The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1844-12-12

enc reports on the subject Of the losses sustained by
~ and which should be los sight Of in attempts
70 establish new system o. banking appears from
aspeca report made BY the present bank commissioner
Of this State the Legislature athe last session. that
since the year 1884, nineteen banks In this State have
been closed up and found insoVen and the loss 10 the
community by the low price al which their paper was
taken up s estimated at 81 9o5 81 and the loss by
the depreciation Of the stock at $6S264 76 is also
estimated in the same report that the amount paid by
the people Of Ohio for the price OF exchange in the bu
Sness OF the eonny above the proper rate on account
Of The depreciation Of the paper currency is SlO 1885,
S53 o. making total loss within the last eleven years.
10 the people Of Ohio Of over twelve millions and
half This calculation does moi include the losses sus-
taned BY the people in the bank revpsiOq which spread
desolaon and ruin throughout the State between the
yeare 1914 and 1924 appears from report made to
ihe Senate Of the United States by the Secretary Of the
Treasury that the number Of banks which have become
insolVen in this country between The years 1889 and
l6il amount to 495, and the aggregate amount Of the
loss sustained BY the government of the United States
and the people is computed at $685. 45l 497 1t also
appears from The authority that the total amount
paid by the community 10 the banks, for the Of them
he ten years preceding sil in The United States, has
been the enormous Of 1882 0000 600, which would
average annually, $29200O O00 Accurate statistical
and financial journals OF the times furnish with the
following computation Of the losses resulting from the
Jecen, bank revnlsiOn in this country, to wit:
On bank circulation and deposits, $54, ,00G, 900
Bank capital failed and deprecated, 24S OhO0 600
Company Stock 90 900 900
State stock deprecialed l00,0O000O
Real estate 30O 600 600
Totalloss, S7S2, ,000, 900
Startling as these facts may appear, when grouped
Ogelher they 60 not include any thing like all the inu
ny and suffering produced by the immense fluctuations
so the standard OF value And 10 correctly said tat
"lhe greatest injury society resulting from this
Of things is in the upseaving Of the elements Of social
srder and the utter decentralization of men by the temp
taons 10 speculaons which eDd in swindling 10
their III gotten riches" In attempting t. frame new
system ol banking becomes profit BY these baler
fruits of experience and provide against those evils and
abuses which have heretofore been inflicted upon The
suffering people
~ A proposition has been recently made in this State
upon the consideration Of the Legislature at the last
session. somewhat 10 is character to- the people OF
Ohio II proposes the establishment Of banking sys-
pem based upon Government stocks, with the special
powers I'D exemptions Of the old system under the pro-
visions Of general law. The capital Of the banks is
supposed to be invested in State stocks as an aledgsd
security 10 the billholder or in other words The banks
are be founded on the basis of Government debt and
hank debts are be made dependent the debts oil the
Government FOR their security OF all the schemes for
banking which have been devised this is the most OBJ
fectionabe and the most dangerous in s tendencies to
ins independence and putty oil the Government and the
Hberes Of the people, II rests funda mentally upon the
principle upon which established the bank of
England the capital Of which was originally, and has
continued invested the stock DEBT Of the Govern
ment Proposes union Of bank and Stale the for
nation OF ncestuous and unholy coalition between
an organized and combined moneyed interest," and the
eivi power upon which people depend for the safety OF
their liberties Thedehtor Is correctly said 10 be the
slave Of the creditor the State under this system
would become lhe-dependent & subserVient Instrument
the banking interest The establishment of this system
would at once creaieand build up within the bosom OF
cur own State combined and extended moDeyed powell
having direct and nhefen interest in pepeuating and
enlaTgng the debt OF the State The stock Of the Stale
would not only be- found 10. BE profitable investment
for The capital of the banks but an investment in po,-
cal power, The GoveTnHent wouid Become cloak
forihe frauds and olies OF the BANKS The State debt
would grow with the growth and Strength of the banking
tnteresiS And IN the lspse Of time the nsdious en-
eroschmens Of this power holding the euife properly
Of The State subject 10 taxation, under pledge from
the State io'dIscharge the interest the public debt
would ultimately transform the Government, as il has
done ia England, into mere engine in its own hand
the collection Of the profits Of labor BY the process Of
iD1alisn FnrtheFmore paper enreney in this State
has been found already in agreal measure dependent
TIE money market and State oil The oFeda system in the
Atlantic cities and in England BY the proposed sys-
tem Of banking, this h0iiatng chain Of dependence
s would be augmented and tho value and basis Of our
banking capital would be dependent upon the nueiua
lions IN the stock markets in,New YorR and in London
The currency whlch forms the standard OF value In
Ohio would be made sabeci the eontrofof the de Vi
oes and esenemah praeIiced In stock jobbingin W all
street, New York. and Threadnecdle street. London.
s The nvesnenr0i The capital of,he ba inks 10 govern
nent securities would be no shield against fraudheD
banting The stockholders BY arrangements with lhs
kokers in New York could purchase stocks upon credit
upen which to establish their banks and then lend op
b. themselves the fluids with which 10 payio le sscks
upon which the banks were founded. Thus, by indre;
Hon hs banks can manufacture the means OF creating
= their own capfs without drawing one dolarof actua
- L. IL.