The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-08-23
From lhe OHIO Statesman.

, Salem Tp., Monroe co., Aug. ls, Is45.
tt From the Ohio Statesman.
THE MORALITY OF BANKING-No !
Yes, of banking! Everything has its morals l
is important, too, that all should understand this
but there obstacles in the way, or it woul,
have been understood long ago. The obstacles t
which we refer are erroneous notions, adopted
without thor ough examination of the subject
and real or supposed interest IN sustaining banks
Candid reader, perchance you may agree with
the writer, and perhaps not Ifyou do, let US CON-
pare and understand the reasons of our opinions
and de prepared to defend them. If you do not
let US discover wherein we differ, and why-for
rest assured, one of us is largely wrong as to mat
ter intimately connected with the liberty and pros
! perity of our common country.
You are willing! Let US first discuss this Dues.
tion. Have banks heretofore contributed TO the
prosperity ofthe country, to the extent claimed by
the friends of banklng" Arguments in support of
the affirmative: Banks, as repositories of money,
discharge an important trust in receiving and safe
keeping the surplus funds of the government and
people They Increase the circulating medium of
the country, they regulate the value of money
They furnish a currency equal in value to specie,
while II is more portable and convenient. They
are cheap and convenient contrivance through the
Intervention Of which, those who have surplus,
lend to those who wish to borrow. They furnish
a safe and profitable investment for the means Of
the widow, the orphan, and the helpless They
are indispensable in transferring funds from one
section of the ULion to another. In time OF any
public calamity, or in time Of war, they stand rea-
dy to sustain the government with any amount of
funds it may require. They regulate the rate of
interest, and suppress shaving and usury They
furnish funds to buy up and carry off the surplus
products of the county,
The above is believed to cover the whole list of
advantages as claimed by bankers and their friends,
to result from banking live have inadvertently
omitted any, we will be obliged to any friend of
banking, to jog our memory. Now, candid rea-
der, let look calmly at each of the above argu-
ments.
Cannot the public, as well as individuals, be pro-
vided at as sm,ll an expense as at present, with
repositories of money as safe as the vaults of the
banks' The banks charge nothing for keeping de-
posites, but as compensation, they use portion
in the way of discounts; in other words, they haz-
ard, for their own exclusive profit, the whole or
part OF your deposite. Why, then, should they
charge for safely heeping that, which they do not
keep, but lend? In case there were no banks,
would it be difficult TO find responsible persons,
pc ssessing the confidence Of community, who
would willingly thus take and safely keep money,
and, (what the banks did rot do,) give ample se-
curity for its return? But say you, the banks
must be some way paid for their care and expense
Truly SO, il they simply receive, lock up, and re-
turn yCur money, they doubtless are entitled to
compensation for so doing; but instead of this, If
they loan it out in whole or in part, they ought Of
right to pay the repositories the profits, after de-
Quoting fair compensation for dong the business
Will you tell us that banks could not be sustained
after this sort' We ask you, what is a savings
bank but depository of mony, returnabe either
on demand, or at day specified, with interest?-
Savings banks ordinarily have no power to issue
their own notes, and consequently their profits, if
any, must be made on deposits. If they make
profits thus, why cannot other banks do il If they
pay for deposits, why, by the same rule, should not
other banks do the same' Now, friend, if we are
right as to this, (and if we are not, we hope you
will tell us) the obligation to deposits, is on the
part the banks to the people Did you say mo-?
Why, then, are the bankers SO anxious to get de-
posts, both private and public? If the obligation
is all on the part of deposors, why is it that the
banks are so anxious to deposit dollar for dollar
with the United States Treasurer for the privilege
of the deposit' for the benefit of the people, eh
Be assured, friend, that when bankers are about
10 benefit the country the people, they wait to
be asked. Don't believe it" Well, etlhat pass
you will believe il If you live long enough, and
have much to do with them. You said, | think,
that the privilege of deposing cost the depositor
nothing" How much doyou suppose public and
private deposits have cost during the last fifty
years, by deposItng in banks-in other words ,paid
for this precious prviegei mot much, you reck-
on'' Twenty or thirty millions of dollars will fall
far within the mark-at all events, sum in the ag-
gregate sufficient TO have built and guarded, day
and night, vaults Tor the safe keeping OF money IN
every post town IN the country.
Well, we will pass on. Banks increase the cir
culating medium of the country AT times they
doubtless do, and at Others they decrease it. But
is an increase of the circulating medium always
blessing, without regard to the cause which produ-
ces il? sa-. aa
certain amount of money is always necessary
for every country. This amount IS sum sufficient
to negotiate its business and trade; and under the
operations of natural causes only, this precise sum
will soon be found in the country. If at any time
here exists an inequality, either the trade will de-
cline or the money increase, until they balance
zach other, with the certainty that water will
'eek level. Natural causes will never bring into
! country large surplus over the sum above allu-