Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-03-16
NO. 43.

or less per cent. w men tue raue ol interest Ii
put up to five per cent nearly one-half OF the
business of all England is brought to a stand
still; when the rate is put up to six per cent
nearly two-thirds of the total volume of trade is
stopped, because the rate of interest charged
for the use of money is more than the profits of
business Now, the same rule holds here, al
though our merchants are not fully aware OF it
In our case, the loss of business due to the in
terest we have to pay for the use of money can
only be known when the rates for money have
been put down to cost; then the enormous ex-
pansion in all branches of trade viii show people
what it cost the industrial development OF the
country to be obliged as We are now TO pay over
twenty-five hundred million dollars q year in or
der that we can borrow money enough TO earn
our bread and butter.
Our government can do our banking business
a great deal better than private banks (for all
our banks are private), and no panicS could oc
cur under this new system, for plenty of money
could be had at any time, and no occasion could
occur for boarding, which is one of the great
evils of the present system 1t is recommended,
in connection with this system, that sub-banls
be established to replace pawnbroking eStab-
lishments; for right there is source of misery
which would require big volumes 10 describe,
and this grave trouble is robbery of those
who can least afford it
These sub banks could lend money at cost up
on any security which possesses a market
value The largest banks in southern Europe
were originally organized to exclusively do this
class of business, and more less under gov
ernment supervision; but most of them have
forgotten their origin in the success that has
since attended their efforts. There are plenty
of government precedents for the establish
ment of places to %end money to the poor at
cost rates.
Those banks in farming districts could loan to
farmers on proper security and thus enable
them to tide over bad seasons, or make neces-
sary improvements in their properties This
accommodation afforded the farmers at cost,
would end the requests they have lately made
of the government; and in connection with such
loans the establishment of government ware
houses, or warehouses under a government
agents supervision, where warehouse receipts
could be given and used bank collateral,
would permit bank loans in accordance with the
principles of perfectly sound banking.
This system of banks might, or might not, be
joined to the treasury of the United States;
either way all its advantages would be fulfilled.
No capital is necessary for such banking sys-
TEN; business would be conducted on a mutual
plan somewhat after the manner of the big in
surance companies and the savings banks. The
resources of the proposed banks belong to the
depositors or creditors, and all the incidental
expenses in the conduct of affairs are provided
for In the charge for the of the money. The
! capital of banking system of this kind is the
| resources of the United States. Money is not
| needed to express such capital credit is all suf
| hcient.
| Savings banks and insurance companies under
! this new plan would partly be required to invest
! their funds in the industries of the country and
| in the development of real estate, etc: but
| there are many facts to show that in that way
! they would make more money than they do now
1t now remains for the people to say whether
| they prefer to keep up the present system O
paying money-lenders over s., ZOO 00J, O00 veal
for precisely the same accommodation that car
| be obtained at cost. And it is not apparent VIII,
| money lenders cannot earn more money by in
| vesting in the industries of the country, ant
taking the ordinary risks of business like an,
merchant or manufacturer, than under the sys
TEN of striving TO take the cream of othe
peoples labor only, and assume no risk Will
doing it.
This plan goes perfectly with another whic
was published by the same gentleman severa
years ago in the columns of the N. Y. Financie
as a solution Of the currency problem Thi
was: Issue paper currency which is convert
bic into bond with fiuctuating rate of intel
est; such interest to be regulated from time I
time by announcement to that effect by th
treasurer of the United States in order to kee
such convertible bonds at par under any and a
| circumstances
This currency plan would save our govern
ment over $500, 900, 600 q year by enabling it
sell out ssuid ind si-teT Coins anu man tai
it's currency at par in all the exchanges of th
world without their use. The interest thes
bonds would pay would be the equivalent of ii
condition of the public credit of the Unite
States. If thas credit is perfect, no intere:
would be necessary; If questioned, a rate Of il
tereSt would have to be paid just sufficient
Offset 1t.
But either of these plans complete withol
the other; yet if both were adopted, the Unite
States would experience period of prosperit
which would astonish the entire world-N y
Special to PHILADELPHIA Evening Item