The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1892-03-11
eorERNMENr sANkINa.

by John NJ BatcheGor. of New York I
City, bat for private reasons it has 2
never been published up TO the
present time We VIII adhere ID Mr.
Batchelor's Language as closely as pos
sible ll the following description of Its
This government branch banking plan VIII.
when adopted, save the people, the railway
aoIlIi IiaH1g-r Inauuiae lurer5 merchants. and On
900 q year. which ls now paid by money bog
rcEFcrs 90 lenders uL money ana which to-dnY %
ton IHoa rhe industrial prozre5s oi me nation
AN ra.s benefit NAV be obtained without any
i-erol-I lU L-e volume OF money Wl1yn i- now
in l'rrg.ll llHl. aud without causing luN change
alair-. except money lenders would Del Obliged
90 invest ll-.r money iu the Industries OF the
country instead uf charging interest for ira use
The census reports say that thlrty-suveu thou
sand ul-llloH collars is now loaned Co the people
ron -out 90 'Fsl twenty per c'-l| ili-vil7- ti1
upon hat G1HE H7 C4assau as hralCll-s7 security
ita.lla lA.' Asare L,r o basis inc COST t' Lne
people Tor ile use OF This money l7 over twenty
two hundred million dollars each year, tGlsins
thc average rate Of interest 90 six per ccnf,
which is TOO low 81 iulccurate SO iH saying
that over -llH HlrOlD per luuUm could ue saved
lbs the Adoption HT The following plan the C=t-
mate is g1uzisa-anly under thc probable facts
The plan i- t-.-5 Let the government bay OUT
our banks of discount by paying iu FUN for their
rcs1urgl=. and 40 the same Itu-r engage tho -''r-
lgF t--t OF -F..- -''+ peLlANlol- LA1 PHi-i-A-f
of these blg'g resources would require ABOUT 1--WE
thousand million dollars, 10 these same resour-
ces were u1L available as cash when opt-ineli
bul as 90 is NOT proposed 20 buy any which
are not as good a7 cash. and go guaranteed oy
their present owners al these banks could be-
tiou than we uow have as viii De explained fur
ther on.
when "a bank pays out money within @ short
time thereafter another bank resolves lt- now
IL This other bank pays back what Sc receives 20
the bank which paid the money out an eguilib-
rum M balances IS restored
II thls process is continued among an these
banks, at tho end of any one day. one week or
month, the average amount Of money iu the
hands OF each bank Is thc same as az the start
Which means. what one branch bank pays out
another receives. which receipt is practically
the same as n fhe paying bank had ghe money
80 paid out shortly after returned % lt Lnus lhe
paying bank would get the credit or having
made a loan without thC use o. amy money The
only money which would DE used lu q system OF
compensate Tor the delay WLlien ose uFs oei' cen
when "a bank pays out money and when another
bank receives it This would De less under the
new system than under the present. Tor lhe
simple reason that balances between all these
branch banks might frequently be adjusted by
telegraph more or less obviatiug the enormous
o. large express service
II the government could purchase all the
banks OF discount in one day no more money
than We now have IN circulation would be ueces-
sary for the purpose but as this IS not prac-
her of certificates OF Indebtedness oe prlalea ny
the government f1g such uurp1=e-slV, la Dee on
anuun--un- lu su-n sums as would permit
them being used in general circulation while az
the same time heiuE iull legal tender for All
dues, both public and private and whenever any
such ceEuulatcs again come into the hands OF
the government Let them De ues LruVe1- after tho
method OF tHe bank OF EuEIauds Iu this way
only new cortlhcatea would be issued And
when the process Of buying out all ine banks
OF discount was complete, no more such certn-
standing could be obtained by tho government
they snUuIu De DIES ztruyed-
Thus, after all the described banks once got
into the hands OF tne government and the de-
sgribed Certidcates have bccu destroyed, the
present amount Cf money iu circulation would
permit over six times AS many loans 90 borrow
ers as ere present system because Tho money
would U- used over aIl over again ia fact. six
time a- much is MOI rhr Iiu.It by auv means.
10 is impossible TO set tho limit iu figures, but
80 would be exactly tne sum which l- consumed
10y tho delay between when one bank pays out
money and when another receives it
AuotErr great advantage This new plan would
afford i= the security iI would yield deuusit0rs.
for all deposits would have tha government 's
guarantee This IS no small matter when the
numerous bank failures iu different parts OF the
country are rCTlluIublrut- Among the national
banks alone for the year ended October 80 Is3i-
these failures embraced 2i5 adding thereto The
failure 0f aLl other BANKS the number exceeds
H1- which failures and tho consequent losses 20
. convenience 0cclsioucI many people uy thc DO,
laws af having their money locked up when re-
ccivers were put in charge would be ended under
tho new system
Iu tae case af tho ccrtIHlascs OF IudeHtcduesz
above alluded Co. SO should De said that The
propose e3.ul1. .0JHN0l issue would De only tG
have them or hnuI Boa order 20 be- provided f1l
delays .u buying uur INC usul-s- nuL Go SIS Within
I the bounds OF rel51ush- -uug=s that only o. f-u
T uf them would have Co be used perhaps less
s Taau llill l1uJYo1. and should any bank OF dis
count decline 90 sell ggt 10 tle government. ths
I ln.---el -l-slt oe t-l..-ty -l-i-Ss- p tas GOV
arfT'.l gi'l-n- 90 E.FL e-i ilil7f'il.. ilt A'l'-'
. rla street The old bank could NOT do uauzIll
/ LwrEtT-f four hours against such curnuetI Liuu-
I Tho main aaFlnLi-Fe Ni mo ng" system Qolll
Z h.- Oh money borrower could fur good banking
# security. obtain all the money they Eaut at cost
t This cost iu cur large money Ceutrrs might b'
] which cure Ls reached iu this way The larEI
/ London banks frequently announce th1t the5
] viii allow interest on deposit. within oue-hll
] OF one per cent OF -l- they VIII discount mer
ClurtH paper fur- which means luaL Luu1Jl
I sion .- 20 De inferred, else they would not ID
] L-D.E 90 do &c. Thea uue-hllf OF oue-per cent
I ON o. business oL loauluE money 10 nc E1iurli
81 large 1lEnt 70 more lhau cover COSTS if suUl
loans were - 300 year. one half o. one pei
/ cent would be- sI-4olo.
! A banks expenses win tho bad debts addc,
I should not amount 20 that But whatever rhl
{ cost Is, including all bad loans let such COS
I only be charged for al excess Of charges ah1vl
I cost is usuFy. To might cost banks 80 cuuutrl
districts little more than iu the large CiliH1,
/ Ouu-fuurth OF u-e-haH per cent more but az
elgi rF'lleu bank H1i-4 ---Ne l-s oP p expense
/ independent OF EI rhe other branch banks. De-
/ each bank support -tself
All these branch banks should be moro IRE
. queuuy visited by bank eEamiuers rhau is 10
Z practlCe today and the same bank examine
I should not be permitted % visit one ulul
] twice iu -ucce-alUu- such examiners shouIi
make their visits fu tllluu. ana, DO practicable
be even more thorough than uL the pFesou
time This programme carried out would in
I sure honesty and publicity which latter par
l ricuIaF l5 the life 90 good luaueer Then as tll
onirers and clerks il charge are there for life 1
I good behavior. it ls not reasonable TO EuUpos
l that there would be any more dishonesty unle
] tlIs ualT system than under The old even 30 a.
! DucA
Al arst siRht this plan may have @ look O
I socialism Df course al forms OF EoVeFuT-eu
I are soclalLstic iu principle but, as govern
l meuE Is deemed necessary under our pres-u
condition. the best He can 90 la 20 irzliL its &c
I tiVity % such occupations a. cannot. tl the ul
; ture oE rllugar Dee done iu behalf OF The who'll
Z people solely bg means % tudigiLsal enter
Z prise
! in n1 instance Es government control NOR
Z Necessary Than Ll matters 90 money This fac
has been beaten lHt1 -H uE some pretty seven
eEperiel-E during the history o. This country
I So to-day, outside OF the banks and those i
] rhairuar. one hearH no advocate lu favor Of tal,
ing tla control of the currency oEE 90 the hand
OF tle government aud putting Dc lu the hand
I og u-r-a-e parties Upon due rejection Lll
l same ruIa viii be found % hold M Lhs case u
I hauIzIur. which IS aae Of -ll con trolling eil
I ueuts ll Industrial rlr1alEezs-
I While there aye grave oblCetla1s elL-lag
] against rla Interference OF our government %
the shape OF competition sTI-l ths Industries 20