Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1844-03-26

y euVahce: Just twelve per cent. ,lpo;
g lne capital invested. And besides all thi,
4 the bank can realize avery considerabIe
y amount, BY dealing in bills of exchange
and selling checks and drafts. II NAV h
safely estimated, that, by The inleres, I'M.
. on The loans taken in advance, and by I :,
profits on dealing 10 exchange and al
; the business. gross profit, Of at leas
we've percent can be realized. The ia,
} imposed is one half per cent. upon III,
: capital which would amount 10 $500
Under the prudent management which
they would be compelled TO observe If,
! losses could not exceed an average o.
one per cent.On The, capital, which wo uld
amount 20 $1,000. The expenses of the
banking houses, bank officers, &c, ought
not 10 exceed $4,000, making in all, for
the entire expenses and LOST, -four ihoussrC
dollars, which would be four per cent
upon the capital. This would leave eight
per cent, net profit, for the dividend to
stock holders. This calculation does moi
Include many of the sources of profit and
convenience TO the stockholders which
the bank would afford, and it makes all
fair and reasonable slIowa noes for ex-
penses and losses, for an institution of this
extent OF capital.
What greater advantages, for The pur
pose of making profits, could capitalists
demand, than theses The most experi--
enced bankers in the State do not pretend
TO ask the privilege Of issuing a circula.
ton. or Of extending their loans and dis
counts, beyond the limit established bv
This law. 1t is true, there are many meu
cla'uing to be capitalists, who will not
engage in banking under the present, or
ANY other law, which will prevent them.
as money borrowers instead of money
lenders, from converting a bank into a
mere machine for manufacturing The
means Of loaning money TO themselves,
70 pamper their own iDordinate sppe.
tite for speculation, basing their banking
operations upon mere stock hOtes,, sight
drafts on the Atlantic cities,or some other
kind Of fictitious credit.
You Inquire, very significantly, in your
letter, why not give to The objections
made 70 this law careful conside ration,
and iffound valid, remove tbsmS' This,
sir, certaiuly has been done. The OBJ.
jectIons have received all due considera.
tiOn at the hands of the democratic psrr
" in the Legislature. At the last sesr
sion the objections made TO the law were
remedied by an amendatory act, land the
objections made at the present. session
have been shown to be OF futile and
fallacious character. IT, however, The
objections exhibited at the present session
had even been valid, the law could not
have been amended on account of the fact
that our political opponents have = ma
iorily in the House Of Representatives
When companies commence business un.
der this law, should any of the provisions
in the details of the law be found 10 be
Unnecessary n improper in practice, they
can be removed by amendment.
humbly conceive that the question
is now distinctly presented 10 the demo>
cratic party of Ohio, whether they are to
be driven BY the denuHc;ations of the ops
posite political party from safe guards and
liabilities for the reputation and control
Of The banking system which are just ,salu.
tary, and practicable, and imperalively
demanded for The public safety. If the
people reflect well upon the dangerous
and exOrbitant powers exercised BY an UNI
guarded system of banking, they will not
consent TO al abandonment of an existing
fortress for their security, Banks of issue
have the power of converting their promis.
sory notes into the money Of the country,
and by Substituting them for a portion of
The gold and silver currency, which ls
either hoarded by the banks or sent out
Oc the coan:ry, they are enabled TO re.
ceive an interest on their promissory nOtes
instead Of paying an interest as does the
private citizen. Located as they usually
are u the commercial points, they are {
enabled to intercept the flow Of the gold {
and silver cure ncy into The State, as
we'll as TO collect up the gold and silver
already in circulation, and send it out Of
the State; and By this means 10 keep in
their own paper. and the pa
per Of the banks ofths surrounding States,
npon which they do business A lcssC and !,
system of banking thus &C. q
ouires an omnipotent sway over the cur.
rency, that medium which constitutes the !,
standard by which is measured the value "
Df property. A lew individuals by haF- n
monv ofihterest, and through the subtle !
of credit and bank paper are. a
enabled 10 combine their influence and a
concentrate their energies in controlling I
he machiHoFy of The system land thus to d
contract or expand the currency, 10 make {
money Sbundant OF scarce at pleasure - O
The great interests and prosperity of The n
,OunRy are thus placed in the hands of a
! few men, and made subject to their t.
aprice, ambition, or cupidity, in the man IA
cement Of an engine, which in the lsHN !
.Uage Of Daniel Webster. is ''the most ef- Il
sctual meaDsaof fstilixfnE the rich p