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


independent Tre6s6ry bill, as that &C
: did not pass into law until the fourl
. Of July last, and produce had fallen I
Q iIs.l lowest point, aud the principle cur
= laiment ofthe banks had taken plac
: previous tO that tine. What Olhsr &C
Q will be pointed to2 Surely no other 0
y this administration. II cannot be SO
3 riousIy claimed that the acts Of The lat
e admnislralion-the veto Of the Unite
= States bank, the removal Of The depos
Q its, and the specie cifcular-have sud
? denly, in ls39-40, many years afle
= they occurred, begun 10 act on Ih'
3 banks and their interest so as to com
{ pei them TO curtail their circulation
, They had no such effect or influence a
the time they took plase. The banks
! long after these acts of the late admin,
is,ratIon, continued 10 increase in num-
T ber, and extend their circulation, until
in 1886, when the tide Of paper money
} became so great that it Began to roll
back upon them.
The charge that those, who have been
intrusled with the administration of the
General Government, have made war
on the banks, and that therefore they
have been compelled to curtail their
fcrculation, is not warranted by the
facts. Almost the first act that Con~
gress did, after the present administraG
tion came into power, was the repeal
of the specie circular, which the banks
complained of as Injurious to their in
terest. In May, 1887, when the banks
closed their vaults, with many millions
of The public money, which they were
unable to pay, Congress, in accordance
wIlh the views of the Executive, allows
ed them liberal time to make payment,
although the government was forced to
issue treasury notes TO supply the def
cheney. So far, therefore, from the
government making war on the banks,
taking any harsh measures towards
them, leDient course was adopted,
with the view Of aiding them to extri-
cate themselves from difficulties INTO
which they had become involved, by
their Encouragement. There has been
nothing, therefore, in the action Of the
late or presen, administration, 10 justify
the banks in the extraordinary curtall-
ment oftheir circulation.
The charge that The scarcity OF mon-
ey, and consequent low price Of pro-
duce, has been caused by the legislative 7
action of the two last sessions Of our
General Assembly, is equally unfoun- /
ded. II would be sufficient answer
to this charge, 10 refer TO The dminuton
oflhe currency, and the fall in the price
of produce, in every other State in the
Union. What has caused the scarcity
Of money and low price Of produce in
he States Of New Y ork, Pennsylvania,
Kentucky, Indiana, and | might add, ev.
nv othe" Slstea 1t has been, undoubt.
edIy, owing TO a general cause, which
mas acted alike on all, and produced the
same effects and consequences every
where. ! speak in general terms. |
I'm aware that many Of the banks, ac-
ualed by motives which we are left TO
conjecture, have curtsiled their crcula-
ion TO much greater extent than wes
imposed on them by any actual neces-
NY.
What are the acts Of which the banks
'pmpIu'", snd which they may call on
Won at this session to repeaR The first
: the act 10 prohibit the banks from ls>
'nng, or putting in circulation, notes
inder the denomination Of FIVE dollars.
Is there any necessity for repeating this
aw? Has it come to this, that the banks
are unable to do business, proiiiably, un
ess they are permitted to issue small
notes? admit that small notes are the
most profitable issues bank can make.
BY putting them in circulation at dis
ant point, many ofthem are won out
Or destroyed, and never returned to the
bank for redemption. This is so much
clear profit 10 the bank, and is es,ima-
led BY experienced bankers 10 be worth
ffleeu per cent. But what the bank
makes in this way is so much for dead
vss to the pubic. On small note cir
,ulalOn of two millions, the banks
would make, by the loss and destruc-
ion oftheIr notes, fifteen per cent, or
hree hundred thousand dollars. This ,
would be taken from the community
Without any consideration, and would {
'e unjust and lnequitable; and when the !
ssuing of small notes is resorted to With
he view Of obtaining this profit, it IL
ross fraud on the public. The very
eason, therefore, that may make it de-.
irable to the banks 10 exercise This
'ower, ought to be a conclusive one far
lot permitted them 10 do 81. There is
10 necessity for permitting the banks
o put in circulation their small bills, and
hus drive out of circulation every thlny
n the shape of coin, leaving the public
lothIng but a paper Currency.
The second act complained Of is the t
me that Prohi5ds the establishment. 5
within this state, Of any brancn, Office, t