The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-11-07


more scrupulous in adopting the means for its at
preserve them from disgrace and ruin. Hence,
nation of debtors never become a nation Of pa
triots since patriotism consists in sacrificing all self
ish considerations TO the good of our country. That
our banking system, by afording so many facilities
for running in debt has indefinitely multiplied the
class of debtors, must think be evident to all
who take the trouble TO trace effects TO their
There are, we conceive, other highly injurious
consequences resulting from our banking system.
The creation of such vast fictitious capital for
which, in fact, there is no legitimate salutary
ployment, has tempted tens of thousands who were
usefully occupied producers in agricultural pur-
suits to the commercial cities, where they become
consumers and enhance the prices of the necessares
of life. They have been seduced from the whole
some benefcen pursuits of agriculture into the busy
marts of trade to scue in the crowd for bread and
nine times in ten become bankrups in their haste to
become millionaires. The consequence has been
that wherever slavery does not exist there is
great dearth of laborers in the country Agricultu-
raj products which constitute the staff Of life, have
not been proportional to tho increase of population,
and, consequently, have become enhanced in price,
and this result may DO traced in no uncomfortable
degree to the inability Of farmers to obtain the la
borers necessary to the cultivation of their lands, as
well as to 30 many of them having turned specna-
tors owing to the redundancy of bank paper and bank
accommodations.
Were it not for the stream of emigration perpetu-
ally flowing from the Old to the New World, the in
habitants of the North and West (many of whom
striving to arrest i) would be in a great measure
destitute of laborers; every man, however rich,
would be obliged to do his own work, and be
par with his poor neghbors. All his wealth would
not relieve him from the necessity of labor.
The banking system has in great measure con-
tributed to the undue increase of the class Of ira
ders by afording them the means of engaging in
traffic. They have become 30 numerous that they
stand in the way Of each other, 30 that in almost
every town and village they take the bread out of
the mouths Of their rivals and starve one another.
1t is the in the great commercial cities. TO at
tract customers and monopolize business they build
or rent immense marble OF granite stores, and trick
them out in all sorts of extravagant embellishments.
In order to meet these enormous expenditures they
must either levy contributions their custom
ers or increase their sales to an mprudent
extent by giving long credits. There is not
business enough for all and therefore each one
must resort to expedients for obtaining more than
his share. TO gain this object every possible bait is
thrown out to their customers Credits are extended
to discount their notes in order to enable the credit
ing merchant to dispense with prompt payment
from his customers. We now every day the ef-
fects of this mode of doing business in the exposi
tons of the affairs of our suspending merchants. In
nearly every instance their assets are said greatly to
exceed their debts. But these assets consist princi
pally of the notes of hand of those whom they have
ndiscriminatey trusted, and who are themselves I'M
able to pay without borrowing of the banks 1t is
almost invariably found that in winding up the affairs
of bankrupt large portion of these assets are of
no more intrinsic value than bank notes This ruin
GUS mode Of doing business may be invariably traced
to bank discounts and accommodations, whose in
evitable tendency is to lead men into temptation,
and enable them to monopoze more than their share
of the great aggregate Of business.
This now general practice of extending credits,
WHICH, tS previously Statcu, Souiu NV SAst Wilt
out the agency of banks is not moro injurious TO
the creditor than the debtor It tenpts the latter to
imprudent and unnecessary purchases of goods which
he in turn must dispose of credit in order to get
rid of them to some retailer who, seduced by long
credit sells to his customers the terms and
thus from this original source spring string Of
debtors comprehending every class of society.
The perils and uncertainties of this system of long
credits, which, our readers must bear in mind, is
of the hopeful progeny of our banking system, are
proverbal. At every financial crisis, when the
banks curtail their discounts, money becomes
scarce from any of those nscrutable causes that baf
fe the sagacty even of the political economists, the
first that shipwrecked are the great 'jobbers,'
as they are styled, who have done business to the
amount Of millions annually and trusted everybody.
The banks from which they have borrowed always
manage to be secured by hook by crook, and their
other creditors being mostly British honest John
Bull is the principal sufferer. Having no other
dress, he to use homely phrase takes satisfaction
out of our hides" and abuses us as we well deserve.
The national character, represented abroad by mer
chants principally suffers severely the whole peo-
pie are set down bankrupt rogues, and the burst
ing of these air bubbles becomes national stigma
But to trace the sly, insdious, and dangerous in
uence of the banking system in all its ramifcations,
which axfond thrnuph eyary vain and arfary of 40