The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-10-28

were It not for the fact that 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 IN
ewer 1t BY simply writing tho one word-s'noth-
ing" But while aware Of the fact that to the
editor OF department in metropolitan daily,
"brev1ty Is the soul Of wit" I am also con-
scl0us that this answer would be too brief to be
satisfactory. 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 Of
the people, Is the essence Of legal tender. Al
though not relevant to the question, I will state
That tho owners Of gold and silver bullion, now
stored IN the United States treasury vaults,
should be called upon to take such bullion into
tnelr own keeping, and the gold and silver
ceruncates and treasury notes issued therefor
De replaced with the peoples promises to re-
ceive.
would now establish system of banks,
national in fact and not in name only, the OH
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 q
rate OF interest not to exceed two per cent, and
loan such deposits to the people upon real
estate and such other security as is now consid-
cred safe and ample by the present banks at q
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.
the whole people, or government, Is superior to
the credit Of any banking corporations that can
be organized After deducting the legal bank
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 5000 0oc,.
wv OF all kinds Of money. With this amount OF
money IN actual circulation, various banking
institutions Estate, national. private, savings
stc) have deposits Of and given deposit certi11-
oates for more than 81, so, 900 900 and their
'aoans and discounts" are considerably in ex-
cess OF their deposits. With about 5000 O0O, OOo
of cash in hand they have given obligatory GER
hf1cates for nearly eight times as much. The
security the depositors have is nominally the
oanks cash capital ana reserve In reality
their security is notes given by individuals Sc
cured by personal Endorsement or zeal estate
Or chattel mortgages. The governments credit
Is infinitely better than that Of the banks
while security that Is safe and reliable to the
banks would be equally safe to the government
So much for security.
Now as to cost. The several banking institu
lions receive at least 10 per cent upon 81, 5OO-
10000 This is charge upon those who have to
borrow capital for use in legitimate business
enterprises Of s45o, 1000 per annum. Assum-
Ing that they pay two per cent. on the average for
deposits the banks realize $3.50, 900 600 annual
profit II the peoples banks average upon total
deposits OF 81, 500 ,0Oo say ~ per cent. inter-
est, it would amount to S57, 500 900. The cost of
the banking system could not exceed another one
per cent, making in all a total cost to borrow.
ers OF s112, 100000 This is difference in favor
Of borrowers Of 1881. 500 900; to the whole peo-
pie difference Of 1885,, 600 600 So much for cost
Yours for government banks, a
GEORGE G. WARD