The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1844-12-20


Iappears from these authentic facts, which can
not be far from perfect accuracy, that from 1886
1910, inclusive, the capital invested in bankin,
ranged from about eight millions to over clever
millions of dollars; the accommodations by loan
and discounts, from about nine millions and hal
to near thirteen millions and half the paper issuet
for circuatian, from about nina millions six hun
hundred thousand to four millions six hundret
thousand. And from June. 1912, to the presen
time, the capital has ranged from seven millions t.
two millions of dollars; the loans and discounts
from seven millions to two millions eight hundred
thousand; and the circulation, from one to two mil
lions. In the former period there were from thirty
two to thirty seven banks in operation in the State
and during that time, especially from 1887 till ls4l
with the immense amount of bank loans, bank issue.
and bank capital then existing in this and the sur
rounding States, pecuniary distress, embarrass
ments, difficulties and bankruptcies existed to ar
alarming extent. Notwithstanding the profusior
of bank paper and bank facilities business and en-
terprise were paralyzed, public works stopped and
given up, and Improvements of all kinds retarded
And at that very time, the clamor for more banks,
more bank facilities, new and more enlarged
banking system, was beyond measure.
AT the session of 1856, 1867, 1883, and
lS40-il petitions for more banks were crowded
on the Legislature in unequaled numbers The
delusion seemed to hold portion of the people
spell-bound with the idea that an addition to the
nd haply
alarming excess could relieve the country. And the
Legislature even censured as refusing to do any
thing for the good of the country because the nsa-
tiate demand tor banks was resisted. But during
the latter period of time the banks have been re-
duced to the number of ten since January, ls43,
and to eight since January, 1874; and the loans and
discounts of the banks have been reduced to less
than one sixth, and the capital and circulation to
less than one fourth the average amount during the
former period. Banking operations at the same
time, in the surrounding States, have been greatly
curtailed; and in Michigan and Illinois perhaps
more than in Ohio. The inordinate thirst for bank
accommodations and bank facilities has decreased
as the banks have disappeared. The embarrass-
ments and distress OF the former period are now to
be seen only in some Of the remains of the general
wreck which they produced. Thirteen banks ex-
pired simultaneously the first of January, 1913;
and instead Of the ruin and disaster predicted from
the event, business and enterprise have confined to
revive unimpeded in their progress Thus, as the
banking system has literally rotted down in the sink
of its own folly and corruption, the prosperity of
the country has received new life. Industry and
enterprise, relieved from the bondage of banking
operations, are recovering their energies with re-
newed vigor; and commerce, having in measure
thrown off the shackes ofpaper money, has replum.
ed its wings for career of prosperity.
Since the enchantment of bank paper has, in
measure passed off the fact has become palpable
that the prices Of our commodities in Ohio, depend
upon the prices which they will command in the
Atlantic cities and elsewhere and not on the pro-
fusion of paper bubble. When wheat will com.
mand dollar bushel in New York, it will COM
mand aproportionate price in Ohio, although there
be not one dollar of bank paper within the limits of
the State. Gold and silver is now abundant in the
Atlantic cities, and the value of it cannot exceed
are now purchased more than the cost Of transport
tation.
Actual experience has often exposed, and that,
too with severe penalties, the empiricism of all at
empts to enlarge the circulating medium, and stim-
late the prosperity of country by issue of pa
per money. Gold and silver is, and ever has been,
the currency of the commercial world, and the |
standard of value to which every thing must con-
orm. The prices in the markets Of every other
tate and country in the commercial world, have
heir influence in fixing and regulating the prices in
he markets of Ohio. So also, that currency which |
s the universsl standard of value of every other
tate and nation with which we trade, either dir ect
or indirectly, must regulate end control the cur
ency of Ohio. The laws of trade, which regulate
md control prices and currency throughout the cir
lie of trading nations are as searching, all per-
,adng and as irresistible as the laws of nature.
VAN, indeed, would be the attempt to hedge in the
medium Of county, and pump it up to
illness by the ministry Of banking institutions.
Tariff laws for this purpose, and all other expedi-
,nts, would prove but ropes of sand, while trade
md the exchange of commodities with other CON-
nercial nations is at all permitted. The CONNER
;ial fluctuations and variations in the quantity of
,old and silver in country, when undisturbed by
he expedients of paper money, are but the whole.
ONE circulation of the life blood of the CONNER
ial system. They invigorate enterprise and bene-
il ALL Butthe artificial Irregularities and fluctua-
ions produced by paper money, first intoxcate
aud then enfeebe il, and spread disease
unsoundness into the whole system Of trade far
s their influence extends. The enlightened states
men, both of England and of this country, who
ave advocated the system of banks of issue, have
ever placed them upon the ground Of being neces-
ary for the purpose Of supplying more abundant
irculating medium. On the contrary, they inform
IS, that sit is the opinion Of the best writers on the