The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1844-12-18

The laws Of trade, which regulate and
control prices and currency throughout
the crcleof trading nations, are as search
i9g, as aliaPervading aud as irresistible as
the laws o nature.
Vain, indeed would b. the attempt to
hedge IN the circulating medium Of a coun-
try, and pump 1t up to fullness BY the min
istry. OF banking Institutions. Tariff laws
Tor this purpose, and all other expedi .nts.
would prove but ropes Of sand, while trade
aud the exchange of Commodities with other
commercial nationsis at all permitted. The
commercial fluctuations and variations in
the quantity OF gold and silverin a country.
when nndisturbed by the expadients of paper
money are but the wholesome circulation of
the commercial system. They invigorate
enterprise and benefit all. But the aTtiici-
allFregulanties and fluctuations produced BY
paper money, hrst intOxicate enterprise and
then e%nieeble 1t, and spread disease and I'M
~Soundness into the whole system of trade so
lar as their influence extends. The enligh-
tened statesman born of England and of this
country, who have advocated the system of
Parks OF issue, have nevcrplaced them on
me Ground OF being necessary for the purpose
a- NNHRt f44s Il lAblC dDllludnL circulating
medium. On the cantrarg, they inform us
that 'it is the opinion of the best writer's on
the subject, that the most perfect bank cir
~culation would be one which would be pre
Clsely equal IN amount to what the circula-
ton in the same country would be in the
precious metals, were no other circulation
permitted"
Banks create debt, but not capital. Ac-
n Ildl pdNltaI lC Irnlu1gI ,nF,. b,. a.. --,I,
i've labor OF the country. An increase of
bank paper and bank loans, is evidence of
an increase otdebt in The country. A thaugh
banks produce debt, and not capital, vet Ry
the lnsldlous operations of the paper money
system, they levy a tribute upon the projuc-
tive industry Of the country, and take from
1t a large portion of its profits. This is
shown by the fact that although the addi-
ilonal capital to the wealth OF The country,
yet they accumulate large amounts ot ii from
the products Of labor. The amount paid to
banks, and the losses sustaincdby them in
tnGlr ultimate results, fall upon the products
OF labor. 1t would he useless to attempt to
eeiine all the '0>.dioas and mysterious ex-
peILentS by Winch The machinery of bank
oeDls-f:s paper money tax productive indus
tfy' ana usufp the legitimate rights of labor
IN thc distribution OF the wealth of the
county The direct tendency Of the system
as heretofore conducted in this country. is
70 'eAa 10 the opoiclce Of the few, and the
QaauPcrlsm Of the many.
some IDEA can BE- formed of the oppressive
ana desoiailng effects OF the parer money
system, from some authentic reports Oh the
suolect OF the losses sustained by it, and
"tlcAl Should never be lost siaht ofin at
teAlpts toestabIIsh a new system olbankinr.
II appears from a special report made by
ING present bank commissioner Ofthis State.
10 the Legislature, at the last session, that
since the year 81 nineteen banks in this
state nave been closed up and found insol,
vent and the loss Of the community by the
low price at which their paper is taken IN.
is estimated at one million four hundred
slu hEe thousand nine hundred and eighty-
nye dollars aud nlnety-onc cents, and the
loss by the depreciation Of the stock at six
hundred and eighty three thousand two
hundred and sixty four dollars and sew
eAly-slX cents. 1t is also estimated in TIE
same report, that the amount paid by the
people OF ONO i0r the price Of exchange in
tuc DlSihess OF the country above the proner
tate, on account OF The depreciation of the
paper currency Is ten millions five hundred
ana tAlfty-slX thousand six hundred and cigh-
ty-tnEree dollars and five cents: making d
total loss, within the last eleven wears.
70 Inc people OF Ohio, Of over twelve mil
iIonS ana u hall. This calculation does not
iiciude the losses sustained b. the paper of
broken banks IN the surrounding States: nor
tae amount prld TO the banks by the way of
interest Or discount, nor any Of the losses
sustained By the people in the bank revul.
slon which spread desolation and ruin
throughout the State between The wears IA
AMI "a. 1t appears from a report made to
the Senate OF the United States, BY the Sec
Rotary OF the Treasury, that the number of
banks which have b2Come insolrent in this
county, between the years IT'S and 1911.
aplQunt to 80, and the aggregate amount Of
me loss sustained by the government of the
y. Dates ana the people, is computed at
three hundred and siXty-fve millions four
hundred and htty-one thousand four hundred
and ninety-scTcn dollars, II also appaars
from the same authority, that the total a.
mount paid by the community to the banks for
tAe use o. them, the ten years preceding'4l
IN the y. States, ias been the enormous sum
OF two hundred and eighty-two millions,
winch would average annually twenty-eight
millions, two hundred thousand. Accurate
statistical and financial journals Of the times.
furnishes us with the following computation
OF the losses resulting from the recent bank
Teyu!son in this country, to wit:
On Bank circula. & deposits $54,000,O OC
nkcapital ta!led& deprecated 24S,000,G0C
Company Stock sO,0OO,00C
State stock deprecated 100, 000,0 200
Real estate 3OOOO0OtC
Total loss S7S2 Ono mr.
Startling as these facts may appear. wher
grouped together, they do not include an,
thing like all the injury and suffering produ.
ced by the immense fluctuations in the stan
dari Of value. And, it is correctly said
that "the greatest injury to society r%eslltin.
from this state Of things, is in the upheavins
Of the elements Of social order, and the ut
ter Generalization of men by the temptation.
TO speculations, which end in swindling Il
retain their llI-gotten riches" In ATTEMPT
ing to frame a new system of banking
nbecomes US to profit by these bitter fruit:
ofexpcrience, and provide against those evil.
and abuses which have heretofore been in
iiicted upon a suffering people.
A proposition has been recently made ir
this State upon the consideration of the LIE
pislati1rp AT the last snee;o,, .on.z.