The Minnesota pioneer. [volume] (St. Paul, Minn. Territory) 1849-1855, 1851-11-20
Ii BANKING.

.t... BANKING.
Wecons'der banking the greatest bane there is.
to the solid prosperity OF a State. Short crcps
make short purses; drought or n freshet, is
somti,nes a sweeping calamity; FIRE is often des-
trnctive Of much property; still, the effects Of all
these. are but temporary Time, and economy
and human energy, shortly repair all the losses
occasioned by these causes. which generally have
but local and limited operations but general
system Of banking, which cuts State loose from
the solid anchor Of specie, and embarks it under
full sail upon The wide ocean Of credit and paper
currency, leaves nothing TO hepe for or to expect
but disastrous wreckng upon the breakers Of
bankruptcy. 1t is TO be regretted that the State
of Illinois, especially, Agricultural Suite, is
likely to embark in this hazardous cruise. II
there is any class Of people in the United States,
who are invariably injured and never benefited,
by credit, it is farmers. Credit ruins the farmer.
Let him Commence mortgagng, and he is undcne
Upon the industry, thrift and economy Of the
farmer, rests the prosperity Of the whole country
This class, above all other, persons, must live
strictly within their annual income and keen
wholly unembarrassed by debt. Give the farmer
loans and credits, and he is not only taxed d.
recty with the payment Of heavy interest, but
he will no longer live within bis means; for be
will generally measure his expenses by the amount,
Of property in his possession and the facility of
buying and getting into debt. Farmers are nor
generally political economists, however intelligent,
they may be; and they will prosper only where
they payJor ereryihiag as soon as thcy buy it,
/ Give farmers credit, aud presently they are at
the mercy of those who trust them. They are
compelled to sell cheap and to buy dear. Their
farms are soon mortgaged. They lose their in
dependence and self respect Once hopeIessly in
debt, they lose al! self reliance and energy
They neglect properly to till and fence the grounds
which they despair Of redeeming frcm mortgaga
They cease to produce actively, and begin to look
about for some other occupation, or they become
mere drones, or they gather up the little fragment
Of that property which they have lost by debt and
the want Of frusaliiy, and 90 westward to make
new homes. or migrate to California in search Of
gold. So much for banking and credit, in the
agricultural Northwest; which really ought no
more to be furnished with banks, than an infan,
school oush; to be furnished with whiskey bars.
Nor do we believe that the principle of banking
or the practice Of obtaining bank credits, by ann
class of people. farmers, merchants, mechanics
or professional men, is consistent with the true,
sound, lasting prosperity Of the country, or the
aggregate increase Of the wealth Of the State
AT any rate, the effects Of it, the disastrous effects
upon the steady, productive interests Of the coun-
try, are Just as obvious and Just as certain, as
drunkenness and extravaganza and folly and
weakness and misery. are the effects Of pouring
whskey down the throat; and as it takes ga hair
of the same dog 10 brace up the drum ard, 80
every indulgence in banking facilities, requires
another to "humanise" the par,aker, Gas Ed
mund Keane used TO say, when swallowing pint
of fourth proof Cogniac, before standing at the
foot-lishts to greet his audience in the iheatre.)
We consi1er ii anxiom, that without econo-
my and frugality there cannot be advancement in
national wealth; (of course leaving now out of
consideration, increase Of wealth, by means Of
immigration and the tranfer of wealth from one
locality to another.) Now every person who lived
in our couatry. during the excessive banking times
Of lS34-35 and Sc, kno,cs that banking was sub
yersive of all economy and ffugali,y. Its effects
reached down into the very soil. Farmers were
struck with the banking rust. Idlencss and specu-
lation, were universal as the potato rot is now
There is certainly fllIacy in the logic Of those
who argue in favor Of the utility Of banks Do
banks increase wealth! We fail to see it. Now
suppose every man in the United States to be free
from debt, let US consider whether it would not
be just as well to have permanent currency of
one hundred millions Of dollars, rs to have cur
rency Of three hundred millions Of dollars! In
the first place, all salaries, all taxes, all the ex-
penses Of government, would be diminished, in
proportion to the diminished scale Of currency.
The price Of every thing, bought and sold, would
be reduced in the same ratio. The man Who had
one hundred dollars in bis pocket, would really
have an equivalent to three hundred dollars, of
currency three times as much expanded; and with
IL, nc couiu ouy tMee tInles as much lumber, or
produce. lie could not buy as much Government,
land; but he would only have to reduce the price
Of public lands, by his representatives in Con-
gess, to one third the present price, and then he
could. Ia every particular, he would be just as
rich with the limited as with the expanded cur
rency, every thing that he has to buy or to sell,
remaining Of the same value, relative to the value
Of that which he has TO give or to receive in ex-
change. II is true that such d condition Of cur
rency, would seriously affect importaiions. Rib
bons and laces and French toys, would have TO
be sold at reduced prices, or in very limited guam
titles the result Of which would be a great saw
ing by not buying such goods to any great extent,
at least until they could be produced in our own
country by our africans. II we had only
specie currency, there would be no need Of
tariff TO protect our manufactures An inflated
currency is fatal to production, either of eatabIes
or wearab!es. Until it explodes, it is favorable
to the sale Of both; but it is fatal to the produc-