Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-27
THE NATIONS MONEY.


marty insists upon a course which would
make the security of the currency rest
entirely on government credit and make
The volume of the currency issued de-
terminable by law. or at the discretion
of the secretary of the treasury That
View is sustained by small minority
of the bankers and a decided majority
of the political fnancicrs especially
those who have long been connected
with the national government and have
acquired what might be called the CEN
tralizing habit OF thought. This view
also. is in line with the policy OF those
statesmen who In general believe IN eN-
tending the functions of the federal
government in all possible directions
and into the greatest possible detail AZ
the same time it Is favored by many
clear-headed reasons, and it presents, In
theory, at all events, some attractive
features. Thus the advantages OF an
"ins,lrauce plan" guaranteeing deposit
tors i'm banks against loss are declared
by Alexander Revell to be almost IN
calculable.
Replying to objections set up by
bankers. Mr.. Revel sets forth that not
only would there be no more long perl
DDS of business depression in TINS eoun-
try under such Il system, but that the
United states would become the BANK
Ing center OF the world, attracting funds
from all nations, He argues that we
should take another great constructive
step in banking legislation by insurlns
or guaranteeing tunder reasonable Inn
itations) the depositor In national ana
state banks against the loss of his
money by the failure of his bank. The
cost OF this insurance to the banks af-
fected would be nominal. while the
benefits would be incalculable 1t is
reasonable TO believe that such insur-
ance would protect our commerce
against pancs and such hard times as
we have seen in years gone by.
Mr.. Revel maintains that we have
never had continued hard times In
this country excepting after great IL
nancial panics. All of our panics have
been precipitated by loss of confidence
on the part of a portion OF or all the
people. This lack Of confidence was
shared largely by depositors. leading
them to Withdraw their money from
The banks. thereby augmentins the
fearful force of panic and depression
when a business man goes to the
bank TO borrow money he is required TO
nurnish security. When he lends his
money TO the bank as a deposit he re-
ceIves no security but must have con-
fidence in the ability and integrity of
The men to whom he entrusts his money.
So runs the argument for a govern
m.nt of the money put into banks by
dcpositors 1t may be remarked that in
Europe the banking business is cen
tralized to u great extent I'm institutions
like the Bank of England, the Bank of
France. and the Imperial Bank of Ger
many. These great banks are so closely
identified with the government of their
respective countries that they possess
in practical effect II not in law. GOV
eminent guaranty OF their integrity
Their governments aid them in various
ways whenever necessary to protect
commercial interests against stringency
and they. in turn, frequently extend aid
even to private institutions which get
into difficulties as in the case of the
action of the Bank OF England In the
Barring failure. which undoubtedly saved
English commerce at that time from
disastrous pane, ""eet'us D'i'''" M
terests all over the world.
AFTER the pattern Oh 'ne Di'''sh u
European system many Vi our own
statesmen desire 10 ihoul" ou System
OF nauonai currency anu pa"Nu'h' i'i,'
party whlch appears 70 0o"'''" i''"
1ority OF the panN''s ana +" i'l''o'l,S VI
me poi'l'eal p'''"'''''' D'i''' ~ '''''' Wv
volume OF the currency s'ou'' w vs.
lated preo'seiy "s we ou'put oi ny
goods Is regulated ue''""u ~ Wv
product-ahu shou'u W p'','''o'" W. ~
pand and contract 'u'oi''at'e"iS' Aheso
men declare una, 'h''' 9',ou'u ~ Nv
government interference "n"'''e'' eN-
cept sueh as u necessary !" osSu'e
the redemption VI pnP'. "'''rS on ~
inano III so'u, anu '"ey ''o '"s's,
that the securlty 'oF ''''' "'o"'S 9"oul"
but the general assets OF the banks FOR