The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-10-12
GIVE US GOVERNMENT BANKS.


The Bankers Argue from soand Premises,
but Arrive 1t an Unsoand Conclusion.
In an article in the SHANGHAI depart
ment OF a great New York weekly un-
der the heading, points in the Cur
fency Problem" we noticed last week
financial teaching which we wish to
call public attention The first point
made by the writer, a gold-bug, was
that there is need of an elastic cur
rency; that the people recognize this
need and it must be met somehow BY
congress and the bankers, or the de-
mand for more money and an elastic
currency will voice itself politically.
To head off the political demand for
more money free silver and green
baeks1 and to provide an elastic vol
ume of currency he argues that the
banks must be given power to expand
the currency to move crops and when
ever there is need of more money.
The argument of this financial writer
"a banker, and speaking for the bank
ers, ie The argument of the populists
who call for either the sub-treasury
currency system or, better, a system of
government banks. But, mark you,
there is this difference, viz, the pri-
vate banssr want conferred on then,
the power TO make the currency elastic,
to issue at almost no cost to themselves
bank note currency to loan and collect
interest on; whereas the populists de-
mand that the government shall not
delegate its sovereign power to issue
money. currency. but shall issue as
much money as the people need to bor-
row, upon good security, at cost of do
ing the business. Why gire away to
the present iioney monopolists the
power to print paper and loan it at
high rates of interest to move crops
and pay for work and SO provide cap
ital, when the government alepe has
the right to create money, and what
ever service il can render the people
belongs to the people by right, and
should not be taken from them and
given to gold or gold and silver mo-
nopolists?
This fnancier rightly argues that sill
yer coinage at Washington would not
provide the needed elasticity, the free
and sufficient expansion of the cur
rency needed, sin farming states at
harvest time, for example" So he
would give to the banks in the rural
districts power to issue bank notes and
collect interest on their own debts, on
bank paper notes that would cost them
not to exceed a cent a hundred,
scheme to force the people to pay them
from ten to thirty-six per cent. on the
face of paper that cost them only one
per cent. of it's face-which would be
a profit of 1000 to 5000 per cent. on
the cost of such capital.
If the paper currency can be fur
nished the banks at one per cent, it can
be furnished direct to the borrowers
certainly at labor cost of not to ex-
coed two per cent. And If the currency
needs to be made elastic, as the bank
ers and poprilists agree, let us have it
made elastic not by wildcat bank is
sues, but by means of warehoused Sc
curities and manufactured necessities
through government banks conducted
by servants of the people, working for
a reasonable salary, as plenty of capa-
BILE, well qualified men will be willing
to work and furnish bonds besides.
A new banking system must soon be
provided to take the place of the pres
emit system based on United States
bonds. Let it be, then, government
banks and banking providing currency
at cost, such as our party proposes
With government banks, belonging to
the people, issuing on ample security
legal tender currency at cost, the usury
Dr. interest drains will be cut off, and
the money so lost will remain in the
hands of the wealth-producing class
and furnish them the means to buy
back as much wealth out of the mar
Set as their labor pours into it, SO es-
Ia blishing the necessary equilibrium
between supply and demand.
And, take notice, this equilibrium is
what is necessary to prevent the peri
odic market gluts, commercial stagna-
lion, contraction of credits and the en-
forced idleness and distress of destitute |
Millions. Government banks in each |
county conducted by the elected and |
bonded financial representatives of the |
people, providing upon ample security
at cost for the needs of each |
ocality, would, with supplementary
and legislation, restore justice, har-
nony and lasting prosperity to the in
lustrial and commercial world.-Lin-
.O1n Nah \ Wealth Mo1,arc