The midland journal. (Rising Sun, Md.) 1885-1947, 1893-05-05
Government Banks the True Soiu
ton of the Money Problem.

by the gold ring, national bank party:
How could the government get the money
out among the people If legal tenders,
answering to the popular name of green
backs, should be created? That question
would be answered if we had system Of
Government banks in place of our present
system of private corporation banks, mis-
named national banks. These banks were
created for the purpose of distributing the
money of the country through the channels
of business, and supplying an elastic cur
rency. They play the part in the economy
of trade and productive industry, that the
heart does in that OF an animal, which forces
the yivifyipg blood through the arteries to
The most remote tissues of the body, and it
returns again drought he veins.
This is the fundamental purpose of the
modern engine of trade called bank. 1t
is to distribute the money of the country
through every artery of trade and receive it
again when it has spent its force and returns
TO be sent out on its benefcient mission OF
energising latent capital and idle labor.
In place OF this being made the prime
object of banking the business has been
perverted from its proper use and converted
into an engine of destruction by which
usury is made the first purpose Of the bank
and the promotion of business only neces-
sary aid in drawing usury from the wealth
created by industry. We hold these truths
which are self evident 10 constitute con--
spiracy against the business, life, liberty
and pursuit of happiness of the people, as
much so as the despotism of King George
was pronounced to be by the Declaration of
Independence.
The only reason that can sbe given for
the charter and privilege for banks to
exist, is their necessity fer the distribution
of the money employed in active business.
AS usury machines alone the people would
not permit them a single day, but this lat
ter abuse has been engrafted on them and
permitted TO grow because the bank is an
indispensable necessity for the conduct of
modern business.
The parties who establish and manage
banks claim they have right to the use OF
the public's money, and to make out of it
all the business will bear, as recompense for
their care and labor of distribution. Tha
charge is like railroad traffic, all the bus
iness will bear. The money which is dis
tributed by the banks, like the freight
distributed by railroads, is the properly Of
the public, and for this undeniabIe reason
both these mediums Of distribution should
be managed by the people through their
S. machinery called government. That the
government is fully equipped to conduct
both il abundantly demonstrated by its con-
duet of the post office, the army, the navy
and other branches of business.
There exists au instructive prejudice
which seems to be inwoven in the wool and
warp Of the human family that is not readily
accounted for, against banks, and usury, the
latter only another name for the hire Of
money. Usury is mathematical through
ali history and the Oldest of history we have
access to, the Bible, is full of it. We be
lieve this instinct or unexplained prejudice
arises from natural repugnance to the idle
eating the bread of industry, which surely
IS an indictment that will lie against inter-
est, especially that derived from money
which belongs to the people, which is the
case with all interest collected by banks.
That this drain of interest through the
banks from money which is in active use by
the public, and cannot be properly classed
as private property, but is a tool that first
one person uses and Immediately is in the
hands of his neighbor, and is constantly
passing from one 10 another, each using it to
effect some necessary movement in his bus
mess, is an injury to the public cannot be
successfully gainsayed. Hence it is an abuse
which has grown up like many others that
atflict society.
That this abuse and loss by usury could
be readily remedied by the Government
taking charge of the banking business must
be apparent to every one who will pause tc
consider the subject. This answers the
question how money could be got out among
the people if the government should create
legal tenders sufficient to supply all legit.
mate demands of industry, and these are all
the demands that the people care to be
supplied, or the Government has any righ
or business to foster. The demands O.
spectators and gamblers which haunt the
large cities should be frustrated by every
means possible, but as at present managed
by our system of banks these Improbable
businesses are the most encouraged anC
fostered by the banks of the large cities
and the circulating money of the country il
used for that purpose.
Were the distribution Of money placed il
control of Government banks, the supply
and demand could be SO nicely BALANCED
that the problem of elasticity of the circu'
lating medium which has proved such
puzzle to our wise "fnanciers, " would be n
longer troubling factor in the channels O
business. When the business of loezlit
demanded ready money to promote 1t, an,
the security was present 10 pledge as a BON
for the return OF the loan at the specific
limit, the money wGaia be forthcoming
The question OF ''per capita eirculatio
you'd no longer be an unknown quantity