The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-06-08
CITY OF WASHINGTON.


ctatc inucDteuncs5 inlet
d@es Of comlnsscisl embarrassment But we have not
yet alluded to the strongest objection which have to
the systen-an objection which applies in times Of pros
pery and confidence well in times OF pressure and
distrust We aude 10 the nantes, inequality and
wrong which are inflicted on labor
Our humble judgment teaches that labor is the basis
of production, which creates prosperity; Capital. when
honestly obtained, is the result OF former labor AS
general rule the holders OF stock and money capital de-
sire TO obtain undue share of the national production
a. the expense of the labor which produced it. We
wish to the holders Of stock, and the owners OF
money and OF all other species OF capital enjoy their due
share OF the fruits OF the national industry. But
der all circumstances they have great advantages over
labor and we hold it to be in the last degree in
polite TO adopt system of legislation which will
add to those advantages and in the last degree unjust to
adop, policy which will give them undue advantages.
Relative TO the subject under discussion, will present
the most favorable aspect OF the We viii suppose
that every dollar OF money owned. and every dollar
of State and federal stock held, by capitalists is the
honest product of former labor 1t is clear them that
the capitalists fairly entitled to The enjoyment Of
amount Of production equal in value their accumua-
tons Of money and stock at any given time While we
make this admission most freely, we contend most
them is wrong and outrage on productive labor
But every system Of fictitious issues does this given
extent; and the permission given capitalists make
such issues State and federal stocks has clear and
simple operation to that end 1t permits the holder
of such evidences of State and federal Indebtedness
not only 10 realize the annual value OF such evidences
but to issue equal amount of paper with which
to purchase and appropriate equal amount OF the
of lab iuct Iouhl tho incnn anft
corporations holding stocks. without adding the poduc-
ton OF the country. increasing the real value Of the
proceeds of labor Under this system, bank which
holdsa million in stocks may make deposte with the
proper officer. and receive million in notes counter
signed by that officer, receivable in payment of public
dues II then receives from the State interest on the
stocks deposited. which all it is entitled to, ev.
dences Of value or of former labor and industry,
while il receives in addition amount of fictitious
rsncy which will command also the legal rate of interest
TO be more specific A banking corporation in New
York owns. we will say. million of stock, paying six
per cent Its fair annual return is $4,000 1t is entitled
to receive no than that from the production of The
country But it is carried TO the State comptroller and
deposited with him. When the deposte is made, the
comptroller countersigns the OF the corporation 10
an equal amount and these notes additional
~ $500
per cent--double the rate paid the original stock
This we hold to be unequal and unjust
The inequality to which refer clings to every sys-
tenn Of fictitious issues Besides every species of bank
empowered to emf, notes tends to withdraw specie from
circulation, and cause its expectation 10 foreign
tries In ordinary times the evils which spring from
this source may no, be perceived by the community but
III. sagacious will oressc in the expansion Of Credits and
NH Al Hoe fha
precursors Of revolution and ruin In spasey
countries there is need of capital to aid labor in its
undertaking. In such countries the abstract injustice
done by creating corporations empowered to emit fictitious
currency may be somewhat coun'erbalanced by the
facilities afforded to labor, If we could suppose them
to base all their proceedings sound specie cur
rency, and 10 forget their innate instincts to
date the capitalist, instead OF aiding the laborer Blu,
any such idea is Utopian All such associations there
fore, will be managed for the benefit Of those who
troll their operation rather than Tor the benefit OF
the stockholders themselves We would, therefore, in
the present condition of our country, rather
wrong than two and, while object to fictitious
issues we objec, as strongly 10 corporate privileges to
those who make such issues. unless every partner
made answerabe for the losses OF the partnership, The
.ame manner as he shares its profits
But il was not our intention to write essay on
banks and banking purpose was to warn our country
men against those schemes which spnnging up
every hand to food the country with spurious and val
ueess currency. Our production OF specie,
il the mint properly conducted, and if sound ideas
on king prevailed, ought only to lessen the man
uacure Of paper currency, but give us such an album
dance of small coin would afford some guarantee
that an ADEQUATE amount of specie would remain in the
country Unfortunately, have noticed strong desire
TO coin the gold OF California in pieces so large that they
do not compete with bank paper thus inviting its exports
while we see nowhere disposition TO confne the banks
TO the issue of large notes, and while see that times
Of prosperity producing their natural result OF incau-
housness in the creation OF fictitious capital.
We have felt ii our duty to warn our counirymen
against an evil tendency in the public mind isIn van
80 far a commerce concerned, 10 strike down United
States Bank if the people OF the States will suffer un-
due multiplication OF State institutions for banking pur
poses. The independent treasury has stood The combined
effects Of foreign and OF political revolution and
commercial revulsion in Europe. while it has kept the
State banks in check But il should pot be forgotten
tat unlimited increase OF banking institutions. found
ed stocks toeh not opdlabe for the payment Of
e,4stom-ho dues must evade the salutary checks
which the financial policy of the democratic party i'm
poses. .NrtH
With few observations another point, we will
~ h.