Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-18

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 COM
mence business on. Say, for instance,
$100, 600 of its own money. With that ap-
plication would have the company to file a
bond for $500 OO0 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 and 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 unfortunately. This
would give $4,000 with which the
bank could begin business; $780,
600 of its own money and SlO0,OOO OF
the governments money The government
would prescribe the rate of interest at
which this bank should loan its money, say
per cent. Now while the people would be
getting money at 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 clrculatlonl.
The probability is that the bank would get
heavy deposits on account of its safety and
SIdUlllJN, WHICH NOulC prOUdUlS run up tHc
banks interest to IL to 10 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 larger or
smaller capital. In large cities the security
would be on city blocks of business houses,
the value of which would fiuctuate but
very little. In smaller town, in rural dis
tricts, real estate would be of sufficient
value to carry smaller banking operations
with safety. I would have such restric-
tons thrown around the banks by law as to
guard against com binationS for the contrac
ton of currency, and to warrant 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 to
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 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 to 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.
B. Those banks would be so perfectly
secure as places of deposit that all money
now hiding out and laid away in strong
t,pxyn E,o, tod nd tod
in bank for safe keeping, and the banks
would keep it in circulation.
4. Real estate being basis of this
system, it would be reinstated to its natural
position as property, from which twas de-
based by the national bank act, and land
would soon be doubled in value by this in
tiuence.
g. 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 it to bear the
insignia of royalty. And finally under this
system every channel of trade would swell
TO a normal healthy state, with the slim
illus 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 yield 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.