The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-13
A new KIND OF CURRENCY.
C1ty-Nattonal MOney-An Interesting
Letter Making Novel and Plausf-
BILE SuSgestiOns.

! Cfty-NatiOnal MOney-An Interesting
Letter Making Novel and Plausi-
| BILE Suggestions.
| ST. PAUL, Mimi, May 80, 1S94.-Editor
| Representative: There has come to my at
| tention plan for the financial improve
| ment Of this republic which / beg to be
| allowed to lay before the readers of the
| Representative. 1t is not my design to
| advocate its adoption, but can not refrain
from expressing my belief that it is the
| best, soundest and most practicable the
world mas ever seen. 1t is flexible and
! must at all times respond promptly to the
| needs of the public 1t is SAFE because not
| one form of wealth, but every form, sup
pofts 1t. Looked at from every point Of
| view conceivable this plan stands the
test. 1t is not even open to ridcule, nor
OBNOXIOUS to the malice of the privileged
classes. l shall not enter into a detailed
statement of all the merits features of
! this plan in this letter. but shall endeavor
| TO briefly outline it, trusting to the con-
structive genius of my reader to supply
sacn necessary details are wanting.
| may be allowed to express this hope, how
| ever, that the Peoples Party, will adopt
| this plan instead of those which, however
ialr IN themselves, appear to have the ad-
| vantage of one set only of our citizens in
| view.
me inventor of the plan proposed by
TINS letter declares that every public cor
pofatlon in the country is weighted down
| py heaFy interest paying Indebtedness re-
| presented by bonds. These are held by in
dlVlduais who are thereby enabled to draw
| an ample sustenence from the public with
| OUT personal effort. Most Of the public
| corporation bonds are held either in the
| larger Eastern cities, or in Europe, so
! that the Western states are annually
| drained, not only of their money but Of
! thelr surplus products of all kinds, without
| commensurate returns That a public cor
| pofatlon which is composed of the people
| ana consequently has all the wealth within
us province under control, can not do
| anything, however slight, for its own or
| us cltizens advantage without bonding it
| self to absentees, selling itself to annui-
| tants, putting itself under tribute like a
conquered country, seems absurd. Yet
| such is the condition of every public COR
| poratlon in the United States and all
| sucn, with few exceptions, are burdened
| with prodigious loads of interests This is
the bone of American finances and the
| fruitful source of pancs, distress and
| possible revolution
| II IS proposed in the first place. that all
| public corporations shall be prohibited from
| mourning any debt except in the following,
manner: "A state, county, township city,
| NlIiaSe, school district, or other organized
| community may, for any specified purpose
| vote bonds within five per cent limitation
| OF us assessed valua ton. These bonds
Shall be payable to the United States gov
| eminent and may bear Il l per cent in
| terest. The United States government
| snail upon application, send three or more
| commissioners TO investigate the validity
| OF the bonds and ascertain the true valu-
| alton OF the property within the corporate
| nmlts Severe penalties shall attend any
misconduct on the part of the commission
ers TO guard against imitation no corpo-
ration shall be permitted to bond itself for
| any purpose until it shall have existed a
certain number of years and contains a
! certain population. The bonds so voted
| Shal II valid, be deposited in the treasury
| of the United States and their full face is
| sued to the public corporate in the form
of notes or contracts signed by the prin-
clpai executive officer and the treasurer
of the public corporation. These notes
shall contain two contracts. First finan-
| clal; second guaranty. The promise shall
| De as follows: The City of Duluth for
| eXample) promises to furnish the bearer
hereof, IN demand, one tor any denomina-
| tlon) doiiarS worth of any kind of proner-
~ signed by the mayor and treasurer for
! the city. The guaranty shall be as follows:
| Inc Cnlted states government having in
! possession bonds of the City of Duluth, re-
presenting less than five per cent of the
| assessed valuation OF said city as security
! for this note hereby guarantees perfor-
| nance OF the promise contained on the
race hereof Signed by the treasurer of the
thlted States Tor such assistant as may be
| by him designated for that purpose).
The money issued shall be turned over
| 10 the city or other public corporation to be
| used by 1t for the purpose named in its
| bonds. In order to increase the value of
| such circulation and insure its stability,
| the law should make it the duty of
| the city or public corporation to nav from
| TOUR "a to ten 90 per cent annually on the
| principal of the debt so controlled. These
| limitations as TO the amount of indebted
ness snouio by no means be regarded as
| lrohclad because they are suggested in this
| letter. A close estimate of the ouantitv
OF circulation required for business might
| snow that the limit of indebtedness allowed
should be ten per cent or even higher on
| the assessed valuation Indeed IT is mite
| piopaple that five per cent Limitation
| would be too low
! III VIII be easily discovered by people of
Information that this plan embraces the
| principle of the national bank circulation
| without It's obJectiOna BILE features The no
| uonal bank circulation is special privilege
| TO the men interested in that department
| vi business. Ihe sub-treasury plan how
| ever excellent in itself, is open in the eyes
oI many, even of the Peoples party, to the
| same Objection. This plan, however is in No
| sense within the grasp Of any class or set
| OF me n 1t Is equitable and not susceptibIe
| or serious misuse. Neither can it be affect
| ed by imitation or contraction. The measure
| OF the volume of currency under this nl.n
| must necessarily be the public need-be-
| cause the necessities of the public dictate
and guage both the demand and supply If
! Will be recol1ected that the national hank
| Issue in the United States is UPWARDS of
| S2l2,W0,OoO, and there is proposition pend
ing to increase it 10 per cent to supply the
present need, in part. In other words the
| government, in order to get more money
| to the people will practically issue s21 600
| Wo free to the banks, so that the banks
| may loan the same out at an average of
| per cent interest That is to saw the gov
| eminent will print 81, 100000, under that
| proposition and reward the banks for dis
| tributing it by permitting them to lew
| tax of $15U,OO0 upon the people If the
| plan proposed by this letter were adopted
, the distribution would be made without
| cost to the people and without impairing
| the value of the dollar.
| The question whether this plan will he
equal to the demands of the people is an
| impo rtant one. We are aware that some cit
| les and other public corporations are out of
| debt and pride themselves on RETAINING
| from mourning any. 1t is apparent how
ever, that such cities do not fear the debt
itself. but the burdens which that debt en-
tails upon them to pay heavy interest No
city is as complete, ornamental as COM
Portable and convenient as modern
science can make it. If such cities as are
out of debt could see that the mourning of
Indebtedness did not force them to Weld
tribute in the form of interest to absentees
it would certainly be incentive to them
to provide for their public use all modern
conveniences, whereby their city would be-
come habitable, healthy and industrious
The laborers would be set at work the
bonds Of sympathy between men would he
strengthened, skill would be called into
requisition, wages would, by reason of the
common industry, be increased. In such
condition old cobble stones. such as forr,,