The Lancaster gazette. (Lancaster, Ohio) 1846-1852, 1852-02-26

interest: merchant hus 10 pay $4,000 East, lie
gets loan for 30 days at per cent. month aud
receives payment on IA draft on the East at one
per cent:
ThusIAncunt nt the noie. 80. $1,000
Less per cent month $3.50
Exchangc- 90
200
The proceeds beng.- g.---....----. $4,000 .
Just Sl22 90 more tlnn regular Bank would
make the loan or, or nearly tilly per Mt. Can
any man do business at tdut rate and nat lai
Two per cent month is greater than the profit
of any manufacturing business with which am
acquainted. The result is, thai lunds engaged in
any producing branch oI industry is Withdrawn,
and invested IN p ivde banking, aud this will he
the cse as hong 'rs loans unrcslrnimed by nSu.
ry laws, the policy Of tue State coninues To
emharrass regular banking.
speak nuihurutvelv. when say that the
State Bnnk ot Ohio sold sjGG 500 20 more SiHll
Exchange, for tue month ending January 9th.
1852 tllnn in the prior month; all this inlgme
from the state Of money matters, IL would he ihi
to presume, was on The .nst and that it would
refine from circulation about tile same amount oI
| Branch Notes. Thus:
! b uk Notes semi home .--...---. sJG6.G6 6G
| RemitluuceS, cash. .----..-.. 5G6.G60 90
Showing. by this calculation the sum of ST. 1873
738 )! withdrawing from the business communl.
| ly in one month, which vacuum cannot he imme
diatciy supplied, for the demand Tor Sight Tx
Chan ge on the East sends home the Bank cirCu
lat on, which prudent bunkers will not pay out
while Exchange demands n high premium. The
result is, that both Exchange on the East, and
currency, grow scarce attended with an increase
! at the Ulready high rates OF interest demanded by
private bmkers whose very loans IL merchnns To
pay balances Fast. augment the difficulties they
claim 10 provide against,
| Icuncule that the high rate of mtere-t is oc'
casiumrd- LIST. BY the limited amount % bauS
lug capital. ID. The withdrawal of capital from
manufacturing and mechanical business Tor in
vcsIment in private banking 3d. The contm
ned aud destructive policy Of the State which
will utterly unniGilnte Banks olcircuGliun
hnvo made, from the best sources Of miormn.
tion within my ren III. the oown- table, show
Ing the population, Bank capital, coin aud circu.
IatInn, Ut each State:-
States. Population. Bank Cap. Coin. Circulation
Alabama. 428,779 $2,0OO000 ........ ........
Arkansas lO2,b0i ........ ,....... ........
Conn. .... s7079I iOoi8,l ,lOl s64G,0O6 s5,200.o00
Delaware. s02i6 l,4lOOOO 250,OOO 100000
Florida. -. 1902 ........ ........ ........
GeOfbla.,, OG4,olo O,oZSiElO l,OUu,UUO 4,UUOUUJ
iHls. indians SS SSsiis aOsg $50 ia86ooo a5o0ooo
Iowa. 900. 1924 100000 ........ .......
Kentucky. 77l,42i 9.lSOOOO 26SO,OOO $3.50 OCO
Louisiana. 274,953 l3,26ll20 76OO,00O 6OOaOOO
Maine. 49,. 5S3,lSS 34lS000 47i,OO0 2,6OOOOO
Mary land. 1861 9,l37 ,395 2,527,O0O 3,260OOO
Mass. .... 994,409 3S,l65,0O0 2,745,O0O l5,6OOOOO
Michigan, =. 39l l654 100000 10000 UOO
Missouri. missouri 5SlS2i ~ lsOS75 i'9o0oooo 2,600000
Nllampshiro 3l704 2,@l5OOO l5O,OOO l,TOO,OU
New Jersey. 4S0,333 3,i549O0 69OOOO 2,9OO,OOJ
New York 3,O9L394 h5YI6S20 lI,620U00 24400,0DU
n Carolina 5S0,49l 3SOO,0OO l60O,0OO 3,5OO,0JJ
Ohio . l950,4O3 7,50l,276 2656,l19 ll,l5S,4lt
Penn. ... 23ll,7S6 1861 4OS 720O,OOO l2,0OO,0OU
| Rhode Island 1854 ll,3S3,302 26000O 2,50O,0OJ
s. Carolina 2S3,49S L ,13l 1853 2,20OOO0 6OOOOOU
Tennessee. 763,l64 S,3l5,l97 100000 100000
! Texas ... l5l,43l 30O0O0 ........ ,.......
Vermont. 3l4,l20 2,3lO00O 10000 2SOO,OOC
Virginia., 99,l33 97l3l0O 2,3O0OOO 7,OOO,OOu
Wisconsin, 3O5,l9l 225OOO ........ ........
BY this table it will be seen that Ohio, though
but the third State in the Union, is the twelfth il
| punt Of Banking capital. She has more farm,
under cultivation than Pennsylvania, nearly hall
rs many manufacturing establishments as either
| New York OF Pennsy ylvaniu; while the first hl;
nearly six times as much Banking capiml aud the
| latter nearly three times much as she has, and
what htte she has is hunted with as much partl
zm bitterness AS ever fell To the lot OF Que branch
OF busii. ess tu contend with
The act entitled AN net 10 authorize Free
Banking, passed March 2l 1851, has not increas.
ed our circulation, neither will il so lung as stocks
keep at their present rate Ol premium. Stock. in
my opinion, is not the true basis oi Il circulation
-nOlhing is but coin. would ameud the 7ll
section ut that act, as To authorize banks trans
| ierrug stocks 10 the Auditor to receive two dol
lars Tor one, and make the act ITO restrain
Banks from taking usury" passed March 49, 1850
with some few notifications of general aPplicd
lion, with the penalty changed To forfeiture oItht
debt in case Oi the violation OF the law.
The first would increase our circulation. the
second place regular and private Banking on the
same footing. aud leave capital better chance iol
larger returns To seek investment in manuIactur
ing and producing business. therefore not only
rewurdng the capitalist but the community
which private Banking cannot do; it only. at ruin
Gus rates, props up the business man few day
in order that when he finally does 60, it will be
more splendidly wretched with himself and disos
trous to his creditors.
There is but one method, in my opinion. t.
remedy the much lamented high rates OF interest
and that is, to encourage the establishment o
Banks of circulation, and regulate loans by tin
passage orslrong usury laws. FAITHFUL. :