The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1893-09-15
GovERNMENr BANks.

A remedy for the recent bank troub-
les is suggested by having the banks
of the different sections clear through
a common clearing house. In other
words, to extend the clearing house
system so as to reach all 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 off
set any inconvenience which it might
cause to any individual bank. The
concentration of the banking interests
under fewer heads might be desirable
as it is in commercial pursuits, for it
would tend to make the banks strong
er, and it would inspire more confiden-
ce in banks in general 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 Britain, and there it is
a 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 pres
ent system. It is possible that a bill
may be introduced into the next regu-
lar 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.
states that the latest proposition call
ed out by the financial stringency is
that the United States shall guarantee
the depositors in national banks under
certain conditions A bill has been
prepared and will probably be intro
duced in the senate by Mr.. Hunton, of
Virginia, which enacts as follows:
Sec. I. Every national bank existing and doing
business at the date of the passage of this act,
SHALL as soon as practicable thereafter, report in
writing its true financial condition to the secre-
tary of the treasury and if found by said secretary
to be in solvent condition deposits thereafter
made in such bank in good faith in the due course
of business, by persons not officers of the bank
nor stockholders in the corporation doing bank
ing business, shall be- and they hereby guar
anteed by the United States to be paid to the de-
positors, of their lawful assigns, transferees
when drawn by draft or check, but no person
shall be allowed to overdraw his account in any
manner.
Sec. 2. To indemnify the United States from
loss by reason of the guaranty given, made in the
first section of this act an annual is hereby
levied all deposits hereafter made in the banks
described in this act equal to one-fourth of per
cent of said deposits; the said shall be paid to
the secretary of the treasury 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 a postal savings bank
scheme, which not only embraces the
features of previous postal bank saw
ings bills, but includes some addition
81 features on the lines of the theories.
By Mr.. Kyle's bill the postmaster-gen-
eral is authorized to designate certain
post offices, one in each county, to re-
ceive small deposits for remittance to
subtreasuries He is to issue postal
saving stamps from 10 cents to 81. The
savings are not to exceed 81, 900 for
any one person, and are to draw 81
per cent per annum. The secretary of
the treasury is to loan postal savings
to farmers owning land valued at not
more than $1,000 These loans are to
be made at 4 per cent.
It is to be hoped that this report
does not accurately outline the provi-
sions of Mr. Kyle's bill. If the loans
are to be made to farmers only, it will
be a species of class legislation, gross
ly discriminating 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 pub
lie function, and bills should be intro
duced 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 ''includ-
ing certified elevator and warehouse,
receipts, issued by bonded state eleva-
tors and warehouse and upon improv-
ed real estate, not to exceed in value"
ETC., his bill would have provided for
the better system demanded in the
Omaha platform, and a system of
banking national in fact as well as in
name.