The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1840-12-18

The expansion and contraction oflnr banks. In q
1896 the paper circulation reached its highest
point, aud our imports exceeded our expOru
that year sixty millions. IN 1857, our imports
exceeded our exports near twOn'y fnur millions;
making the aggregate 'lnnce Of trade against
us in these two years ofeAcessve paper circula-
ton, of near eighty four miliions-- cqua 10 the
entire amount of specie ia the u. States
In 1856, so great was the Initiation oflhe cur
rency, and the consequent rise in the price of
every thing, that bread stnffs were imported
from Europe, and sold at our artificial paper pr
ces, and the coin or lis equivalent taken out in
exchange. Thus, with a country possessing
more capabilities for the production of bread
stu1s than any other on the face oithe globe, and
with an industrious and enterprising population
we have been made tributary to Europe for the
accessories of life, by means Of this artificial an
ti-amsriCan system. Such will ever be its Of. 4
!ect producing alternately delusive prosperity,
and real adversely, until radical change is made
in the system itself, aud our currency is placed
on substantial and stable basis.
II is in vain to talk about q tariff law for the
protection of our domestic manufactures, Eand
TO preveut the excessive importation of foreign
goods, while we have papsr currency for the
measure Of value, which can be increased at the
will Of hose who control it, TO an almost in.
definite extent. The bes: protection that can
be fhrninhed to the domestic manufa ctures of
this country, and the only one they can rightlul~
ty claim, except that which is incidentally fur
nished by tariff for revenue, is a sound and
stable currency. composed ofgold and silver,
and that which is equivalent thereto. Such
protection would not only be mere effective
than any tarlffLaw short of prohibition. but at
the same time he legitimate and proper, oppress
sive to none-benefciai to all.
The evils above alluded TO are not the only
ones entailed on the country by our paper sys
tenn, There never has been in any age of tho
world, system devised by the ingenuity of
man SO well calculated to rob labor Of Its hard
earnings, as this. And It's the more danger-
Gus to the interest of the laboring part Of the
community, because its operations caanot read-
lily be seen. The people of the United States
pay TO the banks, annually a tax in the shape of
interest and other bank profits not less than thlr
ty millions. So fer as this Is paid for the use Of
their paper, representing real capital, that is.
gold and silver, it is legitimate and proper. But
the whole amount Of specie owned by the banks
does no, exceed at least, Ghy millions; the inter
est on which would bethree mill ions, leaving
twenty seven millions which are annually paid
to the banks, by the people, for the use Of their
credit, or promisary notes, bearing interest,
This is heavy tax OH the people, and is peid
entirely to credit, not 10 capital, either directly
or indirectly, by the labor of the country.
Whatever is paid for the support Of Govern
ment, State or General, or to the banks, who
create no wealth is tax ia some shape, on Ia
bor. This extraordinary capacity which has
heen given to mere credit to tax labor will solv,
the whole mystery whY;it is that those VIII,
create the entire wealth of the country after
life oftoil, are, comparatively speaking, poor
while bankers, who have been permitted t
usa their credit 10 tax the industry and labor o
the county, have grown rich in a few years
As you diminish therefore, the paper system
J you tighten the tax on labor; as you increase
, you add to the burden labor has to bear. A sy
r tenn of paper CT edit which is such heaAy ia
on the productive industry ofthe country, shoul
yield some great corresponding advantages t.
tie labUrlng portion of the community.
LOSS TO GOVERNMENT.
= In May, 1887, when the banks sus
G pended specie payments, their circula
: lion was estimated at about one hundre
. and fifty millions. The paper being n
: longer convertible in gold and silver, q
once deprecated on an average of to
per cent, making dead loss to III
{ people of The United States Of hllee
y millions. In 1888 8, three hundred an
forty.lhrue banks again suspended, Eav
/" ing a circulation estimated at about eev
enty mIlhons. Again their circulatio
deprecated on all average of al lea'
Ten per ccu'; making seven millions
a loss thrown on the community. Thu
. in suspension of specie payments b
q the banks, inili",ing on tho people of tn
Gu try an aggregate loss of twen,,
e two Millions by reason Of the deprecia
3, tlon Of ,beir paper circulation. This 10,
0 fals not on the banks, except in s'igI
e degree, whose incaulioh or imprope
i. acts produced il, but on the note no
: ders. So far from the banks sustain
IS ing any considerable loss by the d,
e precialIon of their paper, i, Is believe
at that some Of them availed lhemselv'
m ofthe opportunity, through their broke
y ofbuyiug up their deprecated paper,
y a discount.
y, Adopting an estimate made by co
= = mittee Of the Fl. Of Representatives
/, the United States, in 1882, (who hi
n, every means Of obtaining correct il
B. formation, the loss to tho General &c
al eminent aIone,- by the banks, at tb
r time, was thlrty five millions, If we az
to all this the lose which the public ha'
R sustained by other suspensions not q
luded TO above, and the almost incaIcu
er able loss sustained by banks breaking,
n from various causes, becoming inso!Ve
a. and that occasioned by the total deslru
10 10 ton of their notes by the various casua
1e ties 10 which paper currency is ev
Us subject; we will have an amount Of a
r. tual Ioss sustained by the eomDun
er through these institutions, which "
o ov startle the most devoted advocate Of |
Is, present paper system.
of The insolvency Of banks has recer
ln ly become common occurrence. SCI
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