Griggs courier. (Cooperstown, Griggs Co., Dak. [N.D.]) 1885-1902, 1897-02-19

of the president and which was intend-
ed to provide revenue by placing a
Tax. upon the income of certain per-
sons, is not in accordance with the
spirit of the constitution and therefore
Is no law. From this, think that an
act to compel! one person to pay the
losses of another with whom he has
had no dealings, would meet with the
same fate.
While Mr.. Bartlett's scheme con-
talns many admirable features provid.
ed they could be carried out, l do not
see how, in certain circumstances that
the government guarantee" could
prevent q run on q bank, when under
our present system, the very treasury
at Washington is open to q ''run'' Mt
any time. The bank failures of '93
and sluce did not cause the panic but
the panic caused the bank failures
and the panic was caused by the de-
fective monetary system with which
this nation is experimenting.
The government as at present con-
stituted could not absolutely guaran-
tee all deposits in all banks without
holding in reserve an amount equal
to the total bank deposits in the Whole
country and this. 1 think. would be
impossible us the total bank deposits
SO far as | can ascertain, is some
thing like s2.440, 100000 in state and
savings banks alone while the daily
deposits in the national banks was
$500. 100000 in 1892, besides private
banks and trust and loan companies.
While recognizing thefact that u small
tax on this vast sum would meet all
ordinary requirements, do not think
that the bankers would comply with
such q law unless compelled to do SO
which think cannot be done.
A system modelled after tilat of the
Bank of England would be the safest
in the end flor this country to adopt
but at present anything like that is
out OF the question. That failing, the
next best which is adapted to our'in-
stitutions should be chosen. The
present system is intrinsically wrong.
A banker taking money on deposit
has no right, morally, to ,lss that
money for his own personal benefit.
Right there is where the whole trouble
arises. Savings banks are operated
for the sole purpose of speculating
with borrowed capital and if managed
badly the depositor looses his money.
This should be prohibited. The gov
ernment should institute a saving
bank department for those who wished
to make long time deposits on which
it should pay to depositors d rate of
interest equal to that paid on it's
bonds, said bonds to be retired with
money deposited in the government
savings bank. With these resources
ut it's command the government would
be prepared for all emergencies that
might arise while at present it is not
so prepared and when it seeks to bor-
row money to tide the affairs of the
nation over q tight place that money
must be procured at a time when ratio
of interest is high.
For commercial banks there should
be strict governmental supervision.
Each bank officer should be required
to give good and sufficient bonds be-
fore engaging in business and while
having perfect liberty to use his own
money as he saw fit, he should not be
allowed to invest monies deposited
with him for safe keeping, without the
consent and authority of a board of
examiners appointed for such pur-
pose by the depositors in each bank
and such bankers should be paid a
certain percentage of all profits ac-
cruing from invested deposits, in re-
turn for their services.
Such q system would enable each
depositor to know just where his
| money was at, whether it was safely
in vault awaiting his order or prop.
erly invested earning interest, and
as all uncertainty would be removed
there would be no ''run" on any bank
and no loss of depositors' funds ex-
cept through theft or their own mis-
management.
B. X. CLIM1E.
Favors A Fair.
HANNAFORD, N. D., Feb. 10, 1897.