The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1897-02-18

make market ON wh1ob they ooulu us
pose ,f the property they had picked mp
at vreckage prices at large profit to
then selves.
Truly because the banks could so de-
press and raise prices as to fleece producers
of the profits OF their industry is no
reason that they would do so. Yet, it
Is a fair inference that those behind the
banks would YIELD to the temptation Of
large profits held out to them by the use
Of the banks as engines Of speculation
As Mr. Eckels says, banks conducted on
practical banking principles, instead Of a
speculative enterprises, could satisfy the
currency needs Of business so as TO
facilitate the dis'ribution Of products
and secure to all producers the enjoyment
of the fruits of their toll. But, because
the banks could control their issues so
as to promote Legitimate industry is no
reason why we should entrust them with
the issue Of our paper currency, because
the sc controlling the banks could expand
and contract their issues In response to
the demands Of trade is no reason why
we should tempt them to regulate the
issue Of bank curreny in response to the
demands Tor speculative purposes and
when the use Cf the banks as speculative
engines, and the misuse of the issue Of
currency, holds out the prospect of larger
gain than the use of the banks, and the
issue of their currency, so as to promote
the welfare of those who make uss Of
the banks in the distribution of wealth,
we certainly cannot afford to place the
issue and Jntrol over our currency in
their hands.
We incorporate BANKS to serve, not TO
prey upon the community, we Incorporate
them so as to facilitate and cheapen the
distribution Of wealth, not to lay tax on
such distribution and ss it is to this end
that the government Incorporates the
banks, 1t should see they are operated to
this end. We do not want to strengthen
the hands Of the banks so that they may
fearlessly impose tax on distribution.
Therefore we do not want to put the
issue and control Of our currency in the
hands Of the banks. What we want is
a restriction of the powers already pos
sessed by the banks over our paper cur
renoy. We want to take from them the
right TO Issue bank currency, we DO net
want to extend this tight; we want to
make 1t harder for the banks to put tax
on distribution by the misuse Of their
powers, not easier.
But Mr.. EckeIs is prone to close his
eyes to the dangers to the com munity
frcm the misuse by the banks of the
powers he would entrust to them. He
builds on the principle that those behind
the banks cannot be dGviated from the
path of duty by the promise of large gain
and he ensconces himself in this belief by
the assumption that as the banks would
reap large profits by the use of currency |
In response TO the legitimate demands |
Df trade, they would have no temptation
to pursue a course other than that which
would best promote the interests Of the
whole community. Indeed, he asserts,
that as banks alone are in position to feel
the pulse of trade and measure the needs
Of the community for money, they, and
they alone, are in position to supply !
those needs so rs to sCcu:e the best re-
suits for all concerned. Mole money, he
tells us, Ia needed at one time than
another, and tf this need the banks at
above are in position to Judge. Therefore,
Jl secure satbla currency there must
be expansion Of the currency ct some
seasons tf the year, and contraction at
others, and as the banks ara elcne in
position to tell when expansion is needed
md when contraction, the oort troll over
Jhe currency must be placed In their
hands. And to secure the best results,
,e adds, the banks must not be hampered
oy any requirement such as the deposit of
bonds to secure their notes but must be
eft free to determine the amount Of
money to keep in circulation. Left thus
Mr.. Eckels argues that
he banks would give us an elastic cur
-oncy that would expand and contract
a RESPONSE to the demands of trade, for
hey would, he feels sure keep all the
money a circulation that htey could at a
9rofir.
Now 1t Is very true the banks would
put out their issues Of notes so as to de-
rive the greatest profit therefrom, but it
Toes not follow at all that they would
make these issues in response to the
reeds of industry. Indeed, it Is quite
,ertain that they would not do so for
hey oould derive greatest profits by an
expansion and contraction Of
5heit issues so as to promote speculative
,nds. BY using the products of labor as
ootballs Of speculation, that is, by CON
rscting their issues Of currency and de-
PRESSING prices when they sought TO
queeze from debtors their property, and
~ expanding their issues and rsi,iug
,rioes when, having secured the property
# their ruined debtors, they sought TO
dispose Of it at an advance they could,
at least, reap greater profits
han they could by the issue Of their cur
ENJOY in response to the demands of in
'ustry. In brief, 1t is not by the loaning
Tut of their issues and the gathering Of