The sun., 1907-03-28
TRE MONEY MARKET.
A Proposal to Rsneve It by building Post
OMices.

To TIE Ey.ToR or THE SUN-SiT: Every
year, and especially In those years when the
crops OF the country are bountiful and busi-
ness active, q strin gency in the money market
occurs. This condition OF ahairs has existed
since the resumption OF specie payments
on January 1. 1879, Notwithstanding THIS
fact Congress has done little or nothing to
abate the evil.
Fortunately the New York Chamber OF
Commerce and the convention of bankers
recently assembled In the city OF Washington
have given serious thought to the pressing z
question and have agreed upon plan TO
submit TO the Congress which provides for
an emergency currency based upon the as
sets Of the banks issuing the same, the cur
rency so issued TO be a hrst lien upon the
assets Of the bank and az a further safeguard
a sinking fund to be provided, out Of which
should the occasion arise. the notes OF failed
bank would be redeemed. Every safeguard
seems to have been provided and little just
criticism OF the plan can Id adduced.
When conditions existing throughout the
country are considered. however. Os whole.
IL there not at hand even better plan. which
II adopted would not only relieve the wants
OF the commercial and banking world. but
would also effect considerable saving TO our
Government. enough. in fact, to make the
postal system self-supporting and revenue
producer instead OF burden besides?
The United States Government annually
pays rental for many thousands OF buildings
occupied as post Offices. The owners OF such
buildings figure upon getting at least 10 per
cent. on the gross value OF the land and huild-
ings thus occupied. In order to provide a
suf1cient income TO pay taxes, insurance.
repairs and fair return upon the investment.
The plan, therefore. which suggests itself
is as follows: Instead OF the Government
being the tenant OF thousands OF landlords.
let it become its own landlord by purchasing
the lands in the villages where il is now a
tenant and erect suitable buildings for the
purposes OF the post offce. providing for the
cost Of the same by issuing bonds bearing
interest not in excess OF ? per cent. II this
were done two things could be accomplished:
First. a saving OF rental for post ofCe build
lngs sufficient to change the annual deficit
OF that department to a surplus running into
many figures; secondly. the issuing OF bonds
for this purpose would provide many millions
OF per cent. bonds available for security
for additional bank circulation, and thus
additional bank currency OF the very safest
kind would be provided and the annual
strngency in the money market removed.
In order to make these bonds attractive
TO the banks all taxes OF whatever nature
on bank circulation should be removed and
the banks should have full benefit OF the ? per
cent. interest. In addition thereto the law
governing the redemption Of circulation
should be so amended that the banks could
increase or withdraw the same as conditions
arose.
BY the Government owning its post ONCE
buildings there would be sufficient bonds
available for bank circulation to provide ade-
quateiy for the same for decades to come
EDWARD NIcoLL TOWNSEND.
Hampstead. l.. l.. March rs.