The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1899-06-21
Legislatc to prevent Financial
I0nnioH

"Monitor Magazine of Helpful
Thoughts" published at Cincinna-
ii, by Mr.. Moritz 10th, a nephew
phew of the Messrs. Joseph and
Marcus Marcus Friedman, of this
city. 1t is full of sound thought
and logic, and is the best article
we have ever read upon the condi.
ton of the finances of this
country:
The Comptroller of the Curren-
cy has lately compiled statement
of the condition of the rational
banks of the country at the close
of business on April 5, 1899. 1t
shows that the total resources of
the banks on that date we're 81, $780,
1873, 100; the loans and discounts
we're $2,4O3 41O,S05; United States
bonds to secure circulation, $685.
731, lao; specie held in reserve,
1894, 1852, 552; and legal tender
notes, $11O,235, 423. Among the
liabilities we're capital stock paid
in SCOT, 262,570; surplus funds,
$246, 169,S93; undivided profits,
1913, 6S7, $3.50; unpaid dividends, ST.
932, 494; individual deposits, ST.
437,223,42O.
These are big figures on the face,
but when closely examined they
show how depIorably poor the peo-
pie of the United States are in act
ual money. After deducting the
undivided profits and unpaid divi-
dends, which the banks are liable
to be called for at any moment, the
banks only have capital includ-
ing surplus funds, $S53,431 ,463, of
which only $11O, 235, 423 is in legal
tenders, and specie consisting of
gold, silver and nickels amounting
to $3G4, 162,552, md on these pitiu.
bic sums they loaned and discount
ed paper to the enormous amount
of 50, 4O3, 41O,895; say two billion,
four hundred and three million,
four hundred and ten thousand,
eight hundred and ninety-hve dol
lars.
All these national banks report
that the individual deposits amount
to S2,437, 223, APO; now deduct from
these individual deposits tho loans
and Overwhelmingly, $4,000
160-and it leaves actual individual
deposits of $33, S13,2 GO, thirty-three
million, eight hundred and thir-
teen thousand, two hundred and
sixty dollars in money.
If the banks had not discounted
the notes, then all tho money that
the municipalities the railroads,
steamship transportation compa-
mics, all tho insurance companies,
all the farmers, manufacturers,
merchants, and all tho professional
men and women throughout the
United States had in the national
banks would only have amounted
to $33,S13,2GO No wonder that
under our present financial system
the masses of the people through
out the land are poor in money.
Under this unfortunate system the
banks are the backbone prop for
the COnuIOIo IS (Le U"iLol
States, and that back bone prop is
very weak, as shown by their own
sworn statements.
Where is the remedy? The rem
edy is, to enact law that anybody
bringing gold and silver to the
Mint of the United States of the
lawful finoness shall r,C I've an or
der from the proper officer on the
Comptroller of the Currency to is
sue to bearer, on the surrender of
the receipt, u. S. Treasury notes
from five dollars and upward for
the gold or silver that he delivered,
and said Treasury notes to be legal
tender for all public and private
dues throughout the United States
and be redeemable either in gold OF
silver at the option of the United
States Government,
Such law would, within a few
years, bring ono thousand million
dollars gold and silver into the
Treasury of the United States, and
the Treasury notes would be in
circulation. Under this financial
system we would have more money
among the people and less notes.
Under our present system the dis.
counted notes are the currency of
the land. During the past two
years the banks have expanded
their discounts from fifteen humid
red million dollars to over twenty
| lOul uuuOlISu IllllllOu (lOlluIS, anu
caused thereby more prosperous
times. The Same bankers can
and will, when it is to their interest
draw in their loans and cause n
fall of prices, and bring financial
ruin to thousands of tho most en-
terprising citizens of the United
States.
1t is tho most solemn duty of
Congress to prevent such calami-
ties that financial panics naturally
create, by enacting laws that will
annually increase the circulating
money from sixty to one hundred
million dollars. Such yearly in
crease will prevent that enormous
issuing of notes that threatens ruin
to the banks and n still greater ruin
to their dopositors Legislate to
have more money in circulation,