Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-06-30

banks to pay them sum more thar
four-fold greater than all the money IL
circulation In the state?
The profits made by the banks Gomez
through the low rate OF interest, or nc
interest at nil, allowed the depositor
while the bank handles tho same mon
ey so many times during the year that
so long as times are good and the peo-
pie have confidence, F" banking is about
the most profitable business people
can engage In. The banker does NOT
use any OF his own money In loaning,
for tho compensation he receives for
his labor enables him TO amass for.
tune in few years providing no panic
overtakes him; but even calamity does
come his private fortune is generally
made secure to him by methods no un-
derstands, while the loss fall upon the
depositor. And yet profitable Us the
business Is 1t has Its drawbacks and
discouraRements. II the banker Is
honest land many OF them are), he must
always be uneasy. The system works
smoothly only when the public has
confidence In the banks stability, and
where deposits continue to flow In.
Banking being very profitable, the
banker takes great risks Things go
on gloriously when times are good; the
banker makes hay while the sun shine,
for he more than fanny living person
knows the precariousness Of his bust
ness. He' knows that everything de-
ponds on confidence" and continued
deposits. When either one ceuses then
calamity comes. Then the pendulum
begins to swing backward; money be-
comes congested in the banks; hence is
withdrawn from general circulationi
available security becomes lessened;
business lags, hard times set In, new
depositors begin to fall off, and old
depositors want their money and COM
mence withdrawing 1t from the bank;
then some hint gains currency that the
bank cannot realize on its securities"
that 1t Is embarrassed; "run" Is start
ed, and the bubble bursts; mortgages
are foreclosed and the property of the
borrower 10 sacrificed, and he is beg
CARED; the bank closes its doors, the
depositors are ruined and the banker
himself is often wrecked in morals II
not in fortune. The entire banking
system, both national, commercial and
savings Is unsound, is defective to the
core. 1t is untitled for this age; 1t
should be replaced by better system.
In this article l have dealt with say
ings banks alone. The great mountain
of debt the people owe the nationa-
and commercial banks In California Is
not In this $l02, 900, 900 they owe the
savings banks. The debts Of the peo-
pie to those institutions aggregate one
millions more, which, added
to the debt during the savings banks,
show that deplorable condition the
people of California are in. Taking
the whole United States into the &C.
count, the showing is still worse for
the banks as well as for the people.
Leaving all savings state and individ-
ual banks out OF the calculation, we
find that the 1000 national banks OF
the Union on July of last year owed
their depositors one billion, eight hue
dred and thirty millions, or about Ave
times more than all the money they
had on hand, or sum larger than all
the money in the United States. II is
estimated that the other banks were
indebted to their depositors in an
equal amount
" the present monetary system is all
owed TO go on and on, how many years
will 1t be till the banks will be In posi-
lion to take for interest every dollar
hat tho farmer and other industrial
classes can earn, and when so inclined,
'oreclose their mortgages and come
INTO possession Of all the land worth
,wning, and make future generations
% become tenants and serfs to land
ID aristocracy, and accomplish 1t with
tut investing dollar Of their own
money? Nothing can prevent such
disastrous results unless 1t be the fire.
luent periodical bursting Of the in