The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-04-11
From the Gazette.
"BANKS OR NO BANKS"

sutSLf"iiby "a Oohho VI ioouS3 oito uioWh
faint picture of the evils inseparable
from the system, will now attempt to
show the utter fallacy Of the benefits to
productive industry which the friends
of that system, either ignorantly or
knavishly, assert to be its result.
The friends of bank swindling assert
that there is not gold and silver enough
in the civiised world to answer the pur-
poses of a "standard of value," which
is universally admitted to be the object
or design for which money was intro
duced amongst men. Now all who
make this assertion call in question the
wisdom of the civilised world for es-
tablishing, by common consent, as the
"standard ofvalue" that which is incom-
petent to perform the object in view.
This position, however sacred time may
have made it, is the mere assertion of
interested, deeply interested, capitalists
unsupported by one solitary fact, or one
reasonable argument. Are you, sir,
prepared to take the mere assertion of
any man, much less an interested one,
as proof9 know that you are not, and
it is equally certain, now the issue is
made, that the people will not. This
unsupported affirmative assertion ofthe
bankers would be fully and fairly met
by mere negatien. But as proof is
what all reasonable men ought to ask,
and what all honest men will give, it
will be shown that there is plenty of
gold and silver for the purpose OF a cir
culating, medium on "standard or val
ue." But if increasing the currency,
instead ofmaking money, was the OBJ
ject of bankers they would admit that
this might be done by trebling the val
ue of.the coinage of the world. But
1 to the proof: In the Island of Cuba, with
Ia population Of but 1-2 millions they
have commerce which vastly exceeds
ours according to the ratio of popula-
ton in the two countries. They have
no s'staudard of value" but gold and sill
yer, unaided by bank facilities, as pa
Iper money is called, and yet they have
not been surpassed in commerce by any
people who have paper currency
Now how can we reconcile this fact or
practice, with the assertion or theory
of the bankers that there is not gold
and silver enough to do the business of
the world! This fact is worth ten
thousand theories especially, when
those the cries are put forth by men
who would sacrifice the best interest Of
the toiling millions to fill their Golfers
with ill-gotten wealth. Here then is
one fact against the unfounded asser-
ton of bank swindlers, and numerous
others might be selected from past and
present times. Now defy the bank
ers to select one solitary case in which
any people have failed to prosper for
want of paper money. The assertion
then that there is not gold and silver
enough to do the business of the world
falls to the ground. But it is said that
banks make money plenty and thus en-
able the enterprising poor to compete
with the rich. This assertion is as
false as the proceeding one. Let US
test its truth by supposing case. We
will suppose that Cuba, with circula-
ton Of 95,ooo,ooo of specie, starts a
bank with that amount OF capital as the
basis of a paper issue. This would
give her rs millions cfpaper money in
stead of 25 millions Of gold and silver.
| Will this increase other currency ena-
BILE her to raise one pound more of cof-
fee, sugar or tobacco, or to work more
extensively her rich copper mines9-
Certainly it will not; and for the plain
reason that it will add nothing to her
productive industry. If the system
works fairly, and in accordance with
the laws of demand and supply, it will
raise the price, but not the true valus
OF every thing bought and sold, to three
times their value under the specie
standard. Now let us see how this in
crease Of money benefits the enterpris-
| ing poor man for whom the benevolen
banker feels so much sympathy. Unde,
the old, or specie system, we will sup
pose that a young mechanic had to Dor
row from some capitalist $loO, at pei
cent, which is eight dollars year fol
the use Of the money necessary to star
his business. Under the new, or bank
system he would have to borrow $500
at per cent, to start the same bust
ness, which would cost him S24 yea
for the money borrowed. Thus we see
that the enterprising poor man, wht
had no capital, but his, skill, would have
to pay $l6a year more under the new
than old system, for his borrowed cap
j Iital. His loss Of Sic a year would this
be transferred to the pocket ofthe bank
, er, who is by the new system enabled
to loan his credit, three dollars for one
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