Birmingham age-herald., 1894-10-13
COUNTY CURRENCY.
What Business Men Say About the Suggestion as to Baby
 Bonds.

Mir. P. H. Earle, president Birmingham Trust and Savings company-The sagges- ton that counties issue bonds in small de-
 nominations to circulate as currency is not a sound financial principle. Such bonds would constantly fuctuate in value, for there would be nothing behind them ex- cept the credit of the county, which is more stable at times than at others. They
 would be sold at discount and be hacked about on the market just as Alabama horse-
 shoe money was few years ago. Another
 objection is that these county bonds would not circulate outside the county, and hence
 would not posssss the virtue of money.
 What a man wants is currency that is good
 anywhere. When money circulates at par
 outside of the country which issues it then
 it is real money-that's the test. There
 fore, these county bonds would not be
 taken by the people, and it is bad policy to
 issue them. The fact is, the currency is
 all right and should be let alone. There is
 abundance of money iu the country, and 1t
 can readily be obtained from the banks at
 legal rate of interest with good collateral.
 Judge Porter-When the county built it's
 first stone jail the commissioners court is-
 sued per cent bonds in denomination of
 S100 to pay the cost of the same. The ob-
 ject in issuing the bonds in such small de-
 nomination was for the purpose of getting
 Cn6Iu Cakeu Dy lOu0 peOples lule OOJ6CU
 was accomplished in only slight degree, for the bonds were taken by three or tour wealthy Birmingham men. The county will soon refund portion of it's bonded in- debtedness and then think the suggestion will be considered. The small bonds could readily be sold among our home people and would circulate as currency and would keep the interest here in our midst.
 Gen. R. D. Johnston, vice. president AL abama National bank-I am heartily in
 favor of the proposition. If the county is-
 sues small bonds they will be taken readily by the people. They should be per cent bonds and non taxable. If they were made non taxable there would be no difficulty in circulating them. There is plenty of money in the hands of individuals await that the banks would oppose such issue of l bonds because it would lessen their deposits, | but this is narrow view to take of the l matter. The broad view is that such bonds
 would offer another good investment for keep it in our midst, and that's just what l we want. The bankers should meet to- l gether and say to the com mnissioners' l court that fit will issue such bonds they will help to float them. am not only in l favor of the county issuing bonds in small denominations, but favor the gov
 ernment doing the same., This is the | method by which we can keep our money l in this country and add to our wealth and l productiveness. This is tho secret of the 1 prosperity of France. The French govern
 ment bonds are in small denominations
 and are held by its own people. The French are patriotic as we'll as money making, and l just as soon as Frenchman gets little
 money ahead he invests it in a government l bond. fss etss'
 | Judge Howze-I think the idea of county | bonds for circulation good one.
 | Sig Steiper-It's good idea, but the
 banks won't favor it because it will Iesseu | their deposits.
 I B. Steiner--If the bonds are to be issued | to take up outstanding bonds Pm in favor | of it.; but don't believe the county should | issue any new bonds unless it is bsolutely l necessary. The small bonds should be l on-taxable. Let us have them-the more l the better, for we'll have more paper tc l trade aud traffic in.