Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1840-12-15

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the patriot and statesman, who desire
to see the industry ofthe country prots,
ted from the plunder and fraud Of inoo,
porated wealth.
If the effort to reform our banks sboul
prove unsuccessful, the remedy will h
found in the substitution of banks of dis
count and deposit for those of circnIa
ton.
The banking system, as it exists !,
this country, and in England, has a direc
tendency to lead to the opulence of N,
few, and the pauperism of the manv
Such has been its undoubted effects I,
England, and such has been, and will
continue to be, its effects in this country
so long as mere credit, and not capital /,
permitted 10 tax labor. Its Influences II
this particular, is worthy of investiga
tion.
There are upwards Of nine hundred
and fifty banks in the United States. bn.
wing an aggregate capital of about three
hundred and twenty-four millions. The
whole amount of specie upon which this
immense banking canital rests for ifs ba
sis, does not exceed forty, or al most. fiE
ty millions, leaving between two hundred
and seventy-four, and eighy-four millions
OF bank capital TO consist of nothing but
credit; or, in other words, the stock notes
or bonds of the stockholders, and bank
notes. 1t is obvious, that paper system
testing mainly on credit or paper, instead
OF gold and silVer--the only basis on
which banking can be safely conducted-
can neither be safe to the public, or reg-
ular or uniform in Its action. Such pa.
per system will ever be disturbed by the
slightest reVerses IN the trade and busi.
ness operations of the country, and una.
Bile to withstand the shocks TO which the
trade and business of every commercial
community must occasionally be subject
ed. But the capacity and inherent fen
dency, TO double the currency at one
time, and diminish il one half at another
and thus increase or diminish the nominal
value Of every mans property and labor
one half-is utterly ruinous to everv great
interest in the country, Whether this
irregulariiy is brought about by thosefwboI
control the banks, with The view of specu-
laton, or is ,the neoepsa-y and unavoida.
BILE operation of the sysTenY itself. makes
no difference, so far as the effects and
TO the public are concerned
Every expansion by the banks, bevond
The real wants of the country, must be
followed by corresponding contraction,
When they discount freely, and food the
country with their paper, they give to
he times deceptive appearance of pros.
'erily. The merchant is induced to
'xtend his business, contract unnecessary
Iebts, and engage in doubtful specula-
lons.-The same remark is applicable. in
ONE degree, to the whole communitv
We are liable to be deceived BY the an.
earance of good times. We contract
ebts more freely, live more extrayagant.
:, and are less disposed to labor. The
Ontraction of the currency, which must
{ necessity follow, and which we are un-
BILE to foresee, finds us involved in debts.
hlch under a limited circulation, we are
nable TO pay, and an extended business \
hich we cannot sustain. The conse. I
lences are peculiarly severe and un, S
st, IN all the debtor portion of the com. t
unity, the farmer who contracts TO
~ debt of thousand dollars, when d
10 currency amounts TO eight millions. v
I'd wheat one dollar bushel, finds, when f
e circulation is reduced TO four millions. c
y consequently wheat to fifty cents a d
'sheI, 1t takes double the produce, and n
nseqnentiy double the labor, TO paw The [
lot, that it would have done if the cur l
'lcy had remained the same. The b
me principle applies to the whole debts ii
community. 1t is true, what one il
IN loses, another may gain, but the los. te
d gain are unjust. Thus, by creating c,
uncertain and Auctuating measure Of Ii
ue, contracts between man and man Ii
impaired, and virtually changed. tv
The prejudicial effects of this inflated th
yer system, on our manufacturing and tn
porting interests are still more palpa. tv
. Double the amount of the circula- of
medium Of this country, and you dou. ia
, or at least greatly enhance the nom slI
price of foreign merchandise. The er
70 OF every thing that is I'D 10 be con. de
led here, goes upwlth the imitation of an
currency, while the price ofour cotton. Of
other staples, FOR export, will be req. th'
ed by the price they bear in the for. ty,
market, 10 which they have TO be the
sportedior sale. Our exports. then.
We no advantages from an increase of mi
currency, beyond the real wants Of of
country, while foreign merchandise is ev,
orted and sold, at our inflated paper tioI
es' and the coin or its equivalent, ia. alo
OUT OF the country in exchange. The thi
Ct tendency, therefore of this system. the
hold out bounty to the foreign man. by
luFer, to bring his wares into the and
TRY for sale; thus operating so as TO by