Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-25
COXEY'S currency BILL
GIVEN CONSIDERATION
Plan for Reserve Bank in
Each Town Having Over
1000 Inhabitants.

Another currency bill. prepared by Gen.
Jacob S. Coxey of army of the unem-
ployed'' fame. and radically different
from the measure recently passed by the
House. is to be considered by the Senate
banking and currency committee.
Gen. Coxey appeared before the bank
Ing and currency committee Thursday
afternoon and presented his plan for a
government note issue system. He said.
in brief. that the country was doing
business on twenty billion dollars worth
of bank credits. There was in the banks
a billion and half of real money as a
reserve to meet a total of seventeen bill
lions of deposits il they were called.
Outlines His Plan.
His plan was to build a federal bank
in each municipality of over LOCO inhab-
itants and deposit with these federal
banks as much money as was needed to
carry on the business of the country,
charging per cent tax on the loan of
the government money. He said it would
cost half of l per cent to handle this
money and carry on the banking business,
leaving profit of IL per cent to the
government on the transaction. On twen-
ty billion dollars this would amount to
an annual revenue of $3OO0O0.OOO The
last Congress was known as the billion
dollar Congress- so this would leave
S1Oo eo0.0GO to be made up of income tax,
tariff revenue and any other form of
production to which the government
might resort.
The security for these government
no he ca
nc banks now demand together with
lax receipts on real and chattle prop
,Fty. This was the new security feature
the plan and was designed to extend
TIE circle of borrowers to those who
issht really need the money. Gen. Coxey
said that under the present system the
,rtnhs were leaning to the farmers six
I'll ions and forty millions. on which the
average interest and commission charge
was S12 per cent. making tax of Sob
uOCoo on the producing class of the
country Gen. Coxey said that he had
taken these figures from the address of
President Taft to the conference of the
governors last year This would make a
saving to the farmers of $392.O00.O0O.
Supplement to Government Scheme.
As a supplement to the government
money issue scheme MIR. Coxey said that
whenever state. county or municipality
wanted public improvement it might is
sue non-nterest-be bonds to be de-
POSTED with the Secretary of the Treas
ury. The expense of printing and issuing
these bonds would be | per cent. and the
Secretary of the Treasury would then
forward 30 per cent OF the face value OF
the bond TO the state. county or munich
pality issuing it. The loan would be In
the form of government money to pay for
the Improvement. whatever il might be.
The loan would be returned at the rate of
4 per cent per annum without interest
and i'm twenty-five years the loan would
he cancelled. AS the loan was returned,
the fraction of the amount represented
would be Cancelled and destroyed as post
age stamps are Cancelled after they have
performed their function.
Money Full Legal Tender.
Gen. coxey pointed out that the money
issued by the government under thes.
two systems would be full legal tender
and would have the Endorsement of the
government behind ii just as much and
more directly than the bank notes in cir
collation. had now.
Senator Nelson said he was much in
;erested in the plan outlined and said
Mr.. Coxey. Your suggestions have been
very interesting, and / would suggest thai
the chair have you embody the plan in a
lii that can be presented.
The chairman requested that this be
done.