The midland journal. (Rising Sun, Md.) 1885-1947, 1894-05-25
Coxey's Non-Interest Bond Scheme.

new in the financial principle of the
scheme, that the government was clothed
with full constitutional powers to make
such an issue and also to expend the
money in the manner proposed. An
appropriation for the improvement of
rivers and harbors embodying many
million dollars is made by every congress,
and those "rivers and harbors" include
numerous creeks and internal waterways,
where no foreign commerce ever comes,
and the advantage of such Improvements
is confined to local trade, as much so as
county and State roads.
There is no doubt such issue and expen-
diture of legal tenders would Immediately
relieve the appalling distress now existing
throughout the country and start every
line of industry into new life. The con-
stitutional provision looking to the public
welfare covers all such efforts on the part
of the federal government to promote the
we'll being of the citizens. In fact the
main object of the government is promo
ton of the welfare of the citizes Not a
part but all of them. The issue of sum
of greenbacks would be in every way
preferable to the sale of bonds, and if
such financial measure were recom-
mended by Wall street every corporation
paper in the country would champion it,
and the leading gold ring attorneys in the
Senate would speak by the hour in behalf
of the measure, and-it would be adopted!
But the plan is open to abuse and other
objections which can be avoided by the
introduction of better, because more
permanent, financial system.
We promised to examine the merits
and practicability of CoXey's non interest
bond issue, which proposes provision
ETC., to half the value of their assessable
property. The loans to be extinguished by
payment of five per cent of the amount
each year, in lieu ofinterest, which would
extinguish the loan i'll 20 years.
There is nothing whatever impracti-
cable in this proposition, and as compared
with the loans made by capitalists to
States, counties, cities, etc, which is by
selling bonds to raise money for public
purposes, Coxey's plan would be far pref
cradle. This abuse has covered the
country with municipal and State debts
which are grinding the people down i'll
paying taxes to keep the interest ON these
loans paid. Coxey's plan ofnon-interest-
bearing bonds would extinguish all such
municipal burthens which are taxing the
people to daath, and the taxes now
wasted in paying six, seven, eight and
higher rates of interest, would extinguish
all such debts at a tax rate of five per
cent in 20 years.
But we do not recommend the plan.
although it would prove infinitely better
than the present system which is beg
caring the taxpayers to fill the pockets of
capitalists and usurers by the payment of
heavy interest ON similar loans held by
individuals.
AS between borrowing from money
hucksters, costing usurious rates of inter
est, and the people borrowing from them
selves, the latter method is to be COM
mended as far the better plan, and they
can borrow from themselves without the
payment of any interest on the loans,
save the necessary salaries to the officers
who are requirhd to conduct all such
clerical business.
We will now examine the most simple,
safe, direct and economical method by
which all these advantages named can be
enjoyed plan which is self regulating,
permanent, and would accommodate, not
one, two or more branches of business
only, at the expense of all others, but
that would shed its blessings like the
dews of heaven on the rich and poor,
with special favors to none. Just as our
postal system accommodates all alike.
In order to accomplish this the govern
ment must establish system of banks
as entirely under its control as the post
Offices. The expense of conducting the
banking business would determine the
exact rate of interest to be charged, and
by the best statistics attainable, that cost
would not be more than one-half of one
per cent. Just think of the people in
every branch of useful industry using
money in their business which cost them
only one-half of one per cent, in place of
the enormous rates they now pay to the
banks !
With the law of congress authorizing
the establishment of a bank of deposit
and loan in every community where the
business Of the locality demanded such
bank, where the people could deposit
their money as they now do in corpora
ton or private banks, and where their
deposits would be secured by the govern
ment, the deposits to be loaned for the
accommodation of business precisely as
they are now loaned by the banks doing
the business of distributing the peoples
money-for this is what they are estab-
lished for-to distribute the money of the
depositors by loaning it while not in use,
to other people who have present use for
the idle money of the depositors. The
banks have no money of their own except
their capital stock and the interest they
take from the borrowers. AS soon as
the CaDitat and individual ,,-oe+e o.o