Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-05-28
FINANCE GOOD ROADS
Webster City Man Evolves
Scheme For Financing I'm
provements of Highways
ISSUING OF BONDS BY STATE
1t is Proposed That In Return for
These Bonds the Government Issue =
Special Currency, the Security o.
Which Would be uncuessionable-
Payment and Cancellation.
Special to Times Republican.

Special to Times Republican.
Webster City, May 2S.-Since the
adjournment of the National Good
Roads Convention, which recently met
in st. Louis. there has been a renewed
discussion of the good roads movement;
thruout Iowa and the middle west. The
welfare of the rural delivery routes and
the discontinuance of several of them
in this state because of III kept roads,
has had 4 tendency to keep the matter
continually before the people. The one
minds Of the good roads promoters.
| however, is how to finance the proposed
/ improvements. The farmers of Iowa
are particularly interested in the out
come of the matter, as are also the
merchants who. by the aid of the routes.
I have built up lucrative mail order
business
| +. Elias Smith, of this city, has 4
plan to finance these improvements
which he considers practicable. 1t has
never failed as yet to meet the approval
of those to whom he has submitted an
outline OF his plan, among whom are
men Of prominence in national financial
affairs and, owing to the wide discus
sions given the movement at this time,
ii is Of particular interest to the general
public. Mr.. Smith is secretary OF the
local M, vii la1 nd bnr
oughly trained business man, and has
had the opportunity to become close
student of financial matters.
Mr. Smiths plan involves. first, the
issuance of bonds by the state to the
government Second. the issue of
special currency by the government in
return for the bond and third the pay
ment of the bonds as they become due
and the subsequent destroying of an
equal amount Of the special currency
80 that as fast as the bonds become
due the currency for which they We're
issued would be taken out of circula
ton. The scheme is for the primary
purpose of giving the state a fund with
which to build and maintain its roads
and at the same time pay for the work
done without impairing either its own
or the governments credit MIR.
Smiths plan, as stated TO the press, IS
as follows:
issuing of Bonds by States.
"First-I would make it possible for
any state to issue to the government |
for its account an interest bearing ,
bond to be paid in installments. and |
large enough TO cover any reasonable |
amount which the people by ballot or
otherwise decide should be expended !
upon the Improvement of any public |
road or roads. Both bond and interest |
to be payable in gold. or lawful money !
OF the United States, and from monies !
collected by taxing the section of the I
state benefited thereby. The coliec |
ton of taxes for the payment OF bonds !
and interest TO extend over q sufficient |
number of years TO make those who
come after us bear their just portion OF |
the expense, thus relieving all tax |
payers from any burden by reason !
thereof.
Special Currency Proposition.
"Second-These bonds / would have
deposited with the secretary of the
against which / would have
the government issue TO the states
in amount TO the face or the bonds and
pra ctically the same III appearance az
that now in circulation bearing upon
the face OF each bill the name Of the
state on whose account il was issued,
With its promise to pay the same in
gold or lawful money Of the United
States on or before the date named in
the bond. also bearing q further pro
vision that the same might be eX-
changed at the will of the holder for
interest bearing certificates whenever
presented to the secretary OF the treas
ury in even hundred dollars, and in
amounts not less than $1,000. These
certificates / would have draw the
same rate OF interest as that named in
the bond affecting the same, and should
be made payable and redeemable OH
demand, payable in the same money
as that for which they We're given,
in the same money as that
provided for in the bonds / would
further provide that the special issue
should be good for all demands due the
state named thereon and still further
for all demands due the government.
Payment and Cancellation.
"Thrd-As installments We're due,
axes collected and money forwarded
'or credit on account of the bonds
ssued, I would have cancelled each
line corresponding amount of that
particular issue for which a bond was
,reated. Since any regular issue OF ;
money would redeem any special issue,
lnless otherwise provided, it would be ,
which one was sent in.
However, certificates should never be
allowed to draw interest after Il time
When there was money, named in the
ponds, in the hands of the government :
o redeem the same: Hence If a GER .
ain number of certificates We're Obliged
o be called in at any time for can
collation., certain ones might be decided .
ipon by lot
Summing UP the plan, Mr.. Smith .
'iaims that the security would be I'M
the taxation could be .
made light. the currency would be pop
liar and elastic. the special issue would i
&c under the supervision and protection {
II the government. the money thus q
rented would come into and go out {
Il circulation gradually, affordIng q Il
means OF converting idle funds into in d
crest bearing securities, the people e
benefited would be directly responsible o
or the creation and expenditure of their +
'wn money, and the possibility Of sub
.ividina OF large bond or note into b
mailer ones and reconverting the lat g
err into larger sec,Iritiac "a. b,,,Ipasc u