The midland journal. (Rising Sun, Md.) 1885-1947, 1892-06-24

people demand. They do not wish the
banks to speculate with their money,
and demand that the Government shall
retain control of the money it creates
for the use of the people, In no other
way can the demands Of the Constitu-
ton be complied with, which declares
that the Government shall not only
coin money, but regulate its value.
! There is no comfortable value OF
money, except its hiring or renting
value, commonly called interest. There
is one, and only one, way to regulate
the rate of interest which shall be paid
Cor the use Of money, and that is by the
party who furnishes the money. Usury
laws have been on trial thousands OF
years, and have ever proved failures to
regulate tho rate of interest paid for
the use of money. None but the
issuer or the loaner has power over
interest, and when the control of the
finances of a country is placed in the
hands of class of corporations they
can expand or contract the volume to
suit their purpose, and control the rate
of interest at will.
Let the Government establish de-
positories for receiving the peoples
money, and in connection with them,
banks of issue. In word. let the
Government assume its natural and
Constitutional prerogative, and issue
and reissue the money as the demands
of the people and their business re-
quire, and at rate of interest or tax
that would cover the expense and no
more.
Usury is, and always has been, the
curse of labor and the milestone about
the neck of industry, and the injunc-
ton that he who does not labor shall
not eat bread will never be verified
until usury is made impossible by the
Government assuming the prerogative
of what is Familiarity termed banking.
If the Government would supply
repositories for the peoples money,
they would place their me ney in its
custody in preference to any bank. and
if those deposits were issued as loans,
as the banks conduct the business, and
at rate Of interest to pay the cost Of
transacting the business, every bank
except the Government banks would be
deserted by the people, and these usury
shops would be closed at once.
Such change from the corporation
to the Government would involve no
violent change. The system has been
worked out. The number of banks at
present established exist by the de-
mands of business, just as the post
offices exist, and new offices are estab-
lished as the business of the country
expands. A system of Government
banks, to take the place Of the private
corporations, would solve the sub treas,
ury plan of the Alliance. The farmer
could secure necessary funds on the
security which he was able to offer
either on land, stock or produce, by
bill of sale, mortgage or some other
collateral, as at present accepted by the
banks. The Government at all times
could extend the issue to supply legiti-
mate demands, and hold the money out
of use when not demanded, as the
State banks used to do their issues
Ample security would always compel
the return or repayment of the money
at the expiration of the loan, and the
Government banks, being prohibited
from embarking in speculative enter
prises, money would remain in the
vaults Of the bank until called for
Real, tangible money would take the
place of credit, and payments would be
the rule in place of the present credit
system, forced upon the people on &C
count of the dearth Of money to tran
sact business,
Ninety five per cent of the business
of the country is now done with credi
or confidence money. Under a Gov
eminent banking system 95 per cen
would be transacted with cash and tn.
5 per cent probably would be credit
A complete reversal of our system
which costs annually upwards o
$4,000, 100000, would be saved, nov
paid in usury to the banks for thu
onerous business of keeping set o.
books, and loaning credit backed up BY
the Government, either apparently o,
really.
Reform writers are gradually NOV
ing to this line, which is so obvious
Simnla and annarank Tho onl, 1,ondo,