Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-04-30
GOVERNMENT BANKS.
A MEDIUM FOR CIRCULATING
MONEY.
The Parties Who Clamor Most for Gold
Are Those Who Advocate . Credit
System - Lack of Money Causes
Panlcs.

man: That the money shall be issued
by the government without the inter-
vention of banks of issue is the de-
mand of the Chicago platform, and the
Peoples party st. Louis platform. And
that there shall be a sufficient volume
OF money put into circulation to do the
business of the country as nearly on
cash basis as possible. This is about
as far as those and former platforms
Of the Peoples party have gone.
How that right quantity of money
Is to be measured. put into circulation
and kept there has not been considered
other than by an individual here and
there. 1t is so self-evident that there
is not gold and silver sufficient to an
swer as money to transact the vast
business of any civilized country that
no one has even raised the question.
The parties who clamor most for gold
are those who propose to make the
least use of the yellow metal. They
advocate monetary system that Is
almost entirely Of credit. They con-
stantly insist that money Is less need
ed than ever before, that system OF
checks and credit has superseded the
necessity of large volume OF money.
While the gold standard and credit-in-
place-of-money advocates are busy
filling the ears Of the public with their
pernicious sophistry, their opponents
stand still, as it were, and wage the
battle for the reconciliation Of silver
and government issue Of all the paper
money, without attempting to demon
strate to the people how they propose
to conduct business without the Inter
vention of banks Of ISSUE" The banks
Issue but a mere bagatelle now, mat
ter of a couple of hundred millions,
and yet they manage to be as great
disturbing element as when the state
banks were issuing currency ad libitum.
A system of postal savings banks is
advocated, but the popular idea OF
savings bank is a bank to receive
small deposits of surplus money OF the
working people, the wage-earners, and
pay the depositors little interest on
them. Business people know that kind
of bank would never supply the de-
mands of business for bank facilities.
and consequently the postal savings
bank fails to arrest public attention.
The modern bank Of deposit, loan
and discount is the engine OF bust
ness, and the people will submit to all
of its exactions, robbery and cyclonic
distur Dances in trade, rather than at
tempt to do without it. And when the
platforms resolve against the interven-
lions and issues of banks their declara-
tions have but little influence on the
public.
II the gold trust credit financial sys-
tenn which is now in full swing, and
has been so long that the people have
come to believe it is an absolute neces-
sity and nothing can be devised to take
it's place, is not met by the friends and
advocates of purely government
banking system, the usurers, having
possession, which is claimed to be nine
points of an advantage out of ten,
will be able to hold their ground.
The business class of the people,
those who are compelled to use great
deal of borrowed money in transact
ing business, should be shown the great
gain to them that would result in the
government handling the money of the
country through system of public or
government banks.
The first gain to this class would be
the saving of immense sums of inter-
est that now go to swell the cost OF
their business which would be the diff
ference between what they have to pay
and the bare cost to the government
for clerk hire and the necessary cost of
distribution which is done by banks.
This would be clear gain to every
large business establishment of many
thousands of dollars annually. An
other gain would be the safety of de-
posits. No depositor would ever lose
his money if deposited in a government
bank. No panics to business could oc-
cur. which would be SO tremendous a
gain to the people by perpetual reign
of uninterrupted business as can scarce
ly be realized by community that
has been visited every few years by
blighting financial panics. 1t is always
the lack of money that causes panics.
The banks have loaned their depositors'
money till they dare not stretch their
credits any further. The business that
has been set to run ON certain plain
of credits, fails all at once to be sup
piled by the banks, and has to sud-
denly contract or altogether close I'D.
Those having business transactions
with the unfortunate firm are injured.
The banks knowing how ticklish a
foundation they rest upon begin to re-
fuse loans, and depositors discovering
very suddenly they want their money,
commence drawing from the banks,
and the panic spreads. Such business
crashes could not occur If the money
of the country was handled by govern
ment banks The quantity of money
demanded by the volume Of legitimate
business would always be determined
to a dollar AS long as the borrowers
furnished the required security for the
return Of the loans or renewal at ma