The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1895-04-26
G~DYERNMBNT BANKS
CONVENIENT. PROFITABLE AND
ALWAYS SAFE.
slt y Plain That the People win Never
Trust = Private Bank -Imperatise
rhat Another system BE Inaugu-
rated.

A~A ~ SAAS " S0oeASSs
observer that it is folly to spend time
in discussing what the kind of money
b be and the volume of money
which is necessary when conditions
are such that the people will hide n
KIND OF money which may come into
their hands because they have no safe
public place in which to put it. The
result OF private banking for profit will
always be scarcity of money, high in
terest, and general suppression of bust
ness. which means idleness and desti-
tuition to great numbers of people. I'm
less this suspicion against banks can
De overcome there can never be per-
manently a sufficiency of money in cir
culatlon with which to do business.
lhOugh we should double the amount
OF coinage and treble the amount OF
paper money the failure of a few banks
IN the country will aus the people to
Withdraw the remaining money from
q n and send the same complete
" out of circulation.
1t s at such times, when business
shuts down and the working classes
are ont of employment, that the poorer
people and the middle classes are COM
PEELED to sell their property because of
mortgage foreclosure and ~exorbitant
interest at immense sacrifice, while the
rich, buying at their own price, rapid
~ double and treble their fortunes.
Evidently the first work of the United
states congress should be to establish
such a system of banking as will in
splre perfect confidence among the
ing places into the banks and the vel
ume OF money viii be ever abundant.
1t is plain that the people will never
implicitly trust a bank which is cor
quoted for private profit unless they
can personally have absolute security
on the money they lend the banks.
Bankers who are conducting business
Tor private gain do not propose to give
bonds to anybody 0 security to their
depositors. Such being the case the
fact is imperative that another system
OF banking must be in%augurated which
has the confidence of the people. Such
a system is readily possible, and that.
too, with comparatively little expense.
1t is simply that the government shall
own and operate the bank. The gov
eminent does not need to invest a dol
lar in the business; it simply opens its
room and invites the people to bring
forward their money, which will be
guaranteed against loss. To hasten
the bringing out from its hiding places
n al amount of money which is
now secreted allow 3 per cent on long
time deposits and the bank immediate
~ fills with good money-people's
money. How easy to get a bank full
Of money.
The next step in the line of reform is
to establish the rate of interest at 4
per cent per annum in all parts of the
country. The cost of postage stamps
is the same in all parts of the United
States. Why should not the rate of in
terest be the same in all portions OF
the union?
The next requisite is to make the
government absolutely secure in the
loaning Of money. That it should be
20 the law may imperatiyely require
that the security beyond a doubt be
worth twice what is borrowed as de-
termined by frequent careful appraise-
ment OF property offered as security.
With the government bank .estab-
lished under the control OF the best
banking talent, under bond and ia the
employ of the government, allowing
per cent on longtime deposits and
loaning money at 4 per cent; with all
money in the bank and in readiness to
be used, the effect would be as follows,
Jones, wanting $1,000, would go to the
bank with s 1000 worth of certified sc.
curity, gets $1,000, pays A per cent from
the minute 1t is borrowed, deposits tho
money, takes q checkbook, and goes
his. way to pay all his debts by checks
drawn against his money in the bank
on which he gets no interest. as he
Is checking it out. Ten persons bor-
rowing thus, each paying A per cent,
would make a 40 per cent interest rev.
enue to the government and in the ap-
gregate over $500. 0OO. 900 Of govern
ment revenue each year above all ex-
penses. Il
Such would be the result, Of the gov
eminent doing its own banking.
With the establishment of the gov
eminent banking on the lines we have
here outlined 1t would give to the conn
try the following financial advantages:
I. "A bank full Of good money.
2. No reduction In the volume Of
money because all money borrowed