The Louisiana populist., 1895-04-26
GOVERNMENT BANKS
CONVENIENT. PROFITABLE AND
ALWAYS SAFE.
tt Is Plain That the People VIII Never
Trust Private Bank Imperative
That Another system . BE Inaugu-
rated.

III uiSCuSSlnS Wnat the kind or money
snail be and the volume of money
which is necessary when conditions
are such that the people will hide any
knd OF money which may come into
thelr hands because they have no safe
pubic 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 busi-
ness, which means idleness and desti-
tuition to great numbers of people. In
less this suspicion against banks can
oe overcome there can never be per-
manently sufficiency of money in cir
cuiatlon with which to do business.
ihough we should double the amount
oi coinage and treble the amount of
paper money the failure of few banks
IN the country will cause the people to
Withdraw the remaining money from
,ne banks and send the same complete
~ out Of circulation.
IL is at such times, when business
shuts down and the working classes
are out 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
ricn, buying at their own price, rapid
~ double and treble their fortunes.
EFidently the first work of the United
states congress should be to establish
such system of banking as will in
spire perfect confidence among the
people in its safety. Then all the hid
ing places into the banks and the vol
ume OF money win be ever abundant.
IL is plain that the people will never
implicitly trust q bank which Is con-
quoted for private profit unless they
can personally have absolute security
on the money they lend the banks.
bankers who are conducting business
1or private gain do not propose to give
bonds to anybody nor security to their
depositors. Such being tho case the
fact Is imperative that another system
OF banking must be inaugurated which
has the confidence of the people. Such
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
ernment does not need to invest 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
the vast amount of money which is
now secreted allow 3 per cent on long
time deposits and the bank immediate
ly flls with good money-people's
money. How easy to get bank full
of money.
The next step in the line of reform is
to establish the rate of interest at
per cent per annum i'm 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
forest 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
so the law may imperatively 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 in the
employ of the government, allowing 8
per cent on longtime deposits and
loaning money at 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 $1,000 worth of certified Sc
curity, gets $1,000. pays 4 per cent from |
the minute it is borrowed, deposits the
money, takes a 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 1t out. Ten persons bor-
rowing thus. each paying 4 per cent.
would make 40 per cent interest rev.
enue to the government and in the ag-
gregate over $500 ,000, 900 of govern
ment revenue each year above all ex-
penses.
Such would be the result of the gov |
ernment doing its own banking.
With the establishment of the gov
ernment banking on the lines we have
here outlined it would give to the coun-
try the following financial advantages:
1. A bank full Of good money.
2. No reduction in the volume of
money because all money borrowed
would be Immediately deposited In the
government bank.
8. Three per cent on time deposits !
would induce everybody to economize,
save and use the bank.
4. No more annoyance to bankers |
from run" on their banks.
8. No more loss of sleep to the bank |
depositor from fear that he will lose the |
money he has deposited In the bank.
9. No mere talk about money scar
city or a tight" "close" money mar