to issue ones, twos, threes, fives, and the decimal denominations only, the percentage of each denomination being prescribed; and they are to issue no other kind of note. Each of them and the branches of the Bank of the State are to take each others' notes at par; each is to keep at least thirty per cent. of its circulation in specie; no bank is to hypothecate its circulation to get bonds to deposit for circulation. Six per cent. of the profits are to be paid semi-annually to the State as a tax, the interest on the bonds deposited not to count in the profits; no bank to circulate any notes which are not at par, nor any notes of any bank outside of the State for less than $5. Specified banks may come under this law and retire their old circulation.
The Ohio Life and Trust Company was allowed, by an act of February 11, 1846, to become either an independent bank or a branch of the Bank of the State, if it so desired, by setting off a banking capital in specie of not less than $300,000 nor more than $500,000.
In order to enforce the authority of the Board of Control of the Bank of the State, it was enacted, February 24, 1848, that any Judge of the Supreme Court should enjoin any branch which neglected or refused to obey the Board of Control, and that the Board should appoint a receiver for it.
In 1848, there were thirty-seven branches of the Bank of the State of Ohio and seven old banks. The Ohio Life and Trust Company had a total capital of $2 millions, but its banking capital was only $611,626, being the amount of permanent deposits or loans which it held. There were eleven independent banks. The Bank of the State, in the aggregate, had capital, $3.3 millions; circulation, $5.4 millions; deposits, $2.2 millions; specie, $1.9 millions; the safety fund was $621,339, besides $77,457 for the same to the credit of the Board of Control. The assets exceeded the liabilities to the public $3.4 millions.
The Constitution of 1851 provided that "No act of the General Assembly, authorizing associations with banking powers, shall take effect, until it shall be submitted to the people, at the general election next succeeding the passage thereof, and be approved by a majority of all the electors voting at such election."
The Legislature once more took in hand the whole system of banking, and enacted a comprehensive free banking law, March 21, 1851. The Auditor was to prepare the notes and deliver them, on deposit of Ohio or United States bonds for an equal amount, not above the market value or par value, and not in excess of three times the paid-up capital; lowest notes, $1; all banks under this law to receive each others' notes and to keep thirty per cent. of the circulation in coin; the Auditor to sell the bonds whenever the bank fails to redeem and he, with the Secretary of State, to appoint a special agent for examination, on whose report they might appoint a receiver; all the stockholders of a bank never to owe it in the aggregate over two-fifths of its capital; fifteen per cent. for non-redemption. This made four systems of banks in Ohio: those chartered before 1845, which in 1854 had $1.55 millions capital; the State Bank and branches, with $4.1
