Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1840-12-08
NEW sERIEs.-voL l. NO. 19.
FfOm the Democratic Review for OetobsF.
FREE BANKING.

|
mo nallOn has a more instructive e1pe-
rehce on the subject Of currency than
!he united States. One scheme Of Bank
ing ailer another has been tried, with the
same result, an utter failure. The plan
OF National bank has been found 10 be
inconsistent with the urosDer;tv. poorala
and liberties Of the country. Banks cre-
ated BY the States, under a vast yarietv
OF regulations, have failed in accompIisb-
ing the prime object of their creation.
that Of furnishing a sound and eouabls
circulating medium. There is therefore
no other resort but to leave the business
of discounting and circulating notes.
where almost all other kinds of business
are left, to the control of individual saga.
city and enterprise. 1t is "a gross mis-.
take 10 suppose the interposition Of the
legislature to be more necessary here,
than in other branches oftrade. On this
point let the following observation suf.
fee:
!. Charters ofincorporation, apart from
political objections, are an endorsement,
by the state Of the solvency and character
of the corporators, which gives 6ctIcious
value to their issues over and above what
is due to them on account of their real
personal worth. This enables them 10
force more money into circulation than
the natural wants of society require, and
thus facilitates the fatal tendency to ex-
cessive speculation.
2. Every capitalist has a natural right
to dispose of his property and, his credit
in the manner he thinks best, provided hs
does not infringe the equal rights of 9TH
ers; and, according to the acknowledged
principles Of free trade, while promoting
his own advantage is most likely to ad-
vance the interest Of the community u
large.
8. Under free system, men of known
worth and wealth only could establish con-
fdence enough to procure free circula-
tion for their bills.
T. Such men are the best qualified,
having great interest at stake, 10 decide
upon the claims Of men applying to them
for accommodations.
5. Banking would be more precisely
adjusted TO the business of the country;
because there would be fewer induce
nents to, and no opportunity for, excess
We issues, personal liability and interest
essening the former, and unlimited
destroying the latter. And
6. The greater part Of the ordinary cir
;ulatiOn would consist Of the metals, while
oaper would be appropriated TO its right
'ul sphere, the heavier transaction Of
rade.
These principles, too briefly stated per.
laps TO be apprehended in all their force,
We hold TO be no less important than cor.
ect, and are destined to a general adOp-
ion by society, if not through the power
If reasoning, by the compulsion Of cir.
Artificial modes of busi-
what can be more artificial than
'ur systems of banking3-ineVitably lead
o vicissitudes and calamilies that pre-
,are the way for more natural arrange
nents. The long series of terrific explO-
lion TO which our commerce has been ex-
,Osed, cannot close while the chief cause
s permitted 10 remain. That cause is
he attempt to regulate, through the awk.
ward cOntrivances of Legislation, what il
eft to itself would work as smoothly and
as the unperverted mecbsn-
sm of the human system. The interfs-
'ence ofquacks and bunglers is the sig.
nal for arrangement.