Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1894-03-01
To Prevent Panlca.

A'@-r~ - - @fNNNNAH6 OJuVSAA VA1V
Will Prevent PaEics," at recent
meeting Of the Monday Evening club
at Pueblo, which by resolution Of the
club has been printed in pamphlet
form. II is interesting to note moi
deutally that this paper verifes the
contagious influence Of populist senti-
ment in the atmosphere Of Colorado,
Doubtless Governor Adams will dep
recate the suggestion that he has sur
rendered in the remotest manner TO
that influence, but still we find him in
this thoughtful and well-considered
essay stoutly advocating o postal saw
ings bank system and emphatIcally
insisting that the federal government
alone should issue the currency Of
our country-bot cardinal PROPOSE
lions Of the Omaha platform, Add to
this from a democrat so SImon-pure
that he will have none Of your ap-
psndages, whether Stree coinage" or
or white Wing" the fact that the
leading republican organ Of Colorado
has recently and repeatedly favored
the government ownership Of rail-
roads another Of the Omaha planks
and II will be seen how thoroughly
saturated the west has become with
the regenerating principles Of the
peoples party.
Everybody will concede that il bank
deposits could be made so absolutely
safe to their owners that loss would
be impossible and no grounds for dis
trust or suspicion could exist, there
would be an end Of pRnics, Business
disaster, such as characterized the
last half Of 1888, is caused by the
Withdrawal OF money from the AFTER
ies Of trade at a time when it is most
needed. People become uneasy about
their deposits and take their money
from the banks, even when they have
no use for 1T and have to incur ex-
pense and trouble caring for il, mere
" because they are afraid they will
lose it, or that itmay be tied up in
definitely il they do not secure it at
once. This is the explanation Of bank
runs, with their far-reaching train OF
disasters.
When the ruinous consequences Of
such panics are considered and the
safeguard against them is go plain,
the dearth Of protective Legislation for
deposltors is remarkable. Governor
Adams solution is to adopt the postal
savings bank system, based upon the
government investment in American
securities now held mainly abroad.
These securities are among the best
10 the world and probably aggregate
$5,OO0,OOO,OOO in value. Our savings
banks and trust companies have now
on deposit about $2,225, 100000, the
bulk Of which would at once seek the
greater security of the government,
while the assurance of undoubted
safety would immensely stimulate the
impulse TO save, with salutary conse-
quences to the wage-earning class.
This plan would have the additional
advantage Of removing or materially
modifying an element Of financial dis
turbance, liable at any time to be felt
in this country, which arises from the
vast volume Of indebtedness now held
by foreigners against the people Of
the United States and which Of course
brings us within the influence Of
whatever seriously affects the money
markets abroad.
Governor Adams would make com
merCial banks equally safe to their
depositors by having the government
maintain a fund for their indemni6-
cation, the latter to be sustained by a
small tax on the capital stock and
surplus Of the banks.
Representative Bryan Of Nebraska
has bill now before congress for that
purpose, but it is probably buried in
committee and certainly has not at
tracted much attention, Yet, passed
in an effective shape, it would do more
to promote the permanent business
prosperity Of the country than any
congressional enactment since the
war The savings Of the people,
which il seeks to secure, constitute
the vitalizing force Of our business
life. When they are withdrawn, as
the result Of panicky feeling, business
becomes paralyzed and ruin reigns.
Is ii not amazing that measures have
not sooner been adopted for establish
ing public confidence on a basis that