Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1854-10-31
NUMBER, R,i.qss...I,

Of our national governmsntg Ind 1lf1
Of each psrtieulas.stste. ~ Ian I'd .srS
Every charter Of ideospofs,Iosg'wsj
have said, Il. to some sxisnt,s ss&esisd d
fact. or in practical cpssatiosi . mchop'n
oily; for these charters iitsriiblp insssss
those upon whom thsy ssss.bssso owsd wi,k
powers and privileges which asesnSt on:
jOyed by tho great body Of the TeSpis.f
This may bs done by merely combinisS'l
lsrser amounts Of cspi.si thshipninsorsd
poratod individuals can bring into conaid
petition with the chartered Institutions;
but the end is more frequently Effected
by the palpably unjust procsssof sson "a
Grating the chartered few from liabilities
to which the rest Of the community sis
subject. or b. prohibiting the unpfivi.
legged inda III from srtering intb com. 9
petition with the favored creature Of the
law. "''+'o1i sf'i- - esp
When legislative body restraints The y
people collectively from exercising their
natural right Of pursuing q certsin
branch OF business, and gives TO eerain
individuals exclusive permission 70 car.
~ on that business, they are assuredly .
guilty Of violation Of the republican
principle Of Equal Rights. which moth. J.
ing but the plainest paramount neeessi.F
ty can at oil excuse. This violation 10
the more palpable, when immunities arc
granted TO the few, which would not
have been enjoyed by the people, had
their natural rights never been restricted
by law. In the case Of Bank incorpo.
rations such is clearly truo ; since those
who are thus privileged are protected by
.hoir charters both from the competition
Of individuals, and from loss to great.
er extent than the capital ,hey may risk 9
in the enterprise-a protection which
would have been enjoyed by no member :
Of the community, had law left banking
on the same footing with other mercan.'
tile pursuits. As monopoly, then,-.
as system which grants exclusive priv.
ileges-which is at variance with the
great fundamental principles Of democ..'
racy--we must oppose bank incorpora,
ations, unless It can be shown that they
are productive Of good which greatly
counterbal, noes the evil. -'' = ''' S'
A second objection to our banking
system is that it is founded on wrong
basis-a basis that does not afford ade.
quate security to the community; since
it net only does not protect them from
loss by ignorant or fraudulent manage.
ment, bu, not even from those constant.
ly recurring commercial revulsi ons, that
indeed, are one Of the evil fruits Of this
very system. The basis Of our banking
business is specie capital yet every
body knows tha. the first thing bank
does on going into operation, liz we sup.
pose the whole Of its capital 10 have
been honestly paid in. which is very iar
from being always the CASEY is to lend
out its capital, and the profits Of the in
stitution do not commence, until, hav.
-
ing loaned all its capital, it begins to
10 loan its credit as money. No set Of
men would desire bank charter merely
to aulhorise them to lend their money
capital at the common rates Of interest.
for they would have no difficulty in do.
ing that withou. charter, and without
incprring the heavy expense incident to
the banking business. The object Of
bank charter is to enable those holding
it to lend their credit at interest, and to
lend their credit, too, to twice and some.
times three times the amount Of their &c.
tual capital. In return, then, for ito
cspital, and for the large amount Of pro.
missory obligations issued on the credit
Of that capital, the Bank holds nothing
but the liabilities Of individual mer.
chants and other dealers. 1t must bs
evident, then. that its capital is liable to
all the fluctuations and accidents to
which commercial business 10 exposed.
Its integrity depends upon the ability Of
its dealers punctually to discharge their :
obligations. Should series Of com.
mercial disasters overwhelm those deal.
ers, the capital Of the Bank is lost. and
the bill holder. instead Of money. linda
himself possessed Of q mere worthless
promise TO pay. aa 'ss2Si'eoa 81
Lot us trace the progress Of new
banking institution. Let us imagine .
kno, Of spectators 10 have possessed -
themselves by certain acts Of coilulion. /
bribery, and political management. Of
bank charter; and let US suppose 'shsnu'
commencing business under their speciat .
privileges. They begin n lending shsit
capital. After that. il s0fnmefcisi b %
lness is active, and the demand for mon. :.
ey urgent, they take care 70 Putrss ma.
e.