Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-05-10
A FAULTY BANKING SYSTEM.

A FAULTY BANKING SYSTEM.
Until We Have Government System
Prof. Hills system.
The report of the examiner in charge
of the Commercial National bank of
Nashville, Tenn. indicates that it will
require an assessment of so per cent. on
the stockholders to pay off its indebt-
edness. The assets are at 81, 400, 900,
and the estimated losses, $500. 900, leav-
ing the value of assets $3.50 000. The
amount due depositors is 81 800, 900, and
the total liabilities, aside from capital
stock, are 81, 900, O0.-Washington Dis
patch.
Telegraphic items like the foregoing
are common places in the columns of
| our daily newspapers. Banks, either
large or small, private or national, ac-
| knowledge Insolvency and put up their
shutters somewhere in the nation every
business day in the year.
In every case of bankruptcy on the
part of bank the confding depositors
lose either portion or all of the money
they trusted in the custody of the bank.
The majority of the banks which fail
she disaster only affects a ncighbc,
hood, and per consequence it is dis.
missed with few lines OF telcgraphic
report.
But where great banks like the Nav
erici, OF Boston, and the Keystone, of
| Philadelphia, close their doors after
making ducks and brakes of the cash of
thousands of depositors, people dimly
feel that our banking system is not the
acme of perfection and so draw their
money out of the banks and hide it
away in safety deposit vaults or be
| tween bed-ticlls. Then, when tens of
! millions of dollars have been withdrawn
! from circulation, everybody is Mortified
at the hardness of the times and the
scarcity of cash.
Prof Thomas L. Hill, of Chicago au-
! thor of Hill 5 Manual and other valuable
works. has by compilation, combination
and original invention devised bank
! ing system that seems to be as nearly
| just. practicable and perfect as it is pos
sible to get any human institution in
this imperfect world.
According to Prof Hills plan, the
| people Of the country do the banking
! for the profit and advantage of all, not
! to allow private individuals to wax
enormously rich through the handling
of the peoples counters of trade, as is
/ the case 1T the present time. Prof.
! Hill would have four thousand govern
ment banks located wherever their SER
vices are needed In these banks the
! people place their money. the United
States government standing behind the
deposits and guaranteeing their abso-
| lutte security
longtime depositors shall receive
| interest at the rate of 3 per cent. per
| annum. The money deposited in these
| government banks will be loaned out
to borrowers on good security at not
more thrn per cent. per annum. II
will be merely a matter of detail tC
give this blessing of cheap money tc
everybody alike, in proportion to theil
resources and needs.
Prof. Hills proposition as to govern
ment banks has nothing to do with the
present status of gold, free coinage OF
silver, greenbaclism or any other issue
1t simply uses the peoples money fol
the benefit of the people, instead of let
| of the banks.
The present banking system of the
country is indefensible on every ground
1t gives no security to depositors. Il
discriminates against the borrower
with small means and favors the mil
lionaire. 1t hides money out of circu
lation and palsies trade. 1t levies al
outrageous tax on industry and com
merce and calls it legitimate interest.
There is no logical reason why mer
should pay "A high price for the mer,
use of money, but usury will continue
to devastate the producing classes 81
long as the public money is made int
a private monopoly.
There can be no financial reform
worth the name until we have gov
ernmental banking system.
Free coinage of silver, and an issue
of greenbacls to the amount of on,
hundred dollars per capita, would
bring no permanent relief. The leagu,
of private bankers, who now handle al
the money in the United States, woulc
still find some sure way to keep inter
est high and the visible supply of cur
rency limited in amount
They would be fools if they did not
because under the present system i
there were fifty billions of dollar
actually in the land the bankers woult
soon have it all locked up in thei
vaults.
Private banking must go, as condi
ton precedent to substantial financia
reform and abiding popular prosper
ity.
Prof Thomas Z. Hill lives at Glel
Ellyn, Du fage county, Ill. Write t.
him for pamphlets and particulars o
his great and wise banking system
Chicago Vanguard.