The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12
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WY. Stockton s Proposition.

sonville, Fla, is out in an open letter to the
President of the United States recommend
ing plan of banking and of loans which re-
sembles broadly, the Sub-Treasury plan of
the Farmers Alliance. Mr.. Stockton is him
self retired banker. It is said that he while
in business was the most successful banker in
Florida. We know him personally and regard
him as man of fine ability.
In brief, his plan is to have established in
each state of the Union a Sub-Treasury or
National Bank. These Sub-Treasuries or
banks located in the leading cities of the states
are to be given available funds in accordance
with the population and commerce and needs
OF the people of the state. They are to have
power to lend money on absolutely good Sc
curity to banks, corporations, and individuals,
at per cent interest with power to increase
the rate. of interest on the order of the Sec
rotary of the Treasury if it be found necessary
to Curtail loans. The interest over payment of
the expenses is to accumulate as guarantee
fund in case of any loss. The loans are to be
restricted as sums not to exceed $40 on each
$500 of gllt-edge commercial paper issued
against actual value; not to exceed $50 on each
$Ioo worth of imperishab1e merchandise in
warehouse, or in actual transit against bill of
lading, insured against loss by fire or other
wise; not to exceed $50 on each $Ioo worth of
improved real estate, insured against fire or
lightning, and producing an income of per
cent; not to exceed $50 on each $500 worth
of actual value of first class Railroad bonds is
sued not in excess of actual cost of constitu-
ton and equipment, provided said Railrowd
is earning operating maintenance, renewal, and
interest, not 10 exceed 80 per cent market val
Tie Of any state and county and a first class
state bond, paying interest promptly.
The law should absolutely prohibit banks,
corporations, or individuals from receiving this
relief for the purpose of loaning directly or in
directly on the stock of any bank or corpora
ton. The present trouble can be traced to this
unsound method of banking.
This plan proposed by Our friend Mr.. Stock
ton is not the ideal of the Teffersonian, but
it would work a vast improvement over the
fit to the whole country. The Teffersonian
does not believe that any Government has
right to tax the money out of the pockets of
one man for the purpose of lending it to anoth-
er. We believe that, if we had volume of cur
rency Of $50 per capita, issued directly by the
Government without the intervention of banks,
every dollar being the equal of every other dol
lar and full legal tender in payment of all debts
and dues public Or private, private indi-
vidualS and corporations needing to borrow
money would find it easy enough to borrow
from other private citizens and corporations.
With the plentiful supply of money, and the
present system which allows the metropolitan
banks to concentrate into great cities destroy
ed, the law to supply the demands would soon
restore healthy conditions, and everyone who
is able to furnish the collateral required by Mr..
Stockton's plan could get all the money he
needed without paying a higher rate of inter
est than Mr.. Stockton proposes. T.