Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1855-02-27
From Gougo on Banking.
BANKS AS CORPORATIONS.

From Goago on Banking.
BANKS AS CORPORATIONS.
Against corporations Of every kind,
the objection has been brought, that
whatever power is given to them is so
much taken from either the government
or the people.
As the object Of charters is to give mem.
members companies powers which they
would not possess in their individual
capacity, the very existence Of moneyed
corporations is incompatible with equal
ily Of rights. |
Corporations are unfavorahle to the
progress Of national wealth. As the Ar.
gus eyes Of private interest do not watch
over their concerns, their affairs are
much more cureiessly and more expen.
sively conducted than those Of individu.
ais. What would be the condition OF
the merchant who should trust every
thing to his clerks. or Of the farmer who
should trust everything to his laborers!
Corporations are obliged to trust every.
thing to supendiafies, who are often.
times less trustworthy than the clerks
of the merchant, or the laborers Of the
farmer.
Such are the inherent defects Of cor.
portions, that they never can succeed
except when the laws, or circumstances
give them monopoly, or advantages
parlaki2s Of the nature Of a monopoly.
Sometimes they are protected by direct
inhibitions TO individuals to engage in
the same business. Sometimes they are
protected by an exemption from liabill.
! ii,s to which individuals are subjected.
Sometimes the extent Of their capital or
thcir credit gives them control over the
market. They cannot, even then. work
as cheap as the individual trader, but
they can afford to throw away enough
money in the contest toruin the individ.
ualtrader, and then they have the mar.
ket to themselves. ..h 56 ti i5 trF
If poor man suffers aggression from
a rich man, the disproportion of power
is such that it may be difficult for him
to gain redress; but if man is aggrieved
by corporation, he may have all its
stockholders, all its clerks, and all lis
dependents, for parties against him.
Corporations are so powerful. as fre'
quently to bid defiance to government
II man is unjust or an extortionerl
society is sooner or later relieved from
the burden by his death. But corpora
. tions never die.
What is worst OF all, (if worse than
what has already been stated be posi-
! ble,) is, that want Of moral feeling ant
+, responsibility which characterises corpo
rations. A celebrated English writer
: expressed the truth, with some roughnes
+, but considerable force, when he declared
that corporations have neither bodie
!, to be kicked, nor souls to be damned.
+ All these objections apply to ou
American Banks.
II They are protected, in most OF tn
It States by direct inhibitions on indvidr
y ais engaging in the same business.
a They are exempted from liabilities
II which individuals are subjected. If
!. poor man canno, pay his debts, his be
|. Is, in some Of the States taken from un
!. der him. II that will not satisfy h
'e creditors, his body is imprisoned. In
1t shareholders in Bank are entitled
is all the gain they can make by Bank
II ing operations; but if the undertaken
le chances to be unsuccessful, the 10!
~ falls on those who have.truSted them.-
I'd They are responsible for no more tha
IN the amount Of stock they may have su
IL scribed.
s. For the old standard Of value, tn
ty substitute the now standard Of Bar
credit. Would government be willil
OF to trust 10 corporations the fixing
en- our standards and measures, OF lengt
an weight, and capacity! Or are our sta
y, dards and measures ofvalue Of lessil
a, portanc than our standards and mei
u. ures af other ,hingsl -
N, They coin money out Of paper.
he What has always been considered Q
ng Of the most important prerogatives
sg- government lras been surrendered
30 the Banks., at t,y aa
I'd. In addition to their own funds h
The have all the spare cash pfthe commun
70. to work upon.
,le The credit ofevery business man
- pends Upon their nod. They have 1t
md their power 70 ruin any merchant
ve- whom they may become inimical.
na- We have laws against usury; but il
VI. was the intention Of the Legislature
'!e, encourage usurious dealings, what m !,
l. | - 4 / :. Al