Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1844-12-17

v culauOn permitted. ,
b. Banks create debt. but moi capiisl.-
. Actual capital is produced only By III
d productive labor oI the country. An in
e crease OfbsDk paper and bank loans,
j evidence o. an increase OF debt in th
: country. Although banks produce deb
aud not capital, yet By the insiduous Op
: craGOns Of The paper money system, The,
s levy attribute upOn The productive indus
: Try Of the county, and take from il I
D large portion Of its profits. This is show
by the fact that although they add no &C
( iual capital 10 the wealth Of the country
, yet they accumulate iarge amounts Of j
, from The products of labor. The ameGn
paid to banks, and the losses sustained
by them in their ultimate results, fall up
on fhe products Of labor. II would b
useless 10 attempt 10 define all The insidi
Gus and mys. .eriOus expedienis by which
the machinery Of bank debts aud paper
money tax productive industry, and
usufp the legitimate rights OF labOr in The
disirihution Of the wealth Of the country.
The direct tendency Of the system as
heretofore conducted in this county, is
10 lead TO The o2uleHce of the few, and
the paHperism OF the many.
Some idea can be formed of The op,
pressiye and desolating eff cts of The pa>
per money system, from snme' auhhentic
reports or The sabject olahe l1sssb'sus.
tOined by II. and which should never be
lost sight Of in attempts TO establish a.
uew system Of banking. II appears fSom
special report made by the present bank
commissioner of this State, 10 The Leg.
islaiure, at The las, session, that since
1.-The year 1884, nineteen banks in, this
State have boen closed up and found IN.
solvent, and The loss OF the community
by the low prlce at which their paper was
taken up, isesiimatod al 81 ,405, ,965 81,
and The loss by the depreciation of. the
sock at $6s3 ,264 rs, 1t is also estims,
ted in tx, same report, that The amonnt
paid by the people Of Ohio for the price Of
exchange in the business Of the country
aaOt The proper rate, on accounted The
depreciation Of the paper cUrrency,isSlO,.
$50, 1888 O5, making total loss within
the last eleven years, 10 the people o!
Ohio, OF oyer twelve millions and abalf.
This Oalcula tion does not include the
losses sustained bV tbs paper Of broken
banks in the surrounding States, ner ths
amount paid 20 the banks by the way OF
interest or discount, nor any Of the losses
sustained by the people in the bankfe
vulsicn which spread desolstion aud ruin
throughout the State between the years
1914 and 1924. 1t appears from report
made 10 the Senate Of the United States,
by the secretary Of the Treasury, that
The number of banks which have become
insolvent in this Country, between the
wears 1859 and 4S4l amount 10 395, and
the aggregate amount Of the loss sustain-
ed by the government of the United
States and the people, is computed at
1866 ,451, ,497, II also appears from
The same authority, that the total amount
paid by the community 10 the banks for
tho use of The len years preceding
IS4l, in the United States. has been the
enormous sum Of $2S2 900 900, which
would average, annually. S2S ,20O, 900.
Accurate statistical aud financial journals
Of the times, furnishe US with the fol>
loving computation Of the losses result
linz from the recent bank revulsion in
this country, TO wit:
On bank circulation and de-
posts, o4,OUO, ,UOV
Bank capital failed and
deprecated, 24S SUO0,OOO
Company stock, 10000, 600
State stock depreciaied, 100 ,000,0 900
Real estate, 100000, 600
Total loss, S7S2 600, 900
Startling as these fncts may appear,
when grouped together, they do not in-
Cluds any thing like all the injury aud
suffering produced BY The immense Hucs
luations in the standard of value. And,
Ills correctly said, that 'Ihe greatest inju-
~ TO society resulting frsm this stale Of
things is in The upheaving Of The elements
Of social order, and the utter demorallza'
ton OF men by the temptations e specs
ulalions, which end in swinding TO retain
theiril, gotten riches" In attempting 10
ffame new system of banking, it be.
comes US to profit by these bitter fruits Of
experience, ,and'prOvide against those evils
and abuses which have heretofore boen
inflicted upon the suffering people.
A proposition has been recently made
| in this State upon the consideration d
the Legislature at the last session, some
Il what new inils character 10 the peOple .
lOhid. II proposes the eslablisment Of
A banking system based upon GOvegnmeu
: stocks, win the specislspowers aud ex
} smptions Of the old systeIn uKder the prc
visions Of d gensrallaw The capiialS !
J. the banks is supposed 10 be invested !
+ State stocks as an alledgsd security
I, the bill.holder, OF III othsf words, tn
rs banks are 10 be founded sn the basis
X Government debt. and bank debts are
ID be made dependen. on the esbls'oi Y
aa Government fOE flIeif tsenIsty: Or
~ ~ &f9a y "a tsttsi II ~ US ~ it 80