The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1858-01-14

ton, except notorious Insolvency "uS"
makes credit impossible. Always most ac' !
tive when prices are rising, calculation in. ,
creusinR, and credit expahdine these de- |
sires, unchecked, never fail, uh'ler such cir. |
eumstahces, to reach their clisis ID enor'
nous and universal indebtedness, to be
speedily and certainly followed by wide-
spread collapse and disaster.
For nearly ten years past TIE eiteumstan-
ces OF the country nave tended TO these re.
suits. The inIiuk OF gold from California,
has rapidly augmented from yssr 70 year the
volume of TIE circulating mediumi which
has been still further expanded BY v"at.
though not eauaL increase Of credit eurren.
cy. In ia4S, before the importation ot
gold from California had commenced, the
respective amounts Of coin and bank notes
in The country were as follows: coin $780,.
753,O27; bank notes $l2S, ,506,0ll. In
1857, the respective amounts were, coin.
$276, lO5, ,442; bank notes, $al4,77s,222.
The aggregate currenry in Is4s was se;s ,9se. re
- I" lsS7 "s 490,s7s ,6d4
The increase Of currency was 9aS,9l9,s!4
The Increase OF coin was l49,JG6' '4Io
The increase Of bank notes was e0'!'2,Isl
The rapid augmentation effected by the
increase Of coin alone, could not fail 10 pro
duce marked effects in the rise Of prices, in
the multiplication Of transactions, in the
enlargement of credits, and in the increase
Of debts. The additional stimulation OF
this tendency by the further introduction Of
SS6, 6,232, III Of credit currency, sufficiently
accounts for all the effects which have Been
witnessed. ...'.
No system Of currency can insure com.
plete protection against speculation, debt
and revulsion; but that system, which, more
than any other, directly tends to produce
and inflqme these evils, is, without question,
the system Of credit currency That sys.
TEN. therefore, chiefly demands precuution.
ary measures against such results.
Credit currency in the United States is
supplied BY banks, in the form Of notes
circulating as money. The number OF these
banks, on the lst Of January, 1856, was
1898; their capital, $342, ,S74, ,272; their cir.
cniotion, Sl95,747,95O; their deposits,
$2l2,706 ,662; their other liabilities, $64,.
9AT,eRSi their specie, $59,3l4,063; their re.
sources other than specie, $s20.7l3, 3,S62.-
The number of banks at the present time
probably somewhat exceeds fourteen hun.
dred. Their circulation is stated vt $2l4..
IT'S, ,S22, ,,and their deposits ut $230.95S, ,352,
and their specie at S60, 100000. 1t needs
but glance at this statement to perceive
that currency SO eXpahded must greatly
stimulate hazardons speculation, and tend
to fnancial disorder; and that under the ex'
igency of such disorder, the crtdit currency
must become, in part, or altogether, ihSoh.
Vertible into coin, 10. .. .t" ''..-
In Our own State, there are fifty four
banks; thirty.six branches Of the State
Bank and eight Independent Banks, organ.
lied uncer the act OF 18As, and ten Free
Banks, organized under the act OF 1851.
We omit the tabular statement Of their
condition on the 81 Of August, 1857. IN
Their total resources wefs 2l,l23.257 81
Total liabilities 2l,l23,257 40
Also that Of the I'd Of November showing
Their total resources l9.2s2,32s IS
" liabilities l9.3s2. 1928 IS
It will be seen from the above statement
that the condition of these banks, so far III
it is tested by comparison Of specie unc
other cash means With immediate liabilities
was stronger in November than it had beer
I in August. The laws under which these in
stitutions were organized, were framed witt
especial reference to the security Of thu bill
holder. All the branches OF the State BaDl
are made sureties for the circulation Of each
and the convertibiity Of thB ho'es Of th'
others is required to bc guaranteed BY Piled
ges of State or United States bonds.
These salutary provisions have protecte
: the people against serious losses from de
probation Of the banks organized unde
: them; and 1t is highly credituble to thei
management that they have passed througI
the recent crisis, made doubly pefilous I
many of them by the embeBBlement Of thei
4 cash balances ind collection bills OF New
4 York, without a suspension Of specie pay
: ments. VI s. 20" %
} Still, it cannot be denied that the DANCE
of general suspension has been Imminent
or that some OF these institutions have &C
tually been in condition Of virtual suspen
SION. These facts must necessarily ditEc
. your attention to the Legislation necessary Il
protect the people against the lizard Of 8
great an evil. y < 7e, ~ l- -s7''
II How fur the provisions Of the charter I
o the Bank organized under the act OF 1874
. will admit Of additional guards against su
Q pension, is matter Of doubt. Tho decisio
. of the majority OF the Federal Supren
y Court, that the charter Of Bank by Legisl
IS tive enactment is contract, and cam
: therefore be modified by subsequent legisl
# ton, max es the reformation OF evils in cred
- currency always difficult and often imPos'
|. BILE. ID aai 'a aH.. @l -., H '
n At the present momsns. however, it sect
ID not improbable that gh act might be fran
3, acceptable 10 these institutions and bene
at cial to the community, by which mu
,e larger specie basis would be provided !
Mt circulation and deposits than 10 now requir
e. and other additional securities obtain
III lagainst suspension. ~
,e The act OF 1851, under which the 9th
NJ Banks are organized, is amendable at q
D. discretion of the Legislature. Thar circ
a lation is secured by the depOsite OF eq'
A. amount in State or Federal Bonds. 1t
ve plain that in financial crisis, when boz
n. Of all descriptions are deprecated, this q
a. curity becomes inadequate. i recomme
n. the provision of adequate guards against 81
"a. contingency by On increase Of the props
=. tion Of bonds to circulation, and by pro-
Of bition of the deposit Of any other bonds Ii
=. those Of the State or,of the United States
70. The experience Of the last few years !
a demonstrated however, that the gtca.est
ialI nancial disasters In Ohio have not bt
six occasioned by legally authorized banks
IN. issue. :, Most OF the calamittes which b
a,: recently fsllen upvn the business commu
nv. ~ of this State, have originated in the f
oil ute Of private BANKERS and Of the Trust Cc
-. pany. Issuing no notes for circulation