Morgan County Democrat. (McConnelsville, Ohio) 1886-1943, 1931-11-26

any nature between the peoples,
states and National Government of
the United States.
We should have legislation pro-
viding a penalty for refusing to ac-
cept this currency as legal tender.
HOW MUCH CURRENCY
DO WE NEED?
One question to be decided is
. this: How much currency does this
nation need to do a safe business
and avoid future money panics?
! We must consider that during all
of our season of prosperity we had
in circulation, many millions of
dollars in Government Bonds, and
while these bonds were not exactly
currency, they did to a certain ex-
tent aid the currency situation.
There was never time during the
past ten years that you could not
take a $4,000 Government Bond to
your Furniture Store and exchange
it for Furniture; there was never a
time that you could not use $1O0.,
90 Government Bond in the pur-
chase of Real Estate; while these
| bonds were not intended as money,
| they did to certain extent take the
place of money, and if 1T had not
been for these bonds our money
system would have broken down
| long before the Stock Market
Crash
In 1929, if this nation should
, have had adequate currency for
business needs much of our present
troubles would have been averted.
l will explain: All the available
| money of the nation was rushed to
Wall Street to be loaned at high
! rates of interest as call Money"
and was used in the Gambling Ac-
tivities of the Stock Market, hence,
there was not sufficient funds in the
local banks throughout the country
to finance the building industries Of
the nation. All local enterprises
were postponed and our money
loaned to the Gamblers of Wall
Street. Now to get back to cur Cur
rency Needs:
Owing to the size of private for
tunes now held in this country, we
should have at least five times as
much currency as we now have; as
we now have approximately Five
Billion, we should have 25 Billion
to be used as an experiment.
My plan, in the rough, can be ex-
planned as follows:
The Government will print and
engrave certificates of indebted
ness (Bonds) to be used as legal
tender, similar in size and quality
to the paper money now in use, to
the extent of 20 Billion Dollars;
this money will be placed in sep
arate or individual vault in the U.
S. Treasury and on the Ledger of
the U. S. Treasury will appear this
new account Bond Currency Ac.
count" This account will be treat
ed as the merchant treats his cash
account in double entry book-keep
ing; cash received or cash on hand
showing on the debit side of the
ledger, hence this new account will
start with $2O,000,OO0,0OO as cash
on hand, or on the debit side of the
ledger.
How will this money get into cir
culation?
The Government pays no taxes on
these bonds, and these bonds or this
money is treated as RESERVE, the
Government will continue to collect
revenue and try to keep her budget
SO that her expenditures
will not exceed her income, but in
stead of issuing tax exempt, interest
paying bonds, when in need of
funds, the necessary amount is TAX
en- from this Bond Currency Fund,
and the ledger account under the
heading of Bond Currency account
will show the amount withdrawn
charged to the U. S. Government,
and credited on the Bond Currency