The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-01-19
CURRENCY BILL.
Why Not Lend Money Direct to the People
Through the Medium of Government
BAnksS

Through the Medium OF Government
BAnkss
Springer, of Illinois, chairman of the
committee on banking. and currency,
has his currency bill ready for intro
duction. 1t provides that the govern
ment create legal tender notes and is
sue them to any solvent bank having
paid up capital of $4,000 or more on
the deposit of certain bonds. These
bonds may be national, state, county,
parish or bonds of a city having so. 600
population, when the bonds have been
at par fof two years and all In.
terest paid up. These legal tenders
are exempted from the state bank ta2
of 10 per cent. Legal tenders to the
amount of 80 per cent of the face OF
the bonds deposited as security, but
not to exceed the capital stock of the
bank, arc to he issued to it The bank
is taxed one per cent on notes issued
u one-Lalf the. amount of its capital
stock; on an additional % per cent two
per cent. tax, and the remaining 25 per
cent. four per cent The faith and
credit of the United States are pledged
for the redemption of the legal tenders
IN coin.
tet rs take an example. A Kansas
City bank with a million dollars paid
up capital could obtain from the gov
ernment, under the proposed Law, q
haif million dollars OF legal tenders at
one per cent annually. Should it
want another quarter million it could
get it by, paying two per cent And if
it wanted still another quarter million
it could get it by paying four per cent
We take no stock in Mr.. Springer's S
measure. 1t gives the cheap loans to
the rich and undeserving, while indus
try is refused single loan. The gov
ernment money goes to the banks at a
low rate of interest, while the people
intfst go TO the banks and pay them
what they ask or do without Tile c6Iii
troll of the volume of money is turned
over to the banks, and therefore the
price of the peoples property aid labor
is subject to the combined will of the
bankers To get collateral the banks
will favor the issuing of bonds by
states, counties and cities upon any and
every pretext. They will throw every
sbstacle in the way of the payment OF
bonds They will seek to have such
bonds as may be issued riade payable
as many years in the future as possible.
The bill recognizes the need of more
money and the power and right to issue
legal tender paper money. 1t recog-
| nizes the constitutional power of con-
yress to loan such money after it has
been created. But it provides that
these most favora ble loans be made to
!, toI, 10 h., Ia yhn1 Z, OF
it it, to the people who want it only fol-
the purpose of loaning it at a high rate
Of interest to others-those who do
| sorely need it.
Can any one fail to see that it would
be better for the government to loan
| these legal tenders to the extent Of the
| amount it is right to issue to any and
| all such people as could furnish securi-
| ty? Should not industry be given the
| benefit of the low rate of interest? In
| stead of loaning to the banks at one pei
| cent. would it not be better to loan tc
| the people at two? How much will the
| banks charge the people for this money
after they get it from the government:
| Anywhere from six to three hundred
| per cent. Suppose the average is eight
per cent. This gives the banker a
profit of seven per cent per year. Or
a five-year loan his commission iii
might be termed) is thirty-five per cent
II there was no money power there
| would soon be one at this rate.
Let the loans go direct from the gov
ernment to the people, and let the in
terest the people pay go to the govern
ment.
| Let interest be made distributor o
wealth instead of centralizer of it
| Give labor chance. World.