The Lee County journal. (Leesburg, Ga.) 1904-19??, 1907-12-13
WATSON HAS REMEDY.
Georgian Holds Conference With Roosevelt
and Suggests Greenbacks as
Financial Stringency.
Financial Stringency.

financial Stringency.
A Washington special says: Hon.
Thomas E. Watson was the guest of
President Roosevelt Monday at lunch
con and discussed financial laws and
legislation. He told the president Of
his conviction that the whole trouble
could be settled by an issue of green
backs, and recalled the fact that civil
war acts authorizing greenbacks were
stifl on the statute books.
In discussing his views, Mr.. Watson
said - a number of newspaper men
that he was totally at variance with
the financial theories of Mr.. Bryan.
He opposes the whole national bank
system and thinks it would be particu-
larly dangerous for the government to
undertake to guarantee national bank
deposits. He favors the postal savings
banks, and believes their adoption
would prove of immense benefit to the
people everywhere.
Following his luncheon at the white
house, Mr.. Watson would not divulge
what transpired, further than to state
the general subjects on which the con-
versation turned. He said the occasion
was in every way. most pleasant
In an interview with the correspond
ent of the Atlanta Constitution after
the conference with President Roose-
welt, Mr. Watson said, in part:
$50 far as paper currency is con-
cerned, it is question Of whether the
government will use the national credit
for the benefit of all the people, or
whether six thousand national bankers
shall be allowed to use it for their own
exclusive profit
National bank currency is based
upon government bonds, and the bonds
of course rest upon the power and the
wealth of the nation Whoever buys
the bonds becomes a national creditor,
and when the bondholder is allowed to
issue one hundred dollars in notes
against every one hundred dollars Ur
the bonds, he is using the nations
credit to support his own notes. The
bonds are untaxed and the notes pay
no tax, for while the government col
lects a nominal IL of / per cent tax,
it is we'll understood that the proceeds
of this tax do not cover the actual
expenses of maintaining the curren-
cy bureau, salekeeping the bonds, en-
craving the notes and supervising the
operations of the banks.
consequently the national banker
enjoys at the public expense the fol-
lowing advantages:
'The one hundred dollars invested
in bonds bears him interest, and this
interest is paid in advance. Thus he
has principal and interest working for
him at the same time. Besides, the
one hundred dollars issued to him in
notes brings him compound interest
at the highest legal rate, if no more.
Suppose he gets per cent; then he
earns $50 on each thousand dollars Of
the notes which have cost him nothing!
When the government anticipates the
interest, the national banker has three
dollars to put out at compound inter
est to every dollar actually invested.
when it is remembered that he pays
no tax whatever, and that his invest.
ment in the bonds is insured by the
government against all change, it is
easy to realize what a vast advantage
he enjoys over other citizens.
"The bond, of itself, is good invest
ment, because a capitalist thereby puts
accommodations where they are guaran-
teed by the government, and where
they contribute nothing toward the ex-
penses. of town, county, state or ma
ton"