Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1892-01-28
BANKS Ano INTEREST.

The People, Through their Government.
should rerrlrm the Functions ot itAnk-
ing.
In the American banker, Of October
2s, 1891, noticed a series Of clippings
taken from an article from the pen OF
Mr. Edward Atlxinsoa and first pub
lished in the Manufacturer Record, Of
Baltimore, under the caption blanks
and Banking
From su, h clippings ] select the fol-
lowirg matter upon which TO offer a
few comments Mr.. Atkinson says;
II may finally be hrld that the utility and
service II any aystem Of banking In any state or
section depends wholly upon the character and
credit of The people Of that particular section
II there n anything settlcd about financial mat
tera il IL ihls--that the requirements for given
community for coins, notes or other forms OF
lawful money or ~ circulating medium r. IN in
verse proportion 10 their intelligence ana TO
the credit 10 which they are entitled by virtue
of their character The greater the intelligence
and tho higher the character, the less actual
money the more Crvdit No section can be
safely trusted and 90 bank can be safely esiab-
iishod where tho mass Of the people look upon
the bank and banker as money sharks a term
sometimes applied, or az "unurersi or gold
bugs" or as anything hut agents or agencies
mutual scryice As l have repeatedly stated,
aud as oil writers who know anything Of the
subject have repeatedly proved the function of
actual coined money or notes convertible into
any kind Of lawful money or coin is very limited
In comparison to the function Of credit That
community which condemns or damns the bank
and banker is not III 20 be trusted, and in that
community no kind Of money win ever be
abundant, because 4, is not entitled 10 credit
II would be very interesting TO know
Just whose credit" Mr. Atkinson Is
talking nbo 4 and who 1t is that fur
nishes any given community with any
species OF credit" that Is any better
than the "credit" OF the community Il
self Mr., Atkinson saYs, and he says
truly, that 'Ihe function OF actual
coined money or notes convertible into
any kind of lawful money or coin Is
very limited in comparison 10 the func-
tion of crcdit.n But Is II not barely
possible that the reason this is true is
because money, being limited in its
supply by law, is not sufficiently plenti-
ful with which 20 do business upon
cash basinR. There can be no success
ful denMB offered TO the statement
that az all real wealth is produced by
labor, all real credit must rest upon
the productive capacity Of any given
community Banks produces nothing
Moreover, rs money is simply the legal
representative OF produced a1d ac-
quired wealth, all forms of wealtl
should BE- legally entitled 10 be repre-
sented in money. But because OF
law that discriminates Ia favor OF GER
tain forms Of acquired wealth-gold
aud silver-the amount that these
metals lack OF furnishing sufficient
money to transact bisiness with has
u bs furnished by credit as sub
stitute. But whose credit? Mr.. At
kinson writes as il he thought il were
the banks that furnished this credit.
/ assert that it is the peop'e who really
furnish the credit ana tn, banks sim
ply make enormous profits by hand
ling it
let us see. From the Workers. Her
aid clip the following artic G;
The business NJ banking Is ancient and honor
able because IL is prof table, but the people dom
seem To understand the fund imental principle
Of banking, although every person must know
that banks loan money 20 business people
who 20 and pay their debts with that "bor-
rowed' money which ia turn is almost certain
70 be "depositod" in that or some other bank
before sundOwn."
The following Illustration Is based upon the
experience OF business men ia every city on this
earth and ii can be easily understood by taking
twrntyone persons whose initial letters begin
with the letters OF the alphabet, stopping with
the letter T.
The national government having called IT'S
bonds Tor payment, under section ,6aJ uf the re-
vlsed statutes as well as under The act Of March
3 I-sl Mr. A. goes 10 the treasury department
al Washington. D. G., and lays down hls bonds
10 The amount Of $4,000 and takes up his money
and goes around 10 his bank whore he leaves IL
and gets certificate of deposit which he
puts in his pocket and goes on about his private
business, having unhoundcd confidence zoo the
honesty and ability Of the bank to redeem his
"certincatc Of deposit, az amy time.
The bank. being required by law 10 SCI aside
twenty-five per cent of an deposits as q reserve
for the redemption of It's "ccruhcates ~ deposit
does 80. ana az once "loaus" the remaining sew
tntyh i've per cent OF Mr. A. IS deposit TO Mr. b.
who paws IL 90 Mr. G. ON account who in turn
takes 10 hack 90 the bank and gets certificate
of deposit for it just like Mr. A
This process n continued on down the alpha
bet by twos until the traualcton finally stands
a. follows