The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-27
MUNICIPAL BOND MONEY,
An Interesting Letter From Mr.. r.. p
HOskyn.

MINNEAPOLIS, June Ito the Editor
of the Representatives. have read with
much interest the letter of Mr. f. H.
Clark, in your last ISSUE under the title of
"a New Kind of Currency" and the only
criticism 1 would offer is that the writer of
the article carries the impression either
that he or the originator of the plan are
closely connected with him. But this pop
osition that the government issue money
direct to the municipalities on municipal
bonds deposited with it, that draw but little
or no interest, has already been outlined
and is being urged by a few of our Popu-
ulist people and newspapers. However,
this criticism is really unnecessary, as the
article referred to has the true ring, and
we believe this system of currency to be
perfect solution of the money problem of
the United States and one that is going to
be adopted sooner or later. And as Pop
ulst that began in the cause before the
existance of the party, 1 am frank to say
that this plan of issuing money direct from
the government to the people without the
Intervention of banking corporations viz;
the municipal bond money, ought to be in
corporated in our platform instead of the
sub-treasury plan 1t is unnecessary in
taking this position to condemn the SUBJ
treasury plan, but it is enough to state that
the platform only mentions the sub treasu-
ry probable or possible means of dis
tributing Gin the absence of a better plan)
money that is not defined The municipal
bond currency plan embraces a money that
has all the elements our platform requires,
and completely solves the question of dis
tribution and lowest cost. 1t effectually
dsposes of the objection made to green
backs and all fiat money the objection to
our sub-treasury plan of distribution and
also of the objection to class legisla ton
Not the objection that we favor class leg
1Slatlon and to the greenback are we'll
taken, but nevertheless they do exist and
are made barriers to public opinion. But
in order that the reader may understand
what we mean by municipal bond cur
rency,' we will state it in brief, viz: the
municipal corporations are the different
branches of our government, such as states,
counties, townships, cities, etc, and when
one of these corporations need money for
public improvements it has to issue bonds
that bear such a rate of interest as to
make them marketable, and then sell them
to the money lender. Under the plan sug-
gested. the municipality could issue its
bond direct to the Federal government at
a rate of interest say not over u per cent
land we can see no reason why they
should bear any interest-deposit them
with the treasurer of the United States
after a proper examination as to their va
ldity, and the government issue to the
municipality currency bills to the face val
We of the bonds, the money so received
would be used to pay for the public i'm
provements. This money would bear on it's
face a promise of the municipal corpora
ton, signed by its proper officers, and
also guaranty by the United States,
backed by the deposit of the bonds
and also decree of government making it
full legal tender for all debts public and
private. The details of the plan would, of
course, invole the fixing of limit on the
indebtedness of each municipal corpora ton,
the proper examination of the validity of
the bonds and for the time and proportion
of the annual payment of the bonds, and a
proportional retirement of the currency
bills etc.
That this money would be good and would
circulate at its face value there can be no
doubt. 1t would have not only the fiat of
government, but that backed by ample Sc
eurity on all the wealth of the country. Its
issue would be a burden to no one, but
would relieve the taxpayers of every rnu-
nicipal corporation of the burden of inter
est on it's bonded Indebtedness all fu-
ture bonds. To illustrate: Hennepn coun-
ty, including the city of Minneapolis is
now paying nearly 100000 annual interest
On it's present bonded debts and will have
to do so for at least the next 20 wears.
making ss,00o0o0, AND will then owe the
principal The distribution would be be-
yond criticism, as 1t would start the wheels
OF industry, giving employment and con-
Stunning material In the line of public i'm
provement the benefit of which would
tnure to every citizen.
Much more can be said on this subject
and every reasonable objection met, but
space will not allow full discussion of the
plan in one communication. But we be-
iieve 1T to be adequate and practical and
that 1t will be adopted by some political
party. Will the Peoples party in its pro
gressive movement consider and adopt it?
HOSKvNy