The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1854-03-08
For the Spirit of Democracy,
Banks and Currency.
NUMBER VIII.

80 For the Spirit of Democracy,
Banks and Currency.
NUMBER VIII.
Mr.. EDIroR:-The s.Great Unknown
who subscribes himself "Naiiye," is an
CRY win me- Tor writing these essays aiss;s
says great many hard and unklnd things
lie Is Particularly angry at my quotations
nom David Hume, Adam Smith, Jean
Bs-.is, Say and other political eoono-
mis,s. Cause wsn;;;!!!! se.s .ss. writer's BY
rigid induc.ions from facts, by Iarge snd
accurate acquaintance with men and the
ACTIONS and motives of men have devel.
opsd the truth. and the truth is disagreeable
to ..Na.ive" with his present opinions and
preiudices. But at the risk of incurring his
further displeasure. must make another
quotation from Mr.. Say to show him that
the GREAT ECONOMIST has well described
that state Of mind which desires to harrass
and annoy men, for differences Of opinion;
which impuses personal and sinister mo.
tiyes to men who address their fellow.citi.
zens in mild, canJid and moderate lam
guage; "Hence," says he "that SHARP
AND SOUR INTOLERANCE by which TRUTH
has been. 80 often, alarmed and obliged 10
retire; or which when she is armed with
courage, encompasses her with disgrace
and some times with persecution" Intro
duction to Political Economy, page al.
Il is in this spirit that MIR. "Native''
pictures out a mortgage for $1,000. 90 held
by the subscriber, "Ohio," on farm worth
$20oo, 90 ruthlessly foreclosed, after q
hank contraction, to the utter ruin Of the
unfortunate debtor. These bank contrac.
tions are the inevitable consequence Of the
present unrestricted banking system. i
we win have infiations and expansions, we
must have restrictions and contrac,ions
they follow each other as night follows day
or the shadow follows the substance.
What would the efforts Of all the mer.
chants, mechanics. lawyers and physi.
clans of Woodsiield avail against sound
and wen regulated ourrency1 How could
they reduce the price OF ..labor and prop.
erty" to one.half in two or three years, i
the currency was properly regulated! o.
how could the efforts Of all the merchants
bankers and moneyed men in the world
produce such an effect if our currency
were properly regulated2 In my former
numbers l have depicted the evils of banl
infia,ions and expansions inducing men ts
contract debts, which the inevitable sub
sequent contractions render them utterly
unable TO discharge; Of personal proper
~ sacrificed for song atforced sales. ant
farms sold for the last instalment of thu
purchase money" Yet Mr.. "Native" de
scribes pretty accurately bank contrac
ton with its attendant evils, and from thos'
evils argues, for a continuance Of the pres
emf unrestricted, unmodifed banking sys
TEN. II is thus that all vicious institution
tend TO perpeiuate themselves. They pro
duce given state Of things. and a return
10 q different and better state Of things wi
produce, or viii be imagined to produce
some inconveniepcies. If the drunkar
renounces his habits and becomes sober
he must feel the effects Of shaken nerve
and fading energies. If the distilleries ar
discontinued, the farmers will lose a maj
ket for corn andrye. If the grogshops ar
broken up, the keepers will lose proftabl
employment. If the slave.trade is prohit
tied. ships and sailors, captains and cap
tai will be thrown out of employment; s
reasoned our English and American an
cestors fifty years ago. and SO reaso
Spaniards and Brazilian> now. Wha
ever evils prevail in society. those VIII
point out the remedy and strive for highe
and holier and happier order Of things. al
treated with hostility and hate. Tru,
encountered by .'sour intolerance" is olte
alarmed and forced to retire. or if arme
with courage she perseveres. she is owe
whelmed with persecution and abuse.
& Mr.. ANaiive" describes his unfortuna
,snortgage debtor as baffied and disappoin
ed by this depreciation in the price OF b
labor and property. and the $ 1000 falls d,
with little or nothing paid,on it. "Ohio
.fmeaning the wicked subscriber fcourse
,ihen steps in and closes up the concer
taking the land for the last payment. or Il
$1,000 which is then its true value 10 cas-
Thus A loses his $1,000 in the operatio
but the capitalist makes it. Here we ha'
4 fair practical illustration Of the doctrir
Of increasing the relative value Of mons
and credit by making money scarce.-
True. o Xing!!! But who has the meal
OF. faculty of making money scarce b
rag-money-mints. who initiate or restri
sxpsnd or contract the currency as Il
faith or creduli,y Of community wanes