The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-02-14

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the great Federal regulator" oflhe cur
rencyl El..
An increase ofbaDk capital in Ohio
could bring no relief The report Of the
Bank Commissioners, made 10 the Gen.
eral Assembly during the present ses-,
sion shows that there is about six NILS
lions Of bank stock now chartered in
Ohio, which hes not been taken up.
Why charter more when this lies 10 mar
ket and no one desires to take III The
truth 10, there are no monied men now
in the country, who are desirous TO in
vest their capital 10 this way. And sup
pose they did, what must folio@l II a
dozen new banks wers chartered this
winter and put in operation, they could
not relieve us. So long as the balaDce
of trade is in favour of the eastern cit
lee, and against the west, a constant
flow OF specie must continue from the
west This would drive in tho notes
pul in circulation as fast as they we're
thrown out and their amout in the coun-
try would very little exceed the amount
Of specie in the vaults. In other words,
the coin would be in the banks, and the
notes given to the people in place Of il.
A state bank would be inl in the same
condition fone were at this time char
tered; but this measure is impracticable
now for another reason. Where would
we obtain specie to fill the [vault of a
state bank? BY borrowing, Of course.
But we cannot borrow money 10 pro-
gress with the public works. All our
efforts to do so have failed, both in Eu-
rope and at home. How then can we
obtain coin 10 put n.operation ia state
bank? "
There is one fact connected with the
operation of banking which merits our
serious attention. The spirit Of spec-
ulation land over,radlng which seems
to be inseparable from our nature, needs
but slight stimulus to call it forth.
Hence, when the banks, either Nation
al or local, have thrown out large mas
ses of paper, affordlug facilities to all
who demand them, making money, az
it is called, plenty, almost every man is
induced to extend bls credit, beyond
reasonable bounds. Every thing sp-
pears prospesous around US. We al
run in debt-but when the foreign cred
itor demands the amount due him, tina
very demand creates run upon the
banks for specie, and dsables then
! from affordng relief The communit,
then suffers the twofold inconvenience
of being encouraged to invove itself b,
an expansion Of The paper currency, ant
when pressed for payment, at The TINT
when il stands most in need Of assis.
tance, it meets a contraction of thI,
same currency, which aggrsvates ant
increases its difficulties. Such stat,
OF things demand thorough and radca
reform; and it is for that principle w
have boon contending for years, will
the Federal party.
But is there no remedy for The evil
We suffer? There is; and We may 6nt
it at our doors if we take the trouble I,
look for 1t. Pass the Independent
Trensury bill, separating tho governor
ment from thanking institutions. Re
quire all duties on foreign importation,
TO be paid in advance, in gold and sil.
yer. This will check exlravagant i'm
portalons and create at the same time
dsmanG for specie at home. The bank
also, should have such sa!utary res
tralnts imposed upon them, as wil) kee
them within just and safe limits, subjec
to frequent examinations by the agent
OF the people, and liable at any time, !fo
violation Of duty, 10 have their door
closed, and their charter forfeited. LIE
the ,ockholders be liable in their indl
vdual capacity, for The payment oflhei
debts, as other citiZens are, and thro,
around them such further restraints q
will secure the people against frauds an
imposition. The mysteries Of bankin
are just beginning to be understood b
the public. 1t is only within the LAT
fewI years that the subject has bee
thoroughly discussed; and the time is 9
hand when a mass Of valuable .informa
tion will have been collected, which wi
enable us 10 act understandingly s. wis
ly in reference TO this mailer.
One thing we now know; that cor
porations are The vice Of this age, an
that every grant Of corporate power,
just so much taken from the mass {
public liberty. No such grant shou
therefore be made, unless it clearly col
o duces to the public good; and whenevc
> i, is shown that the powers gv'o II
E used or abused 10 the public injury, II
/, grant ought to be revoked. The numb
Of these grants, in the United Stotes,
now almost countless; anda IIst Of d