Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-09
OK Tnr RIGHT 4

A dispatch TO the Morning Journa
q Few days ago told az that president
a. D. siiekney. Of The Chicago Greal
Western Railway company, had stated
publicly that he was IN favor Of a
national bank In which the govern
ment shall deposit lts treasury funds.
lie said:
The official reports Of the United
States treasury shows that on last
Thursday. october 81. there was
locked up In the sub-treasurles idle
and useless. the enormous sum Of
s%217i70.05a Of actual cash. while all
the banks in an the reserve cities Of
the United states had suspended cash
payments and the movements Of the
crops had stopped Nnnd lnborers were
compelled TO accept check for wages
inAtead 81 cash. All for want Of cur
rency. which want Of currency the
New York banks are trying to relieve
by Importing about s3%0.O00.000 OF
gold. or about o%ne-quarter Of the
amount held IN the treasury idle ana
useless.
can any system Of government
banking be conceived which would
produce more absurd results?
Let as have a national bank which
il mol only good enough for the peo-
pie 10 deposit their money In, but Is
also good enough for the government
to deposit its money in" Il
And noN that we have got the pan
dora's box Of government ownership
and government control wide open, let
Us keep stirring up the contents TN
We bring the banking question to The
top.
We reproduced Ia these columns
yesterday q very solid and convincing
article from the Kansas city Journal
IN which, u was made perfectly plain
70 every reader that what alls the
country a. the present time is not a
lack Of currency. but a lack Of con-
ndence-and dat tells the whole story
Ia one line.
The great foundations Of the coun-
try are solid az ~rock-sound currency.
good crops, favorable foreign com
merce. industrial ana transportation
industries pront9ble. domestic trade
active and the great mass of the peo-
pie in all parts Of the country pros
porous The "plncif' was solely due
10 the discovery Of Improper manage
ment ia certain financial Institutions.
this discovery creating distrust and at
y time when, owing To "a protracted
period 81 prosperity, credits were eN
banded Co such an extent that the
boarding Of money-the basis OF
credits-created a dearth OF currency
and neccssltatcd contraction. This
embarrassment to the banks.
and when depositors saw that the
banks were embarrassed the naturAI
instinct OF self-preseryation prompted
Ihem 10 draw out their money ana
hide it away where they thought a.
would be safe-and that always means
a financial crisis. because b creates the
very condition of things that ought To
be avoided.
What we must have in the banks
or behind The banks Is a feeling OF abb
confidence on the part OF the
people. that no matter what happens
In Wall street their money ON de-
posit in the banks is absolutely safe
And THAI brings as face 90 face with
ihe question. how can such % feeling
III confidence he established la the
OF the people,
FIfy years ago. which g bot O brief
m the lfe of "a nation. every
state in the umon had a banking sys
Of to- own ana as "a rule. any
three or four men anywher who'll
raise money enough among thcm +,
10 pay Tor the printing ~ ana armfuui
NJ bank notes. could start "a bank az
any crossroads In The country. und .
shove their notes out upon the people ,
- the extent 0f thousands or hun ,
of thousands. putting the pro- 0
.eeds safely into substantial property. e.
in the names ~ their wives 1
then f a financial FURRY like that @
= a few week ago should come on. "a
hey put up she shutters and the bank d
vas suspended Tho bills were scat =
cred % ver corner of The country.
md the holders were the iosers-and q
deposiiors Jared just as thc de- ID
'ositors in "a broken bank fare now ri
.days 4,
But when the United stafe govern %
nenf took over the banking business VI
be law was m framed that thc cote.
= aH banks had to De secured by d
government bonds anG hence ns mat o.
~ Whai happens to the bank now ths o.
a' holder l. u-nconccrned hecaus a
.e snnus hat the note ~ a broken n
ana nili D. taken care ~ and r. q
leemed by rucie SAM just thc rane O.
4 though b hank which issued h a