West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1903-12-17

Doy noou, ana ncltner hcSttnteS TO ask
questions OF the other which both
would resent FROM an outsider.
'sThe $4,000 which the United States
treasury placed on deposit with your
bank and on which you pay no inter-
est" answered Colonel Monroe. II
should like TO borrow a quarter OF II
from you on the same terms
II would be pleased TO accommodate
you, colonel. but It would hardly be
business" said Judge Sawyer. "You
seem to be very much concerned about
that government deposit In my bank. II
will be treated as are oil other deposits.
borrowers can obtain Il by furnishing
approved securities and by paying the
prevailing rntes OF interest Are there
nny other questions you desire answer
edY"
Lots OF them. judge; lots OF them"
returned Colonel Monroe. "This free
distribution OF the nations wealth by
its treasury department fairly bristles
with interrogation points from my
viewpoint. But do not Imagine that
censure you for accepting $4,000 OF
this free cash. Next to myself, would
sooner see you get IL than any one l
know OF. 1t means, on the face OF IL,
$1,000 year clear profit TO you"
This free distribution OF cash, as you
call 1t. is better thing for the country
than IL Is for the bankers" declared
Judge Sawyer. "rhe revenues OF the
government are so large. that vast
sums OF money are piled up I'm the ma
tional treasury and Withheld from cir
culation. There Is now ut the com
mand of the national government more
than $450000.000 in cash. To hoard
all of this I'm Washington would pre-
cipstate crisis and panic. 1t Is for
this reason, and for no other, that the
treasurer of the United States selects
certain banks as places OF deposit.
These banks deposit government bonds
with the government as security for
the money turned over 10 them. There
Is not the slightest chance that the
government Will lose q dollar OF the
money thus deposited"
For genuine humorist give me a
banker" remarked Colonel Monroe.
None but members OF your craft could
keep straight face while making such
a statement. Here Is the straight Eng
lish OF il: Money commands interest in
every part OF the civilized globe at all
times and in oil circumstances. with
the single exception of when Il hap
pens TO be lodged I'm the treasury OF
the United States. The interest rate
Is roughly fixed by the law OF supply
and demand or by the necessities of the
borrower. The mere fact OF the pos
session of money guarantees fits holder
an income. Money, therefore, is the
best form of property in the world.
What has happened? The people have
been taxed so heavily on the ncccssi-
ties and ordinary comforts of life that
a surplus has piled up in the national
treasury. Every dollar OF II represents
some form OF taxation Every cent of
II is the peoples money. The govern
ment owes billion and n half, on
which II Is paying interest. Can II pay
of part OF this debt2 Bless your
heart, that is against the rules. The
government can go into debt, but Il
must not get out OK II. Here is this
unfortunate government with 500 yO00,-
600 or more OF cash. What shall IL do
with lt7 IL is not permitted to pay its
honest debts. IL has an asset which In
other hands would have an income pro-
duelng value OF from $16.000.0O0 to
s20.o0o.0Oo year.
Wow, mark you." continued Colonel
Monroe. this is one OF the greatest
governments on the face OF the globe.
It r. n most stupendous organization.
IL employs hundreds of thousands Of
men. When but pyRmy compared
with It's present self IT witbstood the
greatest civil war which ever was
waged since history was recorded. In
this time Of distress the banks came to
the rescue. How? BY lending money
20 the government Mt round rate Of
Interest. True, the greenback did its
part, but the men OF money had faith
In the government. as the size OF the
national debt Will show FOR every
dollar thus advanced tie government
bound itself 10 pay interest. But forty
years pass away, and this govern.
ment finds itself with q vast fund Of
money In It's vaults Here is a crisis
indeedl What shall be donef Pay Il
back TO the people who have paid un-
necessary taxes7 Perish the Thought
''It would immediately occur to
business man or even to q ncwsboy
that the logical thing to do with idle
money Is to lend II at the highest pos
slble rate OF interest. In all the history
OF its career the government has been
paying interest. Now II has chance
TO exact interest. II is a straight busi.
ness proposition. What does this great
government dof It deposits these mill
Hons IN national bnnks and does not
exact from them cent Of interest. II