Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1854-10-24
THE BANK FAILUREs-EyiLS Or
THE PAPER SYSTEM.

The Newport Safety Fund Bnnk' tho
ksaiscky TITUS. Co., Bank, @' sayings
Bank Of Cincinnsti, tLs Cpnnsrsvi'let
Back oflndians, Tho Ellsworth Bank
ism sins, Kslomuxoo Rail Road Bank
10 Nishissn, SussiA Bank. knicker.
becker Rank. ssd Eighth Avenue Bank
- New YsrL, t.se all failed.
Wa ore no, advised Of tho amount of
,hsir circulation. but suppose the aggre.
ss,a se.snt is boswsen four and fvel
niliipss. The eircpIstion of,ho Bank
sf CopAersyills i,ja said, 10 between
200 900 and 100000.
This vast sum offro,n four 10 five mill.
ions Of dollsrs has, within a very short
ig6 nns, died. and become worthless
b ihs hands Of tho noserSholders. The
eountry Is sill flooded with a.worhlcss
spawn Of noses, ,hatchsd in Indiana dur.
ling ,he pact two years. and which the
paper dynasty Of Ohio has put in circu.
lstion emons our homes, and unsuspect.
lns people. When those Bank failures
occur. i is not tho capitalist. and the
wary sleculator. that loses; they foresee
the evil and hi o themselves from it. but
!, 10 the day laborer. the mechanic, the
farmer. and the professional man, on
whom these ruinous and heavy losses
fell.
Ths history Of the paper money sys.
tenn in this country, is full Of melancholy
interest. The war of the Revolution
was principally sustained by a paper
eprreney called "Bills Of Credit" and
80 denominated, in that provision Of the
Fedora: Constitution which declares
that no s,as shall emit "Bills Of Cred.
H." nor "niske anything but gold and
silver coin q h nder in the payment Of
heb,s.' Al the time this provision
was inserted in the constitution, the
county was in the midst Of a CONNER.
eisl crisis. such as the people have new.
81 since experienced. o
During the war over ssOo,Ooo,oOo Of
paper money, called bills ofcredis, was
put into circulation. and et the time OF
the adoption Of the constitution was dy.
jng in the hands Of those who had given
substantial value for it.
To prevent any quibble as to the sig.
MITIGATION Of the term, "Bills OF Credit"
We give the definition Of Judge Stoiy,
who says, that "a. the time Of the adop.
tion Of the constitution, Bills Of Credit
we're universally understood to signify q
psper medium, intended to circulate as
money. between individuals, and be.
tween government and individuals, for
the ordinary purposes Of society.
Tho evil to be remedied in the prohi.
.bit;on TO the states to "emit bills Of
credit is most forcibly vindicated in the
following strong language Of 44sh No.
Of the Federalist written by James Mad.
json, and sanctioned by Hamilton and
Joy, as we'll as by the people.
"This prohibition says that celebrated
state paper "mus, give pleasure to eve.
y citizen in proportion to his love
Of justice. and bis knowledge oflhe true
springs ofpublie prosperity.
."The loss which Amerca has sustain.
Cd since the peace, from the pestilent ef.
feets Of paper money on the necessary
confidence between man and man on
on the necessary confidence in the pab.
'ic councils; on the industry and NOR.
ais Of the people, and on the character
Of republican government, constitutes
an enormous debt against the States,
.chargeable with this unadvised measure,
which must long remain unsatisfed or
rather, an accumulation Of guilt, which
can be ex2iated no otherwise than by al
voluntary sacrifice on the altar Of Justice
Of the power which has been the instru.
ment Of it. In edition to these per.
suasive considerations, it may be obser.
we'd, that the same reasons which show
the necessity Of denying to the States the
regulation OF coin, prove with equal
force, that they ought not to be q, liber.
~ TO substitute a paper medium in the
place Of coin. Had every State righ,
10 regulate the value Of its coin, there
might be as many different currences as
States; and thus intercourse among
them would be impsded ; retrospective
alterations in its value might be made,
aud thus the citizens Of other States BE-
.tnjufeil. and animosities kindled among
the States themselves. The subjects Of
foreign powers might suffer from the same
cause. and hence the union be dscred.
ited ard eabroiled by the indiscre,ion n
Of q single member. No one Of these
mischiefs is less incident to power in