Western courier. [volume] (Ravenna, Ohio) 1837-1838, 1837-07-13

United States the bank paper is ten times
greater then the gold and silver. A late
writer in the National Gazette, estimates
the annual expenditure of the individuals
Of this country, at FIVE thousand millions of
dollars. Let that gentleman take that
large sum and calculate, on so'large
basis, what we loose by mere deprecia-
tion of currency.
We lose largely by false banking, the
great blight of American industry. The
supposed protection 10 manufactures
which cur Tariffs, (as shall always con,
tend wisely and constiu,ionaliy) we're in
tendedto provide. is altogether counter
mined, frustrated and perverted by bank
license and monopoly TO lower the stand
ard Of value. Not only so: but it is
moreover bounty to foreign labor,
brought here to crush and ruin our own.
The whole round of our system is vi
cious circle. We aatter ourselves first,
by impost, when direct taxation would be
much cheaper, and we fatter ourselves,
again, that the impost protects our indns'
try when the sorry fact il tha, by depre"
cialing our currency, instead Of being pro-
tected, 1t pays second tax more onerous
than the first. II Is all round delusion.
and loss and injustice and extortion.
Hence it is that with all our liberal ta-
riffs manufactures have been declining and,
struggling with continued difficulties like
banks al one time inordinately fourishing,
at another plunged ia distress; and on tho
whole losing business to three tourths of
those concerned in them. Banks divide
from five TO fifteen per cent Of the profits
which belong to production, wrested from
il by bad currency. Aud it is, believe,
a too remarkable fact that the ruin Of fac-
tories has kept steady pace with the in
creace Of banks.
Factory expenses are paid weekly, and
in cash. Manufacturing is cashbusness.
The raw material is either paid for in cash,
or by notes at short usance bearing inter-
est, which is the same thing as cash.
Sales are made at nominal advance, paid
by notes Of commission merchants, dis
,couated at banks (if they condescend TO
discount them) or by brokers. The
charge Of commission and guaranty ID Eve
per cent The cost Of discount is, say,
three, on Eotes averaging SIX months
Thus, without counting failures, We may
safely put down nine per cent as the very
least Of the charges at which the manus
factlred article merely gets to market;
and there il is exposed TO all.the flnc'ua-
tions Of the credit system, on which it
was FIRST launched.
Those ruinous alterations Of swell and
pinch with which banks desolate com>
muni,ies, injure manufactures sooner and
more than any other working men; from
Obvious causes. A swell sbligcs employ
ers TO increase all their outlays, and
tcmpts workmen into unusual expenses.
A pinch prostrates the whole establish
ment at once. The employer cannot pay
debts contracted during the intoxicating
advance Of prices, the hands cannot bear
The priva,ions they are laid under. strikes
and disorganization inevitably ensue,
workmen disperse, machinery spoils by
disuse: In short, establishments are ruins.
ed. Steady work at moderate prices is
the element of manufacturing prosperity
Gas indeed II Is Of all.) All the working
men Of Philadelphia can bear witness that
in the pinching times Of 1884 when banks
laid heavy hands on prices, they were do.
ing better than during any ups and downs
either before or since. Wages only
dollar day earn a barrel Of -four In
week when it Is dollars barrel; at
which price the farmer too is better
paid, as well as the manufacturer, than
when bank swells make wages dollar
aud quarter day and -four ten dollars
sbNrrel. The great dsderaium is steady
work and steady price for all Indus
try, agricultural and manufacturing; and
steady prices ara impossible while bank
discounts fix prices.
will close this has,y sketch (Which
nigh, be much deyelaped) Of the effect of
banks on manutacturcrsb suggestinga Gu
rious. and il may be, mistaken copsidera-
,ion -aproblem left better judgment and
opportunities than mine to solve IL. Are
mol the banks by their operations on the
tarlh. the cause Of their own suspension
of specie paymen,si When duties are
protective. imEortatlons decrease, and a
favorable balance takes place ip exchange
and trade. There is then little demand
for specie to export and bank directors
are the FIRST to perceive that iDducement
60 increase bank issues. BY such issues
all prices are inflated: rents, food, cloth
ing. every thing, but wages and day la.
bor, always the Iast to eobance) become
r.,
the prices Of their fabrics; and. In short,