The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1840-12-18
oodkf (oHro) DECEMBER IS slo

but the idea Of paying our debts by the
creation of more paper money is agross
Ialiocy. We cauno! pay debts BY the
creation gilmore debts Every additional
bank note issued, ls but the creation of
ne" debt which the hank owes to the
holder. II is not weailh-it is not cap
ital--and il is idle to think Of lessening
tho debts OF a country in this way. We
may shift or change our responsibilities,
but they will still exist in some shape or
other, until paid by the creative ener>
gies Of the hand oflabor. The banking |
capital Of the state is now near twelve
millions, which is amply sufficient, in |
the opinion OF prudent bankers and bu-
siness men. to furnish all the means me-
scessarv to carry off the surplus produce
Of the State.
A UNITED STATES BANK.
The creation Of a United States Bank
with a capital Of fifty or thousand mil
lions, is advocated BY some as the most
effectual means of restoring stability,
uniformity, and safely to cur currency.
Throwing out Of view the constitutional
objections to such an institution. aud
viewing it merely as question of ex-
pediency, am forced 10 believe that
such an institution would but add to the
insecurity and evils Of our paper system;
and. in its political tendency, endanger
public liberty, What additional secu-
rity would belong 10 an institution deri-
wing it's corporate powers and privil-
eyes from the General Government 1t
is not proposed by any one to make !he
General Government, in any event, liza.
bic for the debts of the bank, further
than as common stockholder. Is il a
matter, then, Of any consequence to an
institution, whether i, derives its corpo-
rate powers and privileges from State
or the General Government? So far as
it's real and substantial security is con-
cerned, II can make no difference. I'm
each case it's credit must, or ought to
depend, on its ability to meet the de-
mands against it, and the skill and in
tegri,y with which its affairs have been
conducted. In each case the institution
has to be controlled and managed by
individuals subject to the same errors VI
, judgement, the same passloue, impulses
and feeling that belong 10 mankind in
general. Whst reason is there, ihere-
fore to hope tha, United States Bank
, would be governed by more wisdom
prudence and skill than sta,e INSTITUTIONS
= What reasun have we 10 belhve that
j. would be characterized by the saW
o system Of hazardous speculation an
. unsafe banking, that we have witnessed
v in large majority of the local banks
>, as we'll as IN the late bank Of the Uni
:. ted Statesi These are evils that ap
pear to he inseparabIe from whence
r bank NAV derive it's powers snd privl
= eyes, car make no difference as 10 il
y action or ils disposition TO do good.
A United States Bank, It is said
;. would derive a credit from its nationt
. . name and character, This msy be true
~ but such credit is unrc al, unsubstantia
- - and deluslye, aud is calculated rather
=. deceive Than to benei, the public. Th
credl, Of bank, like that Of an indiviC
n ua!, should always rest on some!hiu
real aud suhslaniial; no, on mer
name that can be Of 10 service 10 tb
70 creditor or the bank, in the hour OF re
= difficulty. Such fictitious credit as
'e thrown around bank by it's nalion
10 character, may give TO its paper vii
ID der range OF circulation; but this is on
7. calculated to lead TO excessive bankir
ID and over issues, without furnishing ar
'e corresponding ability IN the institute
III 10 meet the demands agains. it. SUI
J. was the case with The late bank Of Il
OF United States. The history of the tint
to prove, that al every period Of excessi'
IL, banking, from 1916. when it was ere,
W ted, down to 1886; when its charter 9!
in pired, it was the first to expand, and 4
r. first 10 contract its circulation. 1t is
DO fact, proved from unquestionabIe dat
an that in every expansion that occurred
al ring the whole time Of its existence,
J- increased its circulation 10 far gre
" Ter ratio, than the increase OF the curf
g. ~ by the other banks. A,two d'ffe
SO ent times, il was brought to the We
a. brind Of insolvency, as admitted by
We own officers. During it's existence
sh had no less;than four ruinous expansio
ne and corresponding conuactions, with
l. their attendant evils. For a very co
ng siderable portion of its duration, the e
~ changes were in more deranged OF
ne than they are now. The pros,rati
ice ofbusiness and prices, from 1916,
no 1926, are without any parallel in
IN history of this country. In this Sta
the bank was 80 universally consider
10 as the principle sgent in producing I
e. mischief, that the Legislature, by an
ca most unanimous vote, passed law t
IN ing the branch located here, with
ID sole view of expelling it from our b
tne ders. At this time, and upon this o