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

the devices and legerdemain practced in stocl
jobbing in Wall street, New York, and Threat
needle street, London.
The investment of the capital Of the banks i
] government securities would be no shield agains
fraudulent banking The stockholders BY arrang
ments with the brokers ID New York, could pur
chase stocks upon credit, upon which to establis
their banks, and then lend out to themselves tn
funds with which to pay for the stocks upon whcl
the banks were founded. Thus, by indireciion
| the banks can manufacture the means of creatin,
their own capital, without drawing one dollar O
actual capital from the pockets Of the stockhoder
themselves.
The investment of the capital in government
securities is urged under the plausible garb o
security TO the bill,holder. This, however, is de-
lusive. The public domain and the credit of thu
government was pledged for the redemption o
the French assignats and mandats, and yet these
paper currencies, because they could not at all
times be redeemed on demand in specie. deprecia
ted and became pests to the country. The notes
of the bank of England have already been secured
by pledge Of the national wealth, by means o
the capital of the bank being part Of the public
debt; yet this bank suspended specie payments,
and continued in state of suspension for twenty
three years at one time, and its paper fell below
twenty five per cent. discount. An accumulation
Of government securities, or pledges of real estate
for the ultimate redemption of bank paper, can
never secure it from depreciation. Nothing but
certainty in its punctual conversion into specie on
demand, by keeping the capital always at perfect
command and using it only on short loans, on
strictly commercial paper, can keep paper money
within bounds, and prevent its depreciation.
The State debt is subject Of deep solicitude
and vital interest to the people of Ohio; and to
which your attention cannot be too carefully d.
rected. The following, so near as it can be readi-
ly ascertained, is the condition of the State debt,
as it will stand on the first OF January next.
FOREIGN DEBT
Annual interest
s pr cent stock, redeem
able in 1850, $40O 900 90 800 900 90
s pr cent stock, redeem
able in 1885, 10000 90 $500 90
6 pr cent stock redeem
able in 1850, 4,O43, ,65s IS 2426I9 SO
6 pr cent stock, redeem
able in 1856, 3,4l2,779 2l 2O4, ,766 rs
6 pr cent stock, redeem
able in 1860, 6,s55, ,IsI 90 all, l,3I0 So
6 pr cent stock, redeem
able in 1870, 667,O63 so 4O,O23 81
Z pr cent stock, redeem
able in 1850, 100000 90 IO5 900 90
"
Total, l7,02S, ,6S2 so l,03I .220 95
Sinking fund stock to be
deducted, $4,000 90 1880 90
Total of foreign debt l6 945 ,6s2 so ,O26 ,24O 95
DOMESTIC DEBT.
Amnt due the several
school funds, Sl,4A.s42 "a ss6. 800 IA
D u tstanding domestic
bonds, 734. 1859 36 44O92 l6
Surplus revenue paid in
by counties, 59,52s 66 s,57l AZ
Same, loaned by State of
counties, S2,40I 6I 4944 10
Domestic scrip Of vari-
Gus kinds, 29,432 OIL l,765 90
Grand aggregate ofState
debt, 1926, ,75l 7S |, 1,l67, ,444 SO
The amount of the interest on the public debt,
he present year, is about equal to one half Of the
'ntire burden imposed upon the people of the
State by way of direct taxation. The public debt
,as been contracted for the sole purpose of the
of public works within the State -
The total actual expenditure OF the State in the
'ublic improvements, including the Miami Exten-
ion canal amounts to $ls, ,755, ,795 90, which is
ess than the amount of the public debt. This
mount of the actual cost of the investments in
'ublc works, was in part paid by direct tax lev
ed for some years for that purpose; in part by
rants OF lands by Congress, the proceeds of which
mount to 81 ,357,74s 43. About 5000 900 of the
onds of tho State have been redeemed by the
roceeds OF land sales. And besides all, the pre-
NUNS received on some of the loans, and the
onations of lots and subscriptions, may be safely
stimated at $500,O0 |: appears, therefore, that
he amount of the public debt contracted on
ccount of the public works, amounts to between
wo and three millions more than the amount of
the actual investment of the money borrowed
, the public works. This amount, of between
wo and three millions, has been in some manner
OF as yet fully explained, dissipated and sunk in
he operation of financiering in the creation and |
of the State debt.
At the close of the year 1885, the Ohio and |
iiami canals were completed, and the debt of the
tate was then "a 500, 900. The chief part of the
tate debt has been contracted during the late
we'll and reAux in the paper money system, COM
encing in 1886, and ending in 1912, and show
x what similar occurrences in other countries,
I'd at other times, have never failed to exemplify,
lat government debt has been the unfailing con-
'mitant of the growth and expansion Of the paper
oDey system.
The honor and public faith of the State has
therto, been strictly preserved, and will doubt
ss, ever continue to be preserved, by punctual
,mpliance with all our public engagements. The
lblic virtue of our people, and their patriotic
gard for their liberties and the character OF re-
iblIcan institutions, is sufficient guaranty that
e integrity of the State will be kept nviolate
hepublic debt, however imposes onerous burdens
, the people, and creates a humiliating depen-