Year: 1860

Gov Magofin in recent message to the


Legislature of Kentucky, vetoing bill to


authorize an increase of banking capital in


that State. depicts clearly and forcibly the evils


inherent in the rag money system, and tha


evil consequences which have resulted FROM


in his own State. We commend the following


extract from his able message to the attentive


perusal of our readers


The Bible says 'lead us not into temptation"


and it is a most significant prayer would


add, tempt US with no mores banks, but


from them COOL Lord deliver u.s." You can


not satisfy the morbid craving after money.


The more you give the more is wanted. In


creased capital and circulation raises instead


Of diminishing the rates Of interest. As bank


paper becomes too abundant TO carry on a
I healthy trade, tstiepfetiatcs III comparative


value, and property appreciates prices rise, a


spirit OF speculation is stimulated prudent


and thrifty men under the temptation take


risks they would never think of at other times


they become dissatisfied with those industrial
pursuits in which wealth is slowly but certainly


acquired; they 60 into bank, pay high rates of
uSurl0us interest eXacted under the disguise of


bills of exchange ; they get into debt and


finally end in bankruptcy and ruin; all brought


about by an over supply OF money from banks,


which refuse to relieve the distress ther have
| produced unless at increased rates of usurious
interest, which their unfortunate victim is


now Unable to pay. The people are oppressed,


the banks break, and the honest laborins


classes, who have been paid in their trash the !
thrifty farmer who has received it for his pro-
ducts, and the widow and orphan who own |


the worthless stock, are the sufferers. Then
comes the day OF reflection and repentance, |
and curses loud. deep, and bitter, are heaped |
upon those who, by unwise legislation, |
brought about the calamity. ], for one.
| would be guiltless on such a day Of reckon /
ing.


The banks make enormous profits by cx-
pansions. and when bankruptcy and ruin re-
suit, they profit as much by contractions The
farmer, unable to borrow dollar at six per
cent. on note well secured, to be renewed if


need be- Is induced to pay heavy usurious


interest on a "kite" bill Of exchange. The


interest runs every hour on the bill, and the


iarIner, III order to meet it at maturity and
save his credit, lays by every dollar he can
save lie pays interest what he borroWS /
and loses interest on the funds he has idle 10
pay the debt, thereby making the tax doubly
heavy upon him. Seeing his neighbor less
thrifty and industrious than himself make
money by Speculations superinduced by the
facilities offered by the banks, he is tempted
into borrowing. The crash comes, and the
bank which tempted him into debt, and made
large profits out OF him, or the usurer wiII-then
exact Of him any interest they may ask OH
loans, to save himself and family from ruin
The system of banking, as we have had it,
works well at the commencement every body
wants money, every body can get it, and every
body seems to make it, Goods rise first and
labor last, but Ra'or IS tie first 10 sRfer when
revuls.on comes. Extravaganza is increased,
idleneSS IS encouraged until the country is
horeeSsly in debt Then comes the foreign
creditor, who wants pay for his goods, Sold al
enormous prices to our merchants, and by
them again sold at heavy profits to the people.
lie must have money, gold and silver, or an
equivalent which will circulate outside the
State. Every dollar he takes out displaces
two, three, or four times the bank papcr it
represents, and at time when the people
most need it. Then comes the panic The
bnkS say they can't bay their notc-h0lders
and depo|itors unless their debtors pay them
Ihe people cart pay. Suspensions and bank
ruptcies follow. SltS are brought to force
collections E2SsSY-falis Improvement OF adj
kinds ceas III property depreciates in
value. Then comes the feast Of the man who
hls money and is out Of dcbt-the carnival of
the usurer and shaver; two, three and forrr
per cent is eXacted and paid. As property
and labor fall, usurous eXactions rise, and
the people and the government are involved
in litigation, perjury, bankruptcies, frauds and
immeasureable distress.


Tie true DeG,ocratjc golily wBirli has been
sustained by tie people is, that there shall be
no GrclH"re PctvtReges, anil no n9onop0lY If
corporation '7gI's. Would it not be better, if
you will create corporations to do it under
general laws, without conierring exclusive
privileges and exemptions, 50 that every body !
can have fair chance How is it wrong to
egislate especially" for the farming interest
Of the State, or the interest of the manufac-
turer, and right to DO the same thing for
bank corporation Why not put them up
on the same footing and leave all legislation
equal and uniform Why prefer one class
Of citizens to another and that, too, when the
preferred class need your assistance less than
any other


Where is the policy of increasing the bank
capital to be arrested If you grant one
new charter, how refuse the urgent appeal for
another If you add to the capital of one
bank, by what apology reject similar demands
from another | hear of propositions befoEe
you to charter other banks of issue, to IN
crease the capital Of several now in existence
to give the right to issue to deposit banks and
establish others, all which, if successful, will
augment the bank capital of the State over {
six millions of dollars. Each project S pressed
by agents and lobbyists, who assert the
greatest possible need AMI most urgent wants
of the people in their respective localities
Where, AMI in what will this policy, proposed
TO be inagurated, end The argument made
by the friends of the bill before me is, that
they wish to put this bank upon the same
footing as the old banks. If you increase the
capital Of this bank, the same argument, and
equal justice, will call for an increase Of the
capital of the Peoples Bank and the Bank of
Ashland to two millions of dollars each-
Moreover, this institution has larger privileges
than the old banks, and an equally just ap-
peal will require them to be placed on the
same footing. Ifthe argument is good for the
Commercial Bank, it is equally good for the
others and will any one contend that the
warts of the people, or necessities of trade,
demand such legislation Where will you
stop in the increase Of bank capital and the cx-
tension Of privileges | know of no safer
place, and no better point, for the good Of the
people, than right here. Let us adhere to the
true democratic policy upon which we have
won power in the State, and its good effects
will be apparent to all. We will remove from
elections exciting controversies andNiscussions
and prevent the consumption of so much
time and money in long debates over bank
bills. We will shorten the session of the
Legislature, remove the temptations to
subsidize the press, and employ agents
to invest your lobbes, for the advance
E 7 L Al,
old ship take new tack, and a career of un-
impeded success and prosperity will be open
before us.