The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-09-13
GOVERNMENT BANKS.
Ii the Issue of Money Vital Point
as Its Equitable Distribution9

-
as Its Equitable Distributions
Says the Boston Traveller: "A rem
edy for the recent bank troubles is sug-
gested by having the banks of the diff
ferent sections clear through COM
mon clearing house. In other words,
to extend the clearing house system so
as to reach all of the banks. There
may be obstacles to such scheme, but
the obstacles could be easily overcome,
it is thought, and the benefits to result
would more than offset any inconven-
fence which it might cause to any indi-
vidual bank. The concentration of the
banking interests under fewer heads
might be desirable as it is in CONNER
cial pursuits, for it would tend to make
the banks stronger, and it would in
spire more confidence in banks in gen.
eral There would be a great saving
in the expenses of the business, which
would enhance the profits. The same
general plan is in vogue in Great Brit
ain, and there it is success. In times
of financial distress it would tend to
avert failures and, in short, there would
be less liability of failures than there
is under the present system 1t is pos
sible that a bill may be introduced into
the next regular session of congress to
establish clearing houses with this end
in view in the various sections of the
country. There is much to be said in
favor of the plan, and so far there
seems to be little or no opposition to
it,
Then again the Associated Press
states that the latest proposition called
out by the financial stringency is that
the United States shall guarantee the
depositors in national banks under GER
tain conditions. A bill has been pre-
pared and will probably be introduced
in the senate by Mr.. Hunton, of Vir-
ginia, which enacts as follows:
Section /. Every national bank existing and
doing business at the date of the passage Of
this act shall, as soon as prac ticable there
after, report in writing its true financial condi
ton to the secretary of the treasury and if
found by said secretary to be in solvent con-
dition deposits thereafter made in such bank
In good faith, in the due course of business, by
persons not officers of the bank nor stockhold-
ers in the corporation doing banking business,
shall be, and they are hereby guaran teed by
the United States to be. paid to the depositors,
or their lawful assigns, or transfereeS when
drawn by draft or check, but no person shall
be allowed to overdraw his account in any
manner.
Section 2 To indemnify the United States
from loss by reason of the guaranty given, made
in the first section Of this act, an annual tax is
hereby levied on all deposits hereafter made in
the banks described in this act equal to one
fourth of per cent OF said deposits; the said
tax shall be paid to the secretary of the treas
ury on the last day of each month of the year
on the deposits of that month
In this connection it is interesting to
note that Mr.. Kyle, populist senator
from South Dakota, has laid before the
senate postal savings bank scheme,
which not only embraces the features
of previous postal bank savings bills,
but includes some additional features
on the lines of the theories. BY Mr..
Kyle's bill the postmaster-general is
authorized to designate certain post
Offices one in each county, to receive
small deposits for remittance to sub
treasures. He is to issue postal saw
ings stamps from 10 cents to 81. The
savings are not to exceed 81, 900 for any
one person, and are to draw "a per
cent. per annum. The secretary of the
treasury is to loan postal savings to
farmers owning land valued at not
more than IS, OOO These loans are to
be made at per cent.
1t is to be hoped that this report does
not accurately outline the provisions of
Mr.. Kyle's bill. If the loans are to be
made to farmers only it viii be spe-
cies of class legislation, grossly dis
eliminating against the toilers in'the
cities who own mortgaged homes
Sooner Or later the banking business of
the United States must be assumed by
the peoples government as public
function, and bills should be introduced
into congress looking to that end.
If Mr.. Kyle had simply taken the
clause in the national banking act
which specifies the securities upon
which the funds of the bank may be
loaned, and added the words Including
certified elevator and warehouse re-
ceipts, issued by bonded state elevators
and warehouses and upon improved
real estate not to exceed in value" ETC.,
his bill would have provided for the
better system demanded in the Omaha
platform, and system of banking ma
tiOnal in fact as we'll as in name.
A VOICE FROM THE EAST.
The Chairman of the Eastern Division of
the National Committee Has Something
to Say.
At Buchanan, Tex, an enterprising
town named after the last democratic
president before Mr.. Cleveland, $50
Texan gentlemen of democratic ante
cedents held a meeting the other even
ing. That meeting was peculiar and
significant. After some discussion of
the silver question, they hanged Presi-
dent Cleveland in effigy. The glorious
sunset famed away in the silent sky.
The stars gathered. The night kept
watch on the stout image gently swing
ing in the soft breeze from the prairies.
Dawn came, with splendors eclipsing
those of sunset. and still the president
swung there, with no loyal democratic
hand to cut him down. Hanging in
efhgy. some might say, is relic of bar
barism. Possibly; but to me this means