The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-10-13
THE CURRENCY QUESTION.
Make the Government Furnish a
Market For State Bonds.


suggestions offered now for the solution
of our financial troubles. But Ihave seen
none which, to my mind, meets the emer-
gencies of the present, or anticipates sim
liar troubles which the future may de-
velop.
have a suggestion which l think
worthy of consideration, which will not
only relieve the present financial strin-
gency, but will furnish us flexible cur
rency which will expand and contract &C
cording TO the growth, necessities and
convenience of our progressive republic.
In the first place, a safe currency must
be based on solid and tangible founda-
ton in order to inspire universal conf
dence, In the next place, n country OF
such vast proportions as ours, where the
agricultural and mining districts are
spread out so remotely from the great
centers of finance and population and the
transmission of money is correspondingly
slow, must have a larger circulating me-
dium than a nation limited in territory
and compactly crowded, as Germany,
France or England. My idea of meeting
these requirements is simple and, at
least, plausible.
A large amount of our circulating me
dunn is based on the bonded Indebtedness
of the United States. This is considered
a safe and sound currency and meets all
the demands of trade and commerce in so
far as its present volume will allow.
The forty-four states Of the union have
a total bonded Indebtedness of 1924, 900,
600 on which they pay an annual interest
of $40 600, 900
My proposition is for the state govern
ments to execute bonds to the amount OF
their respective indebtedness to the
United States government, which shall
bear per cent. interest per annum, and
that they call in every dollar POSSIBLE of
the bonds and pay them in national cur
rency received for the bonds.
The states have a right to settle their
bonds except where time stipulations are
expressly made, and in these instances,
arrangements may be made to prepay
most of the bonds not yet due.
The currency thus issued will be as
good as our national bank notes which
are secured by United States bonds. This
will increase our circulation to very
large amount, which will of necessity
seek employment in the legitimate chan
nels of trade. Besides this, 1t will save
the states over 81 ,000, 900 per annum in
interest, will add approximately g, 000, 900
per annum to our national revenues, all
of which is now annually taxed from ouT
people.
do not believe that any private citizen
or corporation should be allowed to hold
any state, county or municipal bond.
All money should be issued by the gen
eral government, and never a cent by
private corporations. Instead of these
bonds being hawked on the market to be
sold to whoever would buy, they should
always be hypothecated with the general
government at their face value at a nomi-
nal interest. The saving in interest
oil 70 Aox ha IL
its proportions.
Then too, there are, no doubt, millions
of dollars of bonds now issued by corrupt
officials to furnish safe and paying in
vestment to friends who are seeking Sc
curities of this character.
also believe that every possible dollar
of county and municipal bonds should be
called in and redeemed in the same man
ner by hypothecating them with the gen
eral government.
If the government supplies the money,
know of no rule of political economy OF
law of equity why it should necessarily
have to go through the hands Of finan.
cial agents, brokers, or other corpora.
tions before it reaches the people, for
whose sole and exclusive benefit 1t Is in.
| tended.
There is now too little money In OK.
istence, and our present system of distri-
button puts 1t so far from the people that
it becomes a commodity instead of a me.
| dium Of exchange which it Is intended
to be.
The currency issued by the government
under this system will not be a local
scrip. 1t will be a national currency
equally available in all states and will
| bear no local stamp or signature.
| No state, county or city should be
loaned more than,a fixed and limited per
centage of the amount of its taxable prop
| erty.
This arrangement will forever throttle
| the congestion of money at the great
trade centers.
| These bonds can be redeemed by the re-
turn of the currency notes at any time
| and interest stopped, but the government
can demand the interest in coin. This
will enable us to keep up our national
coin reserve and will tend TO hoard our
| gold in our national treasury, where it Is
| always available for the settlement of in
ternational trade balances; and every
community will contribute it's quota in
this way toward stocking our treasury
with coin, so as to obviate the future issue
| of United States bonds TO replenish our
depleted Golfers.
There is ample opportunity for the
moneyed man to employ his capital in min
ing, manufacturing and a multitude of in
| dustries other than speculating upon the
public credit.
However wealthy or honest man may
be, he has no moral right to "bull" or
"bear" the public credit for gain; for
it is neither patriotic in the citizen nor
safe for the people at large to permit it
1t may be argued that the plan is not
feasible, as it would be impracticable TO
secure the cooperation of the forty-four
states. If congress will offer the oppor-
tunity to each and all the states there are
none which would not endeavor TO refund
their debts and reduce their interest ac-
counts. There would be none TO offer
their bonds in the open markets Ia future,
and it would enable those whose papers
are falling due to redeem them without
d1scounting new obligations in stringent
money market and entailing a heavy in
terest-bearing liability upon their posteri-
ty. BEN McLEEDoN.
Townsville, Ga.