The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1847-09-18

can not consistently make permanen
oans; on the contrary their loans mus
run for very short period. If losing
sight Of true banking principles they
attempt TO make permanentloans, thel
notes will be returned upon them in th'
mean time and suspension is the IN
svitable consequences. They can giv'
no aid therefore in the erection Of iron
or woollen, or cotton, or indeed any
other factories. Such enterprises mus
provide their capital elsewhere.
And as individual capitalists art
tempted to invest their means in banl
stock, the good old plan Of permanen
loans on bond and mortgage, for the
furtherance of mechanical or manufac
tering enterprise, becomes almost i'm
practicable where banks are establish
ed in great numbers. Moreover, these
institutions, by running the frugal hab
it's of the people tend powerfully ia
prevent the accumulation of capital
The man who receives few dollars in
actual money, is willing to lay it by
until its accumulations enable him to
make a loan or profitable investment.
But il he receives the same amount
in bank notes, rendered suspicious Of
their permanent value by baleful expe-
rance, he hurries off 10 the store and
spends it in articles of fIuxury or extrav-
agance. All history, all experience
show that luxury prevails almost in
exact proportion to the doubts enter
tanned by the community Of the perma-
nence of their money medium; witness
the French assignats and our own in
Vulnerable paper money expansions
Thus paper money stimulates luxury,
and luxury impoverishes the commu.
nifty, drains away its capital, and en-
courages spirit ofmers gambling spec
ulation. The arts of peace love quiet,
permanency, stability, and cannot live
in such chaos. The ever recurring
fluctuations in our currency have fur
nished the bane that has rendered the
constitution of our manufacturing arts
sickly and feeble, and not ''loco-foco
destructiveness." Loco-focos are The
friends of social order and regular gov.
srnment; and these are precisely the
conditions required by the arts of peace
for their vigorous Development.
We have dwelt the longer upon this
subject, because we are convinced that
modern whggery has no more claims
to be regarded as the peculiar protec-
tress and guardian ofthe manufacturing
arts than the harlot, in the time of Solo.
mon, who was willing to see the poor
infant mangled by the sword, had to
be considered the true mother of the
child. Yet we have not said tithe
Of what might have been said. Argu-
ments multiply upon US. We have
suppressed much more than we have
written.
Fellow citizens, if you wish your
ears TO be saluted by the sound Of the
hammer and the cheerful hum of indus.
try--if you wish to see the smoke cur.
ling gracefully over manufacturing vii
ages, give no more heed to the glozing
tales OF whiggery, but enlist under the
banner of progressive Democracy
progressive in its incessant efforts to
promote the happiness, the well being
and the elevation of the masses of man.
kind.
We have already alluded to the bank
ing system as the cause of those fuctu-
atoms which have proved SO disastrous
to the business relations of the country
in times past. Candor compels US to
say that we do not perceive in the pres
ent banking system of Ohio any of those
safeguards, proved by experience to be
essentially necessary to prevent a re-
currence Of those mischiefs, which
have attended banking experiments in
times past.
The charter Of the affiliated concerns
called the State Bank Of Ohio, only COM
pels them 10 keep in their vaults gold
and silver coin equal to fifteen per cent
of their notes of circulation. Unless
by some legerdemain one hundred dol.
lars of debt can be paid with fifteen
dollars, this seems to be too small
a pro portion Of specie to the notes in
circulation. 1t is very much smaller
than the proportion warranted by the
approved principles Of banking. A
suspension Of fspecie payments is likely
to be the result of the first revulsion
in trade.
The abuse OF immense loans to sim
gle individuals and firms is not check
ed by any adequate provision. An in
dlvidual or firm may owe bank as
much as one-half its circulation. What
favoritism may not be practised under
such regulation? What security
does it present to the bill.holder? One
half the funds for the redemption of
the outstanding bills may be in the