Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-09-16
=: From the Ohio Statesman.
The Journal on Banking.
NCMBER & i

The Ohio State Journal has Just conciu.
led o series Of articles entitled "Hard Hon
Issue" Ny object in this com.
nunication will be to show the false posi-.
ion in which the journal, either aoitully
,r ignorantly, has placed Us
In order 10 q correct understanding Of
he subject, it will be necessary 10 name
The different kind Of banks,-their nature,
object and uses. 81 F. .7s sH.a2-7 3. ..7 @s
There are three kinds of banks, totally
distinc. in their character, operations and
influence upon public welfare, viz: Banks
Of deposit, banks Of discount, and banks of
circulation, or as they are commonly call
ed, banks Of issue. 80
A bank Of deposit is an institution es-
tablished solely for The safe keeping OF
coin, or bullion, belonging to individuals,
which otherwise would have to be kept
locked up in iron chests, or other places
not more secure. Tbs coin is transferred
from the credit Of the owner to that Of any
other. individual by his order merely, or is
paid out in the same manner. This sys.
tenn adds nothing TO. and takes nothing
from the existing amount of cure ncy IN a
country and neither contracts nor expands
the currency. IS, 80 -,
A bank of discount is nn institution
having capital in money, which the own.
ers lend to merchants or others, by dis
counting acceptances and prommissory
notes, given for property sold, and having
but short time to run. 1t receives mon
ey on deposit, payable or demand or at
fixed time, and allows interest, Or not ac-
cerding to agreement. 1t also lends It's
own capital in discounting notes and buy.
ing bills Of exchange. Such banks are
commonly called exchange Offices or bro.
kers' Offices: .ASsuch banks merely lend
the money that exists in q country, any
one can see, that like banks Of deposit, they
have no effect in contracting or expanding
the currency. So, go sae' 80 -l,,.sFa
These two kinds Of banks are such as
democrats are wiling 10 uphold, because
they facilitate the true business Interests OF
the country. We want such banks TO ba
free to all; subject to such restrictions as
may bs provided by law: but no special
privileges or exemptions shall ever be
granted TO othose engaged in, or those who
may hereafter be engaged in such business;
nor shall any person or persons, either
natural Or artificial, ever be allowed to is
sue paper money, SO called" ...
The above is the true ground occupied
by the true democratic party. Bot the
Journal wishing 10 misrepresent wilifully
and knowing LIES, as the following extract
from It's first article on the currency shows.
Any democrat who deposits with q
bank, who gets bill discounted, or in any
other manner gives it business 10 do, does
what is " incompatible aOith the princi Piles
ef.the partly lie contributes to support
ii ard comes under the comprehensive an
athens of "uphoMing." .5a'e - .'''@@.
We nre not opposed TO depositing mon
ey or getting bills and notes discounted
il it can be done in the kinds Of banks
which the Constitution of the United Stale:
will allow that is by banks of discount Of
individuals " a@Rs''S'. '''' '.1 80. -'..'f
There is another kind Of banks which
democrats do oppose because they are IN
constitutional and at variance with the true
interests of the country. They nigh
properly De called Whig Banks, because
they are made for the use Of capitalists
SPECTATORS, shavers and usufers. LII.
Their proper name is banks Of circula'
ton, orsssus. They are institutions es.
lablished solely for the purpose of lending
their c1edit. This is done by the banks
OK c.angeinglis promises to pay, or notes,
payable in coin, for the notes of individu-
ais, payable in a short time; and the latter
paying interest on the amount they Dor
row. The trouble comes now. AS long
MS the banks lend no more Of their credit
than they have capital paid in, every thing
is safe. But by law every bank has the
priv, i,ege Of lending its credit to at leas'
fhres times the amount Of the gold and sill
yer paid into its vaults. "A certain a.
mount of money being necessary to trans
net the business of q col Mt v. it will be seer
that gold and silver will be driven out in
proportion to the amount Of notes issued by
the banks over TIE quantity Of gold and
silver contained in the vaults. Because
the channels being full already, will be
everffowed at every infax of notes, ane
that which is unsafe, be substituted for thai
which is sonnd and safe. 49,. q .-, ...' =.
Thhe,ss ia,tsr are the kinds OF banks
wa;ch we are opposed to, and do not mean
to eounfenancs in any way. a " 7s7
tits owing 10 the fact that the business
of,he three kinds Of banks named is com
monty done by our banks Of circulation
that has led to such misunderstanding
and so much confusion on the subject o
bunking. .'s'--5 '-S . ,'a e '@7
The Journal seems 10 think that if The
IS stem OF banking, as it at present exists ir
Ohio, were done away with, that there
could be no place Of deposit nor any man
,ser Of getting bill discounted. II seem,
toahink that there can be no such things. as
banks Of deposit, and banks Of discount
withoutthey are connected with banks oil
circufaiion, or, as commonly called, bank:
Of issue. It cannot be ignorant on thi:
subject. and therefore holds out the ide,
wilHu]ly to- mislead the people For j
further says: sa9 ez9 ss*i .sss. S.. {
,s,efhsreis is TO he sl!e...1aa 1a no mode Of do
ing business except by the HANDLING OF
conn., The actual specie asust be carteo
aboat and counted at sve,y trade.
The nbove is not tr ue, as have already