Griggs courier. (Cooperstown, Griggs Co., Dak. [N.D.]) 1885-1902, 1897-02-19
ABOUT BANKING.
A Live Article on Banking and
Currency.
EDITOR COURIER:

gwen ouOJcCos IL IL always we'll UC
understand that subject in all it's bear.
ings and in debating upon the system
of banking now recognized in the
United States, it is necessary to go to
the beginning.
The first question to be settled in
order to arrive at a complete solution
OF the problem is: What purpose
does q bank serve? or of what use, to
the people, are banks? There is i,
sentiment abroad in the land, fostered
by q certain class who wish to make
capital for themselves out of the re.
suits of such sentiment. that the bank
is 81 leech upon society. that it is OF
no use i'll the body polite except to
take advantage of the poor man S
necessity and that it should be legis-
lated into oblivion.
Among Intelligent people this iden
in regard to the banking fraternity is
looked upon with disfavor as it is
known that no country has yet be-
come great in either military or COM
mercial sense without a stable currency
founded upon a reliable system OF
banking.
1t is my firm belief that the prosper
ity of this country will not be placed
upon a firm foundation until the
money question is settled and it will
not be settled until it is taken out OF
politics, until it is removed from the
influence OF every ebullition of popu-
lar enthusiasm, raised by men devoid
of those qualities which are necessary
in ~ statesman.
At the present stage in the evolution
of man, known as ''Nineteenth Centu-
ry Civilization,' a bank, be it good
or bad, is primarily essential to the
transaction OF business, banks are the
arteries and veins through which the
life blood OF commerce flows aronnd
the earth and when those mediums OF
circulation are deranged or destroyed
the commercial system is effected in a
corresponding manner. Instead,
therefore, OF hamperiny the banks in
any way whatever, the government
should recognize their prime import
ance and SO legislate that the risks
which are encountered in the banking
business should be reduced to a mini
mum, and as the risks endured and
the interest charged have a direct
ratio, the benefit accruing to the bank
er by any act OF congress would event
ually conduce also to the benefit Of the
borrower.
The next proposition to be consider
ed is that brought forward by MIR.
Bartlett, viz: 'sThe government guar
antee of deposits" in all banks; pro-
tected by a fund levied by tax upon
all banks in proportion to their de-
posits. While using all Difference to
Mr.. Bartlett's experience and ability,
[ believe that the scheme while pos
sible. is neither equitable nor consti-
tutional. Surely, one banker, honest
and reliable in his business should
not be taxed to recompence those who
may be deprived of their earnings by
the defalcationss or nismanage1nent
of another. If A invests all his
wealth in a lottery and draws a blank,
the government has no right to tax b.
for the support of A. and his family,
it would be far better to suppress the
lottery. We will suppose for the sake
of argument that two firms, A. L.
Wright & Co., and Sharp &. Skinnem
open banks, the former do a straight
business while the latter firm goes
under, now the question arises, who
pays to the depositors the sum lost by
the failure of Sharp g. Skinnem. Al
the first glance it would appear that il
was taken from the bankers but sucl
is not the case. If any profits are de-
Quoted from the bankers business by
a government tax, the banker will re-
imburse himself from those with whom
he does business and while the loss
will be less severe upon those who
have deposited funds in a bank wbicl
has become insolvent, the producing
classes will have to stand the loss in
| the end.
Then again, it would be impossible
for the government to arrive at just
knowledge of the rate at which the
banks should be taxed until the ex-
pertinent had been tried for some
years, as the amount of deposits
would vary and the number of annual
bank failures would depend on unfore-
seen circumstances; if the tax was too
light; in the case of a failure, some
depositor would suffer and if it was
too heavy, the banker would be de-
prived of capital which should be
earning interest and this now brings
us to the question of constitutionality
The supreme court of the United
States has decided that bill which
passed both branches of our national
legislature and received the signature