People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1892-05-20

were it not for the fact thar your letter ends
with these sentences: What We want on
these questions is intelligent discussion and
not abuse. A full and free investigation Of any
question can harm no one"
Now as to the question in point might an
swer it by simply writing the one word-''noth-
ing But while aware Of the fact that 70 the
editor Of department in metropolitan daily,
"brevity is the soul of wit" l am also con-
scious that this answer would be too brief TO be
satisfactory. l will therefore briefly air my
views.
/. As the national bank currency is retired
from circulation, would replace such currency
with United States paper bills differing, how
ever, from the present treasury notes, in that
instead Of being promises to pay, they should
be promises TO receive, for all debts, public and
private. A promise to receive, on the part oil
the people, is the essence Of legal tender. Al
though not relevant TO the question, will state
that the owners Of gold and silver bullion, now
stored in the United States treasury vaults,
should be called upon to take such bullion into
their own keeping, and the gold and silver
certificates and treasury notes issued therefor
be replaced with the peoples promises 10 re.
ceive
z would now establish system OF banks,
national in fact and not in name only the ON
Gals Of which should be bonded government
employees, putting bank or banks in every city
and town demanding the same
These banks should receive the deposits Of
the people, and be responsible for their safe
keeping, and might pay, upon time deposits
rate Of interest not to exceed two per cent, and
loan such deposits to the people upon rea
estate and such other security as is now consid
cred safe and ample BY the present banks, at a
rate Of interest equal to that paid depositers
and the expense Of the banking system added
thereto. These banks should be, in the fullest
sense, banks Of deposit, loans, discount and ex.
change.
Now permit me TO point out the advantages
such system would possess over the present
system.
shall premise by averrlng that the credit o
the whole people, or government, is superior t
the credit Of any banking corporations that car
be organized After deducting the legal banl
reserves. gold and silver coin carried abroad
and used in the arts, and paper money lost and
destroyed, there can not be in the hands of the
people in actual circulation more than $500, 900,
900 Of all kinds Of money. With this amount o
money in actual circulation, various banking
institutions state, national private, savings
etc. have deposits Of and given deposit certid
Gates for more than S4,5O),OJOOO) and their
loans and discounts" are considerably in ex
cess Of their deposits With about 5000 ono, 0O
OF cash in hand they have given obligatory Ger
tifcates for nearly eight times as much Tn,
security the depOsitOrs have is nOminally tht
banks cash capital and reserve. In reality
their security is notes given by individuals Sc
cured by personal Endorsement or real estate
or chattel mortgages. The governments credi
is infinitely better than that Of the banks
while security that is safe and reliable TO tn
banks would be equally safe to the government
So much for security.
Now As TO cost. The several banking institu
tons receive at least 10 per cent upon A,5OO
100000 This is charge upon those who have t
borrow capital for use in legitimate business
enterprises Of S45O,OOlOOJ per annum. Assam
ing that they pay two per cent on the average 70
deposits, the banks realize $4,000 900 annua
profit If the peoples banks average upon tota
deposits Of A,5OJ0O,0O), say ~ per cent inter
est it would amount to SjL5OOOOJ The cost @
the banking system could not exceed another on
per cent, making in all total cost to borrow
ers OF Sll25O),0OO This is difference in favO
Of borrowers Of 1881, $4,000; to the whole pee
pie a difference of $685., 10000 So much for cost
Yours for government banks,
GEORGE C. WARD