
Specie
Cash on hand

1,118,102 39
318,037 14
4,217 48
4,000 00
2,124 05
92,437 91
171,869 00
217,595 78

I Capital stock paid in
Hank notcs in circulation
Discount and premium account
I 3. II. Groesbeck, pension agent
1 Dividends unpaid
11 Contingent final
1 1 Treasurer of the United States
Due banks :/ Individual deposites
389,464 78 1

#2,158,423 75 11

999,100 00
218,576 00
,202 50
11,084 43
1,13330
30,267 31
425,697 87
185,783 62
253,558 52
$2,158,423 75

ramp
ID

Ci$citiN411, Octokr 11, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

AUGUSTUS MOORE, Cashitr.

rt—tti

Exhibit Qi the stale of the Franklin Bank of Cincinnati.
—
Domestic bills and notes discounted
Bills of exchange
Due from banks
Incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

Capital stock
Bank notes in circulation
Discount and premium ileCOMIt •
.
Due banks .
Dividends unpaid
John If. Groesbeck, pension agent
Treasure:. of the United States Individual dr ronste
Contingent fund

1,117,931 51
568.082 04
49,911 02
4,409 00
4,000 00
2,124 05
197,390 00
221,793 98
419,183 98

*2,165,642 40

999,100 00
223.407 00
33.34366
193,872 60
1,11850
10,455 37
418,48)54
23.1,58742
30,267 31

[

42,165,642 40
AUGVSTILTS MCIORP, Cashirr.

Clvetirnart, October 18, 1834.

at
et•

Exhibit of the stale of the Franklin Bank of Cincinnati.
Domestic notes and billediseounted
Bills of exchange
Due from banks
Incidental charges
Permanent expenses
Personal property
Notes of other banks
Specie

I

I ,110,163 84
579,299 91
79,733 17
4,420 49
4,000 00
2,124 03

163,241 00
222,490 07
385,731 07

$2,16.5,472 53 i
_
October 25, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Capital stock
Bank notes in circulation
Discount aml premium account
Due banks
Dividends unpaid
John II. Groesbeck, pension agent
Treasurer of the United States .
Individual deposites
Contingent fund

.I

999,100 00
226,041 00
37,698 87
192,290 77
1,11850
9,053 50
418,150, 54
251,750 24
30,267 51

42,165,472 53

AUGUSTUS MOORE, Caster.

Exhibit of the state of the Franklin Bank of Cincinnati.
Bills and notes discounted
Bilk of exchange
Incidental charges
Permanent expenses
Personal property
Due from banks
Notes of other banks
Specie
Al

-!
.
.
172,819 00
'240,356 52
-----

1,109,317
602,950
4,431
4,000
2,124
122,900

07
79
89
00
05
82

4l.,175 52

Capital stock
Bank notes in circulAtion
Discount and premium account
Dividends unpaid
Contingent fund
John H. Groesbeck, pension agent
'I'reasurer of the United States Doe banks
Individual deposites
-

.I

$2,258,900 14

999,100 00
231 ,689 00
39,422 15
1,053 50
30,267 31
8030 67
436,292 85
241,796 49
268,248 17

$2,258,900 14

November 1, 1834.

AUGUSTUS MOO HE, Cashier.
03
Imo

Exhibit of the state of the Franklin Bank of Cincinnati.
Bills and notes discounted
Bills of exchange
Incidental charges
Permanent expenses
Personal property
Due from hanks
N '
f other banks
I

1,226,476 87
601,024 44
4,434 52
4,000 00
2,124 05
145,223 68
181,080 00
207,460 23
388,540 23

$2,271,823 79

Ain:ember 8, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Capital stock
Bank notes in circulation
Discount and premium account Dividends unpaid
.
Contingent fund
John II. Groesbeck, pension agent
Treasurer of the United States Due banks
Individual deposites .

999,100 00
227,280 00
42,333 83
896 00
30,267 31
7,256 00
414,892 85
262,421 52
287,376 23

$2,271,823 79

AUGUSTUS MOORE, Cashier.

Exhibit of the stale of the Franklin Bank of Cincinnati.
co
Bills and notes discounted .
Bills of exchange
charges
Permanent expenses
Personal property
Due from banks Notes of other banks
Specie

1.148,881 '26
534,429 00
4,869 02
4,000 00
2,124 05
227,017 56
196,595 00
235,999 70
432,394 70

Capital stock Bunk notes in circulation Dircount and premium account
Dividends unpaid
Contingent fund
John II. Groesbeck, pension agent •
reasurer of the United States
Due to banks .
Individual deposites

999,100 00
229,006 00
44,424 59
896 00
50,267 31
6,640 34
443,516 04
326,002 46
273,862 85
$2,353,715 59

$2,353,715 59
Nvrember 15, 1834.

.shier,
Al/GUSTUS MOORE, Co
tn

Exhibit of the state of the Franklin Bank of Cincinnati.
Bids and notes discounted
Bilk of exchange
Incidental charges
Permanent expenses
Personal property
Due from banks
Notes of other banks
Specie

I 1 ,173,793 57
- 1
528,711 23
I
4,858 64
- I
4,000 00
_
2,124 05
- i
.
267,460 79
189,508 00
237,867 43
427,375 43

Capital stock Bank notes in circulation
Discount and premium account
Dividends unpaid
Contingent fund
John II. Groesbeck, pension agent
Treasurer of the United States
Due other banks
Individual deposites

112,403,323 71

52,408,323 71

November 22, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

999,100 00
268,237 00
46,912 81
896 00
30,267 31
5,879 04
438,684 54
317,830 35
300,516 66

AUGUSTUS MOORF., Cashier,

• .•

4..• •

f••• ••• •r,

• •••

••••,0

Exhibit of the state of the Franklin Bank of Cincinnati.

Bills and notes discounted
Bills of exchange
Incidental charges
Permanent expenses
Personal property
Due from banks
Notes of other banks
Specie

11
1 ,212,616 51 1
.
:;8
537396
4,935 26 I
4,000 00 !
'2 .124 05 '
0,657 )
248
178,881 00
182,578 85

Capital stock
•
Bank notes in circulation
Discount and premium account Dividends unpaid
Contingent fund
John 11. Groesbeck, pension agent
Treasurer of the United States Due to banks
361,439 83 1 Individual deposites h

112,371,389 05

Clams:erre, November 29, 1834.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

000 (1
9:1
288
99
49,150 .',.;
878 50
30,267 31
5,656 69
388,377 45
273,458 23
334,476 37

2,371,389 05

AUGUSTUS MOORE, Cas;der.

C.11
C15
C.0

r—t

State of the Commercial Bank of Cincinnati on
Monday, October 6, 1834, endi
ng at close business on Saturday 411s.
Capital stock
Bank notes issued payable at Philadelphia
Contingent fund
State or Ohio
Profit and loss
Dividend No. 1
No. 2
No. 5
No. 6
Cashier Atlas Bank
North Western Ralik (if Virginia
Commercial Bank of Scioto
Girard Bank
Bank of Pittsburg
Union Bank of Tennessee
Muskingum Bank
Bank of Louisville
Discount account
Premium
Treasurer of the United States
lnd,vidual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

382,000 00
60,000 00

14,146 00
316 47

1,000,000 00
442,000 03
10,000 00
2,305 44
7,567 73
90 90
151 2)
88 00
1,303 50
3,825 06
3,710 65
36 29
606 19
15,416 05
417 54
265 41
1,682 06
14,662 47
22,923 67
130,398 31

B lk and notes discounted
lying over unpaid
Bills of exchange payable at New York
PhiLadelphia
Louisville New Orleans
Lexingtori Pittsburgh Natchez
Dayton
Baltimore •
St. Louis
Columbus Wheeling Stock in trust
Special deposite our post notes, Philad'a
Protest account
Remittance to Philadelphia Cashier Franklin Bank of Columbus
Union Bank of Maryland
Schuylkill Bank
Office Bank U. S. Lexington
Louisville
St. Louis
Natchez
New Orleans Farmers and Mechanics' Bank,
Steubenville
Bank of America
Dayton Bank
Commercial Bank, New Orleans
Union Bank of Louisiana
Franklin Bank of Cincinnati
Lancaster, Ohio, Batik
Permanent expenses

LJ
670,308 19
20,509 56
74,973 91
108,286 78
108,778 20
30,093 85
1,597 92
2,664 46
22,339 87
19,528 42
4,003 13
2.123 63
2,615 61
1,100 27
49,600 00
4,150 00
256 23
1,00000
334 42
489 42
47,464 12
206 72
211 48
676 43
5,19697
13,079 05
140 54
6,699 83
3,666 11
3,254 00
6,391 69
3,139 0)
101 50
1,600 00

at
Cr)

1


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Incidental
do
•
Gash balance, via.
Bank notes issued! 382,000 00
p..vahle at Phila.
aclphia
60,000 00

2,304 81

442,000 00
Philadelphia
In circulation

6.400 00
137.427 00

Philadelphia
On hand

31.600 00
214,373 00

143,827 00

United States note•
Franklin Bank of Cincinnati notes
Ohio notes
Specie -

$1,631,431 37

298,173 00
24,273 00
9,027 09
4,679 00
12,203 41
-------

428,159 41

51,651,451 57

C.0
4.4

eh

Stale of the Commercial Bank of Cincinnati, Monday, September 29, 1834.
ar)
Capital stock
Bank notes issued payable at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend No. 1
No. 2
No. $
No.6
Cashier Dayton Bank
Atlas Bank
Union Bank of Maryland
Northwestern Bank of Virginia
Commercial Bank ofNew Orleans
Commercial Bank of Scioto
Girard Bank
Bank of Pittsburgh Union Bank of Tennessee
Muskingum Bank
Franklin Bank of Cincinnati
Discount account Premium
Treasurer of the United States
Individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,000,000 00
382,000 00
60,000 00
442,000 00
10,000 00
2,305 44
7,567 73
90 00
151 20
88 00
21,619 50
2,294 89
1,748 00
126 22
2,876 91
193 50
36 29
9 44
8,379 20
417 54
265 41
11,062 00
12,882 51
317 10
13,199 61
15,962 34
119,806 75

Bills and notes discounted
unpaid
Bills of exchange payable at New York
Philadelphia
Louisville
New Orleans
Lexington
Pittsburgh
Natchez Dayton
Baltimore St. Louis Columbus Wheeling Stock in trust
Special deposite, our post ngtes, Phila.
phia Protest account Remittance to Philadelphia, gold
Cashier Franklin Bank of Columbus
Bank of Louisville Schuylkill Bank
F. and M. Bank of Steubenville
Bank of America
Union Bank of Louisiana
Lancaster, Ohio, Bank
Office Bank U. S., Lexington Louisville St. Louis Natchez
New Orleans
Permanent expenses
Incidental
do

•

660,544 96
20,509 56
69,973 91
117,891 64
105,833 20
23,758 97
1,495 92
3,028 88
20,339 87
19,528 42
2,003 13
1996,
13
3,923 61
1,100 27
49,600 00
4,150 00
256 23
4,006 06
43 42
6,220 76
65,775 55
140 54
7,043 11
6,091 69
101 50
206 72
217 48
553 93
5,19697
15,136 69
1,600 00
848 19

c.n
el)
sa.

Cash biallanise, via.
Ranh notes issued - 382,000
payable in Philad'a 60,000
Philad'a
In circulation

-

442,000 00
6,503
132,413
138,920 00

Philadelphia
• On hand

- 53,493
- 249,3/43

States notes
Franklin hank of Cincinnati not,.
tibia notes
Specie •

303,080 00
33,940 00
4,468 00
!),095 00
88,099 66
441,082 66

$1,660,199 97

$1,660,199 97

COVIIIIRCIAL BANK, Cincinnati, September 29, 1&34.
The state of this bank, as within exhibited, closes the business of the institution, including Saturday,
September 27.
WM. S. IIATCII, Cashier.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

fir5,,

Slide

of the Commercial Bank of Cincinnati, on Monday, 2001 October, 1834.

Capital stock
Bank notes issued Do
pa.s able at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend Ne.
Do No. 2
Do No.5
- •
UO

1,000,0(X) 00
382,000 00
60,000 00
442,000 00
10,000 00
2,305
7,567 73
90 00
151 20
88 00
1,16900
7,398 46

-

1:41) ••

Cashier Atlas Rank
Do Northwestern Bank of Virginia,
Wheeling
Do Rank of Chillicothe Do Commercial Bank of Scioto
Do 4;irard Bank
Do Bank of Pittsburgh Do Union Bank of Tennessee
Do Muskingum Bank
Ohio Life Insurance and Trust Company
Treasurer of the United States
Discount account •
Premium
Individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3,482 79
927 50
36 29
1,346 35
18,439 98
417 54
265 41
.52,863 00
49,001 81
19,886 26
630 63
20,516 89
58,019 49

] Itills and notes

discounted •
Du
lying over unpaid
j Bills of exc.
payable at New York
Do
do
Philadelphia
Do
do
Louisville
Do
do
New Orleans
Do
do
Lexington
Do
do
Pittsburgh
Do
do
Natchez
Do
do
Dayton
Do
do
Baltimore
Do
do
St. Louis
Do
do
Columbus
Do
do
Wheeling
Stock in trnst
Special depo,ite of iiiir post notes at
Philadelphia
Protest account •
Remittance to Philadelphia Cashier Franklin Bank of Columbus
Do Union Bank of at:Aryl:yid
Do hank of Louisville Do Schuylkill Bank Do F. 8t M. Bank, Steubensille
Do Bank of America Do Dayton Rank
Do Commercial Bank or N. Orleans
Do Union Bank of Louisiana
Do Franklin Bank of Cincinnati
Do Lancaster Ohio Bank
Do Office Bank U. S. Lexington
Do
do
Louisville Do
ilo
St. L s
Do
do
New Orleans
Do
do
Natchez

r-i
co
679,629 49
20,509 56
;7-3 91
:.;9:9
)
;(1 97
1111,:g g
40
1,797 78
3,26446
22,589 87
20,376 72
4,153 13
2,123
2,213 6
;)
1:

4401

0
1 03
ova

4,150 00
256 23
1,00000
661 92
1,817 g
38,563 36
140 54
1,165 24
2,792 36
3,254 00
6,588 69
11,017 00
101 50
253 47
217 ti
2,386
17,256 72
8,196 97

•r, 45


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Lancaster, Ohio, Bank
Franklin Bank of Cincinnati
Permanent expenses
Incidental ex litmus
Cash balance, viz.
Bank notes issued - 382,000
payable at Philad. 60,000

101 50
10,162 00
1,600 00
2,346 45

442,000 00
In circulation

Philad.
6,345
- 133,727
140,072 00

Philadelphia
On hand

-

53,65;
248,273

United States notes
29,190
Franklin Bank of Cincinnati notes
Ohio notes
Eastern notes
Specie -

301,928 00
29,190 00
3,34600
8,910 00
860 00
82,875 24
427,109 24

$1,670,377 00 I

$1,670,377 00

ii

1! Permanent expenses
do
Incidental
Cash balance, viz:
I
. 382,000
; Bank notes issued
60,000
payable Philatl'a
Do
Philadelphia
In circulation

-

442,000 00

6,283
129,668

53,715
252,332
—
United States notes
.,
Franklin Bank of Cincinnati notes
ohio notes
Eastern note,
. Specie
I
Philadelphia
On hand

1,60000
'2 346 45

135,953 00

306,047, 00
39,083 36
4,880 00
9,372 00
2,300 00
79,723 35
441,405 71

i$1,676,086 88
81,676,086 88

852,863 transferred since last statement from account of individual depositors to the corporate name of Ohio Life Insurance and Trust Company.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.41

Stale of the Commercial Bank of Cincinnati, Monday, October 27, 1834.

r"--•
015

Capital stock
Sank notes issued
payable at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend No. 1
No.2
No.5
No.6
•Csabier, Office Bank U. States„ Natchez
Bank of Louisville
Atlas Bank
Northwestern Bank of Va.
Bank of Chillicothe
Commercial Bank ofScioto
Girard Bank Bank of Pittsburgh
Union Bank of Tennessee
Muskingum Bank
Discount account Premium
Ohio Life Insurance and Trust Company
Treasurer of the United States
individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

382,000 00
60,000 00

21,009 01
654 15

1,003,000 00,1 Bills and notes discounted .
lying over unpaid
Bills of exchange payable at New: York
00
,
442,000
Philadelphia
10.000 00 '
Louisville
2,305 44 i
N. Orleans
7,567 73
Lexington
90 00
Pittsburgh
151 20
Natchez 88 00
Dayton
1,169 00
Baltimore
4,803 03
St. Louis
5,006 64
Columbus
Wheeling
6,455 35
3,586 04
Lancaster,O.
927 50 Stock in trust
36 29 Special de posite of our post notes at Phil.
140 35
Protest account 16,412 89
Cashier of Franklin Bank of Columbus
417 54
Union Bank of Maryland 265 41
Schuylkill Bank
Office Bank United States,
New Oreatts 21,663 16
Lexington
52,863 00
Louisville
64,316 37
St. Louis
Farmers and Mechanics'Bank
72,732 91
Stenbenville
Bank of America
Dayton Bank
Commercial Bank of New
Orleans
Union Bank of Louisiana Lancaster, Ohio, Bank
Franklin Bank of Cincinnati

694,630 06
20,509 56
75,973 91
103,125 33
119,758 62
78
1:7
540
87 09
35
3,86446
22,589 87
19,044 99
4,153 13
3,153 43
2,374 32
4,628 46
600 00
49,600
4 150 00
252 23
1,040 53
42
24260
24,489 52
5
756 72
'253 47
717 48
1,786 43
140 54
4,713 11
1,500 59
•

35,254 00
6,493 69
101 SO
11,995 00

et•

••


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Permanent expenses
•
Incidental expenses
CAI balance, via.
flank notes homed
382,000 00
!sayable Phibul. 60,000 no
Pltilad.
In circulation

6,240 00
139,198 00

1,60000
2,384 SI

442,000 00
145,438 00

On hand

l'hilad. 53,760 00
242,802 00

United states note,
Frawin Dank or
Cincinnati
Ohio notes
Kionern notes
Specie

296,562 .00
50,530 00
11,590 00
12,762 00
2,615 00
81,725 11
455,784 11

$1,715.017 85

$1,715,017 85

tot
cx+

110
10=4

Stale of the Commercial Banle of Cincinnati, on Monday, November 3, 18344111

Capital stock
Bank notes issued
payable at Philadelphia

1,000,000 00
•
•

Contingent fund
State of Ohio
Profit and loss
Dividend. No. 1
N'o. 2
No. 5
No. 6
cashael Office Bank U. States, N4
tchei
Bank of Louisville
•
Atlas Bank
Yeatman, Woods, is. Co. Banking
and exchange company
Northwestern Bank of Virginia
Bank of Chillicothe •
Commercial Bank, Scioto
Girard Bank
Bank of Pittsburgh
Muskingum Bank
Union Bank, Tennessee
Ohio Life Insurance and Trust Company
The Treasurer of the United States
•
Discount account Prcmium
ndividual depositors

•


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

182,000 00
60,000 00
442,000 00
10,000 00
2,305 44
7.475 03
90 00
131 20
88 00
609 00
4,803 03
4,350 68
510 40
3 00
3,521 04
927 00
' 573 92
140 35
16,444 77
265 41
417 54
$2,863 00
64,316 57
22,833 70
676 48
23,510 18
101,053 81

Bills and notes discounted Bills lying over unpaid
Bills of exchange payable at New York
Philadelphia
Louisville New Orleans
Lexington
Pittsburg
Natchez
Davton
Baltimore
St. Louis
Columbus
Wheeling
Lancaster
Stock in trust
•
•
Special depositc on post notes at Philadelphia
Protest account Cashier Franklin Bank, Columbus
Union Bank, Maryland
•
Office Bank U. S., New Orleans
Lexington Louisville St. Louis sclmvlkill Bank
F. and M. Bank, Steubenville Bank of America
•
Dayton Bank
•
Commercial Bank, New Orleans
Union Bank, Louisiana
•
Franklin Bank of Cincinnati
Lancaster Ohio Bank
Permanent expenses

•
I •.1. Po•i•st• •••

k

• pa... .1

701,571 01
22,552 56
34,009 01
87,394 20
120,823 64
43,707 99
1,797 78
4,244 55
22,589 87
19,703 53
4,155 13
3,083 80
2,692 58
4,928 46
600 00
63,100 00
4,150 00
252 23
1,040 53
389 42
756 72
328 47
717 48
3,011 06
21,980 50
140 54
60,021 78
5,892 88
32,254 00
5,885 34
5,771 00
101 30
1,60000

ah.

Incidental expenses ;
Cash balance, viz.
Bank notes issued
payable at Phila.

2,384 St
382,000
60,000
442,000 00

Phila.

6,170
144,253

Phila.

53,830
237,747

In circulation

150,423 00
On band

United Stares notes
Franklin Bank, Cincinnati notes
Ohio notes
Eastern notes
Specie

•
•

291,577 00
59,090 00
11,301 00
7,127 00
3,470 00
80,404 78
452,969 78

$,736,399 67
.•_


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$1,736,399 67

cm
.4
cm

r-i

November 10, 1834.
Slate of the Commercial Bank of Cincinnati, Monday,

•
Capital stock
Bank notes issued •
payable at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend No. 1
No. 2
No. 5
No. 6
cashier Office Bank U. States, Natchez
Atlas Bank, Boston
Yeatman, Woods,&Co.,Banking
and Exchange House
Northwestern Bank, Virginia
Batik of Chillicothe Commercial Bank, Scioto
Girard Bank
Bank of Pittsburgh •
Dayton Hank
Muskingum Bank
Ohio Life Insurance and Trust Company
Treasurer of the United States
Discount account •
Premium
Individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,000,000 00
382,000 00
60,000 00

•

•••

•

442,000 00
10,000 00
2.305 44
7,507 78
90 00
151 20
88 00
609 00
2,153 03
1,169 90
1 00
2,271 24
927 50
1,673 92
14035
15,303 53
707 12
265 41
52,863 00
95,790 50

24,029 86
742 99
24,772 85
90,089 77

Bills and notes discounted
•
lying over, unpaid
Bills ofexchange payable at New York
Philadelphia
Louisville •
N. Orleans Lexington Pittsburgh Natchez Dayton
Baltimore St. Louis •
Columbus Wheeling Lancaster Stock in trust
Special depilate of our post notes, Philadelphia
Protest account .
Cashier Bank of Louisville Franklin Bank of Columbus Union Bank, Maryland
Office Bank U. S ,New Orleans
Lexington Louisville St. Louis Schuylkill Bank
Fanners and Mechanics' Bank,
.
Steubenville
Bank of America
Commercial Bank, New Orleans
Union Bank, Louisiana
Franklin Bank, Cincinnati
Lancaster Ohio Bank

713,711 74
22 150 35
34,009 01
87,394 20
132,323 64
48,824 83
1,491 05
4,244 55
20,089 87
21,097 90
4,153 13
3,083 80
2,69'2 38
4,928 46
• 600 00
63,100 00
4,150 00
252 23
2,370 49
1,040 53
201 42
756 72
635 20
717 48
1,811 06
14,093 24

•

•

140 54
54.796 78
32.254 00
700 92
1,775 00
101 50

C.rt
CIS


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Permanent expenses
Incidental
do
Cash balance, viz.
382,000 00
Bank notes issued
payable Philad. 60,000 00

1,600,90
2,634 51

442,000 00
Philad.
In circulation

6,000 00
154,231 00
160,321 0)

On hand

53,910 00
227,769 00

United States notes
Franklin Bank, Cincinnati, do
Ohio
do
Eastern
do
Specie

281,679 00
59,887 00
5,004 00
30,435 00
4,425 00
85,254 01
466,954 01

$1,750,880 54

$1,750,880 $4

Slate of the Commercial Bank of Cincinnati, Monday, November

r-1

17, 1834.

Lea
Capital stock
Bank notes issued
payable at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend, No. 1
No. 2
No. 5
No. 6
Cashier Office Bank U. S., Natchez
Atlas Bank, Boston •
Yeatman, Woods,& Co., banking
and exchange house
Northwestern Bank, Virginia Bank of Chillicothe Commercial Bank of Sciotio
Girard Bank
Bank of Pittsburgh Dayton Bank
Franklin Bank or Columbus
Ohio Life Insurance and Trust Company
Treasurer of the United States
Discount account Premium Individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,000,000 00
382,000 00
60,000 00
442,000 00
10,000 00
2,305 44
7,194 39
90 00
1.51 20
88 00
609 00
2,153 03
1,967 49
1 00
2,446 66
927 50
3,709 22
138 35
15,393 61
880 12
3 47
52,863 00
95,790 50
26,535 56
757 70
27,293 26
88,908 19

Bills and notes discounted
lying over unpaid
Bills ofexchange payable at New York Philadelpliia
Louisville New Orleans
Lexington.
Pittsburgh Natchez Dayton
Baltimore , St. Louis Columbus Wheeling Lancaster Stock in trust
•
of
our
post
notes at
Special deposite
Philadelphia
•
Protest account
Cashier Bank of Louisville Union Bank of Maryland
Schuylkill Bank
•
Office Bank U. S., New Orleans
Lexington Louisville St. Louis F. and M. Bank, Steubenville Bank of America
Commercial Bank of N. Orleans
Union Bank of Louisiana
Lancaster, Ohl*,Bank
Franklin Bank of Cincinnati Permanent expenses
Incidental
do .

• •Allee ....64..... .•.
. ; SS...111 o••II.Ie lore..I
.
pa imb Mr IA 11.1..irrai
I

304.4.144. ,
Aka.MAU
.1

752,065 04
21,595 07
48,809 01
24,261 96
138,576 34
61,291 90
1,491 05
4,244 55
20,089 87
22,560 09
4,003 13
3,351 98
2,692 38
4,728 46
600 00
63,100 00

d•

de

e

4,150 00
252 23
2,682 99
351 42
27,799 17
756 72
635 20
717 48
1,811 06
140 54
53,864 94
32,254 00
700 92
251 30
754 00
1,600 00
3,034 51

Os
GO

Cash balance, viz.
- 382,000
Bank notes issued payable at Philad'a 60,000
442,000 00
In circulation

Philad'a 6,045
- 161,390
167,435 00
Philadelphia

On hand

- 53,955
- 220,610

United States' notes
Franklin Bank of Cincinnati notes
Ohio notes
Eastern notes
Specie -

274,565 00
47,508 60
8,377 00
28,420 00
5,630 00
85,235 32
449,735 92

01,754,933 43
-s1,1•1•14,•••••IrOl,r."


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

, $1,754,933 43

Cft
.4
4.114

State of the Commercial Bank of Cincinnati on Monday, November 29, 1834.
Capital stock
Bank notes issued payable at Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend No. I
No.
No. 5
No. 6
Canliicr Office hank C. States, Natchez
Atlas Bank, Boston Yeatman, Woods, and Company,
banking and exchange house
Northwestern Batik of Virginia
Hank of Chillicothe Commercial Bank of Scioto
Hank of Marietta
Pittsburgh •
Payton Bank
Lafayette Bank or Cincinnati _
Ohio Life Insurance and Trust Company
Treasurer of the United States
Discount account Premium
Individual depositors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,000,000 00
382,000 00
60,000 00

28,307 93
850 07

Bills and notes discounted
lying over unpaid
Bills ofexchange payable at N. York
442,0(,0 0)
Philadelphia
10,000 00
Louisville .
2.305 44
N. Orleans 7,194 39
Lexington Pittsburgh
90 00 '
151 20 ,
Natchez. 88 00
Day ton
609 00
Baltimore 2,153 03
St. Louis 5,428 83
Columbus • ,
Wheeling Lancaster 1 00
3,846 49 Stock in trust
91 08 Special deposite, our post notes, Phila3,850 89
delphia
600 00 Protest account
17,368 27
Cashier Frankl n Bank of Cohimbus
1,635 12
Bank of Louisville 10,794 00
Union Bank of Maryland
52,863 00
Schuylkill Bank
143,657 73
Office Bank U. S., New Orleans
Lexington Louisville 29,158 00
St. Louis •
110,143 50
Girard Bank
F. and M. Bank, Steubenville
Bank of America
Commercial Bank, New Orleans
Union Bank, Louisiana
Lancaster, Ohio, Bark
Franklin Bank of C.iicinnati .

765,354 60
21,593 07
48,809 01
26,561 96
145,317 SO
78,925 09
1,491 05
6,352 29
20,089 87
25,002 78
4,183 69
3,351 98
3,542 38
5,453 46
600 00
63,100 00
4,150 00
252 23
146 53
8 913 91
2,331 42
30,111 73
1,556 72
735 20
717 48
1,011 06
39,861 65
140 54
17,848 22
29,254 00
700 92
101 50
3,126 00
•••

let, .1.-11,41

.1..

....61111
/I 411k

1,14 • 1•1•1114


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,60000
3,037 63

Permanent expenses
do
Incidental
Cash balance, viz.
- 382,000
Bank notes issued 60,000
pa able in l'hil'a

1.

•

442,000 00
In circulation

5,980
Phil'a
- 177,156
183,136 00

On hand

Philadelphia
•

- 54,020
- 204,844

United States' notes
Franklin Bunk of Cincinnati notes
Ohio notes
Eastern notes
Specie

258,864 00
51,170 00
12,008 00
53,055 00
18.025 00
85,559 50
478,681 50
00

$1,844,028 97

$1,844,028 97

State of the Commercial Bank of Cincinnati, Monday, December 1, 1834.
OD

Capital stock
Bank notes issued •
•
payable in Philadelphia
Contingent fund
State of Ohio
Profit and loss
Dividend No. 1
No. 2
No. 5
No. 6
Cashier Office Bank U. S., Natchez
Yeatman, Woods, and Co., banking and exchange house
Northwestern Bank of Virginia Bank of Chillicothe Commercial Bank of Scioto
Bank of Marietta
Pittsburgh Dayton Bank
La Fayette Bank of Cincinnati Clinton Bank of Columbus
Commercial Bank of New Orleans
Franklin Bank of Cincinnati
Ohio Life Insurance and Trust Company
Treasurer of the United States
Discount account Premium -

382,000 00
60,000 00

442,000 00
10,000 00
2,305 44
7,194 39
90 00
151 20
88 00
609 00
2,153 03

..
-

31,440 23
755 70

1 00
3,117 21
379 78
3,850 89
600 00
16,533 14
2,423 50
10,794 00
288 00
2,746 00
96 00
52,863 00
175,523 08
32,195 93
111,883 81

Individual depos;tors


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,000,000 00

I

Bills and notes discounted •
lying over unpaid
Bills ofexchange payable at New York.
Philadelphia
Louisville New Orleans
Lexington Pittsburgh Natchez
Dayton
Baltimore
St. Louis
Columbus
Wheeling Lancaster Nashville Protest account
Stock in trust
Special deposite our post notes, Philad'a
Cashier Atlas Bank Boston Franklin Bank, Columbus
Bank of Louisville Union Bank of Maryland
Schuylkill Bank
.
Office Bank U. 8., New Orleans
Lexington Louisville St. Louis Girard Bank
Farmers and Meehanics' Bank,
Steubenville
.
Bank of America
.
Union Bank of Louisiana
Lancaster, Ohio, Bank

1......-.....
1
1
, .a.l. loAla/.. •. • r•

782,746 40
21,595 07
61 ,309 01
26,561 96
164,444 25
103,061 56
1,491 05
7,852 29
20,089 87
29,947 74
4583
69
,
3,853 23
3,542 38
4,363 52
50
60
160
60
52 ()0
23
63,2
100

-

.
.

-

CTI
OD

4,150 00
1,828 10
525 03
10,312 13
1,916 92
21,036 16
2,986 72
7
73
15
7 41
1,054 43
39,863 65
140 54
17,883 73
700 92
101 50

, .e.t... t.,P 1
1 ..147 f.1

1


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Permanent expenses
Incidental
do
Cash balance, viz.
- 382,000
Bank notes issued
payable at Phihd's. 60,000

1 ,600 00
3,047 63

442,000 00
In circulation

Philad'a
5,905
- 228,764
234,669 00

On hand -

Philad'a
-

54,095
153,236

United States notes
Franklin Bank of Cincinnati notes
Ohio notes
Eastern notes
Specie •

207,331 00
47,925 00
7,806 00
56,720 00
56,860 37
93,083 14
469,725 51

41,877,886 40

$1,877,886 40

00
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Federal Reserve Bank of St. Louis

Clc.)

1

cda
2.Wc0St5
,100000c,
Ngcc:.A2

CINCINNATI, December 7, 1833.

Bank of Cincinnati
Exhibit of the stat

•
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

--

•

23

[ 21]

01110.
Commercial Bank of Cincinnati.
Date.

Loans and (11$Counts.

436. July

1
Ig
13
Aug. 17
31
Sept. 14
(kt.
1
17
29
Nov. 16

$2.470,990
2,329,660
2,279,195
1,256,911
2,355.238
2,191,810
2.310,975
2.316,958
9,195,590
1,436,712

1
l',....,,,r,r ' pio,lic offiUnited ...03tr%
reni.

Specie.

I

$215,715
297,765
990,315
309,097
250,385
177,256
204.179
386,744
441.018
424,870

*7:17,291
725,2,16
1,921.996
1,115,361
1,1S1,361
1,119.373
1,149,373
1,449,173
1,570,335
1,470,365

U rculation.

$12.112
16.115
15.741
67, tit)
s9,915
77,`43Ii
71,53t;
71,111
73,26H
71,106

$950,019
1,016,149
1,019,595
9146,772
995.564
87.1,058
1,020,195
1,II43,551
89S,£84
1,685,195

7,563
17,274
27.055
26,489
58,880
49,755
40,697
37.351
36,623
34,650
33,056
32,331

528,069
489.529
198,614
459,529
434,352
399,968
375,977
318.968
339,146
356,310
370.335
359,561

.
2.3,63 I
..„ o,I,I.

261,601
155,891
157,090
265,366

Franklin Bank of Cincinnati.
1636. July

9
23
Aug.
6
20
Sept. 3
17
Oct.
1
15
29
Nov. 19

Dec.

10

1,995,785
1,985,504
1,910,193
1,914,591
1,918,555
1,856,510
1,893,185
1,931,843
1,978,176
1,961,258
1,905,442
1,959,778

179,=,
11,0,391
157.170
136.467
134.372
129,969
254,400
245,669
239,844
936,018
246,670

9(15,5s
893,507
653.507
753,487
773,517
889,189
879,1.4
911,6,41
952.491
952,194
852,191
799.316

("Won Rank of Columbus.
1436. July

Oct.

9
23
6
20
3
17
1

Nov.

12

Dec.

1

Aug.
.1.4..pt.

1392,111

r..76,7:1:,

3.,6„ IS I
;,70,635

1.12,716

112,42 2
i i I :tit

ifto.,. 7


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

171,131
111.6

211.1-,,

377,633 I
5,9 639
„.1-1 ;
; '„I76
I..
.110,1111

,

211,1.9,

II

I

f; ,2
69.!
692 ,
I

841.619

225,175
203,234
165.333
158,670
159,851
111,334
118,824

24

21

OHIO-Continued.
Franklin Bank of Columbus.
Date.

Loans and discounts.

Specie-.

Public °frt.
1 Treasurer
cers.
'United States.

Circulation.
• _

1836. July
Aug.

27
10
24
Sept.
7
21
5
Oct.
19
Nov. 2
16
30

Dec.

1

$687,475
703,608
728.689
792,752
788,230
742,875
704,760
687,041
649.981
659,889
667,811

$132,904
126,698
117.862
101,786
95,196
97.557
121.703
120,919
120,230
157,611
157,890

$50,000
124.333
124,333
124,333
174,333
. 204.363
204,363
204,363
194,863
224,863
324,863

-

$397,87
374,97
371.2
373,10
355,06
310,04
282,81
272,10.
281,85
293,90
295,44

-

324.01
372,08
401,94
435,51

Bank of Chillicothe.
1836. Oct.

Nov.

19
31
14
28

400,623
339,795
349,249
400.190

167,611
165,119
164,580
165,214

-

Bank of Cleaveland.
1836. Nov.

3

Dec.

1

376,579
380,008

58,086
60,672

187,491
209,59.; ,

Commercial Bank of Lake Erie, at Cleaveland.
1836. July

20

Sept. 16
Oct.

Nov.
Dec.

15
1
15
1

545,294
918,065
637,646
634,873
638,395
639,118

50,274
60,042
42,192
141.910
140,721
141,748

100,000
199,133
199,133

-

39,74
362,01
292,
272,04
299,1,
330.31

Bank of Wooster.
1836. Nov.

7I


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

298,128

33,648 1

20(014i

25
INDIANA.
State Bank of Indiana.
Date.

Loans and
discounts.

_ NIL July

9
23
Aug. 6

Sept.

20
3
17
Oct. 3
15
31
Nov. 12

2,776,369
2,775,350
2,766,723
2,787,271
2,778,103
2,801.193
9.745,468
2,783,819
9,818,704
2,999,920 ,

Specie.

Treasurer
United Statea.

1,096,820
1,166,112
1,128,713
1,102,595
1.126,030
1,006,457
977,119
963,029
953.499
972,575

Public
officers.

1,767.879
1,785,890
2,027,477
2,358,807
2,200,645
1,779,371
2,048,206
1,971,964
2,026,834
2,012,049

Circulation.

8,464
8,896
8,777
11,633
20,686
15,659
12,842
13,991
13,252
13,522

2,057,300
2,001,495
2,019,245
2,032,235
2,035,575
1.927,130
1,834,310
1,870,740
1,9'25,150
1,813,835

Branch of State Bank of Indiana, at
Madison.
_
1136. Aug. 27
Oct. 15 1

330.770
369,916

.

111.507 S
9 i6I
1.1

280,000
280,000

7I,S0R

Branch al Mate Bank of Indiana, at 1
,aterencehurg.
Roc Oct.

Ii
31

Nov. 1.2

179,556
281,611

274.30

65,001
73.859
51,516

159,251 I
159,211 ;
159,251 S

653
562
449

156,850
134,725
139,070

NO1S.
Bank of Illinois, at Shatimeetown.
(
AN. 3uly 15
Aug. 20
Sept. 3
i

17
30
1
Oct. 15
Nov. 19
26
.......___ _-

98,378
101.0,4
103,070
113,110
129,139
128,581
145,390
177,616


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

91,755
96,945
97,304
98,114
30,966
99,879
36,185
36,816

96.000
26.000
96.000
46,000
49,370
72.990
72,320

41.

67,246
68,059
74.846
76.295
76,187
76,159
71.967
94,698

21

26
MISSOURI.

Agency of the commercial Bank of Cincinnati, at St. Louis.
Date.

Loans and
discounts.

1
16
31
Aug. 13
27
Sept. 17
30
Oct. 15
29
Nov. 12

/836. July

1,466,223
1,484,893
1,412,081
1,394,140
1,480,374
1,609,684
1,634,830
1,653,946
1,707,439
1,703,656

Specie.

298,215
209,901
242,181
192,073
152,857
117,530
141,760
97,211
114,920
161,298

Treasurer
United States.

2,804,330
3,031.187
2,766,764
2,471.054
2,340,554
2,238,294
2,144,450
2,004,626
1,910,103
2,108,899

Puclic
officers.

Circulation.

62,043
50,137
92,030
188,876
135,914
136,918
101,615
90.220
77,195
61,738

MICHIGAN.
Bank of the River Raisin.
i 836.

July
Oct.

Nov.

9
15
22
29
15
30

947,245
'214,456
218,997
223,436
229,818
231,197

21,100
40,933
46,568
44,734
46,134
47,610

,
80,000
80,000
80,000
80,000
80,000

-

178,27
121,26.
127,96
127,95
138,601
152,36.

Bank of Michigan, at Detroit.
1836. July
Aug.
Sept.
Oct.

Nov.
Dec.

1
15
1
15
1
15
1
15
1
15
1


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2,261,329
2,387,014
1,878,723
1,841,559
1,651,990
1,740,017
1,567,720
1,576,723
1,478,786
1,478,730
1,375,566

78,214
85,999
242,893
228,055
181,510
103,613
103,613
125,912
189,062
257,117
326,635

1,698,250
1,662,067
1,812,352
2,145,808
1,738,209
1,473,273
1,254,930
1,412,518
1,320,417
1,090,206
1,190,513

35,490
64,740
83,575
61,910
59,364
228,125
253,945
107,851
89,794
123,561'
111,950

868,902
949,870
981,287
998,285
701,95S
674,057
640,000
660,59C
584,217
593,1CC
• 575,70

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Federal Reserve Bank of St. Louis
9s6'E 19
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616'419
1.94,61.99
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Federal Reserve Bank of St. Louis