The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-04-17

WARRINGTON, April lS.-since the deci.
sion ofthe Commissioner Of Internal Rev.
enue, that the 'new bonds" Of Georgia are
not subject to the ten per cent tax under
the Banking Law, levied upon bills Of
credit and other devices intendedto circu.
late as money, there has been increased
confidence among Georgia Representa-.
tiyes here that the novel scheme OF this
State to make money plenty" will be q
the G~eorgtans now fear Is q clause In the
Constitution Of the United States which
torbtds States issuing money or "bills
Of credit" The only competent tribunal
TO pass upon that Is the Supreme Court
Of the United States, aud the Georgians do
not believe that II will he taken before the
Court, for who will trouble themselves TO
do It? The new money with which the
Geotgians are stutiing their pockets Is not
legal tender, no one Is compelled 10 take Il,
and under these circumstances II IL not
probable that the matter will get before
the Supreme Court. OF Counsel Il Is com.
petent for Congress at any time TO pass 0
law ~forbidding the issuance Of money by
States as unconstitutional, but Georgians
have no fear Of this, ashley claim that Con.
gress Is sufficiently soft money In com.
position not TO trouble themselves when
they see . State making money plenty
within hor domain.
In brief, the history.o OF the novel fnan.
Cial experiment Of Georgia Is this: The
State owes eight millions OF dollars In
bonds, bearing six aud seven per cent. In.
terest. Her credit being good, the skies
are slightly above par, and the seVensc con.
siderably above. These bonds are sub.
iect TO call, and the query among Geor-
gia ~tinanCiers was how 10 fund them at a
lower rate Of interest and get the amount
into circulation among her own people. 1t
was argued that seven or eight millions
thrown out among the people OF one
State would make money plenty. Some
happy genius hit upon the plan oil fund.
Ing the debt into hve.dollar bonds, bearing
four per cent. interest, and putting II into
circulation-these bonds TO be payable In
six years, and each have six coupons
calling for twenty cents annually. Half q
million dollars were issued as an expert.
ment, and the result has been all that the
friends Of the object anticipated. The
amount was rapidly taken, ano the bonds
have gone into general circulation In that
State, seven per cent bonds being called
IN TO make way forthem. In short, 1t is q
funding scheme, the striking feature OF it
being that the debt Is to circulate as
money.
Treasury officials here are a good deal
amused at the operation, and accounts
which reach them OF It's success, but since
the decision Of the Commissioner OF In.
ternal Revenue, that these "bonds" are
not taxable under the banking law, they
see no way to prevent Georgia or any
other State from issuing like currency to
any amount that will float. II a State has
q right TO issue q thousand dollar bond,
she also has a right to issue a five dollar
bond, the law recognizing no distinction
as TO amount, The Georgia "bond" Is, in.
coupons, exactly the size Of a
greenback bill, and printed in about the
same colors. The coupons are upon the
right hand side, six In number, payable
twenty cents) on the first OF January OF
each. year for six years, when the bond
itself Is payable.
Treasury officials are Of the opinion that
the example OF Georgia will be followed
by other Southern States with a view to
decrease their interest burdens and add to
the volume Of currency atloat. Few OF the
other States, however, have the excellent
credit Of Georgia to begin with, and with
out established credit It will be impossible
to make a four per cent obligation float.