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

'" duu uoluSlVo CIouit1 OHly CdlCuldl6u
10 deceive and mIslead the public.
= these times of high party exciiemen
e such an institution would be drawn int
the party conflicts Of the day What
y ever political influence it might wieI
would not be favorable TO public libert
o or the rights of the many. The lnau
!, enCe of money, when brought TO bes
r either directly or Indirectly, in a pohtI
n Cal contest, IS always corrupt inAu
8 ence and fatal 10 democratic instIIu
r tions.
CAUSES OF THE SCARCITY
OF MONEY.
The causes which have produced tn,
extraordinary scarcity Of money for th'
last fifteen months, and The cunsequen
low price of produce and labor, are
worthy ofour investigation. That the
price ofproduce, labor, and every des.
crlption of property is materially afec-
ted by the amount Of the circulating
medium, is fact admitted by all. Il
wheat will command two dollars bush
ell when the currency is ten millions, i,
will command bot one dollar when the
currency ls reduced to five millions.
The power of creating money, or that
which is called money, [bauk notes
has been IegieIatisely lodged 10 The
banking corporations of the state. We
have conferred on these institutions one
ofihe most delicate attributes of sove~
riegh power. that Of furnishing cur
rency or standard of value for the whole
country: the power of saying whether
the currency shall be great or small; the
power Of fixing. at their arbitrary will,
ths price Of every mans labor and prop.
erty in the community. Whether this
extraordinary power has been exercised
for the good o! the public, or Otherwise,
cannot fail to enlist your attentive con.
siderstOn, when lnvesug ga.ing tie sub.
ject Of Banking and the Currency.
Within the last two years there has
been great and extraordinary cuIsI-
ment ofth 3snkS throughout the union.
This has been forced upon then, 10
great extent, by their previous enor-
nous, impudert and ruinous expansion.
alt is the return of the paper food to the
fountains frcm which it had issued"
Although each Stale, in it's political ex.
isteDCe, is sovereign and independant,
yet, in commercial point Of WOW, the
Sla,es are all one, and operated on alike
by the same general causes. The con-
sequence lie, that the reduction of the
circulation by the b nks for instance in
the STATES Of New York, where great
portion Of our produce is shipped 70,
market, has as sensible an influence
on the price Of our staple product ons
as similar reduction by our own
banks. And SO it may be said, with
some modification, Of the reduction of
the circulation In other States.
In New York the banks reduced
their circulation in one year, ending ihe
fret of Januu y, 1910, near nine millions
and in the same time they duced their
discounts between fifteen and sixteen
millions. A like reduction took place
10 a greater or less extent, in all the
other States, thus diminishing, sudden
ly, the circulating medium of the coun-
try 10 an extent unprecedented. la our
own State like reduction has been 90.
iug on. On the Both of April. 1889,
the circulation Of this State was So,
1888. On the Both of September
last it was but $3,979 099. Thus show
ing a reduction in the circulating me-
dunn of this sta,e Of $4, 460 us, within
the short space of about II months.
This extraordinary curtaiment of the
circulation Of our own, and every other
State in (he union oge'her with the unu
sueI abundance Of bread sluhs for the
two years, will sufficiently account for
the low price Of wheat, which has been
the cause ofso much complaint. Are
not the causes to which ! have alluded
abunrIy sufficient TO account for all the
reduction that has taken place in the
price Of every thing, without seeking FOR
others?
Having shown thai the scarcity ormop
ey is The main cause Of The low price of
produce and labor, and that The banks
are the cause OF the scarcity of money.
the conclusion fol'ows, that they have
been the principle agents in bringing a,
bout reduction Of prices.
II is said that the banks have been
compelled 10 curtail their circulation bv
reason or the acts of the administration
of the Gen Government If go, what
acts can be pointed 10 as having placed