The Concordia sentinel. (Vidalia, Concordia Parish, La.) 1882-current, 1919-12-20

something that is not right, they fall
back upon the statement that those
charges have constituted large per
centage of the net revenue Of their
banks and that without them they
could not live, because the people
Of their communities will not pay
what it is right and proper that they
should pay for the services rendered
to them by the local bank
The trouble is that these local
bankers have educated their own peo-
pie to believe that they should be priv
LEGGED characters, that they should
get something for nothing, or some
thing at the expense of someh1oV
else, that they should enjoy the sen
vices of local bank aHd somebody
away from that community should
pay the bill. And they now practical
ly say that as the result of that ed
ucation the only way for them to
continue in business is by contlnu-
ing to levy this tribute on others at
a distance and they propose to go
on and do that just so long as they
can make other people stand for 1t.
They object to the plan of the
Federal Reserve Board of having
checks handled throughout the Fed
eral Reserve System, at par, be-
cause it will put stop to their Gus
tom Of having their depositors evade
paying their share of the general
= cost of our great economic banking
and currency system, the benefits OF
/, which they expect to share at the
expense of the rest of the people of
, the country.
i Of course, the idea that these
bankers give their depositors, which
: is that by this scheme these charges
I are shifted on to others and not
paid for by the people OF their own
e community, is a fallacy similar tc
the old idea in connection with the
a tariff, that the foreigner pays the
It tax" You can readily see that thu
n firms who have to pay these charge!
e must in turn charge them on thell
s. books into the cost of doing busi
D. ness. and their cost of doing bust
k ness must be covered in their sell
/, ing prices; which means that thu
w expense must go back in the shap
II of a charge for their goods and mus
N be paid for in that shape by the de
:, positors of the local banks in cues
ton and ultimately by the people o
:. their community. The chief objectio
to having those people pay in tn
" way. for the cost of operating the
own banks, is that by reason OF tn
~ many. hands through which thes
a. charges must be passed to get bac
OF to the people, by reason OF the
ne being passed through the local ban
hy and the postofice organization, al
* the railroads, and the Federal i
81 serve banks, and the city banks, al
by so on back again, the cost to the pc
tx pie must be higher than it would
if they paid a reasonable charge I
a Maid it direct. That would save t
vas expense of all this unnecessary q
at tail work and the labor of the ma
a people who are engaged IN 1t
ng. along the line.
ui- However, the Federal Reser
csc Banks are making steady progr'
,ol- toward the universal adoption
.te the Par Collection plan which g
,;tv back to the old principle of bar
,or by which the products of ore co
-. munity are exchanged for the p
- diets of another. The money
: hanks or other instrumental
~ used to facilitate that exchange,
only incidents to it and do not
oe any way affect the fundamer
10 PRINCIPLES that the value OF W
by goes out equals the value Of W
ON comes back. If, therefore, there
OF any service on the part OF the oa
to of the community rendered to
peo- hanks of another community
t if which it might be considered pro
on that they should make cha
rate there will always be correspond
GODS return service for which a
charge should be made, and
ex- viii cancel the other. By the
mixer collection plan all OF the work
the keeping tab on these indlvi
, A. items and making all the dltfe
49, charges back and for'h with the
r. tries and bookkeeping and sta
'll' cry and postage involved, is all
OK, away with, and properly SO, bee
souiu in the end it all balances.
OF SO Therefore, in principle the
collection plan is not only equi
at IN hut absolutely sound, in that it
'osei, lows the modern practice OF
places mating unnecessary labor. Ultir
in or w whatever may be the cost t.
cradle country as a whole, Of rnainta
them a system of banks to facilitate
'e the change, the cost is and shoui
e us .,aid nv those who enjoy the be