Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1854-10-31

prosperity, borrow monsy ('hat ~ notes
from the Bank, and embark In enter
prisss Of different nature. They Pur
chase Io,s. build houses, sol railway and
canal projects on foot. and every thing
goes on swimmingly. The demand fo'
labor sIbtpdsnt, property Of all kind'
rises IN price. ! ID IspscuIators meet each
o,hss Ia The sssss,, end, exultin their an
ticipatsd fortunes. 18 hH4sr o1
Bp+ by and By, things take differ.
ent avrn. The exports OF the country
(Which furnish the true measure OF bu-
sinsss are found 10 fell greatly short Of
the amount due sbroad for, foreign fob.
rics, and . large balance remains un-
paid. The 6rst intima,ion .of this is the
sspid advance 10 the price Of foreign ex.
change. The Bank now perceives that
{. has extended itself too far. Its notes
which, until now, circulated currently
enough, begin to return in upon it in
demand for specie while, at the same
time. the merchants, whom it has been
oil along eager to serve, now call for
incseased sccommod ations. But the
Bank csnnot accommodate them any
longer. Instead Of increasing its loans
it is obliged to require the payment oI
those it had previously made; fer its
avn notes are flowing in a continual
stresm TO its counter, and real money
Is demanded instead. But real money
il has not, as that was all lent out when
it 6rst went into operation. Here then
q sudden check is given 10 the seeming
prosperity. The merchants, unable &c
get the amount Of accommodation nee
essory to sustain their operations, are
forced to suspend payment. Arumor o.
the amount los, by the Bank in conse
quence OF these failures, causes conf
dence in its solvency to be impaired
and being threatened with q run, it re
sort. to more rapid cur,ailmep,. Ther
follows wider arrangement. One com
mercial house after another become
bankrupt. and finally the Bank itself, b.
these repeated losses forced to discon
tinue its business. closes its doors, an
hands over its affars for the be neh, o
its creditors. Who are its creditors =
Those who hold It's money, that is, it
'.promises to pay" On investigator
il is discovered, most Ii kelly, that IN
whole capital ofthe institution has bee
absorbed by its losses. The enoTmor
profits which it made during the fr
pa,t Of its career, had been regular!
Withdrawn by the stockholders, aud th
deluded creditor has nothing but wortt
less bit Of engraved paper TO show fc
the valuable consid Grafton he par,e
with for what he foolishly ina CINE
money.
What We have stated IAN hardly |
called suppositi,ious case-it is trl
history, and there are events within tt
memory Of almost every reader OF whic
it is a narrative almost literally correc
The basis Of our barking system, thel
If liable 10 be thus easily issipaiel,
certainly wrong. Banks should be e
tabIished on foundation which neith
panic nor mismanagement, neither ign
rance nor fraud, could destroy. III
bill holder should be secure, whatev
might become Of the stock. holder. Tn
which is received as money. and whit
is designed to pass from hand to har
as such, should not be liable to chan
into worthless paper into the transitio
A very important objection incide
10 the banking system Of this couutl
is the demoralizing effect which it exc
cises on society. 1t is matter Of I,
utmost notoriety that Bank charters a
in frequent instances obtained by pra
tiees Of the most outrageous corruptio
They are conceived in spirit Of wi
speculation /; they are brought into c
istencc through the instrumentality
bribery and intrigue; and they exerc
over the community the most unsaluts
influence, encouraging men Of busin'
to transcend the proper limits of -cret
and fostering a general and ieverish thi
for wealth, prompting the mind to sc
It by other than the legitimate means
honest, patient industry, and prudent
tsrPrise. Let any man who has had
opportunity Of observing the effect Of
Producing banking institution, .intc
quiet country town, on the moral CHI
acteEof IT'S Inhabitants, answer Tor hi
self if this is not true. Let any Mi
whose knowledge epables him to CT
tsast . portion Of our county wh'
Banks ole few, with another where i
are numerous, answer if it is not tr
Let sny man whose memory extends