Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1897-12-15

ton, except through the said national
banks at a high rate of interest, while
the national bankers pay no interest
for the use of the said money.
Section 9 provides for the invest
ment of said funds, but does not make
it obligatory on the secretary of the
treasury to make such investments;
but it is wholly discretionary with him
as to when any investment is made,
and the postal savings fund.- in the
meantime is lying in the hands of
some so-called national banker, in
whom the postmaster-genera1 is, in all
probability, directly or indirectly in
terested. And if any investments at
bonds.
In the Records bill no money is to
be loaned to the people on any security
whatever, but only the bondho1ders
and national bankers are to profit by
this so-called postal banking system.
The people are forced by this bill to
allow their money to remain idle and
to run up a debt of two per cent. on
said fund, which in turn will be bond
ed, with which to secure their own de-
posits; or to invest it in bonds, now in
the hands of the bondho1ders. What
will be the consequence? Utter dis
satisfaction on the part of the people
with the postal savings bank system;
with the preservation of the present
banking system, the only object for
which the Records bill seems to have
been drawn.
If the poor are willing 10 take two
per cent. for the use of their money, it
IS nothing more than right that an
avenue should be open to this same
class of people through which they
may borrow said funds at three and a
half or four per cent. at most, upon
the giving of good and approved Sc
curity for the same. This would take
away the necessity of a maximum in
dlvIdual deposit and we would be Civ
en- an absolutely safe depository of
the funds of each and every one hav-
ing any amount of idle capital, how
ever small or large. This would, of
course, give relief to the people from
the curse of excessive interest, which
is one of the causes of our presentcon-
dition; it would also annihi1ate the
present banking system Ia consum-
nation devoutly to be be wished.
Justice demands that if the govern.
ment takes the peoples money, the
money of the poor, at low rate OF
interest, it should re1oan said money
to the enterprising poor in limited
amounts land here there should be d
limit strictly enforced, say 81, 900, to
bona fide individual borrowers at the
same rate plus the cost of administra
tion). The government wishes nc
profits, but would encourage thrift
and legitimate enterprise by such a
course. The money would thus re
main with the people, and this woul6
avoid encumbering the government
with large sums of unemployed CAPT
tai. Such system would discourage
bonded indebtedne SIS 1.-THE Records bill
fosters bonded indebtedness.)
Amy surplus that might accumulate
and be found on hand at the end of {
fiscal year should be invested in some
such way as that indicated in the
Records bill.
Some have cited in objection to the
Records plan of investment, repudia
ton of state and municipal bonds
Let us consider in answer to this tha
for every dollar of their indebtedness:
that the people have repudiated, they
have lost &c. 900 through the machina
tions and failures of bankers under
our present banking system.
Bankers could no more compel.
with system giving safe repositories
and allowing the people to reborrow OF
good security at a cheap rate of inter
est, than private carriers can now com
pete with the postoffice in carrying
mail. The people would be the gain
ers under this system of banking Their
own money, as they are now the gain
er under our postoffice system of car
rying their own mails.
A postal bank system should includ,
the following features:
l. A safe depository.
2. A means for reobtaining tn,
money by the people on small, we'll Sc
cured loans.
. 8. A complete separation of the sys
tenn (which is public) from the presen
banking system (which is privately
4. The curtailment of expenses b,
the employment of existing officials t.
administer the system.
Notwithstanding the Records bill
contains none of these features, blu
!. just the reverse of these, thousands O
people have unthinking1y signed pc
tition for its becoming a law.
Unless the people may approach thi
fund and borrow from it in small an,
well secured loans, how is the none.
to be put in circulation! (And certain
1y there must be some means of reds
tribution.) Shall it be done as tn
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