THE FARMER AND THE BANKER. 135 



farmer will not take less than $20 per ton for his hay if he can 

 get it, although he knows that his neighbor who buys it can 

 not afford to pay SIO per ton. Perhaps neither ought thus to 

 take advantage of necessity, but both will do so when they get 

 the chance. But in the long run the great capitalist must 

 lend money at low rates just as in the long run the farmers 

 must sell hay at low rates. The price of money and of hay 

 is determined by the profits which can be made from their 

 use, and profits are constantly decreasing. When, instead of 

 dealing directly with government, capitalists lend at low rates 

 to corporations, the loan is a service to society, because it 

 cheapens commodities or service. Those who have borrowed 

 the money, and taken the risk, will, if they can, secure the 

 whole of this benefit to themselves, giving the public no 

 advantage whatever, and even, if possible, increasing the 

 public burden. As a rule they can not do this, the public 

 usually deriving some benefit from the cheap money, no matter 

 who the borrower may be. The public, however, knowing that 

 power will be abused so far as it can be, is always on the 

 watch, and is never satisfied with its share, even when, if it 

 knew all the facts, it would be. There is, therefore, the chronic 

 and increasingly bitter warfare between the public and the 

 "monopolies." This is a grave subject, discussed elsewhere in 

 this volume. It is hardly a question between the farmer and 

 the banker. 



Hitherto banks have been considered as if all of one class, 

 differing only in size and importance. As is well known, 

 however, there are two general classes of banks, known as 

 "commercial" and "savings" banks. Commercial banks 

 receive deposits subject to check at sight, and to assure the 

 ability to always pay on demand they are restricted by law to 

 short-time loans, and required to always keep on hand, in 

 cash, a certain portion of their deposits. Money deposited in 

 savings-banks is not subject to check. The amounts as depos- 

 ited are entered in a depositor's book, and can be withdrawn 

 only upon presentation of the book, after due notice as required 

 by the law of the state and the regulations of the bank, the 

 time varying from thirty days to six months. As a matter of 



