Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1898-07-21

the fruit OF q defective monetary avs
tenn. As a nation we are practically
bankrupt, though not necessarily
hopelessly 80 If we speedily adopt the
proper system. 1t must be plan
that will subserve the best interests
Of the many instead Of the few.
The query now arises, can there be
no better or safer banking system in
vented than the one now in vogue?
Yes, an lmmeasureably superior one
for the people can be put into opera
ton with little expense, and without
jar to the business of the country.
Here is the outline of a banking sys-
tenn that will bring the relief desired
and save millions from ruin il adopted
soon. 1t is practicable in every state
in the union as we'll as in California
Let slaw be enacted by the legislature
OF every state creatatiDg state say.
lngs and loan bureau, with branch
in every county. Let every county
treasurer be authorized to receive
money on deposit, issuing negotiable
certificates for the same, the holder
of the certificate to be allowed inter-
est at the rate of Of 81 or per cent
per annum, at the maturity of the
certificate on its presentation for
payment. Let the county treasurer
be also authorized to make loans at
say 4 per cent, interest per snnum,
no loans to run longer than ten years,
taking a mortgage on real estate
worth double the amount loaned in
the name of the county and state for
security, the borrower furnishing an
abstract OF title to the satisfaction Of
the county attorney, and paying all
expense of making the loan, in sim
liar manner as the school fund" is
loaned in Iowa and four other statee.
Only in the large cities would there
be extra expense for clerical help to
enable the treasurer 10 conduct the
business. 10 the cities several stations
Of said branch Of the savings and loan
bureau could be established for the
convenience of the people
Soon after this system has gone into
effect, depositors would begin to
gradually withdraw their money from
the banks and deposit it IN the state
savings and loan bureau, for the good
reason that the state would pay them
as much interest as the banks, and
their funds would be in safe place.
Thus would the money be soon sup.
piled from which to make the loans.
Men now in debt to the banks would
borrow from the state at 4 per cent.
pay off the banks, and transfer the
mortgage to the state, making saving
OF from to 6 per cent. in interest.
The money thus received by the bank
from those indebted to it wonId be
passed ever the counter to the depos-
Itors, who would deposit it in the state
bureau, and the county treasurer
would loan it to the borrowers, who
would in turn take it to the bank and
pay off their mortgages, and thus the
endless chain would be set to revolv.
ing and the danger of q panic be
averted. The spool would be un-
wound in like manner in which 1t was
wound up, and a debt to depositors
of four times all the money in the
state could thus be cancelled. And
this is the only way in which it can
be done. Unless some such method
as this is adopted the difficulty will
steadily grow larger; the bubble will
ultimately burst and the periodical
bank suspensions will sweep over the
country, running IT'S hundreds of thou
sands Of depositors as we'll as borrow
ere.
II such simple, inexp ensive and
safe banking system were adopted,
the compromising of interest would
stop; exorbitantly high interest would
soon cease to crush the farmer and
the debtor classes, which now weighs
them down as though they had mill
stones about around their necks; runs
on banks and bank panics and ruin
to thousands by bank suspensions
would cease, for every deposltor would
know that his money was absolutely
safe, for its salty would be guaranteed
by the state. Millions OF dollars now