The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1857-12-02


banks, there being enough Of the ui,solli ard
badly conducted to fall down o themselves every
few years, and to drag down the rest with them.
The laws put lew restraints or penalties upon
them; and thess restraints and penalties are
regularly repealed, Just as often as the commun-
ity needs the benefit of them. 1t is by name in
some places, and by fact in othtrs, system Of
free banking" which the hard money Democ-
racy was accustomed to call "lrce swindling."-
Anyloiy becomes banker that pleases. and is
sues small notes ard sends them of to a dis
tance to be circulated and lost, and to sink upon
the heads of the laborng peoples x ayorte
plan is to issue notes at one place payable at an
other far Of, out ofthe way. and difficult to be
got at, so as to compel the Holder to submit 10 a
shave. That mode Of doing business, was in
vented by Scotchmln of Aberdeen in 1906; but
he was in Great Britain, not in the United
States; and the British Ministry aad the Brit
ish Parliament Immediately took cogniZluce Of
the idventor and his imitators, and placed them
all in the categoryof swii; Hers, and 80 put an
end to their operations. No stamp duty no
bankrupt act, and no requistion to keep any
proportionate amount Of hard money on hand
completes the license and unbodnded freedom,
ani the perfect title to periodical explosions,
which belong to AMERICAN banking.
This last requiS licn, that Of Keeping on hand
an amount Of hard money proportionate to their
liabilities, seems to be unknown (even in name)
in the United Safes yet that requisite is le-
gal and fundamental condition of the Bank Of
England; and the proportion Of one-third IN
gold ofthe total amount ofits liabilities in circu-
lation and deposits is the rate enforced; and be-
low that proportion the bank Of England does
not deem itself SAFE. Thus swore Mr..
llogsley Palmer Governor Of the Bank CT
England before Lord Althorp's committee, in
1892; "The Average proportion, as altea ~ obser-
uel, Of coli, and baNioa Which the Buk deems it
prudent TO keep on haql is "tthe rate Of third Of
tie tytpl amoiultof its liabilities, inclatiag de-
Po4ites as ,cel} as iSSueS'' AMI thus swote Mr.
George Ward Norman, director Of the Bank:
"E5r a faN stateQfhe circulation and deposjtes,
Sqy taoeRty y-ORe millions ot notes a7d sr millions Of
dPoSites, ntoktng IN tie 0bo3e tioeaty seOea NIL
lions Of 6aJihtitS The prper sum IN coin and baI-
lion ,fo, tie bank to tetuia IS Hite millions" And
to the same effect swore other directors But
in (1reat Britain it is not sufficient that this
proportion Of onethird is required to be on
hand, but it must be shown, AMI that continual
ly. That it is there+ This is accomplished
ey the publication OF the quarterly weekly av-
erage Of the liabilities and assets Of the banks.
nom Wll1h 'iic Pu9.E car sVo mtsn ny Wy
DAM ll%s Ccos'pu ''io iiiie =. ~ u'n
cre"' ''''' iioil puiNi,S III INC Oi'i.eu
"liele no piopoI''oil"pte ,"'o W 'ne IL
anll'l'S - eFeil P'cSeiIoe', anu "lie'e 1'' 'e''
in the vault, is frequently issued.
DuV ohe 'n'lS was WANING :" 'o'HP'''e tie
'''eS p'oes p"hN,i'S y ys'lin " u''oi u'i"ol'n'-
ness ano 'ha. oit' s'lt5 ta' u'0i ~,
IL y alSPehSa,oh Oh Inc SPcc'e OASIS ihiougn-
pu' 'le "oiln' ' - l:' az 'no p"pet lAoney Is
Anowh' spYc!e oie's 10 ueeliiot ieccss'ly 10 an
INSTITUTION "hiGh '>T"eS Fiohi'sTS w pay Specie'
No' 30 ~ tio en 'eo ot"'es. aP9i upon pa,
pr mas o'cC'liI ''lG 'o9"e WIN u' otoeH' anu
Lhe ilote" Vi otl,t' o'l'N3' ave 'le sa,'uy louh
u"'ioh uPon m'''N - PloPoi' ''0n " oui
o"NNs are oui"'
do not cxpatiate unon the evils OF small pap
or money; they are palpahle 10 every observer
and only require enumeration: !. 1t drives a
way all hard money OF equal denominations; for,
in a competition between two cnrrencies, the
meanest is always the conqneror and chases the
other out OF the field. Z. 1t Is the great source
Of the crime OF countereltlng; for the mass Of
tie counter'eits consist OF small notes. 3. 1t
demorallzes the community; for people, not be
ing willing TO loose note for which they have
by knowing one as counterfeit, put it back in
the nocket and offer It aoain to an ionora rt per
soo F,;ho ro.a;,.os i ,,J No r,oo 1tho,,ah ~
SUI "no 'es'l,1s ~ anu ",,o soo' III o'I. 'ii'
Same PROCESS Wheh FGIectea Oh his tiahuS' Il.
Small notes make the panicS and bring on the
runs which break down good banks; for these
snsIl notes ba;ny IL the bsrds of the uloscos
-, ~, Ia71a a., o,,,,I. H. 49,,
"nGn my 81 "'"' 'noy ~ '.i0u
SantS aU 'he uoo'S VI Tue lhsIi'uSioh WHICH lssa-
ed the notes, demand the money, break the
banks, and propagate the alarni which they
thopsa,ras faaf ,fnfft Il baconias ganarol. cr
,,o,i,;r, ;s ,tar;o,is tbs, ,so9o,o,,ad ~
n"''i''o '' 'io, S'''''' I " " P
me- nor anythlh5 more unhanageaeie. D. 1t
pillages the poor and ignorant; ior every base
note every one is a C,unter(eit or on n br )ken
honl. Gr ~; h,nl. that nnver exista1 al hourb
y -, n,, e., Ill 80 a., =.
IL w'l' ,'i ~ ".''0' mN'e H''p 80 ne"re'e Z,
ana, when II does Is sure 10 stop IN the hands OF
the poor and uninforufad, upon that class least
able to bear the loss. who have no advantage
from hanks while in on,r,iion and who haSr
a., -, 49,, q +, o,,.;.o. - 80
Cie loSS "iio' V'ioy H.TP ~ " sMi.l
ding; lor knaVes, win no'hing tut brasS lof
their capital, and that intheir faces instead o.
in their Golfers, are induced to set up mannfacto
r;o, ~ smoll n,,,er IN ha conf ohro,d .,d e,,,,l
~ ,,',
uPo', 'le n1'iue " 'ios1 i'ii's %iiori IL % ScaC
tered all that Is so sunk be ng clear gains to the
-
A specimenCf m r'ern ban'ting in the United
Stare is seen in one of tha Ia est of these HS,itu
tons, dulg chartered To issue ''ctIrren y"-the
g ante Bank OF Vyluatown ClnAect cut where.
ol the Hartford lCounJ " Zines" gives ms br eli,
nj no dou IT vsraci0u| account:
THE charter was pass3d, md for foar or five
m pnihs it was not heard of again But sud lenlv
on or about the FIRST o. November instaat the biiIs
Of the Granite Bank of Votuntown fppefred in the
market. The bank com ns7opers We're in this ci-
ii business in vaiiou, pa s If the Stllf. t,ay repa
red at ance to VOluhtown 7 There very rich scene
was opened tothem. They found, we uaderstant I