The Detroit times., 1915-08-06
Sell Securities Direct to the
People.
~ On. FRANK CRANE
Copyright. 1915. By Frank Crane)

Will some able and distinguished finan-
cier kindly step forward and answer a
few questions herewith put by the plain.
ordinary folks relative to financing.
We don't know much about handling
money in chunks of million or billion
at time; and what is more we know we
don't know. Therefore, il our inquiries
reveal shocking ignorance of financial
craftsmanship, pardon us.
Firstly, of the gentlemen who run the
money end of the cities and of the United
States we would ask: When you want
money, capital, to do national or munich
pal business, why don't you ask us for itf
Why do you hunt up banks or brokers2
They turn around and get the money
from us; why do you not procure it from
us direct?
When New York's Mayor Gaynor was
asked why he borrowed from banking
firms wherewith to build the subway, he
replied, where would you get the mon
ey? From cobblers ?"
Why not. if the cobblers have it?
If you want several millions with
which to build canal, or subway, or
court house, or any public work, why not
issue the amount in securities, of from
$40 up, and sell them to the people, over
the counter, as potatoes are sold?
Haven't you made good citizen and
spoiled an anarchist every time you have
induced a man to lend money to his city
or nation?
And you, railway magnates, why not
put your fodder down low enough for the
calves? Why not issue your securities
in 800 bonds, advertise extensively, and
get the masses interested in your enter
prise? Railroads need friends; and is
there better friend than the man who
has one of their securities?
There is plenty of money in this coun-
try. Why not go after it in the simplest
most direct way? Offer it to the people.
The experiment of selling bonds over
the counter" in small denominations has
been tried. In some places it has been
successful. In those instances where it
has failed, the cause usually has been too
much red tape, or other mismanagement.
Particularly in the case of the nation
and of municipalities, what Is the need
of a go-between? Why not go directly
to the people?
We have noted, with lively interest
that the British government has made
its first democratic loan, going right past
bankers and all other middlemen and Of
fering its securities directly to the
people, especially to workingmen.
1t gives the unprecedented interest
rate of four and half per cent.
For the first time on record English
government bonds have sold in denomi-
nations less than f10O or $500, the size
of which always excluded people Of small
means.
1t advertised the loan in newspapers,
on bilboards, and by public meetings.
If this is good in time Of war, why not
in time of peace?
The esteemed money-power is for
midable and mysterious organization;
but this country is for the people, and
why not give the people a chance at
something besides wildcat investments?
At the close of our civil war, when the
country was in far worse financial straits
than now, Jay Cooke undertook the job
of financing the United States. He drove
right at the business in q way that gave
the high financiers the chills. He adver-
tised, he appealed to the workingmen, he
issued securities in $50 denominations,
he went directly to the people. In con-
sequence ''he tapped reservoirs OF capital
which the more conservative element did
not believe existed"
And $7OO. 900, 900 of seven-thirty gov
eminent notes were sold in lao days.