Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1851-07-07
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Eroal tne HosnlRSton Union.
Banks and Banking.

paper Oh FfuuVs we dlIauou ~ ooeio VI ano
evils which the issue OF bank notes on State
and federal Indebtedness would inatct in
times of commercial embarrassment. But
we have not yet eliuded to the strcngesl
obiection shich we have to the SYSTEM
an objection which applies IN tunes OF pros.
perity and confidence as we'll as in times
OF pressure and dlstrust. We allude to the
manifest inequality and wrong which are
inflicted on labor.
Our humble judgmea, teaches US tina,
labor is the basis oil produc:soR, which Gre
ates prosperity. Capital, when honestly
obtained, is The result of toru,er lubor. AS
general rule the holders Of stock and
money capital desire to obtain an undue
share OF the national production at the ex-
pease Of the labor which produced il. We
wish 10 see the holders OF stock, and the
owners Of money and OF all other species of
capital, enj,y their due share OF the fruits
of The naliunal Industry. But under all
circumstances they have great advantages
ever labor, and We hold it to be in The
last degree impolitic to adopt system of
legislation which will add to those adyan.
sases, and in the last degree unjust to adop,
policy which will give them undue ad.
yansages. Relative 10 The subject under
discussion, we will present the most favor.
able aspect of the case. We will suppose
that every dollar of money owned, and
oyery dollar of Stale and federal stock
hold by capitalists, is the honest product Of
former labor. It is clear, then that the
capitalists are fairly entitled 10 the enjoy
tnenr OF an amount OF production equal in
value TO their aecunulaliens of money and
stock q, any given time. While we make
this admission most freely, We contend
most strenuously that they are not entitled
TO more, and TO give them more is wrong
and an oatrage on labor. But every sys.
tenn Of ficticieus issues does this to q given
extent; and the permission given to cpl
tallsts 20 make such issues on State and
scderni stocks has clear and simple ope.
ration to that end. II permits the holder
Of such evidences Of Slale and federal in.
debtedness not only TO realize the animal
ydaue of such evidences, but to issue an
equal amount OF paper with which TO pur-
cbase ana appropriate ON equal amount Of
she proceeds Of labor. 1t Just doubles the
3ncohie of the corporations holding stocks,
Without adding TO the production Of the
country. or increasing The real value Of the
proceeds Of labur. Under this system,
bank which holds million In stocks may
nuke q deposite with tke proper officer,
and receive million in notes countersigned
by that officer. receivable in payment OF
public dues. Ii then receives from the
State interest on The stocks deposited, which
Is nll Il IS entllled to ns evidences OF value
or OF former labor and industry, while It
receives IN addition an mount oil delicious
currency which will coamana elso the le.
snlraie Of interest To be more specific:
a banking corporation in New York owns.
We viii ssnvs million oil stock, paying
sis per cent. lis fair annual return is
$50 100. Il is entitled 10 receive no more
than that from the production Of the coun.
Try. But i is carried to the State comp
troller aud deposited " ith him. When
lhe deposit is made, the comptroller coun-
aersigns the notes of the corporation 10 IN
equal amount; and on these notes an addi-
sional sec, ,0G0 is realized. thus giving a
profit equal 10 iHelye per cent-double the
saae paid oa the original stock. This we
hold 10 be unequal and unjust.
The ineaaaliy 10 which we refer clin gs
Il, every system Of delicious issues. Be.
sides, egery species Of bank empowered 10
emit notes tends 10 withdraw specie from
circulation. and cause its expor;ation to
foreign countries. In ordinary times. the
syiIs which spring from this NAV no, be
perceived by the community; bu, the soga-
cieus will ioresee In the expansion OF cred.
3ts mud The speculation which follows such