Chapter XVI Setting Up Lending Agencies

Now that we have killed the bankers' goose that for a thousand years has been laying them golden eggs; increasing in number of eggs as the years passed — just as the domestic hens of the long ago like the birds of the fields, laid only one batch of eggs a year, in the springtime when all life was multiplying; but now continue throughout the year, laying sometimes over 300 eggs a year; so has this bankers' goose that laid golden eggs: from a few eggs a year in the middle ages, she has come to lay billions a year — we must provide for the poor fellows. They have always told us simps that they are lending us the depositors' money, and we have believed them! They never had the nerve to say we are lending our money. A small banker, whose capital was $10,000, said to me: "We have to lend the depositors' money. Our capital is only $10,000; we have loaned $65,000; and our depositors' deposits are $68,000!" The Government will let them lend only their own deposits, and such deposits as other depositors may subrogate to them for lending. These must be kept on the books of the Depositories, and be disbursed by cheque. Since we have executed the death sentence on the word banking, of course, they can't open up banks; so the Congress will give their business a name, and outline the rules of their lending deposit credits (they will not be permitted to lend money-currency, coin or bills.) I suggest that the Congress give them the name of Deposit Lenders, prefixed with any descriptive term they may choose, say "The Austin Deposit Lenders; but always keep it clear before the public that they are lending deposits — their deposits and such deposits as other depositors' may subrogate to them (for interest) to lend. Let the word money go too. Let's emphasize that the lending of money, deposits, is a private right;