Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-09-23


elaborate in summing up the points which
place the Journal and its editors in no en-
viable light because we do not mean that
they shall escape from them. We come
now 10 the fifth article Of the series and as
we promised we will take in connection
with il, that part Of yesterdays article
which endeavors TO maintain The assumP-
lion, for ii is no less, that the money 4 e.
coin} isactually 10 be carted about. lie
starts a man out TO buy wheat, with Soo'-
600, now he says: .:.
elf he gets his discount at brokers' OF.
fee he must take it in specie. Tor they can
let him have no other kind Of money, and
in that case there will be an actual carting
about and handling Of coin, as we stated
lfhe puts i, in deposit, he will take some
evidence Of the fact with him--say GER
tifcats Of deposit. But he soon finds that
he wishes to buy in smaller amounts and
cannot use his big certificate. lie then
goes back and gets the whole amount IN
smaller certificates, to suit his convenience
say of five, len, twenty and filty dollafs
each. These he takes about the country
TO nav out for wheat-in other words, TO
use as circulation; but before he gets far
the cashier who made the certificate comes
running in hot haste, and tells him mis-
take has been made. He points TO the
section which forbids 'the making, emission,
or putting into circulation of ANY bill oil
credit, bond, check ticket, certificate, prom
issory note, or other paper medium intend
ed to circulate as money or CURRENCY,
THIS puts an end to that operation, and
the dealer must go back for his cart loads
ofspecie."
Now, the disingenuousness of this as
sumption is too plainly manifest First
notice 'sif he gets it discounted &C., then
the specie will have to be counted out and
handled. But if he take certificate Of
deposit, how then? Why like consum.
mate ass he goes away with his certificate
OF deposit and not until he has been absent
some time does the expert cashier (!) find
oul that-he is no cashiar, the Bank OF
which he thought he was cashier. is no
Bank, and his certificate of deposit worth
less-a wise Sc. of men. truly, and illus
trations worthy Of the sagacity OF the whIg
organ By arecurrence to our argument
on the section referred to, or looking at 1t
as it stands, it will be seen that the prohi-
bition is against creating any Banking in.
stitutions whatever, or authorizing the
making &c; in other words, it is power
less to create" ..-.-. - .<E,g -5.-.s g
s.There is but one other possible mode
of avoiding carrying about and counting
the specie. The Cashier, Broker, or what
ever name he is TO be called, may give the
operator certificate authorizing ham to
check on the Bank 10 any amount not to
exceed $4,000, and then he may draso
small checks to suit his convenience.
Now mark, there is but one other pos
sible mode, he admits tina, the former was
possible for the purpose wished. What is
that? Why avoiding counting out the
coin. He also admits that this mode is
possible. A queer sort of certificate
that would be, and yet if he is 10 be per-
mitied to cons,rue the law these checks are
Just as much a violation of law as the GER
tihcate in the first instance. We pass
now to the consideration of No. V. They
assume the position that the great portion
of our produce is purchased by mere ad-
venturers, men destitute Of capital, but
whom the Banks ure very ready to trust.
Now admitting for the sake Of argument
such to be the case, we hold that this is the
very worst feature of Banks Of issue. A
mere speculator who could not get credit
for bushel of wheat on his own credit
borrows the credit of the bank, paying it
premium for effecting the arrangement, in
deceiying the people, because neither OF
them may have a dollar in the world
The basis Of the transaction is entirely a
ficticious one, and if the spculator should
prove scoundrel as it is not unlikely, or
be unfortunate nothing but the confidence
ofthe people can avert crash il the bank
But observe that this class of men who
wish to buy cattle or grain here, do not go
to the Banks an thss ricinaty to get mon-
ey; if they did, it would be under a promise
not 10 put it in circulation in the State, but
the further from home the better. No,
they go 10 some far off region. and bring
such money as the Havre De Grace, or
some equally responsible Bank. Well it
all goes on very smoothly if the bills do
not find their way back too suddenly. But
as soon as any large amounts. presented
down goes the bank. Now TO show that
this kind Of business is most dangerous and
perilous to the interests of community, and
yet business at which Banks snake their
chief pro6l'' according 10 the Journal
We quote from standard writer on the
subject. SIN order to render legitimate
the operations of bank of circulation its
loans should not only be for short periods
but should be confined solely 10 the dis
counting of what is called business paper,
that is promisory notes and acceptances re-
ceivedby the holders for merchandise and
property sold, Ficlicious or accommo.
dation notes are not as safe investments as
real notes. The discounting notes for prop.
erty sold does not encourage oyertrading
like the dscounting Of, accommodation
notes. The latter places at the disposal Of
/ borrowers the means Of speculation which
they did not before possess. Speculation
raises prices, and stimulates speculative
sales and tran >fsrs, by which the regular
business Of the community is disturbed, on
| ly to be followed by re-ac :ion." 'Fc