The Washington times., 1913-09-22
HOWARD WOULD AID
SMALL INVESTORS
Georgia Congressman Has Plan
to Put Government Bonds
Into New Channel.

Proposing radical changes in the pres
ent postal savings bank system. and
outlining a plan whereby he believes
the S42. 10000 of outstanding per
cent Government bonds may be put
in the hands of the small and thrifty
investor, Congressman William Scnle'
Howard Of Georgia, was heard in the
House today.
Mr.. Howard spoke by unanimous con-
sent for one hour in accordance with
permission obtained last week, and was
given close attention. He presented an
original idea for the retirement of the
two per sent Government bonds, with
circulation privilege, which the Glass
Owen currency bill provides shall be
converted into per cent bonds with
out circulating privilege.
Instead of having these bonds gobbled
up by the large banks and investors,
Mr.. Howard wiuld have this large is
sue made in small denominations which
may be purchased through the postal
savings banks. The scheme, he says.
would draw millions into circulation
which are now hidden in cid socks.
trunks, and other out-of-the-way places
by the man who is afraid to give his
money into the Sa1SheepluS ci dHSoH
except the Government.
Explains His Plan.
Explaining his plan to have the small
investor assume the task of taking care
of the retirement of the outstanding :
per cent bonds, Mr.. Howard said:
In effect, l simply want the Govern
ment to sell its bonds at retail instead
of wholesale, and if this is done The
Government can accuculate all of the
money necessary for the retirement Of
the present national bank bond issue at
2 per cent. Only a slightly higher rate
is paid in England. The small investor.
Is not much worried as to the rate of
interest if he feels absolutely confident
about the prompt repayment of the
principal. This constitutes the strength
of the Governments position in the
postal savings banks. The people are
satisfied that their money is absolutely
safe.
ar nv ideas are Incorporated into
law 1 firm ylbelieve that it will inure
to the benefit of the Government and
tie people for the following reasons:
First 1t will be beneficial to the
Government in that it will distribute
the bonded Indebtedness among hun
maintain it's bonds at par at a rate of
2 rer cent, and put 1t beyond the
power Of any man or set of men to
WELD an undue influence over any
legislation affecting Governmental
policies.
Would Encourage Thrift.
Second. 1t will encourage thrift
among the people st large. and will
restore to circulation and to legiti-
mate business channels at deast a
billicn dollars which is now hidden
away because the people are skepti-
cal Of ordinary savings institutions.
Third. The accumulation of this
vast amount of savings will be placed
by the Government in the banking in
stitutions of the country, to be used
for active circulation, thus strength
ering our banking institutions in
stead Of sapping the life from them.
Fourth. 1t will inspire confidence
in 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 Government itself.
Fifth. 1t will enable the postal
savings banks to be operated at
greatly reduced cost over the system
now in operation"