The midland journal. (Rising Sun, Md.) 1885-1947, 1893-04-28
Government Banks.

able artlcle-able because presentation Oi
facts-on "loanable funds" of the country
says:
eff some plan could be DEVISED by which
the currency Of the country could be in
creased TO such an extent that it would not
be driven to the cities or money centres, but
through an advance in the price of labor
products would enable the farmer and
other producers, together with all business
classes, to pay their debts so as to stop the
annual flow of interest tribute to these sec
sections, prosperity would soon come to the
people and this unequal distribution of
loanabe funds would cease to bring distress
and financial destruction"
There is one way, and one only, that such
a beni6cent result can be accomplished.
The government must become the peoples
banker. The government must take charge
of the peoples money and keep it out of the
control of" fnanciers." which name is now
synonymous with thief. The game that is
played by these ''financiers" is a skin game,
slight of hand, a bunco trick. 1t were
useless, almost, to have the government
issue large volume, loan ii to the people
once and look no further after 1t. The
manipnlators of money, commonly called
s'fnancers" would readily manage TO cause
the volume of money TO flow 10 the large
money centres, where it would be employed
IN all sorts of stock gambling and other
similar enterprises, the same as the money Of
the country is at present drawn 10 these
centres and used in this demoralizing and
dastardly business, only on an enlarged
scale.
No, there is but one method of escape for
the industrial, wealth producing class to
avoid these vampires of usury, and that is
through banks established by the govern
ment, where the people could deposit their
money in safety and borrow it at nominal
rate of interest, which would barely cover
the cost of transacting the business and
provide contingent fund TO make good
losses to depositors, which losses will occur
to some extent-:hough very small per
cenage in the aggregate.
The methods of banking have been
brought to perfection by the demands Of
business, and there would be no risky ex-
periments 20 be tried. Every facility for
the convenient distribution of money by
checks and transfers of ac counts on bank
ledgers is we'll understood. with plenty o.
trained parties to take charge of such bus
mess under government employ.
The free coinage Of both gold and silver
while giving great reliefto the people woulc
not stop the usury leech from sucking theil
blood. While the government permits the
money to fall into the hands of private cor.
porations by neglecling and refusing L
provide repositories, where the people coull
place their money for safe keeping, ant
where those in want of funds could borrow
as they do at present of the banks, the
demon of usury will continue TO deyour thu
substance of the people. 1t is almost incon
ceivable the benefit which would accrue I,
the industrial, wealth producing classes i
they could have money without the exlor
tionate tax that is put upon it by interest
The thousands of millions which the wealtl
producing classes must use every year, i
through the interest charges on it, drair
upon the vitals of industry which is startlin!
when the aggregate is considered.
With government bank in every tow
yuhare hapks orc pow aeIoh1;ShaJ with H.
natural increase demanded by the expan
sion Of business, there would be no hoardet
money as al present, which holding out o
use adds difficulties to the transaction o
business. An ''elastic currency" SO mucl
desired and so much talked of by "fnan-
ciers" and others who do not make ptofes
sion of being money experts, can never BE-
made thoroughly practical save through
system of government banks. Such fsca
institutions would have no motive in resort
ing to doubtful expedients to loan theil
surplus. The amount of money necessary
20 conduct the business CT the neighborhool
where the bank was located would remain
in the bank if not in use, till the demand
of business and the depositors drew it out
or the surplus was transferred to some pon
where more money was needed for imme
diate use.
The different classes of securities for loan
would be prescribed by law. For shor
time or commercial loans, personal security
as at present used by banks is found to be
both safest and most convenient Loans OF
farm lands could be made through thes,
banks, as at present by loan agencies, with
provision for the gradual liquidation o
such loans by the payments ofannual install
meats of part of the capital. A loan on farm
lands foe is or 20 years would be extin
guished by the payment of one-ffteenth o.
one-twentieth in annual inslalments together
with the light interest-which would no
amount to one per cent. While land loans
would be given long time for extinguish-
tnent, no bar would be imposed to the Dor
rowers having the option of paying them a
any time within the stated limit. The
great advantages which the people would
reap from a system of government banks are
well nigh infinite.