The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-11-13
THAT "sARsARoUs"
BANKING IDEA

BANKING IDEA
Senator Aldrich SAYS the Ameri-
can banking system is basharous and
he is certainly next To- correct. The
American banking idea is the process
OF honest. hardaeaded, futurity-seeing
men getting order ont Of the chaos Of
the bad legislation of early days.
There agas men now living who re-
member the time when state bank is
sues of paper currency we're worth.
less that gold and silver were car
led IN peculiar and divers places be.
cause the people haa no confidence
IN the banks Of the time and very
little in the paper money issue OF
the Government Our of this deplof
able system the present National
banking system emerged. not so much
by reason OF law. as because honest
iinanciers strove 10 make the credit
OF the country good and to establish
system. conteR 10 take for profits
but modest. conservative interest stie
pend
During the Civil war thefe N.ese
such fluctuations IN the price OF com,
modities that stock speculstions with
attempted corners on grain. cotton
and wGalen materials, that the metro
politan bankers became affiliated with
The more successful manipulators OF
stock exchanges. Oui of that came
the troubles which have pursued our
financial system since 1863 There
have been times of great distress, fol-
lowed by Unprecedented p posperity un-
4 I'll Il requires a close student of good
memory to extemporaneously call off
THOSE different stratas in Americas ii.
financial history
When the speculative field money IS
easy. credits expand and cash money
becomes a drag on a market where
! good eollaterals are pledged for Sc
icnrity. Then. without warning. comes
Ia crash and actual cash assumes a
value tnat no realty property interest
can hope to earn. Through these
( crashes ride only the ultra conserya.
tive and those who happen to be at
ting the fortunate side of the gam,
ing charts European members OF
stock exchanges play with consider.
able bad luck the American stock mar
ket There is no ecOrd of an Euro
pean ever making a fo-tune on an
American stock or grain exchange.
Now and then an Asiatic, caring
naught for advice and weary of life,
makes a spectacular winning. but the
average man not with those who have
the actual securities behind every dol
lars transaction soon finds poverty,
obscurity and distress.
So interviewer is the stock markets
with the banking world that, no mat
fer how hard they strive to prevent
lhei great volume of cash wends It's
way to New York and Chicago where
the local bankers only have nominal
control over ii. although II is theirs
and should be subject TO call. OF
course it is subject to call by law
bur that banker is not 10 be born who
will start call for millions on New
| York when the big brokers' are go
INK TO smash and calling for as much
cash as there is in the known world
to save their stocks from the wreck
But The remedy Is NOT IN the central
bank as proposed By amateur finan-
ciers.
The remedies proposed by quack
doctors who do know something OF
economics aud banking but naught OF
stock gaming can not cure the sore
I Yeas ago a remedy wss suggested
By no less parsonage than Stephen
Allen Douglas, perhaps the greatest
statesman Vermont ever produced
His idea, away back Ia 1859. was to
allow no corporation to issue a dol
lars worth of stock unless full dol
lar IN cash had been paid therefor.
or It's equivalent In actual physical
labor. Is still the only known pana-ca
for the stock gambling iuggle. Then
q bank that handled stocks knew, al
least, the original value of IT'S Sc
ioday Il knows exactly what
some one has told It and no more 50
long as man can by stock by the
lream just that long will stock dea.-
ers be considered gamblers.
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