The true Democrat., 1854-07-26
Banking in Arkansas.

e>~esAeS6 4AeA@AsSs~sS'
 To strike out that clause which provides tha mo bo'lk or banAang institution shaH be heregfte' incorporated or established in taas State," appear: to be the object of those who advocate the cal ling of convention to "reform and remoder' the constitution. The Gazette, in particular, advocates the policy of free banking The edl- tor of that paper, as Auditor of the State, lg- norant of this provision in the constitution, re- commended in his official report to the last Le- gislature, the enactment of law authorizing free banking" Discovering, however, the constitutional prohibition of banks, he now gives the influence of his paper to the advocacy of convention to retorm the constitution!
 Our State is just beginning to emerge from her embarrassed condition, heretofore occasion ed by the mismanagement of banks She is beginning to recover from her past distresses and ahlictions-her people are growing rich and prosperous. Immigration is flowing into her limits - her population is rapidly increasing while the financial and commercial prosperity of her citizens is based upon sounder and hrmer foundation than ever before All of this has been effected without 'banks.r Why then the repetition of this experiment of banking which has already once proved so disastrous?- We may retard, but it is hardly possible to &C., celerate the rapidity of our present growth in prosperity.
 We wish to call the attention of the people,
 
 and particularly the Gazette, to one fact in the report of the secretary of the U S. Treasury.
 It is this:
 me goid colnage from the lst January to the 3lst CcIober o the year 1858, S46 99S 94 60 and the slVer conage S6.996 ,225, proving an active and growing demand for gold and silver as currency for actual use; whilst the imports of gold and silver in cuons what IS brought to the Atlantic from Califor ma, without estimating for that brought in hy eni grants compared with the exports of gold and silver prove that within four years. the large amount of sl85 095 B has been added to the gold and silver com remaining in the country.
 This shows that nearly 47 millions of dollars of gold and nearly millions of silver were coined by the U. s. hints last year; that the excess of importation of gold and silver above the e1po'taton, in the last four years, is nearly l36 millions of dollars; or nearly 34 millions of dollars per annum.
 Now where is all of this gold and silver?- We know 1t is in the country, and yet there is scarcely any of it in circulation. Our circulat- ing medium is nothing but shinplasters, for the use of which the people pay to the banks from Is to 20 per cent. interest Where then is it? The answer is, it is locked up in the vaults of the thousand banks in the country, and we have, in its stead their shinplasters, their prom 'se to poy'
 The secretary of the treasury further savs
 Should this increase continue but short term of years this country will be able dispense with banks o issue, and their attendant evils and have tie qod and satrer currency contemplated by e con&tltuta3n The operations of the mint and it's branches for the past year show very favorable result and recoin- age of silver has, in many places removed the incon- Veience arising from small bank notes and want of change IL may reasonably be expected that the SUD- ply, Tn the course of few years will be ample. and extended to every section of the country.'
 But in this State, just as the supply of spe- cle is becoming abundant, and the country is getting into the condition ito dispense yith banks o issue, and Meir attendant euizs, and haye tue go1d and saluey currency contemplated by tue constitution,'' cry is raised for the establish ment of banks! We are surprised to find the Gazette, professing to be democratic, the leader of the pack.
 Experience teaches that banks are iniu- rlous to the community in which they are es- tablished. Their influence is in many instan- ces, absolutely ruinous, while in no community are they absolutely necessary. As an instance of their bEghting influence, we point to Mem phis. To show it, we quote from the Memphis Whig-a paper whose orthodoxy on banks" " we imagine the Gazette will admit
 In treating of the monetary pressure to which the people of Memphis Were subjected, the writer in the Whig, characterzes it as "unpa- ralleled unnecessary and criminal" And, he continues,
 That it is unparalleled all know, because nothing approaching its effects has before occurred to us It Is oppressive" because 1t has produced much sacri flee and distress, and even threatens Us with run- And criminal" because it is wrong unnecessary. productive of distress and ruin, and might be averted by its authors.
 Pretty strong language, but the writer seems to be justified in the use of it. He says:
 Never, since the untutored Indian removed his wigwam from the spot now occupied by us, has this community witnessed or felt anything like the bur den of oppression that short period has brought upon them.
 For the authors of all this oppression-the " criminals" he points to the banks He con- tnues,
 And who is the oppressor, and who the criminal? \ thousand voices have already shouted :. THE BANKS" THE BANKs" and mine swells the cho- rus.
 And how have the banks effected all this?- The writer says:
 They have done it by suddenly calling in their oans and refusing discounts and thereby so diminish ing and depicting our monetary circulation az to raise tho value of money from the legal interest of half a cent per month, to the crucying rates of two. and as high & even fge per cent. per month Three four and five per cent for thirty day loans are submitted to daily by many of our best citizens and most col vent business men, who make these sacrifices rather than be dishonored by protest, and to pav these very banks.
 With these facts-wth this knowledge of the poaoer that all banks possess to create dis. tress and to oppress the community in which they exist, will the people of Arkansas again .,,+L ox,,o +ho;r oroo+;opo por1,o