Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-14

or any number OF individuals desiring to in
corporate bank, should file an application
with the secretary of state stating the
| amount of money the bank wished to CON-
| mence business on. Say, for instance,
| 500, 900 of its own money With that APP
| plication | would have the company to file
bond for $500. GOO. based on real estate, a
| schedule of which should accompany the
| bond with an abstract of title and assessed
| value Of property. The bond should be
| signed by principal aud sureties, stating
| the property opposite his name, referring
| to schedule of same which he proposed to
make liable TO his bond. Now on the filing
| of this bond l would have the government
to deposit 100000 with the bank without
| interest, the money to be in gold,
silver and paper indiscriminately. This
would give S200, 900 with which the
| bank could begin business; $780,
| 600 OF its own money and 500, 900 of
the governments money. The government
would prescribe the rate of interest at
! which this bank should loan its money, say
4 per cent. Now while the people would be
| getting money at 4 per cent, the bank would
| be getting per cent, per cent on its own
| money and per cent on the governments
| money (this it should be entitled to for put
| ting the government money in circulation).
| The probability is that the bank would get
| heavy deposits on account of its safety and
! stability. which would probably run up the
| banks interest to II TO l6 per cent on the
| governments and private deposits, besides
| the bank would have the advantage of its
| discounts and other current business. A
/ bank could he commenced on a larger or
! smaller capital. In large cities the security
| would be on city blocks of business houses,
| the value of which would fuctuate but
| very little. In smaller town, in rural dis
| tricts, real estate would be of sufficient
| value to carry smaller banking operations
with safety. | would have such restric-
| tiCns thrown around the banks by law as to
guard against combinations for the contrac-
ton OF currency, and TO warrant q free,
easy flow of money to meet the demands of
trade. This is my plan briefly stated with
out special details. | would expect the fol-
lowing results: This system would freeze
out the national banks, because it is appar-
ent that it would have double the money 10
operate upon upon the same amount of
capital invested. it would loan money
! cheaper than the national bank. so the lat
ter could not use its money at all.
= The bonds of the government which
now bear premium of from 120 to 100 on
account OF their value as a basis for national
banks would drop to par they would be
valuable for nothing as an investment but
the per cent interest they bear. The re-
suit would be that the bondholders would
surrender them TO the government before
they become due and take the money on
them TO go into the banking business under
this plan in preference 10 the national
bank So You see the government debt
would be paid off, the interest stopped and
an avenue opened up through which all the
money would flow that would be needed by
the country.
3 Those banks would be so perfectly
secure as places of deposit that all money
now hiding out and laid away in strong
boxes would be resurTected and deposited
in bank for safe keeping. and the banks
would keen it in circulation.
4. Real estate being 4 basis of this
system, il would be reinStatcd 10 its natural
position as property, from which it was de-
based by the national Dank act, and land
would soon be doubled in value by this iu-
fuence.
>. The government currency or treasury
notes being equal with coin in all respects,
doing anything than coin would do, being
co-equal and interchangeable with the same
in the markets, on the highways and
streets, it would follow that coin would
never be boarded in this country either by
government or individuals. In this way
coin would better serve as basis for the
currency than it would cornered, locked up
and doing nothing. We want all of our
money democratic. none of II TO bear the
insignia of royalty. And finally under this
system every channel OF trade would swell
to 4 normal healthy state, with the slim
ulus of its life-giving blood money. All
business would prosper, there would be no
money borrowers among the laboring class,
their produce and labor would Weld them
ample compensation. The dealers with banks
would be those who go into the great enter
prises of the country to develop her re-
sources. There would be no more talk
about the government loaning money direct
to the people, there would be no more
corners made upon produce, but it would go
into the market governed by the laws of
trade, supply and demand.