The midland journal. (Rising Sun, Md.) 1885-1947, 1895-05-03
Government Deposits.

CeFtdlH ueSlgndCeu naC1Onal BANKS
are used by the Treasury Depart
ment as repositories for the public
money, the banks placing U. S.
bonds in the custody of the Comp
troller as security. The balances
held in these banks on June 30th
for the last ten years have varied
in amounts, the largest being in the
year 1888, S54,915, ,4S9; and the
smallest in 1898, being $40, ,2S9.
The government receives no interest
on these large line of deposits, but
of course the banks loan this public
money as they do all other depos-
itors' money, all that is required of
them is to be able to meet the
drafts or warrants of the govern
ment as they do private persons
checks, and as matter of business,
receive the money back from the
drawers in most cases as deposits
transferred from the governments
account to the party who presents
the warrant.
1t is easy to see what a nice thing
the banks have of holding these
millions of government money,
paying no interest for it, but loan
ing it to their customers at the
usual rates of bank interest, receiv.
ing also interest from the govern
ment on the bonds the Comptroller
holds for security. Nice arrange
ment this No wonder these
national banks are fighting so to
retain their advantage and get
greater ones.
Suppose the government had its
own banks in which to deposit the
public moneys amounting to $780,
100000 annually, and not only its
own money, collected in taxes, but
wonld also receive the money of the
people on deposit, subject to check,
as the banks generally do, and also
loaned not only its own surplus
funds out to business borrowers as
the banks all do, but also the de-
posits of individuals as the banks
all do, and on such security as
would insure payment of the loans
at maturity, as ordinary banks do;
wonldn'U the millions, tens of mil
lions and hundreds of millions in
interest paid to the banks, be
saved to the people, if the govern
ment put the interest at the lowest
figure; only sufficient to pay the
expense of transacting the business,
and whatever balance there might
be over expenses, turn into the
Treasury, thus returning it again
to the people as a portion Of their
taxes. Don't every body bankers
exceptedD think this would be a
great improvement over the pres
ent plan in which the Wall street
bankers and the English Roths-
ehilds drive the government round
like hired boys
This is the kind Of American
financial system the Populists pro-
pose to replace the present foreign
jew system with. Doesn't every
business man and every Iaboring
man think he ought 10 vote for
such changei
But suppose the government
bank charged a rate Of ? or 3 per
cent interest on commercial loans,
the long term loans on real estate
being reduced to bare Gust Of tran-
sacting business, the interest turned
into the Treasury would suffice
without any other tax to defray the
expense OF the federal government
and in all probability that Of an
the States. These untold milli0ns
in interest are, and always have
been, flowing into the coiSeF~ of the
bankers, which might and sh0uhi
he left In possession of the indus.
trial classes or appropriated %
meeting the expenses ~ guyern-
ment, and our present iBoampeteut
Peoples party leaders Gail b en-
plain this To the people.
ShVIncE fell ua urhar xrs.ss r..-.w