The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-12-23
ABOUT AsoLIsHlNe THE TREASURY.

| } RESIDENT STICKNEY of the Chicago Great
Western railway is satisfied that there is and can
be no financial safety in the United States until
the national treasury Is abolished If Mr. Sticlney
were not so serious IN his declaration might point
to the large number of appropriation bills which have
been introduced IN the present congress evidence
that the Republican majority Is doing its level best
abolish the treasury. At the present rate the com
plant entered by Mr.. Stckney will lose its
force
It has long been Democratic doctrine that the
government should go out of the banking business
This Is evidently what Mr. Stickney means, but he IS
going about 1t IN the wrong way. His declaration IN
favor of abolishing the treasury was made at a ban
auet in Chicago. He speaking to the toast "The
Central Reserve Bank" He would establish central
reserve bank modelled after the lines of the Bank of
England, which would protect the gold reserve from
expectation Otherwise this burden would fall on the
national and state banks of the country.
1t would be necessary for such bank to maintain
reserve fund of 45 per cent of its deposits, and
therefore, it could not become monopoly long as
other banks their funds down to and per cent.
Mr. Stcknev points ont that the Bank of England
does practically banking business outside the city of
London leaving all other territory free to private
porations and individual bankers.
1T Is my conviction" said Mr.. Stckney, "that if
the restrictions of the American banking laws were
repealed and banking made free there would be de-
veloped in the United States banking system sub
stantially on the lines of the Scoch-Engsh system
bank evolved have said would be fit, both in re-
spect to financial responsibilities and in respect to the
character and capacity of its directors and managers
for the enter into the ordinary relation
ship of customer and bank"
Such bank Mr.. Stickney thinks, would be con-
roed by natural laws of trade, rather than by par-
san, ill-considered and compromise legislation. The
speaker didn't dwell much the beauty of central
reserve bank from the standpoint of those who would
own It. With all the government funds locked up in
its vaults, suggested, such bank would be an al
most irresistible power politically, well as in
business way 1t is hardly correct to say that natural
trade laws would control it.
On the other hand, it would be governed almost
entirely by political manpulators, who would have the
entire credit of the government to back them up They
could create good times bad at viii they could make
money rates high low, they pleased; they could
throttle industry for political purposes just as they
could manufacture prosperity for the same reason.
This hardly the Democratic idea of taking the gov
eminent out of the banking business.
Democrats believe the proper way would be to
let the treasury keep right the old stand They
believe further that national bankers should not be
allowed to pay 800 for per cent government bond
and then get loan of 500 Immediately from the gov
erument that bond. Democrats can see no reason
why the national credit should be used to promote r-
yate enterprises Mr. Sticney sees that something is
wrong about financial SYSTEM but the medicine he
proposes cannot. cure the disease.