Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-08-19

The most plausible pretences which have
been put forward to sustain the paper money
system, are that it is convenient-that it
aids and stimulates the productive energies
of the country, and that there is not gold
and silver enough in the world sufficient
for the purposes Of the circulating medium.
These are faIlacies exploded by the stan
dard authorities on political economy, and
as cften exposed by the operations of the
system, that it would seem that few could
be mislead by them, except those who are
blinded by interest or prejudice, or those
superficial observers who look only on the
surface Of things, and never examine into
the philosophical principles by which they
are governed.
Il is an undeniable fact, that in France.
Holland, and other countries, where no
bank paper currency exists, and in Eng
land, and some of the States of the Union,
where paper enters but little into the circu-
lation for ordinary business, no inconyen-
ience whatever, is felt; timss are easier and
money more abundant, in proportion to the
population and business, than in those other
countries and States of the Union which are
the most plentifully supplied with bank pa
per. Gold coin, and commercial paper
and certificates of deposite, supply all the
conveniences for portability and for large
business transactions, which bank paper
can furnish, and without any Of its difficult
ties and losses by means of depreciation
and bank failures. And in truth, and in
fact, what is COMMONLY called scarcity of
money and hard times in our country, is
produced chiefly by the operation of the pa
per money system-its fluctuations, the de-
probation Of paper, and bank failures.
Bank paper does not aid, but oppresses
the industry and labor of the country
1t is not the circulating medium, but the
productive energies of the people, and the
fruitful resources cf the country, which stim-
ulates and advances its prosperity.
The currency Of hard money countries
sufficiently aitests the fact, that there is gold
and silver sufficient for the purposes Of the
circulating medium. But when the people
of a country adopt the medium Of paper
currency, and are content with the shadow,
instead of the substance, gold and silver
will, to great extent, be boarded used
for plate, jewelry and mechan nical purpos
es, and much Of it sent to other countries,
where it is in great demand.
| If the people of Ohio are disposed at this
time to discard and abandon their paper
currency, by gradual, and even rapid pre-
cess. gold and silver would almost imper.
ceptibly, and without difficulty or loss, be
brought into circulation by the business op.
erations Of the country.
The greatest objection to the policy Of
the paper money banking system, consists
in its corrupting and dangerous political
tendency, and the stupendous frauds, and
occasional terrible disasters to the business
Of the country, which are incident to it,
and which invariably sooner or later, re-
suit from it. A banking system may be
prosperous, and apparently have benefi-
cial influence for time. but sooner or later
it will fail, and show its disastrous results.
In France, it has been tried upon almost
every feasible plan; not only the property
of individuals, and the public securities Of
the government, but the public domain has
been pledged for the security of its paper,
and yet it sooner or later went down with
ruinous consequences to that country, and
was finally entirely abandoned. "
The present banking system in Ohio
has proved signal failure. 1t was bro't
into existence by its advocates, as tbs
means of relieving the people of the state
from hard times and scarcity of money
and when have our people been afflicted by
embarrassments and hard times, more than
during the last two years? In 1912 and '43,
when the banking system was nearly at an
end in Ohio, times were easier, peeuniary
difficulties far less, and money apparently
more abundant than during the past year,
under the operation of this banking system,
with paper circulation ranging from sew
en- to nine millions of dollars.
No unprejudiced man can closely OBJ
serve the operations of the paper money
banking system and doubt the existence of
evil and corrupting political influences. It
is political engine of great potency. 1t
bands together by the strong tie Of pecunia-
ry interest, an extensive and influential
class of men from all parts of the State,
systematic and concentrative influence,
WDlcn penetrateS every county anu nelSn-
borhood. 1t is an undenianle fact, that the
existing banking system in Ohio, wields
an extensive political influence, ,and is grasp
ing for permanent ascendency in the State,
and if not arrested in its career, will become
an overshadowing and corrupting source of
political power, which the peopls will be
una BILE to resist.
If the people of this State are disposed to
guard we'll their liberties and their rights,
they will not allow paper oligarchy to
grow up in their midst, and with its bllght-
influences overshadow their free institutions.
Deeply impressed with the belief, that
one great object which large and respect
able portion of the people Of this state had
in view, in the call of this convention, was
to check the inroad of this dangerous and
corrupting political engine upon their liber-
ties and their interests, the majority OF the
committee submit the following proposition,
to be inserted in the new Constitution:
Sec. 1. The General Assembly shall
have no power to create or incorporate
any bank or banking institutions whatever,
or IN oufhorize the making emission or