In 1836 Ohio renewed the war against the Bank of the United States and other banks chartered outside the state. The federal charter of the Bank of the United States had expired in 1836, but a new one had been granted by the state of Pennsylvania , incorporating it as a state bank. The preamble of the opening act against this bank states that "whereas the stockholders of the Bank of the United States have been incorporated, and whereas the general welfare of this state forbids the establishment within its limits of any branch of the said bank", and then proceeds to make it unlawful for any bank or person in Ohio to act as its agent, or to circulate its notes. Very heavy penalties were provided for the violation of any of its provisions. This law was repealed January 26, 1838, but the following year it was revived in a modified form. The new act provided that no bank incorporated by the laws of any other state, or by the laws of the U. S., was to establish a branch in Ohio without the consent of the general assembly. It was further made unlawful for any bank or person to act as agents of a foreign bank in Ohio, but the penalties prescribed were not so heavy as in the previous act.

Nothing illustrates the nature of banking at this period and the power of the banks so well as the attempts of the legislature to control the issue and circulation of unauthorized bank-notes, and the failure of such legislation. In 1838 all unincorporated companies were forbidden to issue notes without authorization, and incorporated companies were forbidden to issue unauthorized notes under pain of losing their charters. The following year unauthorized notes were defined so as to include all paper that was intended to circulate as money. That such legislation was necessary is shown by the growth of various associations, such as libraries, orphans' institutes, and similar organizations, which engaged in banking and issued notes. The auditor's report in 1839 described the attempt of two of these to win recognition of their banking rights from the state by declaring a dividend and then asking to be taxed thereon.

Another kind of unauthorized issues against which the state valiantly, though unsuccessfully, struggled was small notes. In 1838 the act of March 14, 1836, was repealed, and banks were authorized to issue small bills as low as $1, provided they maintained specie payments." Suspended banks were required to resume specie payments by July 4, 1838, if by that time the banks of New York City, Philadelphia, and Baltimore had resumed. As these banks all resumed during the summer, most of the Ohio banks did so also. Specie payments had been suspended in Ohio, in common with the rest of the country, after the panic of 1837. The following year all bank notes under $3 were forbidden after July 4, 1839; all those under $5 and between $5 and $10 after October 1, 1839. If any bank offended it was to pay a fine of $50 for each unauthorized note, or lose its banking privileges. Another law in 1840 showed how ineffective this legislation had been. Small notes were once more forbidden, as were post notes and those payable elsewhere than at place of issue. All notes were declared redeemable in specie, no broker was to pay out illegal notes, and no state officer was to receive or pay out notes under $5. This law was successful in reducing somewhat the circulation of unauthorized notes.