The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-07-15

vince me tnat the proposed bonds
would be readily absorbed by the Am
erican people. The issue in any one
year is limited to twenty per cent of
the total; and since twenty one states
representing over forty eight per cent
OF apportionment must amend their
constitutions before they can take ad-
vantage OF the plan, 1t is certain that
not over one hundred million dol. ars
OF bonds would be offered Tor sale in
any one year.
There Is over four billion dollars
on deposit in savings banks drawing
interest at from 3!03 to Z. 80 per cent.
There is over thirteen billions on de-
post in national and state banks and
trust companies without interest or at
rates of interest not shown by statist-
and quarter dollars in coin and cur.
rency in the U. s.. over one billion
seven hundred million Is in the peck.
cts. tiils and stockings of the people.
The clearing house transactions in the
United States in 1912 aggregated one
hundred and sixty.eight billion doll
ans.
In view Of these figures there Is no
doubt that three per cent non taxable
government bonds would be taken
at the rate of one hundred million dol
lars year. In my Judgment they
would be several times over subscrib-
ed. The sale of these bonds would not
take a hundred million a year out of
circulation, but rather put it into cir.
culation-for the money received from
the sale of bonds would be immedi-
ately expended throughout the coun-
try in payment for labor and mater.
ial used in road construction.
The states whose constitutions now
ic works are:
Alabama, California Connecticut,
Delaware, Idaho, Illinois, Iowa, Kan
as, Kentucky, Maine, Maryland, Mass
achusetts, Minnesota, Mississippi,
Montana, New Hampshire, New Jer-
sey. New Mexico, New York,
North Carolina, Oklahoma, Rhode
Island, South Carolina, Tenn
essee, Vermont, Washington, and Wyo
ming. The remainder of the states
must amend their constitutions be-
fore issuing bonds for public works.
Should the nation adopt this plan
and the states avail themselves of the
opportunities created Hereunder, then
the states could-if they desired-of-
fer to their respective counties a
similar opportunity for the utilization
Of the superior credit Of the state ov-
er that of the county, adopting the
same method of apportionment among
counties.
Thus the counties themselves
could initiate road construction and
issue fifty-year four per cent bonds,
provided total bonded Indebtedness
of any county including road bonds,
did not exceed ten per cent of the
assessed valuation of the property of
the county. Then the county bonds
would be deposited with the state
treasurer as collateral for the fifty
year four per cent state bonds deposit
ted with the treasurer Of the United
States as collateral for the money the
state received from the Federal Gov
eminent for construction Of roads und-
err my plan. The Federal government
would treat only with the states as
units; and the states If they desired,
could treat with their counties as I'M
it's.
Provision could be made for gradual
retirement of the United States high i.
way bonds whenever sinklng-fund ac-
cumulations permit, If such bonds
could be purchased on three per
cent basis or better. Bonds thus pur-
chased would be marked mon negoti-
able" and Endorsed Property of the
'hlttu DldNSS iilbhNuy olHhlu6-
Fund.
These bonds would be kept alive and
continue to bear interest. This inter-
est would be credited to the sinking
fund and used to purchase additional
bonds, the United States thus getting
the benefit of the three per cent
paid on these bonds. The secretary of
the treasury could be authorized to
advertise annually for offers of suf
ficient United States Highway bonds
to exhaust the contemporaneous sink
ing fund accumulations, and to accept
the lowest offers not exceeding par.
The Rebate for Maintenance.
Though my plan does not contemp-
late direct Federal appropriation for
road construction, it does provide for
a. direct Appropriation for aid in main.
tenance. this aid being contingent up.