The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1844-03-21

the bank paper of other States, is a hackueyed
one, and moIe spocious than solid. Il applies
with equal force; and by parity of ofTeasonng, in
favor of authorizing within our own Stlte, any
kind of deprecated currency which is permitted
10 circulate in the ueighboting States. The
argument is of this kind: because other States
tolerate deprecated currency, which, 10 some
extent, cgculates here, therefore il is good poll
cy for cur State 10 authorize The issue of de-
preciated currency at home, so hat our bankers
can derive the profits arising from depreciating
the currency. This argument was pressed with
great peTtinacty agains. the resumption of spe-
Gle payments in this State. We are told thatif we
compelled our banks to resume, that the post
notes and paper of the suspended hanks of the
surrounding States would become our almost ex-
elusive currency. But experience has shown
the fallacy of this notion. When our banks re-
sumed, the post notes and paper Of The suspend
ed banks of other States, instead Of increasing, |
Disappeared from our circulation, and chiefly for
the reason, probably, that our own banks were
compelled 10 cease doing business with that kind
Of currency. A few years ago, when all the
banks in this State were in full operation, the
bank paper of other States circulated here to a
far greater extent than it does at tho present
time At that time Michigan ''wild cat," and
"rattlesnake," as well as "fed deg" and The pal
! per of the State banks of Indiana Illinois, andI
Pennsylvania relief notes, &c, were the princl
Ipal part of the circulating medium in many parts
Of our State. The paperof foreign banks now
| circulating in Ohio must be small in gmount COM
pared with what il was few years ago, and there
! is doubtless more specie now in circulation IN
| Ohio than at any former period. 1t is useless
to deny that our currency is now in much bet
ter condition than it was few years ago, with
] all our banks in full opcration. And if the banks
| of this State were absolutely prohibited from pay
| ing out and doing business on the bank paper Of
other States, and all the collectors Of tolls and
other State county, and township officers, were
prohibited, absolutely, from receiving This iol-
eign bank paper in payment of the public dues,
lii would circulate 10 very limited extent, and
its place would be fully supplied with geld and
silver. II is an undeniable fact, that the people
Of Ohio have suffered over hundred fold more
tiom the banks within our own borders, than tom
the banks of other States. Persons residing
nearest 10 bank very oftcn know less CT its con-
dition, than persons thousand miles distant;
and when a bank fails, the great burden OF the
loss usually falls upon those living in the imme-
date vicinity of the bank.
|
/ favor Of a banking system upon telms moe lib
eral than the present law, at which | must bG
permitted 10 express my most profound aston
ishmont. You say that the banks Of this Stale
have paid Tax into the State Treasury, from
1891 up to this time, space Of thirteen years,
amounting 10 S463,lI7 90; and you inquire it
it be not an "adVantage 10 have this capital aid
ing in supplying an exhausted treasury, and re
! Ieving the enormous burdens Of the people -.
When we reflect that the banks have been taxed
only upon their dividends, and hatall o'herkinds
Of property has been taxed upon the amount Of
the capital invested, instead Of The nett profits o.
dividends, il is perfectly evident that the capital
4 which has been diverted from The mercantile
manufacturing and other investments TO that OF
banking, has bscomesfar less productive of rev.
enua 10 the State than it otherwise would have
been. Property in almost every form, except
investments in banking, is faxed Upon the amount
of capital instead of the profits real Zed.. II the
q capital Invested III banking daFsng these thirteen
: years had been invested in other pursuits, ii
would have yielded revenue 10 the State, per
j haps more than twenty fold as great. If capital
: within the last yoarhas been Withdrawn from the
4 business OF banking, large proportion of it has
! been invested in other branches Ct business, and
become more productive Of revenue TO the State
{ than formerly
Upon the other hand, lot the inquiry be insti-
: tucd as to how much the banks have taxed the
n government ard the productive labor Of the coun-
: try. 1t is an undeniuble fact, that banks poducg
G no capital--thoysonly concentrate, Or unite to-
S gether, in their particular business, capital and
: credit already existing in the county. And il
0 is one of the planest maxinls of political econo-
0 my, that capital is produced only by labor, or the
e productive industry Of the country. Banks re-
e ceye an interest Of six per cent. in advance, up
y on every dollar of paper which they issue. This
4 is paid, in the first nstancey by the borrower tc
the bank, but he is under the necessity of ma.
If king it up in his trade with the rest of the com
nlunity, that, in the long run, the capital paid
l. to the Bank as interest, comes out Of the products
& of tile labor Of the country. Thus, it is perfectly
il clear, that banks lay tribute, or tax, of six pei
il cent, compound interest, upon the products o.
1fIthe industry of the country, for their entire cir
u culation of paper; and by this means, is proper!
IS imperceptibly transferred from The hands Of thC
N producing or laborng, 10 the hands of the non
II producing part Of community. But this is no
IN all. The extensive losses sustained by the de
a probation of bank paper, arising from bank sas
Isl pensions, bank frauds, and bank explosions, fiji
u-fcheiy upon the productive industry of the coun
3. try, and thns constitute wide spreading mean
wi Of transferring properly from the producing to th
n-l lnon.producing classes Of society The extent {
o-lthe losses inflicted upon The people Of Ohio, an
celupofaall branches and departments Of the 60,
u ernment, by paying an interest to banks, and !
n bank suspensions, frauds and explosions, snc
la the year 1881, is beyond The reach Of calculation
of 1t must amount to many ymillions. The Secrets
- ry Of the Treasury Of The United States, in a Il
re port 70 Congress, made in ls4I, thus sums i
Ter the losses sustained by banking institutions
l. tt;eg costnfr,.