The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-09-13
THE WHIG BANKING LAW


of the last session Of the Legislature, is one Of
those attempts to institute permanent financial
plan, which, the more they are examined, the
more sure they are of meeting with strong popular
condemnation. Itreminds US of those wall paint
ings, to be seen in Italy, which, gazed upon from
short distance, present clear pictures of various
objects; but which resolve themselves into mass
of confused daubs, when closely approached and
narrowly examined. Distance of examination
lends enchantment to the view Of this banking
law. As one instance of its deceptive character,
take itsprovison securing the issues of indepen-
dent banking companies by the pledge Of State
stock. This certainly looks very fair, and to the
superficial observer, it would seem to render the
apprehension of loss to bilho!ders, in any event,
quite impossible. Ohio State stock, it would be
said, must always be good. But if something
more than superficial examination is made, the
error Of the plan, and the risk by the mass Of
the people oilosng by it in season of pressure,
becomes very apparent. Ohio stock is undoubt-
edly good, and we doubt not that our State will
ever fulfil its obligations to its creditors. But
Ohio stock is not free from those mutations to
which all sublunary things are subject. Ohio
stock has been down to fifty cents On the dollar,
and in the course ofhuman events, such may again
be its fate, though we will admit that such fail is
by no means probable, yet not impossible. A fall
in its price far less than one-hai, however, would
be sufficient to knock the security Of the bilhold-
er from under him, and render him great loser,
especially if the depression should long continue.
Let war break out, NOT very improbable result
of our present difficulties with Mexico, or of our
disputes with Great Britain,-or let there be a
great demand for money for other purposes, and
State stocks of every kind must deprecate in val
ue, how high soever may be the character and
great the resources of the State by which they may
have been issued. Well, ifbl-holders are secur-
ed by State stocks, and that stock falls from twen
ty to forty per cent, what is to prevent them from
losing at the same rate' We can see nothing to
prevent SO sad state of things; and the whole
SYSTEM so far as this point is concerned, is in no
sense better than that under which so many ex-
plosions have taken place, and by which the great
mass of the communlty.-the hard-working far
mers, artizans, and day laboreY,-the creators OF
wealth, have been SO fearfully and SO shamefuy
plundered.
The loss to the ordinary billholder. will not hap
pen because Ohio State stocks will not be worth
what they bear on their face, but because he can
not keep his funds onihand until better condition
OF the money market will, by causing these stocks
to rise. tend to the appreciation Of his funds. The
poor men who may hold small quantity of the
bills which will thus te deprecated beyond the
hope off speedy rise, cannot keep such bills on
hands long enough to avail themselves OF the fiuc-
tuations of the stock market. With them, money,
or its professed representative, is but ransitory
thing, mere bird OF passage, which cometh one
minute and departeth the next, under the stern
pressure of that cruel necessity which knows no
law. They take the bills on Saturday, and by
Monday, operations at a distance, and over which
they have no control, have reduced the prospect
Of their redemption onethird, or perhaps even one
half; for there ia in every community where pa
per currency obtains. class of persons deeply in
terested in its depreciation, merely as business
affair, and who are sure to aggravate and enhance
all real difficulties; and this is one of the prime
mischefs of such circulation. The poor cannot
long hold on 10 the various sums which they pos
sess. 1t is hard for man to lose one-half Of the
proceeds of months weary toll, but it is harder
yet tor him to hear the means of his starving chill
dren. Every day, perhaps he may think, may
lessen the chances of his getting any thing for the
paper which he possesses. Hence he is driven to
part with it in the moment of its greatest depres
sion. And here comes an aggrayation Of the
wrongs which he suffers, and likewise an increase
OF great social evil, likely, if proceeded in, to
have most awful ending. We allude to the fact,
that the loss of the numerous poor men, is the
gain Of a few rich men, who. with the ignoble
riches thus acquired, build their palaces in the
sight Of the men whom they have thus wronged,
cementng their brick or stone with the bloody
sweat of the plundered children of toll. The rich
get from the poor the issues ol the banks at one
half nominal value; and, if there is any thing
in the security provided by our whig fnanclers,
reap the benefit Of the measures of the State to
keep up its credit, or that which arises from the
favorable action Of foreign affairs on the money
market The poor must lose, and the rich must
gam; and worse system for the former. and
better one for the latter il would not be easy for
man to devise.
THIS is one ol the evils of the whig banking law,
and serious matter it is. We shall not be deter
red, by cries of assans the state credit, from point
ing it out to the public. The wings should not SO
intimately connect the credit of the State with
their finance system, making the one depend upon
the other for support. 10 an extent hitherto I'm.
heard Of They are not wholly sepaIable. but the
whigs have so arranged them as to have them