Willmar tribune., 1903-01-17
miners, farmers and to the general
public Of all o.her sections.

miners, farmers and to the general
public Of all o,her sections.
This use of these deposits would be
most upwise ii loans we're made to
merchants, manufacturers or corpora
tions doing legitimate business, but
the danger to the country is very great
whenthese deposits are loaned to all
kinds of speculators. An examination
of the statements made to the comp
troller of the currency will frequently
show that two-thirds (2-3) of the loans
time and demand-of the New York
banks are upon stock exchange securi-
ties.
In this way large part of the re-
serve money of the banks outside New
York is used to support men who plum
der the people by getting up and float
ing upon those investors who fol ow
the advice and lead of "great bank
ers" all kinds of overcapitaljzed en-
terprise. All those who have been
Sin the market at any time during
the last twenty five (25) years know
the truth Of this statement. Iu the
last report of the comptroller of the
currency to which have access find
that on September %, 1901, the de-
posits OF banks outside New York with
banks OF that city amounted to $685.
$40 GAO and of the United States treas
ury s35, 754, 924, q total of 1888, ,104 ,574
due the national treasury and banss
outside New York on that day. At
the same time outside banks we're in
debt to New York banks, S52, ,8s3, ,966,
q balance against New York on these
accounts of over s235, 600, 900. At the
same time the liability of New York
banks to outside Of New York corpor-
ations ard individuals was no doubt
more thon $50, ,O0O, 600 additional. At
the same time the total lawful money
held by New York banks was only
s217 ,OOO, ,00O, and the total liability on
account of all kinds of deposits was
81 ,02S, 100000. These figures make
manifest the great danger of the situa-
tion.
Remember, these deposits loaned in
large part upon securities for which
there is no market in times of "down
market like the present are in fact
"trust funds,' because they are large
ly the lawful reserve money of banks
outside NewlYork. When owners of
deposits draw against New York &C.
counts and loans are called upon the
spectators we have seen the secretary
Of the treasury come to the rescue,
but when merchants, manufacturers,
farmers and miners need money the
rescue is not given.
A greater trouble will be met next
autumn, if not sooner, and the Secre-
tary of the Treasury will rot have the
money in hand to meet the crisis, for
the government funds to an amount
of about $3.50, 100000 are already on
deposit with banks-an amount that
precludes large balance of cash in
the Treasury, and therefore we must {,
if possible, find way to meet an evil
that is with US. The way, believe,
is clear-to prevent the misuse of re-
serve moneys and to prevent money
from going into the National Treas
ury, as now, to the great danger of
all bus mess interests. I have long
believed that the American people
must go into banking to save them
selves from spoliasion at hands of pri.
vate and semi-private bankers, and 1
have concluded the time has come to
make public my plan for the "Bank
of the United States,'' plan that is
sound, safe, conservative, workable.