BANKING. In 1803 a trading company was chartered with the privilege of doing a banking business. From 1808 to 1813 five more banks were incorporated. each by a special net of the ture. The banks did a prosperous business, and when in 1817 a branch of the first United States Bank was established in Cincinnati it called forth strong opposition. The State made an effort to drive out this branch by special taxation, but was defeated in the United States Supreme Court.
Some 25 banks were established in the following twenty years, and when in 1836 the second United States Bank made an effort to establish a branch, a special act was passed prohibiting it. A large number of unauthorized banking institu tions sprang up between 1840 and 1850, and their currency flooded the State. Several of them failed and caused losses to the holders of cur rency. To correct the evil, the State in 1845 strictly prohibited any one from engaging in the banking business without special authority of the State; but the law did not prove sufficient, and in 1851 the State was forced to pass a free banking law. In 1863 almost all the State
banks became national. Since then the national banks have remained the more popular. In the panics of 1873, 1884. and 1393 the numerous bank failures were practically limited to the private and State banks. A reaction in favor of State banks came toward 1900, when the high prices of the United States bonds made the ad vantages of national banking unattractive. Sav ings banks have existed in Ilhio since 1850, but the institutions do also a commercial business.
The condition of the various banks in 1902 is shown in the following table: