The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1910-01-14
", H, SCHENCK'S
Way OF Doing

Editor Caldwell Tribune
Dear Sir:
l have been requested to suggest
a plan for tho financing or furnish
ing funds for tho Reclamation SER
vice. This l will attempt to do.
But l will say in the start, | am
opposed to gong to the banks, trust
companies or to individuals for the
funds. The National banks liability
as shown by the last report of the
Comptroller of the Currency to Con-
gress, was $9,O27, 200, 484.76, they
of course, had various accounts to
balance this. You will note that the
banks liability is far greater than
the boasted combined products of the
soil of the country for the last year,
viz: $8,76O, OOO,OOO.O0, and this was
much exaggerated, for instance, hay
crop of Idaho is figured at $1O.62
per ton.
The liability of tho United States
is but about 1,00O,000,000.OO. This
is due various individuals and cor
porations. But the country owes a
much greater debt to itself. Great
as the country is, it can soon be made
ten times greater than now, by lit
tie judicious management of its own
affairs. Instead of working all of
the circulation medium through the
banks, just work the reclamation part
of it through the treasury depart
ment. l find by the issue of per cent
bonds, and the farmer paying just
the same amount each year; that he
would in case of non interest bearing
bonds, and keeping these payments
up for Is years, he would still be in
debt, and not entitled to a patent to
his land. l fail to see where bond
issue would help the farmer.
would suggest instead Of bonds
as proposed by Mr.. Borah, that the
treasurer of the Uuited States be
given the authority by Congress to
issue certificates of Indebtedness
against the reclamation fund, in de-
nominations of l, 2, 8, 10, 20, 80 and
100 dollars each, these to be receiv-
able for any labor performed, or ma
terial furnished in the construction
of the reclamation works, directly or
indirectly; in fact a practical legal
tender, and receivable by the liner?
Tor Department in payment of any
money that would be placed in the
reclamation fund, to be retired or
reissued as the case might require.
This plan would give the homestead
ers all the advantages they could pos
sibly get out of bond is ne; would
give the department all the funds
they needed; would not increase the
National debt-simply use a fund
ahead of its creation.
Congress would need appropriate
no money lit would in no way af-
ASSS Cilo IS1l treasury 1uHuJ SIMPLY
stand good to the holders of these GER
tificates, guaranteeing to redeem them
out of fund that is as sure and as
safe as the country itself.
There can be but one objection
raised to this that l can see. The
initiation of the currency. But that
would be the case just the same in
case the money was borrowed. The in
crease of the volume of currency by
$50, 100000 during the construc-
ton period could have little effect up
on prices, as did the Act of March,
1900. These 1900 new banks inflated
the currency, taking together their
loans with their circulation, about
$50, 0O0,0O0.OO per month for this
last ten years.
This, in my opinion, is the cause
of the great increase in prices we
consume.
Respectfully yours,
W. H. SCHENCk.