The Washington herald., 1913-10-13
SELLING POSTAL SAVINGS BONDS.
ny GRIDLEY BEpE.

Our nation is In debt The interest
for every member of the population. Tho
total was 1864. 81, $50. One hundred AM
thirteen years ago it was S., 80, OF
.l5.S3 for each person in the United States.
a head. owing to the war between the
States.
We are only moderately in debt France
owes six times as much as We do; Rus
sia,. five: the German States, four; the
United Kingdom, three; Japan more than
twice. and Spain little less than twice.
So in the midst OF international life we
are in debt and in very good company.
Some Debts DO Good.
certain excellent Judge of human
nature has asserted that IL is good for a
church to be in debt; for the members
are held together in one. while trying
to lift the burden. For an entirely
different reason there is something good
in a national debt-in our national debt.
The obligations of the government are in
many hands; every holder OF a large
VI lIdNIiOh VI NCbh hNSAS AaoN
he has a personal stake In the reputable
performance of duty by his govern
ment. Each time he looks at his bonds
or clips a coupon therefrom, to collect
his interest, he Is compelled to acknOwl-
edge that he and his government are one
and that they are bound to each other
by something real in the way OF respon-
sibilfty.
Real Things to show.
BUT unnKe the cnurcn IoIKs, VINO pun
together to pull out, our civilized coun-
try has very little motive for getting
clear of all debt. For all we owe We
have something to shows, 900 in Pos
tai Savings bonds; about SlS5,0o0,OOo, in
Panama Canal loeEs, and more than $780,
100000 in national bank currency. secured
by the gs, sold by the government, and
then taken back as basis for currency.
Our Debt Secured Currency.
The preceding reference points out a
popularity regarding our debt, the par
aIlel OF which cannot be found anywhere
else in the civilized world
We have used a debt as a basis for
currency, and consequently, IL we should
pay of cur debt, every pocketbook would
feel the sudden withdrawal of bank notes
from circulation. because they and the
securing bonds live and die together.
This international oddity goes back to
war times. when our credit was poor.
when the sale of our securities was dis
hearteningly slow and yet money was
absolutely<essential. Then the plan was
worked out and it has been in vogue
ever since without much real protest or
question until recently, when the Mon
etary Commission undertook 10 study the
methods of more experienced. nations,
Then we saw this one error of our sys-
TEN among others and the endeavor 70
change for the better has eliminated in
the owen-Glass bill. now gliding toward
e. 2ctment.
The sIamese Twins Problem.
The separation of the National debt
from close relation to the money in peo-
pies pockets without running the banks,
without producing tight money, and
without bankrupting the government In
the process Of repaying. has been prob
lem like that of separating the Siamese
Twins, whose life hung on the connec-
ton but whose independence was impos-
sible as long as the connection existed.
The Twenty-Year Cut on.
The following is the plan that has been
worked out in section 10 Of the Owen
Glass bill: The free exchange OF govern
ment IS, without circulation privilege,
for the government Is that now carry
privileges. The transforma-
ton Is TO take place at a rate that shall
be complete in twenty years. This means
more interest to be paid annually; and
also a gradual cutting of the tie that
binds the government to certain banks
and all banks Of a kind to the govern
ment.
The Newly Announced Idea.
All that has so far been said Is neces-
sary to an understanding of that which
many are now seeking to accomplish. |
First. the scattering OF government 2s in
small amounts among all the people. |
Second. the selling of these bonds at con- |
venient places. Third, the use OF the
money to sever the connection between
our debt and national bank currency. !
and fourth, the avoidance of paying the
additional ! per cent provided IN section
10. above referred to. The idea has taken |
form In bill introduced In Congress by |
Representative Howard of Georgia. The /
title OF the bin almost explains the pro-
cess. To establish postal savings banks. !
n. earan fh~z -.