The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-09-15

The demand for a government saw
lngs bank system has reached propor-
tions that will make it one of the first
and most important issues of the conn
ing session Of congress-
Inc movement is gathering new
strength every day and the dailv presa
OF the entire country is joining in the
| demand
mat this movement has had it's origin
as party measure inside the ranks Of
Popul1sm will probably not be disputed
but that the movement has outgrown
the limits OF any one party is now GER
| tain.
mere are, however many points in
connection with this most important
issue which should not be lost sight of
and the agitation of which must come
through others than the millions who
nave SO recently come into the ranks of
those who are insisting on the postal
savings banks.
On those who have thoroughly studied
the questions involved, yet are free from
the selfish motives which inspire
certain business enterprises. must de-
volve the duty of settling this question,
If 1t is settled right
The deposits In banks form the basis
TOT large volume of business which.
If drawn from the ordinary channels OF
trade, would seriously unsettle and dis
turb the business world
| To many it seems an unreasonable
proposition that bank deposits are far
In excess of the total circulation of
! money In the country, yet such is the
case.
The facts are that money is deposited
and then loaned out, then paid to other
parties and again deposited, the process
being repeated over and over until the
figures shown by deposits in banks and
a report OF loans and discounts" bear
but little relation to the actual money
In circulation but, rather indicate the
extent of confidence in the banks and
the Willingness Of the banks to extend
favors in the way Of loans.
This well known fact that the money
OF depositors is the real basis of the
banking enterprises of the country and
the very natural suggestion that a gov
ernment savings institution would hold
all deposits out of circulation have
called Gut frequent objections to the
proposition, and we'll it might were no
means proposed to solve this obstruc-
ton.
We have read a number of proposed
measures and copies Of bills that have
been presented and of others that will
be offered In the coming session of con-
gress and have also noted the tone of
various editorials and interviews ON the
subject, and we find unanimity of
sentiment among the bankers and edi-
tors of old party papers that provision
must be made for the government to
place the money where it will again 20
into circulation, and 1t is always pro-
posed that this be through the banks.
AS the matter now stands the banks
and their whole power are being exerted
to secure a postal savings bank law,
and the general agitation is largely due
to the fact that they expect to be able
to fully dictate its provisions
Now that the question is an issue, and
with the well understood fact that the
| hoe hno1, cbo1 <~>
Populist agitation, every exertion should
be used to see that the question is solved
correctly and a law passed that is an i'm
| provement over laws existing in other
nations of the world where the money
power has dictated the terms.
There is no reason why methods
which obtain in a monarchical govern
ment should be patterned after II there
be better methods which might be
adopted
There can certainly be no reason why
the government should loan the money
accumulated by this system to corpora
tions rather than to individuals on real
estate security
No other security is considered super
ior to real estate unless 1T be govern
ment bonds.
There are questions raised as to the
advisability Of investing in state or
municipal bonds and there is certainly
a question about many banking corpo-
rations being sound
The point is we'll understood that for
the government to accept deposits and
make no provision for distribution by
some system of loans would lead to q
congestion of the money now in circu-
though the money was locked up in q
| Continued ON page B.