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


1t appears Efrom these authentic facts.
which cannot be far from perfect accuracy,
that from 1886 to Al inclusive, the capital
invested in banking ranged from about eight
millions to,over eleven millions of dollars:
the accommodations by loans and discounts,
from about nine millions six hundred thou
sand to four millions six hundred thousand.
And from June ~ to the present time, the
capital has ranged from seven millions to
two millions of dollars; the loans and dis.
counts from seven millions to two millions
eight hundred thousand; and the circulation
from one to two millions. In the former
period there were from thirty.two to thirty
seven banks in operation in the EState, and
during that time, especially from 81 till al,
with the immense amount of bank loans,
bank issues and bank capital then existing
in this and the surrounding States, pecunia-
ry distress, endorsements, and bankrupt
cics existing to an alarming extent. Not
w~ithstanding the profusion of bank paper
and bank facilities, business and enterprise
were paralyzed public works stopped and gi-
ven up. and Improvements of all kinds re-
tarded. And, at that very time, the clamor
for more banks, more bank facilities, a new
GlIlt lIUpAC IiIllElllCiACu DuIIhluG S1SlCul WAS
beyond measure. At the sessions of 1915,
1867, SO, and 40-l, petitions for more
banks were crowded on the Legislature in
unequalled numbers. The delusion seemed
to holda portion of the people spell bound
with the idea that an addition to the bank
issues and bank loans, already existing to
an alarming excess, could relieve the coun-
try. And the Legislature was even cen.
sured as refusing TO do anything for the good
Of the country because the insatiate demand
for banks was resisted. But during the lat
ter period oftime the banks have been redu-
ced to tho number of ten since January, 43
and eight since January IA; and the loans
and discounts ofthe banks, have been reduced
to less than one sixth, and the capital and
circulation to less than one fourth the aver
age am%ountduring the former period. Bank
ing operations at the same time, in the sur
rounding States, have been greatly curtailed:
and in Michigan and Illinois perhaps more
thon in Ohio. The inordinate thirst fo
bank accommodations and bank facilities.
has decreased as the banks have disappeared.
The embarrassments and distress of the for
mer period are now TO be seen only in some
Of the rcmainsof the general wreck which
they produced. Thirteen banks expired sim
ultaneously on the first Of January, AZ and
instead of the ruin and disaster predicted
from the event, business and enterprise have
continued to revive unimpededi in their pro-
gress. Thus, as the banning system has lit
rally rotted down in the sink of its own fol-
" and corruption theprosper!ty 0 fthe coun-
try has received new life. Industry and en-
terprize, relieved from the bondage Of bank
ing operations, are recovering their energies
with renewed vigor; and commerce, having
in a measure thrown off the shackles of pa
per money, has replumed its wings for a ca
reer of prosperity.
Since the enchantment of bank paper
has, in a 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 ard elsewhere, and not on
the profusion Of the paper bubble. When
wheat will command q dollar a bushel in
New York, it will command u proportions
ute price in Ohio, although there be not
one dollar Of bank paper within the limits
ofthe State. Gold and silver is now a
bundant in the Atlantic cities, and the val
nc Of it cannot exceed the worth of the
currency with which our products are
now purchased more than the cost oftrans-
portation.
Actual experience has often exposed,
and that, too, with severe penalties, the
o%mpericism Of all attempts 10 enlarge the
circulating medium, aud stimulate the
prosperity ora country by an issue Of
paper money. Gold aud silver is, and
ever has been, the currency Of the COM
merclal world, and the standard Of value
to which every thing must conform. The
prices in the markets Of every other State
and country in the commercial world,
have their influence in fixing and regula-
ting the prices in the markets Of Ohio,
So, also, that currency which is the uni
versal standard Of value Of every other
State and nation with which we trade
eithor directly or indirectly, must regu.
" - LI- OLa