The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1849-01-05

cult 10 discover which would be iraugh'
with the creates, danger as between limit
edqaanliiy of foreign bank paper, viewed
'y our citizens with prejudice aud received
with caution, or an indefinite issue within
the state, which, by excluding gold and
SILVER from general circulation, would re-
commend itself To use II not To confidence.
There would be as liule difficulty IN deter
mining from which the people would have
mos, 10 appreheud IN currency conru.'
siou, such rs they have been compelled To
encounter within the last few wears. am
satisfied tina, any auemp, made 10 supply a
real or pretended want -. the circulating
medium, IN State IN AMY agricultural, hy
substituting bank paper resting upon cred
il, is as lmpulilic - i. Is needless. ior II
such a want actually 'Nlsis 1t will he rcadl-
Is supplied under lber, 1t interest laws, and
the assurance that il can be pruti'hNlv Cm.
p.oyci. The influence which all iuS,iu-
IONS partahing ut the character Ut banking
exert upon all the business and social rrIl-
iuus Of a community, from the peculiar
nature OF their operations, are familiar To
all who have watched their results in our
own SAFE. \ law creating banks Is un-
Ike an ordinary statute law, which may
operate only upon isolated or local inter-
esls, and which, ii found injurious, can
be repealed with lIthe positive loss or in
convenience. Banks established rs law
are soon felt in their influence upon every
nerve and fibre of the body polite, and
become so intimately blended with every
interest and industry in all It's forms, iha',
let the evil they ull,cl be ever SD great, it
requires no common hardihood 10 attempt
TO discover the connection.
This state is Just now embarAing in al
enlarged aud more vigorous system ot
finance. and TO render the effort successful
we should guard against the adoption OF
measures having tendency to embarrass
il ut its commencement. The history Of
this state clearly demonstrates that sound
financial system has as little aid To expect
from the caprcious issues of bank paper
as from union Of banks with the public
treasury. For the present al least the
finances of the state can be conducted as
economically and safely for the general in
terest without the aid of banks rs with
them, while it is quite certain the treasury
would remain exempt from those lntuen-
ces which periodically prevail IN all paper
money counties. This is taking rut lue
view of the subject. We will Iurn now
to another. We have had no imperfect en-
perirnce Of the influence OF banks upon
the industrial interests ot the people Of
this state. We have tried them and We
also dispensed with them, and the history
of our condition for each period Is sill
fresh before Us. 1t is not difficult, there
fore, To determine which state of things
has proved the most favorable 10 the sub
stanria prosperity of the state. Those
who advocate banking under new forms
suppose all the evils complained eilec,uaIIy
guarded against. But It does not appear to
me, so far as possess any knowledge Of
their operations where they have been
practically tried, that there Is any thing TO
recommend the new system over the old
chartered institutions. Nor has the result
shown that greater relrnce can be placed
upon the security in banking upon the stale
or other .tocn to those who commonly be-
come the victims OF bank frauds aud failures
lhan under the charter system. The
causes of the disastrous results from NOR
dna'e banking, which have so often severe
" afflicted our country, cannot be waried
off by change OF form. The cause lies
deeper. It's the principle which, being
radically wrong, no mere change OF torn
nv act Of the legislation can remove.
sound currency can never be made 10 rest
securely upon mere credit. The history
Of nearly every state IN the Union demon
,lrales this truth, and no where can be
found stronger evidences IN lis favor than
in the currency operations oil our own
state. Iii visionary TO suppose that an
increase of credit currency adds the NM
u,esl fraction To the essential wealth of Il
stale, for every dollar of such currency
finding lis way into the hand. Of the labor
ing man must search FIR lis representative
in fruits OF his own toll. The usual
amount nl the currency If a Country sus-
lains bu, a Limited relation 10 the entire
value of It's property. Perhaps on an aver.
age of no. more than one-lhlrlleth, and yet
thI, comparatively small sum regulates and
fixes the value of the whole. From tins
it is easy 10 perceive why an addition to tie
paper circulation, possessing no inherent
value OF lis own, enhances the nominal
price of properly while ii adds nothing to
its zeal value. 1t may serve further to
show how completely tie value Of prop.
erly may be made to depend upon the in
,erest or caprice Of banks.
A currency resting upon credit, upon
mere promises to pay, while 1t is the most
seductive, as holding out inducements to
the idle, the cunning, and the prohiga,e to
enrich themselves without labor, is likewise
the most uncertain, fucnating and filla.
cIous ever devised to chea, the lollng in-
dustrious mass of mankind out of the fruits
Of their labor, and, mex, to the immediate
inierposi,ion Of Providence, TO thwar, the
expectations Of industry, the mos, 10 be
stunned md deplored.
BY the 18th provisional article of the
new constitution the school fund proper is