People's Pilot, Volume 5, Number 15, Rensselaer, Jasper County, 3 October 1895 — Banks at Places of Deposit. [ARTICLE]

Banks at Places of Deposit.

Money must not be hoarded and kept idle. To keep money out of circnlation is to iujure the entire community. But all people who get money do not desire to trade or speculate, nor even to become money lenders. They simply desire to save something for the traditional “rainy day.” The bank of deposit stands between this class of people and those who wish to use money, and in this relation it is a very useful institution. But is it safe? We regret to say the facts do not answer in the affirmative. More money is lost through depositing it in banks than through any other one agency. The Financial Review gives us the losses by States sustained by depositors during 1894, as follows:

Alabama J 122,200 Arkansas 70,900 California 622,782 Colorado 49,185 Connecticut 48.684 Delaware 100,000 Florida 2,500 New Hampshire 109.000 New York 9.147.379 North Carolina 8,170 North Dakota 3.000 Ohio 721.778 Oregon....*. 37.000 Pennsylvania 797.736 Georgia 171.051 Idaho 44,700 Illinois 1.813,004 Indiana 376,173 lowa 1.151.700 Kansas .. ", 70.770 Kentucky 76.300 Louisiana 7,000 Maine 35,000 Maryland 177.640 Massachusetts 517,710 Michigan 799,593 Minnesota 738,000 Mississippi 116.000 Missouri 953.318 Montana 57.000 Nebraska 182,335 New Jersey 300,059 Rhode Island 7,000 South Dakota 57,376 Tennessee 4,161.900 Texas 134,547 Vermont 34,771 Virginia 202,000 West Virginia 36,900 Wisconsin 177.699 Washington 132.000 Wyoming 19.000 New Mexico 132.000 Utah 24,470 Indian Territory 75.000 Oklahoma 9,907 Alaska 3,000

The record by years since 1894 is here given and shows the enormous totals of this waste by stealing and dishonesty: 1884 122,154.050 1885.... 3.475,000 1886 3,780,000 1887 4,550,000 1888 2,240.000 1889 8,006,000 1890 8.622.956 1891 19.720.249 1892 8.837,549 1893 19,929,575 1894 25,234,021 In the face of this record there is not much encouragement for people to deposit their savings in banks. Yet they must not hoard money and keep it from circulation. That obstructs business. What is needed is a safer means of deposit. The government takes upon itself to guarantee the payment of the circulating notes of the banks. Is it not just as important that money deposited in banks be secured? It is for the general public that the money is so deposited; is it not the dtoy of the public to see that the deposits are made secure?

We do not hold that the government should go the security of the banks in the matter of their deposits any more than we favor its guaranteeing the circulating notes of the banks. Both tend to build up a privileged class, and is a kind of paternalism we do not favor. But it is within the province of the government to compel the banks to make provision for the security of their deposits before they are permitted to receive them. This would be a good step towards stability in business, because money w’ould be more freely deposited, and it would not be so hastily withdrawn at every suspicion of a panic. An important measure would be the establishment of postal savings banks, which have been recommended by many of our ablest postmaster generals, but which have so far been defeated by the fundholders’ influence. Many banks voluntarily secure their deposits. In view of the above startling figures, we believe such banks would favor a legal provision making all banks do so. It is necessary for the safety of the people as well as for the stability of business..