Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1846-09-30
From the Galena Jeffersonian.
The effects Of Banking.

No subject is, perhaps, less understood
than the effect which bank issues have upor
the business and prosperity of community
We shall not stop to theorize upon the sub
iect but will barely cite few facts TO illus
trate it.. 1t is common error that plen
ty of banks necessarily advance prices, re
vive business, and make what is falsely
called "good times" The present state o
affairs in Ohio, is sufficient evidence of the
falsity of the positions. That State has
some thirty banks, whose present circula-
ton is about 4,500, 900. This is an in
crease Of one half at least, within two years.
Yet what are the visible efects2 Wheat is
not worth penny more at Cleveland than
at Chicago. Flour is much cheaper there
than here, and thereis general cry of hard
times and depressed business all over that
State. No branch of productive industsy
paid in Ohio with all her banks, than in
this hard money land. There are various
reasons for this. Trade when left alone is
its own regulator. If bank paper is good
for any thing, ii is impossible to pay more
of it for given article than in specie
Ohio speculators cannot pay one cent more
paper than gold, per bushel for grain. The
most reckless expansions only produce a
short spasm, ond prices at once fall to the
common level-the fixed prices regulated
by supply and demand. These hot bed ex-
citements benefit none but the favorites who
get the first loans. They well understand
that the rise in price is Of their own produc-
ing. Hence they buy suddenly when the
market is down. The act Of buying raises
the price by the depreciation Of money
caused by the excessive issue. Atthe high.
est price they sell, and not only take back
the, first issue, but the whole advance in
price caused by the unnatural stimulus.
This advance is of course drawn from the
pockets Of all who purchased when prices
were up-which may be 25 to 50p cent.
Thus community is feeced without any
chance for redress. ~" '" so
With all her banks, Ohio cannot long
compete with our western farmers. Besides
a few annual feecings Of the kind above
mentioned-and which may be safely esti-
mated at 10 per cent. Of, the profits Of eve-
ry farmer in the state-she has other very
serious draw backs. Estimating her pres
ent circulation at $4,5O0,0O and the cost
per year at @ per cent. is $270,000-or
t,oice the cost Of her State gouernment -
Butthe banks'loan are mostly made through
brokers and it is safe to say they charge an
average Of 6 per cent. more, Or say $780,
600 per year for the use Of paper currency,
and the estimate is by far too low. This
enormous tax also comes from the produc-
tive industry of the people. There are ma
ny break downs, depreciations, &c. to be
added to this list. ,2a Ga2tt 8i8 1'iAs
Illinois farmers are exempt from this
monstrous tax. We have better .curren-
cy, and at no cost. Our farmers can raise
one fourth more wheat on an acre Of ground.
and get as much for it(saving about one
cent for transportation as an Ohio farmer
II any Of their lake ports. This IS diff.
f,rence in our favor Of more than 20 per- Ct
- We repeat it, no bank ridden, state can
compete with hard money Illinois and Wis
consin. While their producers are constant
ly fieeced by the enormous taxation, ours
car, grow rich at their own price. Our far.
mers can actually sell wheat at ten cents
less per bushel than an Ohioan, and vet
clear the most money. Intact, they actual.
~ get as high q price. e d wsq \ sIra
jaiA long a. wekeepI out bank paper, and
refuse to recharter or revive any banks, our
citizens will constantly enjoy this advantage.
but the moment we create set of these
'IhoneI currency mills, the taxes will Grind
the people TO the earth. Accused be- the
wretch! who attempts to fasten a brood eof
these yipers upon US. eus.a dfan.alaTs