The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-04-07
OTHER PEopLE,s HONEY.

Senator Ingalls, has introduced into Con-
gress a bill reyiving the United States Bank
in new shape. 1t is to be a bank Of issue,
as well as a bank of discount. 1t is to put
out notes for sums as low as l, ., 8, and 5
mills, and l. 2, 3 and ) cents, and as high as
500, the paper representatives of which
sum are to be called condos" and as high
as $1,000. which notes are to be known as
talents" The money thus issued is TO be
loaned out son good security" the interest
to be payable by the borrower once a year.
on December 3lst All the issues of the
bank are to be a legal tender for all debts
and dues; and to make them more valuable,
it is especially provided that the notes are
to be printed by hand on silk threaded
paper. A man who objected to such notes
would be very hard to please.
The bank will likewise be bank of de-
post, with branches at every Postoflice.
This department viii differ from other banks
of deposit in that il will do business for its
customers gratuiteusly. There will be no
charge, or only nominal charge, for trans
fers of money from one place or other. and
we presume the bank will undertake COL
lections free of charge. This is an improve
ment on that other scheme-which likewise
emanated from Senator Ingalls, State-aud
which proposed TO establish great Govern
ment warehouses to receive and advance
upon unsaleable grain and other farm
products
All these schemes are bottOmed upon the
idea that the people at large, through their
agents at Washington, should embark in a
business which is normally the province of
individuals, and should conduct that bust
ness at a loss, the loss to be borne by the
people at large, in order that certain classes
shall escape the payment Of the necessary
and proper expenses of their callings.
Why should the 65,O0l, 900 of people who
inhabit this country go into the banking
business? There is no difficulty in going
into the business of banking 1t is the
easiest thing in the world if one has the
money to bank or. There is 4 very liberal
Federal statute under which enterprising
men may start national banks aud make
double interest on their issues. Most of the
States have laws equally liberal. 1t is about
as easy to start n bank as to start grocery
store or dry-goods store. Ii more banks
are wanted in Kansas they are sure to be
established. There is plenty of money look
ing round for such opportunities. There is
only one way in which this cutlery for 4
Government bank can be explained, and
that is that the kind of bank which il is
proposed to start is bank which shall be
sure to lose money. Its promoters want to
make their.way in life by the use of other
peoples money.
MIR. Ingalls, bill proposes that his bank
shall advance money ION good security"
but man who has good security to offer
can get money anywhere. The rate of inter-
est which he may be required to pay will vary
in different localities, but the owner of good
collaterals need never want money. There
are thousand bankers and banks which
VIII let him have adj his security will cover.
This is so well known that one is driven to
the conclusion that in reality the security
which Mr.. ingalls, friends propose to offer
is not good, but bad, aud that if the Ameri-
can people lent money upon it they would
find themselves in the position of the share
holders in the old United States Bank,
which, when it collapsed, turned out to
have loaned its good dollars on a lot Of cats
and dogs.
Mr. ingalls, constituents will find out
when they raster the subject, that a COM
munity can no more grow rich by starting
banks than man can relieve himself from
overpowering heat by breaking his Their
mometer; and certainly there is nothing in
the condition of the country at the present
time which requires the people at large to
abandon the callings by which they make
their bread and which they understand to
go into the business of banking, which they
do not understand, with the certain assur-
ance that they viii lose money for the bene-
fit Of particular classes Of the community.