The farmers' union. (Memphis, Mo.) 1891-1895, 1893-09-07

law
Well, why shouldn't they: That is to
protect the depositors.
! Well. pa. see what box it puts the
banks into. Twenty-Five per cent OF
81, 734 900. 900 is S933, 100000. Subtract
that from sl.WO.O $4,000. the amount
YOU acknowledg ged was all there could
be in circulation, and it leaves the pitt
full sum of $500. 900 outside of bnaks
| to do business with or a tritle over 81
per capita.
| Oh bOsh. my. son. We know there Is
more than dollar head in circula
tion right now in this panic.
Hold on. pa. you said you believed
the New York World. and you believed
Carlisle, and you believed in figures.
Now go over the figures yourself and
find where they are wrong.
[Old man pouls over them and sweats
drops as big as buckshot. Soloquizes,
| Well | declare don't see how it is.
| figures won't lie."
Say. pa. there is only one loop-hole
out of this dilemma.
What is that:
| The banks don't keep the reserve re-
quired by law.
| | expect that is 50.
! Then they violate the law, swear to
lies and hence ought to go the peni-
tentiary.
Oh. ah. why.--
Now. pa, an example will demon
strate how and why banks bring panics.
Let Us suppose for the sake of aryu-
ment, that the Sherman law is repealed.
confidence restored, and by some means
i the banks Immediately get possession
| of all the money as deposits except what
| is in the United State treasury. This
is $1,000, o,OoO,oOO. BY law they must
| hold rs a reserve $50. 100000. This
locks up One-fOurth OF the money to
| start on. Now. confidence being re-
stored, business men go in and borrow
the .5O,OOO,OOO. They soon pay it out
and it soon finds its way back to the
bank as some one else's deposit. The
banks now have on deposit 81, 80, ,OD,-
600: p per cent of this held for re-
serve is s43, ,50O. 900, this taken from
81, 900. .OOO,ON, all the actual NANCY
there is leaves now only Sl62, 100000
This is soon loaned out to other bor-
rOwers. who in turn pay it out, and it
ha< h., Al.
Of other men. One fourth of the S:,tio-
100000 or l4O.6OO,OOo must now be
added to the reserve fund. which now
leaves only S42l 900. 900 to loun out. It
is paid out ana soon finds its way back
to the banks as q deposit of still another
man. one fourth of it must now be held,
| ton above spoken of f S3. 1A 900 of
deposits and osly $l.0o0.OOO.MO of
actual money. and all that locked up
AS Il reserve cxuet $aW.nnN. .M'N, Then
lack of. not confidence. but money.
panics. shut downs, failures. woe. want
suicides and starvation.
| swan. is that the way it figures
out:
Yes. pa. it is, and this country will
have panics TIL our law makers have
sense enough to give us irredeemable
treasury notes. issued oy the govern
ment. that don't need any reserve
boarded up. Senator Petfer's bill for
the issue of greenbacks ought to pass
Immediately, and would if our con-
glessmen had any craftsmanship at all
\ man who would vote against PETERS
bill. and in favor OF the national banks
ought to be tarred and feathered and
ridden on rail and
My son. have followed Dan just As
far as I'm going to. I'm dead set
| against banks. Old Hickory God bless
his memory was right. If was presi-
dent Id rescind the charter of every
bank before night or ask congress to ito
it. aside: My. but my son is good n
figures. | wonder what he meant by
alluding to the poem Of the spider and
the ny.)
What did you my .ou:
Boy snores.
BY gum the system Is rotten. rotten
to the core