True American. [volume] (Steubenville [Ohio]) 1855-1861, 1858-02-10
Banking in Iowa.

Nn4AAs9 Al ANWS'
We,take the following extract from The
Inaugural Address delivered by Ralph R.
Love, Governor-elect of Iowa, in the city
of Des MOines. on the 18th Of January.
We copy ell ofihe address which relates
to Banking. 1t completely refutes the
old theory, that ifa State refuses 10 char
ter banks. gold and silver will flow into
il and form the exclusive circulating me-
dium. The Governor completely sets
this aside, Read the article. Il viii
well repay perusai:-
''In the absence of a national paper
currency, and with an established policy
Of seventy years sianding-in the use Of a
mixed currency of paper and metal by the
States, each for itself providing and legu-
lating its own circulating medium, it
would seem to be the very climax Of hu-
man folly for single State, possessing
equal powers, to lean wholly upon other
States and foreign corporations for its
currency. YetIowa from the beginning
has been guilty of this great folly, the
effect having been to keep out that amount
or fair proportion of gold and silver, which
wise and we'll regulated banking system
would necessarily have supplied; and
subjected us to the necessity, as we'll as
all the hazard, Of employing the paper
Of thousand banking institutions in other
States, at an immense annual cost in the
shape ofinterest, failures and counterfeits.
And now, when the whole country is
over!aken by money crisis, in which
many Of these banks have gone into
liquidation, and others withdrawn their
issues. we find ourselves entirely destitute
Of circulating medium. g.
1t is needless to disguise the fact that,
like the balance of the civilized world,
we are greatly in debt-with no disposi-
ton, however, to break faith with our
creditors. Possessing millions of pro-
duce and other good property still we
have no money or available credit to NEE
our liabilities. .r.-. s.t
A sudden enforcement of these liab:li
Ties, under the circumstances, would be
as disastrous as it would be cruel toward 8
the people of this State and the question
may be seriously propounded, whether
any principle in ethics would be violated,
in afording reasonable time and that re-
lief which shall be fair to all parties, for
the liquidation of these liabilities.
AS the State. in its sovereign capacity,
has clearly been at fault in not providing
the way for supplying a safe, sound and
reliable currency of her own, that our
people might be placed on an equal foot,
ing, and with like advantages and privi'
leges enjoyed by the people Of other States
she is bound by every consideration ol
fairness to repair and uphold the falling
fortunes Of the people, so far as they are
affected by the want of home circulating
medium. . ..,...
According to the statistics of the Fed
eral treasury, there is now in the country
$500 900, 900 of dollars of specie; co..
900, 200 of this form the basis of bank
issues in other States. Had we ten years
ago established a wise State Banking
System, endowing it with the attributes
and powers of similar institutions, tht
probability is that to-day we would have
our fair proportion Of this specie, both ii
the circulation of the State and the vault.
of our banks, justifyng the issue of ar
amount of paper which by its pliability
to sudden emergencies, would greatly
relieve our people in these days Of evi
porIeni, or at least keep them from falling
into worse condition than our fellow
countrymen in other States.
Forgetting however errors Of the past
LET US make haste 10 retrace our steps dc
now whst should have been done years
ago make provision for sound and an ade'
quate currency Of our own. 1t is com
petent for you to frame general law, un
der which either or both of the banking
systems contemplated by the Constitution
may be established. 1t is perhaps un
necessary for me to indicate my opinion
in regard to the relative merits of the one
or the other /; or to venture any sugges
,ions as to the provisions which should
enter into the frame work Of either. The
very large amount Of geld and silver il
the country justifes the conclusion, tha,
an actual specie. basis would be obtained
under banking law wisely conceived al
to the privileges it conferred and the linn
itations II imposed. There is often pow
er in words, Confidence is an important
element in all banking operations, Tht
word State, in government well order
ed and conducted is with many the syno
nym of confidence. These facts will
others, would determine my own mint
in favor of wisely adjusted State Bank
ing system. Let it be established unde
the best lights you can obtain, protecting
The bill holder. inviting the capitalist, j.
suing no bills under the denomination o
five dollars"
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