The miners' express. (Dubuque, Iowa) 1849-1854, 1850-10-23
B.nnlnk ana tho currenoy-No. IL.

x
BANKING and tho Currency-No. IL.
The main question between the advocates Of
paper and specie currency is too frequently lost
sight Of by the hard money men. They allow
their adversaries to take such ground as they
please to plant their lever; but in this question
the paper money men are in worse dilemma
than that in which Archimedes found himself,
when he proposed to throw the earth out of its
sphere. IF he had another solid spot whereon
to rest his lever, he could have performed the
great feat, 80 with these paper money men, If
it be conceded to them that paper is better than
metal, that there is not enough specie in the
would be more facilities for borrowing paper
than for borrowing gold, they too would have a
place to rest their lever from which the whole
commercial world could be arranged to suit GER
tain notions, but deranged in the notions of the
great body Of sufferers
WHAT IS BANKING AND WHAT IS Cur
REscY'-Banking, as it has been practised, is
the science by which those interested can le-
gally cheatsthe great body of the community,
and get rich upon the industry, labor and wants
of others. Whatever capital is invested in
the business of Banking is placed there for the
purpose of making money. How is this money
made? By labor' No. By the purchase and
sale of the products of the country No.
How them LIST. BY buying and selling each
others notes or promises at premium to the
buyer, and charging the needy seller with dis
count. This is one fruitful source of their profit,
which, by the way, is not generally done in
direct manner, but indirectly through another
individual, called a " Broker" (Breaker is the
more appropriate term) This source of profit
is taken away by preventing banks from issuing
paper, here is one of the causes why Bankers
and Brokers are so strenuous for paper money
banks Prevent banks from issuing paper, and
the trade Of the Broker is gone, and so is one
OF the great inducements to banking.
I'd A second source of profit is the facility
possessed BY banks for increasing the currency
to the advantage, of course, of stockholders.
FOR, suppose bank to have in its vaults
100000, and other assets to the same amount.
Now should that bank issue 100000 of paper
IN the shape of loans or otherwise, it is evident
That 1t possesses the facility to profit by the loan of
fictitious currency, to the amount of 100000
Tor just as long time as the Directors and
managers, and all others interested, can keep
that amount in circulation. And that time Is
just rs long as men willing to borrow.
winch is ALWAYS and FOREVER.
This 100000, or one hundred times more
as 1t may be, and often is in proportion to the
capital actually invested, is frequently lent to
needy individuals by Brokers at the highest rate
OF interest the market can afford, and the profit
Is. OF course, in proportion to the sum lent and
the high or low rate of interest
Now, be it remembered, that all profit derived
from the loan of this Fictitious capital, is chea,
upon the community, just as much as it would
be it man were to rent a house which he did
not own, and pocket the rent, or if he sold a
coat which he had stolen. This is the second
source Of profit, and most fruitful one it is
especially to the Directors and head Managers,
who share with the Brokers the difference be.
tween the legal and exacted interest This, too
is another reason why banks clamor for the pri
vilege, or rather right, as it is called, to issue
paper money.
Does this paper money add any thing to the
wealth of the country? We answer emphatcal
nothing beyond the intrinsic value of the paper
which tor each bank note, printed in the pref
test form you see, is about one cent From
this each one may calculate what any given
quantity is worth.
But we will be asked, do you mean to say
that capital is not wealth? That we have not
said, paper money is what we have alluded to.
Well, then, does not the lending of capital
create industry, and necessarily produce wealth.
Yes, the lending of CAPITAL does, the lending
OF that which in itself is worth what it>purports
to be, and which no law Of man can chance
but the lending of piece of paper which pur.
ports to be worth 800, or $1,000, but which is
worth, and never can be worth, but one cent,
can never lead to permanent industly-never
produce permanent wealth, but to the lender
and that wealth must be made up by the toll
industry and exertions of the borrower and the
community at large. For as nothing can pro.
ducc nothing, the loan of what is intrinscally
nothing can never create more wealth in coun.
try, than either already existed or would be
created by other means. 1t therefore follows
that if Banker or Broker acquires a larger
share Of wealth by the lending and shaving OF
notes, he does it at the expense OF some one OF
more members Of the community Their ac-
quired wealth is taken from the general stock,
and it is done by the facilities afforded them in
putting in circulation as money, that which is
NOT even the representation of money, for all
over issues of paper represent nothing. With
these facts staring us in the face, and there are
others no less glazing, can we wonder that the
knowing ones of the community whose con
scientious scruples are only bounded by the un
satisfied desire of accommodating riches, are ella
morous for banks and a paper currency? w,
must not wonder at ALL 1t is quite natural 70
some men, and for, perhaps, most men in thei
situation to feel So but it is equally natural for tn
toiling and working thousands, who are willing
to earn their living, and make little money b
hard knocks, to feel quite otherwise.