The herald., 1896-04-11
MARKETS OF THE WORLD
LOCAL, STATE, EASTERN AND FOREIGN
REPORTS IN OUTLINE
Banks and Money md Their Relations to this
PubIic-Who Gains by Sound Honey
Local Markets Quiet .end Stendy-Cured
Meats Change-Stocks and Bonds

Down in Georgia the people, as else
where, are more or less divided on the
question of finance. This was illustrated
the other day when two distinguished citl-
zens of the state, the honorable secretary
OF the interior and the honorable eN-speak-
er OF the house Of represenGtatiives . G,.ii, MI
tained the people with a joint debate on
The subject. The press is naturally d.
vided. too on this question. Recently the
Atlanta Constitution sed;
The banks declare that the single gold
standard now exists in this country. They
feel that it is to their pecuniary advantage
that it should continue to exist. They know
that it has doubled the value of the COM
modify in which they deal-money- They
debts and interest. They feel that in this
way it has enlarged their profits and in
creased their power Consequently they
believe that 1t ought to be maintained, ana
they do not hesitate 10 say So.
Over the border in Tennessee, the Chat
tanooga Times takes this up and asks
these and other embarrassing questions:
First. Can the single gold standard
benefit the bankers and borrowers without
benetitting the whole people? 1T it can,
how can it? Second. If the bankers mon
ey has doubled in value, has not the mo1le%
OF the other citizens also doubled in value :
If not, why not? The banks hold total
reserve, on the average. of $50 00O, 900. They
owe their depositors that number. includ-
ing savings banks, over 13,Wo00O indiNid-
uals, constantly, about a,Ooo30.O1o. The
amount checked out of banks of discount
and deposit averages daily 93 per cent or
the deposits: and the latter reach over
S2oo 600, 900 q day. in twenty three principal
as valuable as what goes in: 1t not, why
not? Third. VIII the. constitution prove
that the profits of banking have increased
10 a greater degree than have the general
profits accruing to other lines of business /:
We deny that such is the case and demand
proof. Fourth. VIII the constitution tell
us whether the losses to legitimate and
honest banking were, or were not, greater
in the panic of 1888 than those of any other
line of business that has equal capital and
skill engaged in the same? Fifth. II the
constitution knows tnat money has dou-
bled in value since 1873. will it tell how 1t
knows this? III a word, will it prove the
assertion? We. and good many other
plain folk. long ago tired of the fatulent
concentrations of this big organ OF com
state socialism! We Wish it would change
it's mode of treatment from that of mere
mouthng over postulates to method or
reasoning from aScertaineu facts. It's
naked assertions are worthless; the more
especially so when they run counter to the
wen sl,sc.tained truths that lie on the
surface of current industrial and financial
history
AS bearing directly on the same point
these remarks from letter IN The Ameri"
can Banker are extremely pertinent:
These two great classes-the deposltor
and borrower-constitute the business
world today, and are composed more large
" of the man of small means like the la
borer, merchant and manufacturer than
the capitalist. That the banks have served
DOtn classes We'll ana pfeNetheu the uttei
bankruptcy of the nation and our large
business interests, is reason enough why
the comforting of greater functions OH
them would be the part of wisdom.
To better illustrate the relation of the
banks in Michigan to our commercial pros
perity, l would call your attention to two
facts reported by the commissio of
banking in 1895. First, that the deposits IN
both state and national banks on Decem-
ber 49, 1895, were $102 ga, 7i3.16, representing.
according to his report, an increase in de-
posits during the past year of $S S5S5. SO.
While the banks have accepted this trust
from those who would hoard money on the
one hand, they had on the other hand loan
ed on December 10. 1895, $119, 64S.07, or
SlI.320,000 more than the total deposits.
which is, of course. part of their own
capital. What is true of Michigan is true
of other states in this respect.'