Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-05-21

The Sentinel: In the hurrah and ex-
element Of properly making the
money question" an issue in the
present campaign, "reformers" are apt
to overlook some features Of the ques-
ton which are, to say the least, quite
as important as the free coinage Of sill
yer.
Our banking system, for instance, Is
rotten to the core; Is series OF priVi-
leges accorded banking corporations in
return for which the great majority of
the people derive not one whit of bene-
fit.
Last Saturday the Supreme court OF
the State of Illinois handed down a de-
cision in the celebrated Meadowcroft
case, which, while dealing justly to a
certain degree, makes admissions and
Acknowledgements relative to the bank
ing system showing its entire lack of
safeguards and protection to creditors
afforded by law in other lines Of bust
ness, and fully justifying all the hard
things this and a few other reform
papers have said against the banking
business in general as at present con-
Quoted.
It will be remembered that the
Meadowcroft brothers ran bank in
Chicago two years ago and received
deposits up to the hour Of failure,
knowing their business to be insolV-
emit.
For this they were prosecuted and got
off with a light sentence-one year in
the penitentiary.
Being ex-bankers they had funds and
friends enough to keep the matter in
the courts for nearly two years, and
will probably now appeal their case to
the Supreme Court of the United States
with a chance Of getting clear alto
gether, as the banker combine that
runs the government will hardly per-
NIT so dangerous a precedent to be
established as that banker must not
take all the money offered him, no mat
ter what the circumstances.
The Illinois Supreme court in render
ing this decision, declare that:
1.-THE banking business is Of semi
public nature; that the banker occupies
the position of trustee for the people;
the depositing of money possesses no
element Of a trade; the transaction is
made purely on the integrity Of the
banker"
Reader, do you know Of any other
business in which a man planks over
money by the hundred thousand dol
lars, sometimes, with no security ex-
cept that which rests purely on the
integrity of the banker?"
II anybody else but banker receives
the money of the public he is made to
give bonds in three times the amount
he is likely to receive.
Who would consent to putting a
county treasurer into Office without re-
quiring him to give bonds?
Or what banker would take his own
medicine and make loans without so
much as taking the borrowers note,
depending solely ION the integrity OF
the individual?"
II you want to unite all the reform
forces on the money question" chuck in
a plank requiring the bankers to give
bonds sufficient to cover all deposits
they are likely to receive. The party
that does that can sweep the country"
sure enough.
The decision Of the court in the
Meadowcroft case further states:
when Receiver Crandall investl-
gated the books Of the firm he found
less than 1 per cent Of the $4,000
liabilities.
Nothing remains for defrauded de-
positor after a bank fails save the
honesty of the banker"
Bankers have never shown them
selves to be any more honest than
other people, statistics show that. about
one-ffth Of the banks chartered in the
United States, including national
banks, sooner or later go to the wall;
statistics also prove that banks that
fail seldom pay to exceed 10 per cant.
on their liabilities.