The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-04-01
From the Kanespille (Io,va) Frontier Guardian.

Banking. 5.it5.l -ls.,
The constitution and policy of our State are OPP
posed to any system of banking; and, by extend
ing the same policy little turthcr' i would be
This policy. in its tendency and bearing. is OPP
posed, in view, to the best interest Of the Com
monwealth. Qlstlr % eIh3 fDt Il
The effects of it arc these in part: great quaint
ties of foreign paper or paper OF the banks OF other
States, are thrown into circulation in this State
Other States, by flooding ours with their paper,
draw away our silver and gold; and, while they
collect the wheat, they leave us the chaf or rags
Moreover, whatever bills are lost, worn cut, or.
burned in this State other States receive the entire
benefit Of The constitution OF Iowa, therefore,
upon banking, seems TO us like binding one mans
hands behind him, that another may rifle his
poe kefs. iH H 4
Suppose law wcre enacted making IL penal to
offer or receive bank note. Would this prevent
their circulation? Az well might law be passed
against the Missouri river flowing down stream
along the western borders of the State, tho Mis-
sissppi on the eastern borders. In all commercial
intercourse with other States VIC are forced and
compelled to receive the currency of those States
for the commodities which we export, and public
interest will never allow such law to take effect if
enacted. reasl H. aN
Banking States can issue and draw interest upon
three times the amount Of their specie funds, and
we indirectly pay the interest on their excessive
issues, by selling products at reduced price to
get their rags; and also by direct loans Whereas,
II we had bank or banks of our own, we could put
ours. Then we should have equal chance, ae-
cording to the amount of our capital invested. The
constitution, therefore, of State nails to our
mainmast the very evil from which its frame 70
sought to protect US. We 60 in for amendment
Of the constitution of State, and for some safe
system of banking. 3naat =
The State of New York takes the lead in bank
ing operations and arc the people of that State
suffering by alternate contraction and expansion
Of their banking institutional" Is not the credit
Of that State good, both at home and abroad /?
Why should the young State Of Iowa then be bound
hand and foot by constitution evidently against
her best interests, and other States allowed to
nopolize all tho sources Of wealth, leaving Iowa
shac led and fettered 10 retard her speed in the
race 70 wealth and improvement?
We noticed an elaborate article in the Miner $
Express against the banking system; but for our
life could not discover ono substantial argu-
mcnt against the system. 1t is argued that il will
make the rich man richer. Admitted! And what
kind of lawful business, wisely and prudently
mancgcd, will not have the same effect? II not,
what Is the of doing any business at all? If q
banking and draw nett profits in equal ratio
with him who has largo capital The doctrine
then s untrue that banks make the rich man richer
and the poor man poorer. If man have any CAPT
tai MT all, he stands Just good chance to make
his per cent. he who has his thousands but If he
have no capital to start with, we cannot see how
banking can make him the poorer.
| The climax Of the argument is this. A vests
S5O 900, b $4,000, and G $500 in n banking
operation; and because C's share Of the profts i
not equal to AS SHARE it is unequal, and the systcn
| is to be condemned. We do not understand the
force Of this logic; but il appears to something
| like tho pint murInuring against the gal
| lon because il has not much wine the latter
| when both are full.