Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-22
URGESANEWPlAN
FOR BOND DISPOSAL
Would Issue the Government 2
Per Cents to Postal Saw
ings Depositors.
REPRESENTATIVE HOWARD
CITES MERITS OF SCHEME
Says It Would Bring Out Hidden
Cash, Encourage Thrift and
Strengthen Banks.

Representative Howard OF Georgia In
a speech on the floor OF the House today.
presented a plan for the disposition OF
s742, 100000 worth OF government per
cent bonds which the pending currency
bill proposes to suppiant By ; per cents.
He advocates issuing these bonds in
small denominations 10 postal savings
bank depostors.
Mr.. Towards proposal is vastly differ
ent from some Of the other plans con-
corning the government debt. Mr.. How
ard spoke for one hour on the subject
shortly after the House convened at
noon. Mr.. Howard said he could not
FOR the life of him see why the big
banks should be allowed to gobble ~
these bonds. He believes the nation .
debt could be handled through the postal
savings banks and that investors who
could not handle more tha1 seven dol
lars worth of bonds at time, should be-
given the chance to gain the govern
ment . per cent as well as the banker
who can take up seven million dollars
worth
Would Bring Out Hidden Cash.
The scheme, said Mr.. Howard would
bring out the hard cash that is now hid
den away in old socks. old trunks. Chin
ney corners and other hiding places in
the country.
81 suggest said Mr. Howard that
when a man deposits money in the postal
savings bank he be given a government
coupon or obligation bearing 2 per cent
interest to repay his deposit Ii he de-
posts 81 he gets a seyen-doIlar coupon
bond from his local post office. and 90
for any amount. This bond is payable
on demand at the Treasury of the United
States and can be cashed anywhere ia the
nrld fhIr0 of tru ~.
tunity to the day laborer who wants to
save as to the millionaire who wants to
invest.
IF my ideas are Incorporated into law
] firmly believe that ii will inure to the
benefit of the government and the people
for the following reasons:
First. 1t will be beneficial 10 the
government in that 1t will distribute the
bonded Indebtedness among hundreds of
thousands of it's citizens. maintain its
bonds at par at a rate of per cent and
put 1t beyond the power OF any man or
set of men to WELD an undue influence
over any legislation affecting govern
mental policies.
Will Encourage Thrift.
Second 1t will encourage thrift
among the people at large and will restore
to circulation and TO legitimate business
channels at least billion dollars which
is now hidden away because the people
are skeptical of ordinary savings institu-
tions.
Third. The accumulation Of this vast
amount of savings will be placed by the
government In the banking institutions
of the country to be used for active Gil
culation, thus strengthening our banking
institutions instead OF sapping the life
from them.
Fourth II will inspire confidence III
the stability OF our government and
patriotism in the bosoms OF our citizens
because of the fact they have an actual
interest In the maintenance OF the gov
eminent itself.
Fifth It will enable the postal saw
ings banks to be operated at a greatly
reduced cost over the system now in
operation