Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1855-03-20
70 II g Al
'-- - Yrom sopgs on Banxinf1
POPULAR ARGUMENTS IN ~
% VOR OF BANKING

" =
me objections to mo AmericanU Bankp~s< |
n hrs kinds. First such m aviss from their |
ir1eoducInk q upsonnd system Of credit. And
SSirdiy. such % arise nom their nature as cor.
fSjile erssltNES s1lagv~Wffl stExc TVeSt
8 8 ISsH ssSss N his II mind, ind as osss sSsy
sfs eoaaected In fact, he viii require no yefu-
nGnof1nopgqmaavse&yungulkgf6asoSugVF
a. saiisls1ilSs 4 II s5A A SoHsidsf tasse ar. M
49, 3 sses iieyR stAsI, ,.s oqnpon.
FIxDe SsiAsa sSsyysssw"8,sssg 40
s.nn - ~ y 49, sfl sn4nss ~ .!,s. g.sn
s8cHIss,sl CoSs9 q q III III M same s spsce ,as a
tN6snnc tloe; snd no 6Sktt h better ssts6llshed
41sus1 1babwhese tltsys skos stwk kiails ofnurssn.
~ euthexisea by Law, oysonctiopedh by. CUSTOM,
{ESa asi'gs: @ T8sSss Il Shy t1inie int n make money money
oi6fe pIeMtifnithan Il would be 10 only Gold
ASIlsee circulated. tlry ldimi nish ibvalnd
insincseasipg IS Qnanti,y,a TeJvolpatien, 10y
selsiiyH estimation u things Is thsrebY eFhap;; q,
the'c6hAnunitysH sdt y .ast3t - 70 soc
siiBsnks dimimisA ths issss4 fistsfssf.', 40 4
.,sssfss is hisftom being tue, that the Banks
tend TO increase the rate Of interest, BY collect
ing capital into Iar.e masses, and dfnlhish-
ihE the competition among money 1endcts.-
sftey slso. bystheir various ,olerstions, iniIne-
dsats md remote. q give rise 70 multitude Of
S,Spxibus tTaqsactops. s,-a t..afL
I. q bs.Is ]. g g much good Sy lending n.o.ty =
: ~ mach les, tban would be done, by the
ovnen Of ahis money lending il themsslyes.--
Banks, as, wss observed in . .lormer, chapter,
doo not increase the loanable capital nT the
country but only take il oat of the Lnids of its
propreors, und place 1t under the contt0l OF
fsssapsseibe Bank Directors. is3rli'"
tn;H tkers ,csrs no Bank nntes, specie mast cf
.necSssify be frequently transported to and from
distant bdrs y ths country Ut great expense dnd
The trade between different parts Of the
sasaatry 10 got an, interchange of Bank notes or.
Of specie, but OF the products Of the soil and
industry OF the inhabitants. BY private bills:
ofexchAnee, the sams Due 10 one trader could
be transferred To another; and 1t would be ne
eessary only OCCASIONALLY to discharge bal.
apces in specie. This is, in fact, the present
custom Of trade, Bank notes being TO only a
limited extent, substitutes for bills Of exchange.
N ''Bahas diminish tie rates Of exchange be-
.t,ceem different parts Of the country.
Ia Thsn they do,great evil. The rate of ex-
changeis is the natural balance wheel OF trade.
Banks cannot interfere with this, without do
ing harm. Whenthey lessen the rate of ex-
change, they telneye natural check on over
Banks giue greater security than Individuals
in buying aud selling exchange 'f"'
- If they do, 1t is because the other operations
y Of Banking have rendered all kinds Of business
uncertain. la countries where paper money
is unknown, no more risk attends dealings in
exchange than attends other Kinds 6f dealings.
Sack are the cnttoms Of trade in the United
States, tkatsBsnkinS seems neeesssvy. ,.ff'.
,.-c But the CUSTOMS herein referred to- have
their origin in an improper system Of Banking,
aud as they ore perncious, ought 10 be abol-
ished. ~ -
LAR csmmtrcisl countriess haps some systen,
of Banking. '.3sssatv
J, And hone have a. woIse system than the
United States In all commercial countries,
there are men who receive money on deposit,
lend money. and deal in exchanges; but the
system of Banking on paper money, is OF mod
ern origin TheYcit Of Greece and Rome,
and Egypt and ancient Asia, attained to o
wealth far greater than we can boast OF, with
out the aid Of chartered Banks. In all coun-
tfies in which paper money Banking, OF. paper
money of any kind, has been introduced, II
Z r, has done much evil. Austria, Russia, Swe3en,
France, Denmark, Portugal, Brazil, and Bue-
nos AYes, all bear witness to this truth, as
=, well as England and the United States. To
these countries we may add China, in which
paper money was tried before the commence
ment Of our era, and, on experience of its ILL
effects, abandoned. go ta;.
3ar"TAs oarisss eyih that arc meatisned az
fssciag FROM Ranking, u proessds in Jaet, FROM
isbsssss Of it,. Bsnkirg on proper, principles is
productive Of great bensfts.'
We willingly admit that Banking on proper
efprinciples would be productive of great bene-
fits: but we deny that Barking with paper
money, or by corporations possessing peculiar
privileges, is Banking on proper principles.
.Paper is more conuenientfhan specie in large
a1cisnsenty..sS - ,SH@'5slY e . J aHs'r.
ise Deduct from the total Of large payments. all
those,that are made on account ef accomoda-
,tions at Bank, aud all those made on account
:, of the wild speculatons Introduced by Bank
ing, and il will be found that so few large pay
ments Would remain TO be made, that we should
be able tosget through them allwiLhout diff
Guilty. To count out q sum in ten or twenty
dollar gold pieces, would be as easy as to count
It out in ten or twenty dollar Bank notes. Be-
f,re The establishment Of Bark in Montreal,
= guineas were dome up in rouleans, and such
was the confidence the merchants had in one
another. thai the. paper envelopes of the gum
eas were seldom broken. We mention this
merely TO show that the effectng Of large pay
mentsS with metallic money. would not be a
work ofso much difficulty a. some imagine
l, In cases where dispatch was required, the sill.
yer on gold money might be weighed, as was
done by the Bank Of England in 1928, when
the demands for gold were so urgent, that the
ssteilery had not time to count the .sovereigns
1ney Psiu out. lstas vi. q fssg 8 8s,s,t !, s.A
- q II wewish toeGsct' large payments with the
least possible Inconvenience, We must establish
q single Office Of deposit and transfer in each
large town. !F4tis'we,,ld save the time which
n ~ newlost in running from Bspk to Bank,
~ :Paaer sapestke ,naer and tear of cois,,y
ThsSaying. is too Insignificant to be, taken
into't 'nationai account, in subject of DO
much importance Is the soundness Of the cur.
iaIency., MrS Gallatin says that .sths annual
amount wanted to repair the loss oceasoned
byfriclion in gold and silver csin, cannot ex-
iced, taking the highest computation; seventy
: Thousand dollars year, in coinage of forty
millions, aadS is isspfobably much less.ni This
Estimate has been formed, by Mr.. g., 'tfromva-.
slous opinions deduced, from actual expert
ence." =
Dr.. Moore, the Director ofthe United States
htntains report made 70 the President in 1926,
computes the loss on gold coins at, two per
cent, in fifty years. and on silver coins at only
one per cent.
Si4t AnnoSa; = :, y. ~. -4el,1fJf.t .-..