Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-08
MONEY FOR THE PEOPLE.
NEW BANKING PLAN-Ex-SEN.
ATOR NORWOOD
Suggests a Substitute for the Sub-Treasury
Notes to Be Redeemed
in Coin.

ATLANTA, GA, Sept 30-Thomas NJ. Nor
wood, ex-United States senator of Georgia,
in response to the invitation of the legisla-
ture to address them on the Alliance sub
treasury plan, spoke here tonight on the
general question of the finances and cur
rency of the United States. He advanced a
plan for banking that is new. He contends
that the accelerated accumulation Of CAPT
tai in the few Eastern states and in the
hands of a few persons is destructive to the
West and South and will finally destroy the
Eastern states. 1t produces congestion in
one part of our political body and paralysis
in the other parts.
OUTLINES NEW PLAN.
His plan is, in brief, for congress to di-
rect the secretary of the treasury TO pre-
pare suf1icient number of legal tender
notes of convenient denominations, which,
added to the existing currency, will give
$50 $40 or $50 per capita. These notes are
to be receivable for al debts and dues.
except duties on imports. TEey
are to be redeemed by the United
States government on presentation TO the
treasury or at sub-trcaSurieS established at
convenient cities. The treasurer shall hold
at least 25 per cent. of the issue in coin.
gold and silver, to redeem the notes, that
being enough, and as much as the banks
now hold for redempt on purposes. The
percentage OF coin, however, can be regu-
lated by experience.
HOW THE MONEY WILL BE DISTRIBUTED.
He proposes to readjust and measurably
equaliZe the circulation of currency in this
way: Each state on demand shall receive
of the legal tender an amount which, added
TO its existing circulation, Will make the
amount per capita decided on by congress.
The banking capital in each state is to be
the standard for ascertaining its circula-
ton unless a better can be devised.
To Illustrate: Georgia's population in
round numbers is 100000 The amount
per capita fixed by congress for the whole
population being $40. Georgia would be en-
titled 10 $50 100000 But her present bank
ing capital being $50, 900, 600, that sum must
be deducted, and her quota of legal tender
would be S50,000,000.
TO BE USED AS THE PEOPLE DIRECT
This ratable amount of circulation he pro-
poses shall be used by each state according
as the people of the state shall determine,
that is, 1t may be used in banking or
be let by the state acting through a
bureau of finance to individuals on such
securities as prudent banker now takes
for loans. His plan is that each state
shall hold a percentage of the currency
to meet 'Squeezes and scoops" by Wall
Street and to foster banking with a part
and lend the remainder to individuals and
corporations; that each state shall first fix
by law reasonable rate of interest not
securities on which the bureau of finance
shall lend the percentage of value to be
lent and the time that land shall be one of
the securities, and that each state shall lend
on its own products.
WHAT MIGHT BE DONE.
Mr.. Norwood took Georgia and Kansas to
Illustrate what can be done under the finan-
cial system he proposes Each state should
set aside not less than 10 per cent of legal
tenders to protect its own citizens against
financial crises and squeezes. Georgia
could increase her banking capt.
tai by $10,000.000 and lend $50
100000 on long time, interest payable
semi-annually, to individuals and corpora
lions who have valuable mines to be devel-
oped and who desire to build cotton
factories, to manufacturers of wood
enware and iron, in short to bring
into activity and use her natural re-
sources. With $4,000 600 thus lent by the
state at per cent she would receive annu-
ally Sl,500,0 600 in interest. With that
she could establish sinking fund of $780,
600 per annum, and in twenty years pay off
her funded debt. With this in hand she
could begin to reduce state taxation at once;
could largely increase her school fund and
establish a bureau of immigration, and in 4
few years discontinue taxation, except for
county and municipal purposes.
KEEP THE INTEREST AT HOME.
Inc interest now PAD per annum by the
whole people goes to enrich those already
too rich for the safety of the repub-
lie, and that interest would be
distributed among the whole peo-
pie taken by states. He contends that
the present banking system is monopoly
because it is based on but one class of Sc
curities and government bonds; second,
that it is monarchical, being fashioned on
the plan of the Bank of England during the
first century of its existence: and, third,
that our banking system is not based on
money or coin, but on paper credit
Mr.. Norwood's substitute for the Alliance
sub-treasury plan avoids Federal action.
Each state lends to the farmers on land and
on its own especial products at low inter-
est He contends that his plan obviates
every objection heretofore made to the Al
lance sub-treasury plan and gives the
farmers sure relief.