RECENT AMERICAN CRISIS.

Te Aroha News, Volume XXVII, Issue 43318, 28 April 1908, Page 2

RECENT AMERICAN CRISIS.

As an outcome of the recent American crisis a new form of Bank has been suggested to do nothing but cheque and clearing-house business, requiring but small capital and charging a fractional fee for collecting cheques and making clearings. This would, its advocates consider, enforce stability and protect the working ac*

counts Of depositors. The funds co uld not be used ext opt as needed to cash cheques and balance clearings. It would be much more economical for the depositor, it is said, were he to pay a tax one one-tenth of one per cent, on his clearings, and /have, bis spare money receive adequate interest from the bank of deposit, than it is now when he receives little or no interest and has his funds subject to the fluctuations that develop in a financial crisis. The vast inflation of the trust companies show the extent to which other people's money is used speculatively. Money comes in a flood, it is pointed out. It must have reservoirs, but there is no reason why these reservoirs should not be safe from leakage. If a state can charter a bank it can regulate a bank, just as it has regulated the savings banks, and as it has been trying to regulate the insurance companies. The banking system outlined above its advocates regard as feasible, reasonable, and right in principle.