Banking System Developed

As people, by industry and economy accumulated more than was required for their personal necessities, and merchants began to penetrate new countries with their caravans, and ships to sail the seas, it was common practice for those who had a surplus of money to lend it to those engaged in trade, in order that commerce might be carried on between different peoples and nations.

The borrower was required to pay a reasonable interest on the money obtained, but excessive usury was strictly forbidden.

It was from this simple beginning that our present system of banking has developed, until it has become the most important business occupation of the world.

This may appear to be an extravagant statement, but it is nevertheless true,

The business of the banker brings him in closer contact with every field of human endeavor than that of any other occupation.

He is the custodian of the hard-earned money of the husbandman, the widow, the fatherless, the doctor, lawyer, merchant, manufacturer, and the man who has no occupation at all, of whom I sometimes think we have too many, for it was written long ago that the idler shall not eat the bread nor wear the apparel of the laborer.

Source: President Anthony W. Ivins
General Conference, April 1932

Topics: Economics

Responsibility of the Banker

As custodian of the savings of the depositor, the banker assumes the responsibility of investing the funds entrusted to him in a manner that will bring to the depositor a reasonable return in interest upon his savings, and at the same time compensate the banker for the responsibility be assumes as the agent of the depositor, which is very great

Source: President Anthony W. Ivins
General Conference, April 1932

Topics: Economics

How The Depression May Be Overcome

Every intelligent person who is familiar with current events, knows that a cloud of financial depression, the like of which has never before been known, hovers over the world, so dark and ominous that the sunshine of hope can scarcely penetrate it.

Like the great World War, it has found its way into the most remote corners of the world.

If the government, the states, the counties and municipalities will exercise rigid economy in the expenditure of public funds; if citizens will loyally support and patronize the industries and business of the nation, state and community in which they reside; if bankers will carefully and wisely protect the money of depositors; if depositors will loyally cooperate with the banks to which the care of their money is entrusted; if families and individuals will live within their income and avoid debt, the clouds of adversity will roll away, and the sun of prosperity and peace will shine again upon a happy and prosperous people.

Source: President Anthony W. Ivins
General Conference, April 1932

Topics: Debt; Economics; Government, Spending

In the Christmas edition of the Deseret News, December 19, 1931, the First Presidency of the Church published their “Christmas Greetings.” May I read some excerpts from these Greetings?

“Notwithstanding the confusion which at the present prevails in this world of ours, we have much to be thankful for, and we can look confidently to brighter days.”

“If the people of the world will turn to God, and acknowledge His Son, our Redeemer; if each citizen of our country will put away selfishness, strife and bitterness; if men who enact our laws will be governed by the necessities of all of the people, and not of a favored few; if every citizen will pledge himself to rigidly observe the laws, and uphold the men who frame and execute them—”

“The sun of prosperity will shine again, and peace and plenty will prevail from the rivers to the ends of the earth.”

“If the extravagant expenditure of money by our government, our states, our counties, and municipalities, and citizens, as it has prevailed during the past few years, is to continue; if heavier burdens of taxation are to be saddled upon the people; if murders, robberies, racketeering, the appointment or election of dishonest men to office, and other violations of the law are to go unpunished—”

Then what will be the consequences? Hear, I pray you, these fateful words of the Greetings:

“Chaos must be our inevitable heritage.”

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Citizenship; Government, Spending

We live in a world of plenty—there is plenty of food, plenty of clothing and shelter or the means of making them; yet there are millions of God’s children who are hungry, ragged, and cold at this very moment. And why? Many reasons can be given, but in the last analysis, they are reducible to one—selfishness. And through his servants, the Lord lays down as one condition for the return of prosperity the elimination of selfishness in our inter-relations.

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Economics; Selfishness

We demand that the federal government reduce expenses and balance the budget. And have you observed that every proposition made in Washington to reduce federal expenses in Utah meets with our violent protest? We wish the government to reduce expenses elsewhere ut to increase them in Utah. Why? Is not selfishness the answer?

And we want the budget balanced. This means the government must raise more money. How? The only way seems to be by some form of increased taxation, but we protest every suggestion to increase our taxes. Apparently we are far, very far, from a willingness to live the “Golden Rule.” We are willing for the other fellow to be taxed, but protest being taxed ourselves.

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Government, Spending; Taxes

Bank Failures

Let me give you another illustration [of selfishness], a delicate one I admit. There have been many bank failures in this intermountain country during the past year. The closing was due in most cases, probably, to a “run on the bank.” Now of course when we think a little about the matter it is clear that no bank can immediately give back to depositors all their money. Some of it is always loaned out on time accounts, and borrowers are not able to pay on demand. Hence if all the depositors make a run on a bank they will inevitably force it to close. Now what causes a run? Selfishness, of course. If the bank is in distress, let the other fellow lose. I want my money and so rush after it, hoping to heat the other fellow to the bank. If in this matter all depositors were to live the Golden Rule there would be few, if any, losers and few, if any, bank closings. This is a self-evident fact.

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Economics; Selfishness

The Eighteenth Amendment

Another illustration [of selfishness]: Certain powerful interests in the United States are carrying on an intensive campaign, designed to nullify or eliminate the 18th amendment to the constitution of the United States. Vast amounts of money, it is said, are behind the active but deceptive propaganda to effect this result. And why do some people want the manufacture and sale of intoxicating liquors again legalized? Once more I assert, selfishness is the dominating motive. Selfishness is at the bottom of all law violation, of depravity, and crime. And if selfishness shall continue as the ruling motive in human affairs, chaos will result. This is the conclusion of the Greetings.

Some people are simple enough to believe that legalizing the manufacture and sale of alcoholic liquors in the United States will bring back prosperity to the country. Are England and Germany prosperous? As well say a man can lift himself by his boot straps. Can a country drink itself into prosperity by imbibing narcotic beverages? Reason stands aghast at such a proposition. And the fact that the governing board of a powerful local organization gives support to such an idea does not rob it of its absurdity. Further, 2.75% beer cannot he made and sold in this country without violation of the 18th amendment, because 2.75% beer is intoxicating, a fact unquestionably established by scientific investigations. (See How to Live p. 366.)

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Selfishness; US Constitution, Amendments

There are other great Americans who enjoyed inspiration in framing the institutions of this country, and in saying this I am not denying the room for inspiration in the formation and guidance of other countries. We pray for their guidance and the guidance of the officials of not only our own nation here in America but the rulers of other nations. I have thought sometimes we have neglected some of those great characters who were instrumental in shaping the foundations of our country and those who have made comments upon them. I know that we are familiar with the work that Franklin, Jefferson and others did in connection with the framing of the Constitution of our country, but we are less familiar with the work that the great Chief Justice John Marshall did. The formation of the Constitution of the United States is really spoken of as the greatest single achievement of the eighteenth century. There was that about it that inspired Daniel Webster to love it, “to have a profound passion for it,” “to cherish it day and night,” “to live on its healthful saving influence,” and “to trust never to cease to heed it until he should go to the grave of his fathers,” “to earnestly desire not to outlive it.”

Source: Elder Charles H. Hart
General Conference, April 1931

Topics: America, History; US Constitution, Inspired

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