The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-05-16


burns out his candle at both ends, and
is irretrievably ruined man.
This is the more likely to follow, from
the fact that these bank facilities, as
they are called, always induce men, in,
times Of expansion TO run in debt be-
yond their ability to pay.
It is not only SO with the supposed
rich, but the man of moderate means:
the farmer, mechanic, or laborer, when
he gets money easy, and high price
for every thing, runs in debt for himself
and family, thinking he will always get
money as easily as he does then. His
wife and daughters persuade him that
he can afford more; and thus extrava-
gance creeps into many worthy fam
lily, where there had been nothing but
thrift and frugality before.
a revulsion in the operations Of this
banking system, always comes when
the Indebtedness of the people gets to
the highest point. The banks cannot
then loan even their deprecated paper;
and they commence curtailing and col
Letting their debts, thus constantly d.
minishing the quantity of circulating
medium and in this way, when money
is the hardest to be got, and property
the lowest ogetit with, the people are
pressed to pay debts contracted when
money was plenty and properly exor-
bitantly high. Thus situated, the debt
or must follow the fashion of the banks,
and break; or he must sell his property,
at half what it cost him, or the sheriff
will sell it for him.
These are the plain palpabIe evils of
this stem ofbank paper money, which
every man in the community has either
felt himself, or seen all around him.
From 1887 10 l842, these bank suspen-
sions- either all over the country, or
locally,-occurred no less than fire
times, lasting, for some periods, whole
year; thus, averaging nearly an annual
suspension. That the same disasters
have not been as frequent since that
period, is mainly owing to the country
getting rid, at last, OF that destructive
high-pressure paper machine-the Uni
ted States Bank. But the system,
though less combustible, perhaps, is tar
from being safe. s
From the returns collected by the
Secretary ofthe Treasury, (Mr.
Walkero from seven hundred and sew
en- state banks, we have, for the year
lS45, in immediate liabilities of the
banks, for bills in circulation and de-
post, t,oo hundred and three millions
nine hundred and sirtysir thousand
dollars; and of immediate means to pay,
but ninety-two millions sac hundred and
eighty-seuen thousand dollars; leaving
ONE HUNDRED AND ELEVEN
MILLIONS TWO HUNDRED AND
SEVENTY NINE THOUSAND
DOLLARS, which the banks would be
wholly unable to pay, in the event Of
money panic, or credit crisis; and thus,
instead of the banks trusting the people,
the people are trusting the banks 10
that amount. In this respect, we are
worse off now, than in any year since
1S41, or since the resumption of specie
payments, universally, in 1S42.
The same returns made to the Sec
retary of the Treasury show, that this
excess of immediate liabilities over
means, was, IN l84l, one hundred and
!hree millions five hundred and thirty
line thousand. In l842, ninety mil
ions two hundred and sIxty.six thous-
Ind. In l843, sixty-two millions one
and twenty-one thousand; and
n 1914, eighty-seven millions six hun
lred and ffty-six thousand dollars.
The tendency of all this, taken with |
he expansion of the banks, which is
low over two hundred and eighty mil
ions, should. think, begin to open the
eyes of the people, and satisfy them
hat your resolutions are well-timed.
will only say word more upon the
lost of all this paper machinery to the
people. The returns ! have referred
o, show that the banks have out at
oan, two hundred and eighty-eight mil
ions six hundred and seventeen thous-
ind one hundred and thirty-one dollars,
ind they have in specie forty-iour mil
ion two hundred and forty-one thous-
md two hundred and forty-two dollars.
The specie funds, which are about six
Millions and a half are probably not
cry reliable. Here.is less than one to
ir; so that the banks are receiving from
he people, SIX TIMES more interest on
very dollar that they let out, than men
eceive for their money who do not en-
oy banking privileges! The banks, in
lct, are receiving aninterest on about
wo hundred and iforty-four millions of
ollars, for which they pay no interest,
nd which exists in no form. of nroner-