The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1837-07-22
COLUMBIA COUNTY, PA. SATURDAY, July a2. 1ss7.

country, under our short-sighted and inn
provident legislation. That system COM
mencing on a small scale, shortly after the
establishment of our government, amidst
the wants and fluctuations of the times
when our boundless extent of territory
and our mineral and agricultural sources
of wealth, opened fruitful fields for enter
prise and speculation, and when capital, or
something that would answer as the repre-
sentative Of capital, was alone wanting to
develope them fully, and elevate our coun-
try to condition Independent of the capi-
talists of Europe, has been steadily and
constantly extending itself, under various
pretexts, until it has finally, become so firm
ly interviewer with all the business con-
Germs OF the country, as to hold them abso-
lutely IN its embrace, and to crush them in
its fall to the dust. Whether the oripin of
this system was right or wrong, il is need
less now to inquire. 1t is sufficient, that at
It's very commencement there were not
wanting men of profound sagacity, and dis
interested patriotism who predicted the very
result, that has been realized in our age.
and who urged against its adoption what
was then prophecy, but is now fact, that
ciples as the banking system, would in this
free republic, tend to the establishment of
favored chsses--distinction between the
rich and pOor--a 1uctuating culrency-and
a spirit of fostering mad and ruinous
schemes speculations, which would even
tually Overturn the most stable government.
and reduce TO poverty and wretchedness
the most active and industrious people on
the face of the globe.
We submit to your candid Judgment, fel-
low citizens, whether such has not been its
tendency.
We know it is sometimes said, that the,
evils have been brought on by ''overtrading
and speculation strong instances are
given to prove the truth Of this statement.
That these catses have contributed to the
general result, will not be denied-but not
as primary causes. To certain extent
they are qfscts, and not causes. They are
all powerful, when nourished and sustained
by an uncontrolled banking system like
ours--but without It, they would be harm
less if not laudable manifestations of enter
prise. No man will engage in speculation,
or in overtrading, unless he has capital, or
credit. which for all practical purposes is
the same thing. Credit is the greatest in
centive to both, and credit is the corner
stone of our system Of banking. The fun
damental defect is, that according to the
principles on which our banks have all been
incorporated, they may be established, and
go into operation on credit, or Fictitious
capital" alone. Their very existence is
ldenk They are mere phantoms that in
habit their own vaults. The officers and
stockholders, when acting in their official
capacity, are vested with artificial intangi-
bility-and hence in their dealings with
men, they are governed by different con-
sideratiohs from what they would be. if
each acted for himself, and was directly and
personally responsible for his conduct.
From these peculiarities Of the banking svs-
tenn, 1t follows, that its existence in a conn.
try, supplies vast amount of false capital.
and holds out lure to the speculator, and
trader, to engage as deeply as he can, for he
Is still safe, while he is able to obtain cred
1t, no matter, what may be his debts, and
his obligations. Thus a false impulse is
given to all kinds of business and projects
the most futile and absurd; find promoters,
and abundance of money to advance them.
Thus also 1t happens in the prosecution
ofthese operations, men become indebted
to foreigners, TO each other at home, and to
the baiiks-and the banks contract the same
kinds of debts-and when payment is de-
manded, it can only be made by enlarged
credits--by Incorporating additional banks
--and Increased issues of paper money.
When individuals or banks become involved
in debt, they resort to the same means for
extrication. They play bold game (for a
game itis,) stretch their credit to the utmost |
limit, and in common phrase, "make or
break," by the adventure.
In the case of individuals, when credit
fails, the benefit of the insolyent law is
their remedy-and in the case of banks,
suspension Of specie payments. And
the effect upon their creditors and the pub
lie, are in both cases the same.
This is the process, and this the course
that has led to the existing state of things.
We appeal to the history of The country for
its confirmation. Let any man examine
the amount of nominal banking capital, at
different periods-and also the. spirit of
speculation and overtradihg as Indicated by
the imports of the countryside sales of