Dodge City times., 1891-05-29

Now, in the future. no slaves Will tiicre oe.
They will throw OIL the collar. the slave
binding collar,
The old party collar and ever be free.
&C. s. White, Halstead, Kan.
HILLS Banking SYSTEM.
His Proposed scheme Has Some Very
Grave Defects-Mr. Hill Is Faulty In His
Premises, and Of Course Wrong I'm His
Financial Conclusions.
notice that the National View and
nearly every other reform paper l have
seen for the last two or three weeks has
published what is known as the ''Hill
Banking System" copy OF which, by
some prcconcerted movement, seems to
have been furnished simultaneously
to al, the leading reform papers in the
country.
Not entering into a discussion as to
the merits or dement's of any other
features of the proposed system. l wish
to call attention to the fact that both
the rate of interest it is proposed to
charge borrowers and the rate it is pro-
posed to pay depositors are entirely too
high. If, as Fichte says. the volume of
money in circulation in n country is
equal to, or represents, every purchas-
able commodity in such country, then
money, in its mode of handling or
manipulation, carries with it the own
ership of the annual increase of ma
terial wealth.
Every trade, exchange or transfer OF
wealth must las general rulc) be made
through the medium of money, and
whatever rate of interest such money
may be burdencd with is simply a toll
taken out of every exchange. which, If
the interest be high enough, will trans
fer to the owners of the money all an
nual increase in material wealth.
Now, Mr. Hill proposes to pay depos-
itors three per cent interest, which IS
Just about equal to the rate per cent. of
increase in wealth, while the borrowers
are to be charged four per cent. which
is more than equal to the rate of in
crease of wealth
But even if the rates of interest pro-
posed by Mr.. Hill were not altogether
| too high, his figures are ''away of" he
having made some grievous errors in
his arithmetical calculations.
Mr.. Hill proposes ''That the govern
ment establish 5000 bank repositories
at central points throughout the coun-
try, and that three per cent interest be
allowed on all long time money de-
posits made therein"
Here we have three per cent. estab-
lished as rate of interest to he paid
depositors
He then (himself)goes on to say:
s'That the government loan money at
four per cent interest on values accom-
panied by absolutely guaranteed Sc
curity. AS all money paid out will
come Immediately back to the bank, il
can be loaned, over and over. up to the
amount of s, 0O0. 600 which, for illustra-
tion, may be the limit of the loan"
| In the first place we must promise
that the government has not at pres.
ent, and, indeed, never can have under
the present system, very much money
of its own. The money to start Mr.
Hills banking system must first be de
posted by individuals Almost all gold
and silver held by the government i.
now, and would be under Mr.. Hill.
system, held in trust to redeem the golG
and silver certificates issued thereupon
while the greenbacks and gold and sill
yer in circulation belong not to the gov
ernment but to individuals Moreover
unless Mr.. Hill provides for an issue o.
paper money, in addition to the volume
now existing, the money to buy his ad
ditional $500, OOO, 900 of gold and silver
must be first taken from the people by
taxation.
But assuming that the people (indi,
vidually) deposited with themselve.
collectively (the government theiI
money as they now deposit such money
with banks, and the system of banking
Mr.. Hill advocates was in full blast
then, in that case, Mr.. Hills figures ar
faulty, extremely so. He says:
Allowing the So, ,O0J annually. to defray tn
expense of conducting each depository, th'
cost of yearly management OF all she banks
would be go. .00O. 600: amount expended as in
terest to depOsitors would be 100000: to
tai annual expense OF the government II
conducting its own banking. $l21. .0o0 0oa Tn
| receipts from interest, at four per cent or
5000 O0 900 would be S1OO 000. 90, making tn,
annual pro1eD to the government IS 100 600
Loaning at three per cent interest, up to Is.
000 0OO, ,O0O would give the government eacl
year profit OF $3O.Ooo.Ooo
Let us see. Before we can loan s.,
OOO, 900, 600 we must first have tina
amount deposited by the people.
Interest upon that amount. Mt
per cent. $lJO,UO,Ou
Cost OF yearly management Of all
the banks. eOOD,u
Total annual expense. OK, 90