Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1842-04-05
From Kendalls E1posit or. !
THE BANKING SYSTEM.
NJ NIL.
Galveston, March 10, 1912.

The BAN NhlNG S4SIEM.
No. /.
Experience, that ever safe though Sc
we're teacher, is fast opening the eyes Of
the people in relation TO the vices and
evils of the Banking System. Never was
there a time when the minds of men
we're in better condition to give heed 10
sound argument or more ready TO concur
in right conclusions in reference to a sub
iect which deeply involves the rights, in
teresls and morals Of the whole comhu-
nifty.
Look at the ruins which lay scattered
around. The general suspension Of spe-
Gle payments in 1887, when the Banks
had in circulation about two hundred
millions of dollars in promises to pay, de.
preCiated the whole mass about ten per
cent, and was equivalent TO a taX Of some
fifteen millions Of dollars upon the peo-
pie, instantaneously laid and collected
the second suspension, extening over
more than half Union, was within its
scope repetition of the same species Of
tax 10 the amount Of eight or ten mill
| ions.
All this was born patiently by the peo-
pie; for the banks having most Of the
presses and political men in their
interest or in their power, persuaded
the sufferers that this step was
necessary to the public good. In all the
States, the Banks took the government
into their hands, and through the LegS-
latures granted themselves all the indul-
sences they desired Revolution was
threatened, because the Departments OF
the General Government resisted this
Bank usurpation, and insisted upon obe-
dience 10 the constitution and laws in its
pecuniary transactions. This stand, as
every observing man now knows, by ar
raying against il the army OF banks and
bankrupts, was the principal cause of the
overthrow of the late administration in
1910.
Year after year have the banks obtained
indulgencies from tho State Legislatures,
sometimes bargaining for them with a
raco of Statesmen who dared not attempt
TO raise BY honest means, the funds to
meet State liabilities, but more often ex.
acting them without pretence Of an equiv"
alsnt.
To what consequences has this surren-
der of the government to the banks ledG
The Mssippi Banks we're the first 10 sus-
pend payment and the first totally 10 ex.
plOde exhibiting scenes Of fraud and swim
ding never before exceeded. Not warm
ed by this example, the other states still
quietly acqussCed in the Bank dominion,
giving fraud time TO mature its plans,
and leaving the Banks to blow up At their
leisure, when their managers should have
swindled to the utmost both the people
and the stockholders.
Look at that tremendous ruin, fearful
enough 10 be sublime, the lateBank Ofthe
United States. IL widows and orphans
have not been driven by a foreign enemy
from The hlackened wall Of their dwellings
they have been left starving within them.
Look at the Schuylkill Bank, the Girard
Bank and the Bank of Pennsylvania. In
addition 10 the plunder Of the people by
the depreciation Of millions Of dollars in
circulation, there has been lost TO the
stockholders in the city Of PHILADELPHIA
alone, more than forty millions Of dollars.
In every portion Of The Union similar
scenes are presented on smaller scale.
It cannot cs doubted that the losses Of
people and stockholders of banks, through
fraud and Encouragement, in our Repub-
lie, have within few years past, amount
ed to more than ONE HUN DRED MIL
LIONS OF DOLLARS. To this con-
Clusion any man will be led who reflects
but moment on the losses OF the people
upon bank notes in their hands, brought
aboutby the suspension and breaking Of
Banks, and the impairing and utter ami
hilation Of Bank Stocks, produced by sim
liar causes.
But this is not all. They increased
the currency Of the country 10 about two
hundred millions Of dollars in paper, while
at The same time we had an unusual guam.
tity Of specie in circulation, thereby max.
ing money cheap and increasing the price
Of property beyond all reasonable bounds.
Nov, they have withdrawn at least hun.
dred millions OfdollSrs Ol the paper cur
rency, and at the same time, in more
than half the Uuion, have, by continued
suspension, banishOd specie from circula.
tiOn altogether The natural effect Of
this tremendous reduction Of the cunen-
cy is the reduction Of prices so much bO.
low the proper level as they were raised
above, annihfiating the fortunes Of fmsn
who are somewhat in debt and smbarrpss-
ing all kinds ofbuSiness.