The midland journal. (Rising Sun, Md.) 1885-1947, 1897-02-12
To Stop Usury-Government Banks.

10 stop OSury-UOVernment Banks.
The main heads of how to bring about
Government branch banking i'll this
country, at cost rates for the use ofmoney,
in behalf of the whole people as distin-
tinguished from any one class, are as
follows:
No more money is needed i'll circulation
that we now have to bring about the
desired change.
Let Government branch banks of dis
count, branches of the Treasury Depart
ment, be opened in all parts of the coun-
try, in numbers approxiuating the banks
of discount now in existence, in such
localities where bank accommodations
are needed to promote prosperity.
Employees TO be obtained from existing
banks, etc.
Announce that these Government
banks do full discount and deposit bus
mess under the Governments auspices,
which, of course, means the Govern
ment's guarantee, and loan money at
cost; such cost to include incidental ex-
penses and all losses through bad loans.
Establish central clearing house for
the clearance of all checks for all parts OF
the country at the same time; also sub
clearing houses in all cities where clear
ing houses now exist such sub clearing
houses to be branches of the main clear
ing house; balances to be declared by
telegraph with snch safeguards as sound
banking authorizes.
Pay employees according to prevailing
custom i'll the Treasury Department, and
not in accordance with the pay now paid
chief officers of private banks Of discount.
To close all private banks, tax for rev.
enue or otherwise all private banks Of
discount existing, say ten per cent on all
deposits received, after the Government
branch banks have opened their doors for
business.
The Government banks to pay cash for
all cash assets of these private banks; or
what comes to the same thing, take all
such cash assets OH deposit. Also take
possession of all other private bank assets
for settlement without charge to the
private banks in cases where no costs for
collections are incurred; in all other cases,
charge the private banks with costs of
collection; crediting each with the cash
when obtained.
Let the Government banks at once
assume all private bank liabilities TO de,
positors to the extent of the solvency of
each private bank, and pro rata where
this solvency is questioned or notiproved,
in every case where private. banks put
their whole business and assets in the
hands of the Government banks,
To oblige private banks i'll process of
liquidation to at once put their whole
assets and business in the hands, of the
Government banks, additionally tax them
for revenue, say ten per cent for each
dollar of deposits remaining unpaid at the
demand of the depositor, for each year or
part thereof. such tax to go into effect,
say thirty days after the Government
bank Of that neighborhood has opened for
business.
All surplus, as fast as collected, above
costs and deposits i'll the case of each
private bank, to be paid to the private
bank for the benefit of its stockholders.
These government banks shall loan
money at cost rates for its use, in the
usual manner of banks of discount con-
Quoted in a sound banking manner, no
favors to be shown not in accordance
with sound banking.
Until such cost is approximately known,
without seeking any surplus fnnd in the
shape of earnings, particular to be
strictly prohibited, let one per cent per
annum be charged all borrowers other
than local or State or Federal Govern.
ment
And for all such named Government
borrowers let one-half of one per cent be
charged ;sal.o wing all borrowers to repay
their loans in such installments as they
may choose, provided the installments
are paid before maturity of loan.
This Government bank system requires
no capital for its capital, the business
being done on the mutual plan. Further
particulars regarding loans, ETC., will ap,
pear in future article.-Iem, Philada.