The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-21

, OF the Comptroller Of the Currency, as
now provided by law. and. from the
proceeds Of the assets OF the bank to
First, the ssnount withdrawn from
the guarantee fund 10 pay OF the de-
pcsits.
Second, the remainder to be paid to
tie stockholders Of tie bank.
This plan would absolutely establish
confidence in the banks, and there
would be no more hiding of money,
because the Government would be back
OF the banks and the deposits would be
guaranteed by the funds accumulated
from the interest on Government de-
posits. All of the idle money OF the
Government would he IN circulation
| throughout the entire country and the
Government would take no chance or
run no risk, because:
First. lis own director would be con-
stantly on guard in the bank; and
second, the Government would have
possession or the guarantee fund'-Out
Of which its own deposits would be paid
the same as other deposits.
Would Become ImpregnabIs.
by applying the actual figures. 1t
Will be seen that per cent on Govern
ment daily balances would, In a very
short period Of time, accumulate a fund
which would place such banks IN an
absolutely impregnable position. to say
nothing OF the assets OF the bank, TO
be administered as hereinbefore pro
vided. The Government director In each
bank would take the place of the bank
examiner, and, instead OF an examlna-
ton Of the bank being made every two
or three months. it would be nlaGS
daily.
''If the Government would take this
advance step every State In the Union
would necessarily follow, and all OF the
State and municipal funds OF the State
would be on deposit IN the State banks
and saTeguarded in the same way. Al
this plan should be adopted. there would
be no idle money in the country.
There woald be no necessity for safety
deposit vaults in which 10 conceal cur
rency which should be flowing into
legitimate channels Of trade and COM
merce. and in twelve months time we
would have established banking sys-
TEN which could not be shaken by
paniCs or abnormal conditions such as
we are now having.
such a system would put quietus
upon all wildcat speculation and yet the
banking business would De more pront-
able than eve before There are very
few banks IN this country today not
paying 2, 3. 4. and, IN some Instances,
per cent interest on deposits.
Limited to Per Cent.
AHlOC from the savings bNA'-AA AAAANAA Z
OF such banks. the interest on Govern
n,ent deposits should be limited 10
per cent on daily balance. and any
| greater rate OF interest 10 other de-
positors than Per cent should be alb
solutely prohibited by law.
II believe some such plan as this can
be worked. out, and that II would at
| once relieve our present cOngested con-
dition. We all know that there Is a
very large per cent OF the circulating
medium of this country locked up and
concealed. Restoration of confidence
viii do more to initiate the currency
than anything else. and this plan which
I suggest will restore confidence
Another thing, there Is much COM
plant in the Middle and Western States
that the Government funds are used to
| advance the interests OF Wall Street, IN
the wild and reckless speculations car
ried on there. BY the designation Of
/ Government repositories throughout the
country in cities having a population OF
| 1000 or more, all Of these funds would
lie distributed throughout the country,
so that any one section Of the country
would not receive any advantage over
! another"