The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-01
NORWOOD ON FINANCES.
~ PR 2FOi.S 40 DIVIDE THE
-lrR5ENCY AMONG THE STATS.

Ca1ira BlSi5-EGcQ SJ2C9 Inon to
ra,,a its 5hsrs-A Bureau of Finance
- Govern thu Issue of the Money to
the People.
ATLANTA, GA, Sept 30.-Hou. Thomas
NJ Norwood. .ex-United States senator Of
Georgia. by invitation of the legislature to
address them on the alliance sub treasury
,,lan spoke here tonight on the general
question of the finances and the currency
- The United States. He advanced a plan
IF banking that is new. He contends that
4ba accelerated accumulation of capital in
q few eastern states and in the hands of
tau persons is destructive TO the west and
south, and will finally destroy the eastern
states. 1t produces congestion in one part
If our political body and paralyzes in other
parts.
MIR. NoRwooD'S PLAN.
HIS plan Is 10 brief for congress to direct
the Secretary of the Treasury to prepare a
sufficient number of legal tender notes of
r-nyenient denominations, which, added to
tbe existing currency, will give $50, $40 or
$40 Der capita. These notes are to be re-
caiyable for all debts and dues except duties
on imports They are to be redeemed by
the United States government on presenta-
tion at the treasury or at snb-treasuries
established at convenient cities.
A TREASURY RESERVE.
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 no& hold for redemp-
tion purposes. The percentage of CON.
however, can be regulated by experience.
He rr0p ses TO readius5 and measurablv
eoualize the circulation OF the currency in
this way.
TO BE DIVIDED AMONG THE STATES.
Each state on demand shall receive of
legal tenders 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 circulation,
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 pop
ulation being $40 Georgia would be entitled
TO So, 600 600 But her present banking
capital being $40, 600 900, that sum mus be
deducted, and her quota Of legal tender
would be S50,000,0oO.
TO BE LOANED BY THE STATE.
This ratehle amount of circulation he
proposes shall be used by each state. accord
ing as the people of the state shall deter
IhluC lHde Is, IL may De uSeu III DduhlnS,
or be let by the state acting through bu-
reau Of finaace, to individuals on such Sc
cirities as q prudent bank now takes for
loans. His plan is for each state to hold
percentage If this currency to meet
squeezss and scoops by Wall street
and TO foster banking with part and lend
the remaIner to individuals and corpora
tons; that each state shall first fix by law
a reasonable rate of interest, not above per
cent, aud by law name securities on which
tue bureau of finance shall lend, the per
cantage 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
rrOducts.
COTTON A COLLATERAL.
For instance, Georga's main product
beng cotton. it should be- security or col
lateral under proper and legal conditions;
wheat and corn being the chief products of
Kansas, Iowa, ETC., they should lend on
these products. Mr.. Norwood contends
that when money can draw to itself a
proper per cent. by going into manufact-
ores, mining, ETC., it viii go there, aud thus
ALL the natural resources of the
state will be developed and its wealth
Increased to - the benefit OF
every citizen, whereas banking produces
no wealth, and benefits ouly few who re-
ceve tae dividends.
WHAT COULD BE DONE.
Mr.. Norwood took Georgia and Kansas to
Illustrate what caa be done. Under the fl
n0ncal system be proposes. each state
should set as de not less than 10 per cent.
Of the legal tenders to protect its own citi-
2eGs against financial crisis and sdueezes.
Georgia c'uld increase her banking capital
SlO,0OO,000, ard lend $3O,0J0,000
On long time, interest payable
Sem-annually, TO individuals and corpora
tons who have valuable mines to be devel-
oqed and who desire to build cotton fac
tories, to manufacturers of wooden wares
and iron; in short, to bring into activity
and uss her natural resources, which are i'll
cac1lable and which have lain untouched
Tor twenty-five years only because her peo-
PIE have no money to work with.
TIE STATES INCOME.
With $50 900, 600 thus lent by the state at
. per cent. she would receive annually
Sl,5O000 interest With that she could
establish sinking fund of 100000 per an
rum, and in twenty years pay off her
funded debt. With this in hand she could
oeGin TO reduce state taxation ct once; could
largely increase her school fund, and estab-
tisn bureau Of immigration, and in very
10" Years discontinue taxation except for
county and municipal purposes. The Dor
rowers from the state, who would get value
received IN loan at low interest, would
linus take the place of the taxpayers.
Kansas could lend to her citizens at
OF or per cent. and then
I1ey could lift the present mortgage debt
ot 50,OO0,0OO, due mainly to the east, and
az tne same time put interest money enough
IA the state treasury to relieve them from
state taxation.
BAKING MONEY MORE NEIGHBORLY.
ne contends that as all the money that can
pc borrowed is in tho eastern states it is
PTactlcally useless to the south and west.
Cnaer the system he advocates the money
ana tne security are in the same state, are
neighoors and will exchange. and
Ine interest will go to the bene-
nt OF both the lender and borrower
qua all the people in the state, whereas the
interest now paid, as a rule goes east. The
interest now paid per annum by the whole
people goes to enrich those already too
rlcn for the safety Of the republic and that
interest would be distributed among the
"hoie people. taken by states.
THE BANKING SYSTEM.
de contends that the present banking
system is monopoly, because it is based
% out one class Of securities-eoverpment
oonos; second, that 1t is monnrchical, being
fashioned on the plan of the Bank of Eng
and during the first century OF its exist
eence, and third, that our banking system
not based on money or coin, but on
paper credit. The whole system
~ 1sS on the governments credit, whereas
~ proposed system would rest on coin in
rue treasury sufficient TO meet all the de-
sIa9us OF foreign commerce and domestic
he Al