The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-10-01
ANOTHER FINANCIAL SCHEME,

ATLANTA, Ga, Sept. 30-Thomas NJ
Norwood eX- Cuited States senator from
Georgia, by Invitation of the Legislature to
address them on the Alliance sub-treaSury
plan, spoke here tonight on the general
question Of the finances and currency OF
the United States He advanced plan
for banking that Is new. He contends that
the accelerated accumulation of capital IN
q few eastern states and in the hands OF a
few nersous 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.
His plan is. in brief, for congress to
direct the secretary OF the treasury TO pre-
mare a sufficient number OF legal tender
notes of convenient denominations, which,
added to TIE existing currency, VIII give
$50. $40 or $50 per capita These notes are
TO he receivable for all debts and dues,
except duties on imports They are TO be
redeemed by the United States govern
menb on presentation at the treasury or
at sub-treasurieS established at CONVENIENT
cities The treasurer shall hold at least
% per cent of the issue III coin--gold and
silVer-to redeem the notes, that. being
enough. and as much as the banks now
bold for redemption purposes. The per-
centage of coin, however, can be regu-
lated bv experience He proposes TO read
lust and medSutdDlY buS SAiS0Ast-
lion of the currency III this way:
Each state on demand shall receive legal
tenders to An amount which, added to its
existing circulation will make the amount
per eapita decided on by congress, The
banking capital in each state is TO be the
standard for aScertalnIng Its Circulation
| unless a better way can be devised rms
ratable amount Of circulation he proposes
shall be used by each state according as
10. l., Of ba Sf shall HRfePnlnp-
| that is. it NAV be used in banking or be let
! by the state, acting through bureau OF
| finance to individuals on such SeurltleS as
n prudenJ bank now takes for loans
! His plan is for each state TO hold
/ a percentage of this currency tc
meet squeezes and scoops by Wall street
! foster banking with part and lend the
remainder to individuals aud corporations.
/ Zach state shall first tx by law reason
able rate of interest-not above per cent
and by law name the securities on which
! the bureau of finance shall lend the pei
centaue value TO be lent and the time
Land shall be one of the securities and
! each state shall lend on It's own products
/ for instance. wheat and corr being the
chief products of Kansas and Iowa, they
shonld lend only on those products. Thus
all the natural resources Of the state vii
! be developed and its wealth Increased, TO
the benefit of every citizen. =
| AIR. Norwood took Georgia and Kansas
/ TO illustrate what can be done under the
financial system he proposes. In regard
10 Kansas. he said that Kansas coulC
lend to her citizens At D, or per cent.
and that they could lift the present mort
/ gage debt of S2}5, 000. 900, due mainly TO TIT
east. and at the same time put In trus
money enough in the state treasury TO re
lieve them from state taxation he con
tends that as all money that can De Dor
rowed Is in the eastern states 1t Is practl
| ca1ly useless to the south and west. l nde
the system he advocates the money an'
security are in the same stats-are neigh
bors-and will exchange and the intereS
will 90 to the benefit of both lender an'
borrower and all tue people In the state
! whereas now the interest paid, as rule
goes east.
He contends that the present banking
system is q monopoly, because IL Is baSe'
on but one class of Sovernmen
bonds: second, that IL Is monarchlcal, be
inc fashioned on the plan OF the Bank o
England during the first century OF its eX
isleuce, and, third, that our banking s1s
tenn is not BASED on money or coin bat OF
naner credit. The whole system rests o.
the governments credit; whereas, his pre-
posed sestem would rest on coin IN th
treasury sufficient to meet all the de
mands of foreign commerce and domestl'
trade. 80
Mr.. Norwood's substitute for the All
ance sub-treaSury plan avoids federal aC
ton. Zach state lends 70 the farmers o
land and on It's own especial products a
low interest. Thus, he says, be estao
fishes an equality for all and shows favor
/. itism to none lie contends that his pIa
obviAtes every objection hitherto made I
the Alliance sub-treasury plan and gave
the farmers sure relief, az the allotmea
OF currency he proposes not only equalizs
il. but If lent BY the states as states, II
volume of currency thus distributed WI
remain permanent IN each state, becaus
the state being the lender and the pTii
cipa. being lent 10 its citizens 1t must u
turn TO tue state with interest as the prIL
[ cinai falls due