The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-06-07
From tbe peo0syly,ap,an.

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circulation OF more than half amiIlion,
together with the tottering and doubt
full condition of many other banks in
that section, not only in Michigan but
in Ohio, and the failure of several large
commercial houses connected with il,
have produced an excitement almost
unpreceded, and seem to have aroused
the people to''a realization Of their in
security under the present reprehensi-
bic system Of banking with no safe
guards.and but few restrictions.
II The enormous issues of the Bank Of
ST. Clair, and the remarkable industry
which il manifests from all accounts,its
agents exhibited in extending its circu-
lation through all parts of the West, ,can
leave no doub, that the disastrous re-
suit was either produced by the most
wild and reckless speculation, or by a
determination Of The directors 10 gel as
much Of their paper Out as possible, and
suspend with full hands. In either case
the result affords an insight into their
mode ofoperations, andit is confidently
hoped lesson so dearly bought will
not be lost upon the community. AS
is ever the case with the failure Of such
institutions, the loss has fallen prInci-
pally upon those least able TO bear it;
and widely as were the issues of this
rotten institution diffused trough every
part Of the State in which it was loca-
ted, it will be seen from the extracts
below, that the people Of Michigan are
by no means the only sufferers. The
law prohibiting Incorporated banks of
other States, from establishing agencies
in Ohio, for The circulation OF their pa
per, having been repealed by the las,
whig Legislature of that State, this bank
seems to have eagerly embraced the
opportunity, and flooded the country
with its worthless issues, so that at the
time Of its failure they constituted a
large portion Of the paper circulation
in a considerable part Of Ohio and other
sections Of the West, and the loss now
falls heavily not only on business men,
but on the agricultural and aboring
classes; scattered and located at almost
every point where energy and enter
prise could be useful, and where such
a disaster will be most severely felt.
Il cannot be but that these enorm Gus
abuses Of corporate privileges, which
are becoming of such frequent concur
renee, will ultimately lead to more
sound and correct feeling In relation to
our monied institutions, and convince
the people that specializing fnanciers
are unsafe bankers, and the last persons
in the world who should have control
Of banking institutions with power to
manufacture money to order and to any
amount. In no section of the country
have the people been plundcred to that
extent by bank failures, that they have
in Ohio and Michigan. Their "Red
Dog" and "Wild Cat" currencies have
for years been eating up the substance
OF the people, and destroying their
prosperity, and it may be regarded as
the harbinger Of better times that the
citizens Of those States have now ta-
ken hold Of the subject at their public
meetings, at many Of which the stand.
ard has been boldly planted upon the
principle of individual liability, and
States Prison penalty, and determi-
nation manifested ere long to raise the
cry Of determination, unless the practl-
ces which have been carried on so long
by these swindling concerns are stop
ped. There can be no good reason
why those who plunder under the shell
ter Of bank charter, shall not be re-
garded in the same light as those who
commit the same crimes on the public
highway; and there can be no security
to the people until cur legislatures en-
act and enforce Wholesome and salutary
laws and restrictions against bank swim
ding.
In reference to the failure of the
Bank Of st. Clair, and the discredit
which attaches to the issues Of several
other banks, by which their notes are
deprecated from 25 to SO per cent. the
Detroit Free Press uses the folio wing
language, which may be regarded as
an indication Of the future course Of the
Democracy Of Michigan,upon the ques-
ton Of which it treats: 9'l.n ~ T..
s,.The people Of Michigan, we doubt
not, have, learned wisdom from the past
and will not submit TO any more bank
charters being given, for the purpose OF
robbing them. The time to prevent
the organization of banks is when appli-
cation is made to the Legislature for
acts of incorporation. The past must
have satisfied all, but those determined
not IN he satisfied. that the na,rer mo