The midland journal. (Rising Sun, Md.) 1885-1947, 1893-04-14

under the present system of banks, to run
on those institutions and demand "redemp-
tion." But depositors are no safer under
the present national banking system than
they were under the old State banks There
is, it is true, a system of bank examining by
government officers appointed for that duty,
but recent developments prove that it is a
poor reliance for safety of depositors. 1t
only needs wide spread distrust to take
place among derositors to create a general
smashup among the banks of the country.
If depositors once become apprehensive,
and such feeling is very contagious, that
their money may not be altogether safe in the
banks, they have only to become their own
bankers and put their funds in their safes.
There is no danger that the money, whether
it is national bank notes, legal tenders,
silver or gold certificates, will depreciate in
value. Any money that Uncle Sam stands
behind the people know will always be
worth hundred cents to the dollar as long
as the government exists. The worse than
humbuggery which filled tie mouths of
subsidized congressman and the columns of
the gold ring papers about Is cent dollars
did not fool the people. They could always,
and everywhere, buy the same amount with
dollar whether the dollar was composed of
paper, silver or gold and they knew they
never could buy any more with a gold dol
lar than with a silver dollar The result
was that they answered the arrant rot of the
newspapers about silver with the demand to
give them more dollars and they would
stand the risk.
While this cry of wolf by the gold ring
gamblers and their hired claquers failed to
frighten the public, or make them the least
apprehensive as to the value of the money
in circulation, there is no assurance to
depositors that their money is safe when
deposited 10 banks. This knowledge has
only TO be emphasized by succession o
bank failures such as have been occurring
recently, TO cause them 10 become largely
their own depositors and do their banking
through the post Office by money orders.
This is in every sense system of gov.
eminent banks-albeit unnecessarily crude
and clumsy, but there is no valid reason tc
prevent the government from establishing
repositories to receive and keep safely the
peoples money, and adopt the same system
of checks and business methods which has
been brought 10 such perfection by private
banking.
A system of government banks could be
established all over the country that would
in short time supersede all other banks.
No person would deposi. money with a
private corporation when the government
offered the same facilities, and at the same
lime accommodate the "business" class who
are compelled to transact their business
largely with borrowed money. The banks
now loan their depositors' money to bor-
rowers at per cent to any figure above that
which circumstances dictate. The govern
ment, if made custodian of those deposits,
could loan them to these same business
people for less than one per cent and guar.
antee depostors from all loss. When the
public get these facts firmly fixed in their
minds, the day of the present banking sys-
tenn will be near its end. There are so many
immense benefits to the business public
offered by the government taking the bank
ing business in hand, as it does the mail
business, that it has only to be understood
by the people TO cause universal demand
for the establishment of govement banks.