The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-29
THE REAL MONEY POWER.

From the utteralces that we have heard
and read as coming from popular orators,
both clerical and political. and from the
expressions that are common in TIE dis
cussion OF financial questions, we believe
there are no three words more misupc or
stood by even the ordinary business man
than the words the money power"
THE popular idea seems TO be that the
money Of the country is controlled by a
few professional bankers. and that tho
humber is getting fewer. and that 10
these men IS 10 be attributed the plenty
Or scarceness OF money; a situation which
they control according TO their caprice or
interes. Cases are cited where banks
refuse loans and force men into bank
fuptcy, or worse still, where money Is
locked up in order to make tight money.
and thus distress and harass business
men. Now, while we believe that such
.hings have been done. yet such schemes
have been exceedingly rare and very
short lived, and were only local In Their
influence. and. indeed. as compared with
the general business Of the country. were
like a speck on wall map
Strange as 1t may seem 10 some. our
own belle. is that the greatest money
power in this country and in England.
and, indeed. in all civilized industrial
countries, is the workingman. His &C
oumulated wages. represented by the de-
posts in savings banks. constitute the
greatest OF all resources OF loanable cash.
1t Is the ownership and control OF these
wages that really constitute the money
power of civilization. The reason Is APP
parent. The ordinary workingman does
not keep an active bank account and
only by labor and self-denial for long
time Is enabled TO accumulate money
enough for any investment. such a. a
home, or any bond or other security that
no may be induced To buy. Meantime. ne
deposits what he can rpare from daily
support, in savings bank. there 10 be
carefully guarded and bearing low rate
OF interest until ne can get enough TO
buy something. This money must be
lent out by the managers OF the bank 80
as to produce interest and pay expenses.
il is OF the utmost importance that II
thali be lent only upon absolutely secure
collateral or mortgage. and hence many
Of the States carefully limit the securities
which a savings bank may receive. IL
will astonish many Of or readers TO know
that the New York savings banks alone
have resources a. OF January !. 1895.
amounting to s1S3.0ss. $50. and that the
number of their open accounts were l.
6s5. 7S7, and that the deposits were s6sl.-
16f,JoS, an increase over the previous year
of 81, $50. $50. This is what the working
people OF New York had to lend out. al
though the average deposit was only s4oS-
From the last statistical abstract OF the
United States we ind that the savings
hanks OF this country have 81. $40. 597. 025 OF
deposit from 4.S75.5ly cepoators, an aver.
age OF sSil.26 apiece.
Now, on the other hand, people who
are supposed TO be the money power
are for the most part investors. who are
careful TO avoid having any money iyins
idle in bank without interest, and who
rarely, II ever. put a dollar In the say
ings bank. because they think they can DC
better. They put their moacy in stocks
bonds, real estate. and manufactures
They are tie money borrowers. aud II
order 10 touch tho sacred funds OF the rea
money power IN these savings banks Tho
borrowers have 10 get them 10 their lord
right humbly." II will be remembered
that IN the panic OF 1893 there was M
such anxiety felt Is that which assailec
the public mind when the depositors II
the savings banks commenced to go fol
their money. Then IL was that tho mer
shan&s ana manufacturers ana banker