The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-30

practice Of medicine, who did not know
the difference between the effects Of
Quinine and arsenic. he would doubt
lessly soon be held for murder; if when
we board the train for home, a man
should assume 10 handle the throttle,
VINO knew not the power OF steam nor
the use Of the brake, and the train
should go into the ditch, the law would
law its heavy hand upon him, and if
we were fortunate enough to have a
whole arm left, we would not hesitate to
take a pull upon the rope. which the
justly outraged friends of the dead and
MANNED might place about his neck. A
bank is q semi-public institution, some
thing after the order of railroads and
other common carriers. and the people
have a right to demand that their
money deposited therein shall be capa-
bly, handled and honestly accounted for.
I once heard man, grown gray in
this business, say that a banker must
have two requisites. honesty and sagaci-
ty; honesty. TO keep him from robbing
his customers, and sagacity, TO keep
them from robbing him. Whenever these
qualities are found in the organization
and management Of bank, there will
be no failure involving loss to custo-
me-s. There maybe temporary ssuspen-
sions, caused by panics and unwarrsnt-
ed runs, but the assets will be found
sufficient to ultimately pay all cred
itors.
Believing that the statistics offered,
which are obtained from government re-
ports Of the highest credfbility, and
which show that even in time OF ex-
cessive business disasters, the average
loss to depositors. in a year, was only
about one-tinird of per cent, on the to-
tai OF all deposits, substantiates my po-
s.tion that banks furnish a practically
safe place. and the only available place,
1 may add. for the keeping OF the peo-
pies money.
I wish to give few figures. suggesting
in some measure what II means to re-
circulate the money Of those who are
not using il, among those VINO need it
for the successful conduct OF their bus
mess.
Allowing that banks loan an average
OF 90 per cent Of their deposits, then of
the s., 900, 900, 900 on deposit in this coun-
try $4,000. 900 900 has been made avails-
bic by bank loans for investment in bus
mess While some Of this money would
find its way from private lender to bor-
rover without the aid OF banks, IL is a
conservative estimate TO cay that one
half Of IT. or 81. 500, oo0. 900 would lie DOR
niant and Idle in the hiding places be-
fore mentioned. This amount is about
equal to tie total money. gold, silver,
and paper. in circulation in this coun-
Try, outside OF the amount in the Unit
ed States treasury. Hence all the
available circulating medium would be
beyond the reach of trade and COM
merce, IL the banks should suddenly 60
out o: business.
But you ask what about the money
that lies in the safe and vaults OF the
banks? Is it not dead and lost 70 use
fulness.the same as IL slowed away intIe
antiquated sock or private strong box?
answer that this fund which on July
l, 1896. amounted to $4,000 900 in re-
ported banks. by seeming paradox, is
the most active and potent force OF all
the money handled by banks. This
fund is held 10 meet the average daily
calls o, the deposito7s who may require
same at any time. TO cover their own
business engagements.
By means OF checks. bills 81 exchange
and clearing house settlements. 50 elso-
crate and complete has become The in
terchange % business between banks.
whether in the same city o. removed
80 Il
os this reserve fund is ever disturbed.
However. its power - aid and facilitate
business is multiplied - often ;ast l
think the figures may surprise you
The subject OF what may be termed
''oank credit money mas been one %
great interest for some time and It's
growing importance has lead the Unit
ed States treasury department 70 make
extensive investigations along this line
TIE comptroller OF he currency. IN his
report TO congress. December >. 1ssS.
furnishes taese figures. as the result "
statements receiveis from $3.50 banks. !
comprising practically ali the cJn11sr- /
cisl banks in ne United States Taxing |
the grand 1o-al OF the oIrSiness OF iasse I
banks "a the vs,5ie country. he fnds
tlgt tilree-f,iis OF / per cent o. the En- /
tire cash business was done n goa one /
half o. / per cent IN silver. 20 Per
can't in currency AMI q i-e sss- cen: IN !
checks In ofsef words. - ~ pr cent 1
% TIE money se,Elssns MS = re co1s-
t-y were made BY esnk c1e-sS an on , /
a.. I-s PEI cent BY actual ossl- Tne arg2- i
mr1: may % Offered tast n t1e retail 4
trade many transactions are n czs1 ,
which woa,f NJ; appear IN rs SIN
a,a-y e bank siati.tlcs- Le- - s-g-
Ses. Saas these amounts sEe conSasa-