The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1893-05-24
Lac Preludlce AgaInst eanks.


F'r0m the \. Y Pres.
Among all the foolish clamors raised By
demagogues there is none more lacking in
sense and in justice than the cry against
banks and bankers as enemies Of the peo-
pie" At all times more or less Of this
mischievous jTaddle IS heard, but 10 has
been particularly rife since anxiety began 70
be felt over gold shipments and possible
disappeaTancso OF the Treasury 5 gold reserve.
There are persons who Try TO persuade them
selves and Others that everything in the
monetary condition Of the government
wonla be all righ; we're II not for the selfish
ness and general wickedness OF banking
houses.
One noticeable feature Of such ciamor is
that those Who indulge in i seem to imag-
inc thai all the banks are situated in The city
OF New York, mostly in Wall street. OF
course the ruth is that there is not Stale
i ! the union, or city in any STATE. thai
there is scarcely village anywhere from
Maine 10 California. from Duluth 10 New
Orleans, which has not one or more banking
houses. In Kansas and Nebraska. where
Populisis abound, banks also abound, and
farmers are among their best customers.
Il i absurd 70 suppose that banks have
OF can have any interests an;agOnistie 10
those Of the body OF the community. Some
folks appear to think these institutions re-
sponsible for what is called tight money"
The idea apparently IS that they combine
to lock mp money and create an artificial
scarcity for the purpose OF getting higher
rates upon loans and compelling more psO-
pie to borrow little thought ought 20
show how erroneous this notion is. In prei-
ty much every part Of the country rates Of
interest are fixed 6y law As for locking up
money 10 make people borrow ii in the first
place banks never have at any one time
much money in their vaults beyond what Is
required as a reserve for the payment Of de-
pOsitors' or other creditors demands. In
the second place, when money is light the
banks are among the chief sufferers; for
dePositOIs then draw their money out with
unusual rapidity. while very little comes in.
Moreover, there Is increased officially in
making collections or realizing on securities.
In short the thing that bankers want above
all else IS to have business brisk and money
plentiful.
Banks are beneficial to the masses Of peo-
pie in a variety of ways. They encourage
habits Of thrift. They afford protection
against FIRE and thefi They facilitate the
dispatch OF business, save time, promote
commerce and supply capital for industrial
enterprises that would be impossible with
out such instrumentalities. To all inients
and purposes they make money vastly more
abundant In this respect their usefulness
is even greater in remote aud spaFsely se,-
tied regions than in eenters Of trade. A
bank check passes from hand 10 hand until
It has paid debts Or made purchases amount
ing to many times its face yet all the while
the currency or coin which viii ultimately
redeem that check has been doing the same
thing. Those who raii at banks and bank
ers as enemies of tie common people and
as 70 blame for financial siringeney should
bear in mind the fAct that % per ceat, Of all
the business Of this country is done through
the medium Of bank checks and drafts