The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-07-25
WHY BANKS?
A Thoughtful Letter From n Thinker
IN thu. Subject of Money.

l
| on the Subject of Money.
| To the Editor: Why banks? Has not
| the time when the American people
| can get along better without banks as now
managed than with them? Are they not
cumbersome and burdensome relics of
mouldy past?
During the furry of 1898 a Minneapolis
| banker told the story of little old woman
| who came to the tellers window and asked
| for her money. The amount of her de-
post was promptly counted out to her.
This surprised and perplexed her, and
| after few minutes of study she wanted
| to put the money back. She explained: Il
| tank me you got hem and l want hem
mighty bad. You got hem haar all right I
| no want HEM
| L laughed at the story as usual. For over
40 years, during any and every financial
| stringency, l have heard that same story,
| SO that by this time 1 know it is funny.
The little old woman such fool.
| Two weeks later the same, banker said:
| There is money enough in the banks to
| meet all usual demands of business. All
| that is needed is public confidence OF
| course, no bank can pay all its depositors
| on demand In other words, IF the peo-
| pie do not want their money we have all
| the money they want but if they lose con-
| ndence and ask for their money have
| none Just the little old woman over,
| only she was on the other side of the bank
| counter. l laughed again, which was a
| mistake for the man not getting off
joke. as | supposed but was laying down a
| Great Financial Principle.
| This set me thinking. Faith is defined as
a strong effort to believe something you do
| not know to be true. 1t would seem time
| to have a banking system which can be
| run without need of faith, especially as the
| large percentage of defaulters absconders
embezzers, etc, among bank men makes
| faith in this direction 50 extremalv diff
| cult.
We. the people of the United States, act
| ing through our official servants, make the
money or the country, gold or silver or
| paper. None other than our authorized
agents may issue one dollar under penalty
| OF imprisonment Agents acting on our au-
| thority, and with no other warrant s1lper-
wise the banks which handle the money we
| nave made. These agents inspect the books
| OF the banks examine every detail of their
| business and if any trace of incompetency
| or dishonesty is found our agents under our
instructions close the banks. We the peo-
pie give to our currency not only its sole
| and sufficient stability but we authorize
| sustain and defend our entire financial sys-
| itll, WHICH mas no Otfef claim to stability
| nor even to existence save our will.
| Are we not then absurdly foolish to aban-
| don a large proportion of the benefits to
be derived from this money to class of
| self appointed bankers and brokers, who
| at all times live and fatten only bv our
| permission, and who while themselves
thriving by our consent, SO frequently turn
| ana reno us in our times of need?
| For our bankers are not only dishonest to
larger percentage than is found in any
h1f 90 Iiy,ty but
bearing, naughty, and in the selfish greed
| which passes with them for conservatism
| curing times of panic, positively dangerous
| to the public welfare. And we who make
| the government and the money and the
| banks and the bankers, and who can at our
| pleasure change or abolish them all. submit
| to 1T. Nay more, having made the govern
| ment and the money, we tax ourselves to
| support the one and then pay into the
| pockets of the bankers uSury for second.
| There is certainly a wiser and safer way
| Having created money are foolish to
| allow practical control of it to escape from
us and to place ourselves at the mercy of
the men who handle it only for private
| gain
AS matter of business common sense
the bank issuing money. secured by the
| government, ought to be solely public in
stitution. The people who create the money
are entitled, a community, to every
| good which be obtained from the circu-
| lation of the money.
| 1t is to be remembered that banks and
| existing financial methods came into eX-
istence under forms of government differ
ing from ours, to meet conditions not now
| found in this country
/ In a government by the people, for the
| people, we may safely appoint or elect our
| own bankers, establish our own places for
| the issue and deposit of money pay a low
| rate of interest on such money as we need
to borrow and can give security for, know
| ing at the same time that the money thus
paid as interest will reduce taxes by so
| much; lend our savings directly to the
| government. and in short, exercise our SOW
| ereisn right to control not only the
| finances but the financial situation from
! top to bottom. and all the way through.
| Our government being the depository of
the savings of the common people, would
| have greatly added stability. Business
| men. manufacturers and farmers being al
ways able to borrow on good security, there
| could be no contraction of the currency, and
| as it is the natural impulse of man to re-
deem his property from debt, there would
be no undue imitation. In fact once the
dams of milerS who grind their griSt by
| the ebb and flow of the financial stream
| were taken down, our finances would be
| found to be self-governing and as
| steadily as the earth itself. The need of
| money for business purposes necessarily
| preSupposeS values of some kind in the
| community needing it. A safe percentage
| of these values always commanding money
on loan, financial stringency could not
exist There could be no lack of conf
| dence. Railroads. telegraph companies
| manufacturers or others desiring to in
| crease their capital, could be compelled to
| show value. and thus the watering of
| stock could be abolished, and the actual
| value in the country could be more largely
| represented in its circulating medium.
| Every safeguard now thrown around our
| money could be preserved, with the added
safeguard that the national currency
| would also be backed up by every mort
| gage in all the land.
Bankers and brokers and all their kin
could find places in legitimate business in
a thriving community, with just good
| chance to get to heaven anyone has.
| Then why banks? f. d. TAYLOR
| Minneapolis, July %, 1894.
| A VOTE MAKER
| The publishers of "Nye Normanden," one
| of the leading refrom papers in the Nor