The midland journal. (Rising Sun, Md.) 1885-1947, 1901-08-02
Government Banks j..


Let us examine where such financial
system leads to. What disposition could
the government make of savings bank
deposits, which would soon reach hun
dreds of millions? Depositors would shift
their money from private to postal saw
| ings banks. No man, woman or child
would deposit dollar in any private
bank if a government bank was within
reach to receive deposits.
1t is proposed to pay interest on postal
bank deposits, of course. In order to do
this the government would have to invest
the deposits in national, state, city bonds,
or some safe securities, or use the deposits
as revenue and repeal internal revenue
and other taxes in order to create avenues
through which to disburse postal bank
deposits. AS soon as the deposits were
disbursed, either by purchase of bonds or
as public revenue, the money would go
into circulation and find its way into
commercial banks, thus serving as basis
for bank credit loans and a continuation
of the present system of bank wind loans
and interest gathering that robs honest
industry down to the poverty line Of
existence.
Almost all the writers OIL government
financial system, contemplating the issue
of coin and paper currency exclusively by
the government and prohibiting private
E. ! =, 0;.,f &c
reached. They never seem TO consider
how the money shall be handled and dis
tfibuted after leaving the hands of the
government, or who shall perform such
necessary business. 1t goes without say
ing that this must be done by the instru-
mentality of banks. There is no other
means by which it is possible,
Shall this be performed by the present
) system of incorporated banks or by the
government establishing banks of deposit,
loan and discount? That is the question
which calls for consideration and decision
in determining an independent monetary
system for the United States. The GOV
eminent must establish banks for this
purpose or leave the private bankers mas
tiers of the situation, as at present, and
controllers of the money, business and
property of the country.
Government along has the power to
endow money with the legal tender func-
ton, but it matters little to the bankers
who issues the money if they are left in
control of it after it goes into circulation.
They will continue to draw, as at present,
interest Oil every dollar oftangibie money,
and on ten times as much wind or credit
money.
The postal savings bank and the gov
ernnient deposit, loan and discount bank
1.-The commercial bauk-naturally go to
) gether Such financial system, would
be purely national, independent, Amer
lean financial system. The government
would receive deposits from the people in
its postal savings bank, transfer them to
its commercial banks, and disburse the
money through the channels of trade
without the necessity of providing bonds
in order to secure interest to recoup itself
for the outlay its postal savings bank de
posts made necessary.
| A system of postal savings banks with
out direct outlet through the channels
of trade for such deposits, uecessitates a
financial system founded on debt, which
means perpetuation of interest without
end, the superlative curse of industry, a
needless burden OH the wealth producer
. always has been and always must remain
such as long as oar financial system rests
on debt.
| There have been numerous theories
suggested by modern economists for Gre
ating an independent national financial
system, none of which in our Judgment
| would prove successful. The government
!, rency in circulation on level with the
fluctuations Of trade and curb within safe
bounds speculation, unless it held supreme
control of the subsequent issue and dis
tribution of the circulating medium, by
banks of deposit, loan and discount. Here
. is the regulating point of initiation and
contraction, and no power less than the
sovereign power of government is able to
/. control it. The resources of private banks
] are insufficient to do it, and they are
i'll perpetual fear of panics,
In the effort to secure this power Wall
street bankers are combining into trusts
i'll order to enable them to WELD q colos-
sal capital by which they can promote
and check panics at will and prevent,
when started, from getting away from
them and spreading broadcast financial
ruin. When they secure this power they
will use it relentlessly to build up the for.
tunes Of the great banking institutions,
the bank trust, aud pull down at their
will and pleasure.
The. peoples only protection against
these fastening ills is to remove this dan
gerous power from private hands and
place it in the hands of their government
where it becomes a shield to protect the
people.
The governments regenuSs alone
amount TO five hundred million dollars
annually, and it would be by far the
greatest depositor in its own banks,
which would preVeat the congesting of
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