The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1839-12-13
businses demauiiug large, capital and
axisuSlve csedit. s-s

ThHcontfactIon oil The banks, huo VIC
CONSEQUENT scarcity, when compA'eo
with former years, Of q circulating me-
dium, have had a. tendency TO increase
the embarrassmenss among our citizens
in moneyed,adairs. In May eighteen
hundred and thirty seven, the dIscouns
Of the bdnks in this state were nineteen
millions fiye hundred and FIVE thousand
slx hundred and sixly-two dollars. On
the thirtieth Of September last, they were
eleven miIlious, Two hundred and sixty
eight thousand one hundred and twenty
FIVE dollars. Showing a reduction in
the discounts Of the banks since May
eighteen hundred and thirty seven, OF
e!eb, millions two hundred and thirty
seven thousand FIVE hsndred and thirty
seven dollars. Their circulation has
been diminished since the S0th APrllto
tlie 3Oih September last, one million
eight hundred and twenty -four thousand
four hundSd and nineteen dollars and
twenty three cents. Under this coH-
tractei cifc0lation our citizens are now
called upon to meet their engagements
entered into under our extended and
highly inflated circulation when money
was plenty, and credit easily obtained,
and when they had reason to believe
that they would bs, able to meet their
engagements without any difficulty. This
illustrates the injurious consequences 10
the community Of q. currency capable OF
great acknowledgements aud conlrac'
ton! . II; i,,s3,t 8
The prominent causes, however, Of
the present difficulties under which the
country, iabors, are 10 be sought for in
the large amount of interest annually
paid 10 foreign capitalists, variously
sstimsted at from elght,to twelve nil
lions, for money borrowed BY the States
aud Go orporeuons; and ia the great and
excessive impor,ations Of foreign goods
into this country, and the debt thereby
created, Our imports for several years
have annually exceeded our exports to
lares amount, leaving heavy dabis a.
gains, us TO be paid room. This deb
10 nov called tor and must be paid, The
coin nucsssary to pay our foreign deb
being principally distracted from the
banks; they are forced TO curtail .he!l
circulation and call in their discounts; By
means OF which, our circulating medium
hss been reduced for tie last year BY
the double process ofspecie expectation
aud bank contraction. The great ev'
Of which ws have cause to complain is
the excessive importation OF foreign
goods, greatly exceeding the necessary
wan,s end demands Of the county, and
our ability to pay. This evil has had its
origin in the overgrowlng system OF banking,
which has sprung up in the United states wllli-
in the last few years; and the conseqnent'mal-
tpication o(bank paper beyond The real business
wnnts Of the community The increase Of pa
per money by rendering the circulating medl-
um CHEAP. naturally produced an increase in the
price of iSregn goods. BY this means their i'm
portation has been invited into this country ia
BE- sold at our paper prices, but to be paid fol
either by our exports, or in coin, Our exports
being insuflc ent, our coin is required to pay the
balance. Until our foreign debt is reduced we
canaot expect much relief ram the present pres
sure. The present crisis /, one that must 5e
met; it, may be postponed but cannot be avoided
by legislative action, Our foreign debt must be
paid, not in paper money, but by our exports,
or in gold and silver. An increase 1T paper
circulation will not enable ~ to pay our foreign
o. Il, while il will induce u continuation Ut ex-
cJssivo importations by keeping up Tie high
prices offrelgn DDS. Our permanent rplief
will be found in the abundant crops otthe coun-
try. When they are brongnt into market, and
applied TO the payment i our improVldent debts,
the difficulties and embarassments under w;icll
the country IL now laborlng will cease to exist.
TO avoid a recurrence ofthese evils, we must
Ss nstion, import less, and export more. we
fuust rely more upon our own resources, and
rot 10 much upon fDralgn capital. Tha credit sys'
tenn must be reformed and made secure, and
brought down 10 the necessary business wants
Of the community. So far as this system is
wtken our reach, it will be our duty to place
il upon.a solid and substantial footing, and res-
train il within those Ii uits which public policy
and the permanent good of the country require,
Other States will, no doubt in due time per-
cieve the necessity Of pursuing similar policy.
We cannot hope, perhaps for an entire reforms
alton of the paper system in the United States,
until there is seperatinn ofthe General Gov
ernment In its fiscal action, from tanks and
bank paper. If this should take place, It win
have salutary check on the issues Of the banks,
aad sdmonish them at all times OF the necessity
Of keeping up due proportion between thel'
circulation and their gold and silver The re-
cent demonstrations Of public opinion woulf
seem 10 leave but litls room TO doubt the speedy
passage ofthis sautary measures into law:
The subject o~the currency is one in which
the people a, thsi time very properly take deeI
interest, and is entitled to your calm and dis
passionate consideration. In a growing busi
ness community like ours, sound and stabl
currency. adapted to tbs business habits ant
wants of the people, is Of the utmost i'npor
Iance. and every exertion should be made tos
euro this desirable object The currency is on
Of ihs necessary means ofcarrying on the com
merce, trade and business Of the country
When it'becomes deranged--of unsteady an
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