Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-03-15

The practical result will be TO unlock |
at least .one-half of the large sums now
held as reserves and throw it into cir
culation.
Another per cent of the deposits can |
be applied towards paying the current |
expenses of the government. II the
system should prosper and extend, as
its friends believe il. will, the time may |
soon come when all the ordinary eX- |
penses of the national government may |
be met in this manner, and federal
taxation, direct and indirect, be re
mitted Money thus expended will
quickly return to the banks in the form
of additional deposits
Use in improvements.
Another fraction of the deposits may
be expended in public improvements.
The enterprises now in progress and
in contemplation will absorb vast
amount of money in the next 10 or 20
years. They will contribute an meal
culable amount to the welfare the pros
perity and the happiness of our peu-
pie. Can any one think of a better use
for the immense sums now held by
savings and trust institutions for their
own private benefit? These improve
ments may include public buildings,
rivers and harbors, waterways, irrisa-
ton and drainage, forest extension,
roads-little need to extend the list. If
any money remains, it may be applied
q the payment OF the national debt.
Enough has been said TO indicate
that your Uncie Samuel can find use
for all the money that may be left in
his care.
1t will be objected that this plan
makes no provision for payment OF in
terest to depositors. or repayment of
principal when called for. In the case
of individual or corporate banks, saw
| ings or trust companies, this would be
fatal defect; but when the general
government intervenes. the situation is
radically changed The government
can well afford to pay the interest fer
| the sake of having the use of the mon
| ey. If federal taxation can be dis
pensed with. the people will save mora
| than the amount of the interest. not 10
mention the advantages they will re-
ceive from the use of the improve
ments that will become available as
| fast as the work can be accomplished
The critic will observe also that pro
vision for repayment of deposits does
not enter to any appreciate extent
into the science of banking Statistics
indicate that deposits, both savings and
commercial, are increasing in a geo.
metricai ratio. A little attention to the
figures will satisfy any person whose
mind is at all open TO conviction, that
repayment is utterly impossible All
| the money in the country. if it were
available. would not begin to meet the
obligations of the banks to their de-
pOSitors. The whole system exists only
| by sufferance. The people don't want
| their money, and are, therefore. con-
itent.zs.If by any chance they SHOULD
want It all at once. nobody would get
any, for il is not to be had OF course,
a few depositors are paid every day
Now and then a bank winds up. Some
pay. More do not. But all this is only
a drop in the bucket. Our whole bank
ing system resembles an inverted pyra-
mid-an immense amount of liabilities
resting upon a very narrow base of
ready cash. 1t is safe just as long as
it is let alone.
Same as Now.
If, now, the total deposits were turn
ed over TO the federal government, and
Expended as above, the situation would
continue-payment being impossible as
it is now. But the situation would be
classified, for the existing confidence,
on which the stability rest. would be
Imade permanent. Nothing but the ov-
Ierthrow of the government. by dOmes-
tic instruction or foreign conquest
Icould disturb that confidence. In other
words, the people having entrusted
their money to the government, and
receiving value for it in improved adj
ministration and better civilization
would not want 1T back again, for they
could find no better place to put it,
1t amounts to a voluntary loan to the
government by the people of their sur
plus earnings. This is the ideal OF
| puOliC hVbl, Olit tHdl plONluSS lOI oil
public needs and lays no burden on
the industry of the nation.
From another point of view the
proposition amounts to this-that the
surplus earnings of the people, instead
of being, as they now are, the play
things of spectators used by them foi
their private advantage at the great
risk and loss of the real owners, shall
go into trust fund to be expended fol
the benefit of the entire nation, and il
this benefit every citizen has share
And, inasmuch as surplus earnings car
exist and be accumulated only unde
the protection of a stable form of ;
wise government, it is only simple jus
tice that these accumulations, afte
personal needs, are satisfied, shall b.
devoted to the public welfare.
Even if this be socialistic doctrine
and therefore to be condemned, We
we are beginning TO find out from BIZ