Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-18
whatever has come to counterbalance thu
loss and havoc.
Interest-Bearing Deposits.

Why should not the government do just
what you are doing; deposit its money with
national banks and get two per cent on its
daily balances?
On September 4, 1906 the national banks
had on deposit with national repositories
over $3.50. O00, 600 or seven times much as
the government had; and were undoubtedly
getting per cent interest upon 1t. The
state banks and bankers had on deposit
with the national banks more than 1891 Co.,
COO, and were undoubtedly getting 2 per
cent interest upon it. The trust companies
and savings banks had on deposit with the
national banks upward of 346,O00,000, and
were undoubtedly getting their per cent
situations of the country had on deposit
with our national banks more than $780,,
600, 600, more than ten times as much as
the government had; and yet the govern
ment by its practice would have us believe
that although 1t has the power Of supervis-
ing and knowing all about the mana cement
of every national bank in the country. it
cannot safely do what probably every insti-
tuition in the country is doing without any
special information at all.
Let the government deposit Its receipts
from day to day precisely our municip
alities and great business interests do. If
it had pursued this policy from 1879 down
to the present time and received, as it had
the right to do, per cent interest upon Its
balances it would have received $50, 600, 600
in interest, and not have lost a single dol
lar.
A bill has been favorably reported by the
banking and currency committee and is
now pending before the House of Represen-
tatives providing for the daily current de-
post of all public moneys 1t will depend
government shall do it's business as the
bankers Of the twentieth century do theirs.
or whether it shall continue to do 1t as
Gen. Jackson, inspired by passion, in hts
supreme ignorance began to do 1t nearly
century ago. What will you do? Help?
Answer, yes or not
When the Crops Move.
During the present crop-moving period
there will be taken from the bank vaults Of
the country approximately $200,0O0.0o0 Of
United States notes. gold certificates. silver
certificates and other forms of lawful or re-
serve money, and sent into those parts Of
the country where checks are not used for
the purposes to which this money will be
put.
For the sake of being definite and COM
pretending fully the effect Of this move
ment of reserve money from the banks to
the country let us assume that when the
movement began the banks had loans out
standing up to the limit provided by law.
What effect would this movement have upon
the credits of the country
The actuary Of the United States treasury
prepared for me q table showing that the
credits which would grow out of deposits
of $500, 600, made, respectively in a central
in a country bank, would reach an aggre-
gate Of 81 ,906. 600 That is, the credit stand
ing upon 100000. deposited as stated, would
be six and one-third times that amount
While the total credits of the reserve city
banks would be exactly 81 coo, 600, or five
times the 100000 deposited with them.
1t will be reasonable, therefore, to as
sumo that If $500, Co., GOO of money in actual
use reserves is taken out Of the bank
vaults and scattered over the wheat cot
ton and corn districts to assist in moving
the crops, credits to the extent Of at least
five times $500, 100000 or $1.0OO, 1000, are
disturbed and dispensed.
With the treasury cOncurrently Withdraw
ing $50, OOO, 600 or more from the channels OF
trade, and our credits contracting to an ex-
one wonder that money runs up to 125 per
cent when the straining and breaking con-
traction Is ONT
Need any one wonder, when the flood OF
money returns to the centers, the wheat.
the cotton, the corn, the cattle and the hogs,
the products of about one-half of our entire
population, having been marketed, and
there is no further immediate need Of these
tools Of commerce in the country districts,
that money, so called, but nothing but
credit based upon these reserves, can be had
for / per cent? Need any one wonder that
speculation runs riot, and that we have an
abnormal money condition all the year
around? Now too much; now too little, and
never anything like a natural relation be-
tween capital and business all this because
we do not recognize one simple truth about
credit and put 1t into operation.
Pending Currency Bill.
What is this simple truth? 1t is this: that
there is not the slightest difference in es-
sence between the true bank note and a
bank check.
What we want, and this 10 the crux Of the