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

the Reserve Bond Account for that
purpose.
Under these plans, those pos
sessed with wealth cannot lose their
life's savings through the rascality
or mismanagement of any bank OF
banker, and at the same time, any
man entitled to credit can borrow
money from his local bank when
needed. This will not mean that
you can get something for nothing
but it does mean safety and a sound
banking system.
With $25, 5,000,000,000 in money
at the disposal of our nations
banks, you will never again be un-
able to finance local enterprise.
The National Banks (your local
bank) in making loans on Real Es-
tate on notes to be rediscounted by
the Reserve Bank, must not loan
in excess of 500 of the assessed
valuation. Local banks will be
obliged to carry all their own paper
on loans made without real estate
security, and under these cond.
tions, bank failures will be seldom.
THE TEN YEAR PLAN
AS an experiment, it will be we'll
to issue these bonds on ten year
basis. If we continue on a single
GOLD STANDARD, then these
bonds will be redeemable in Gold,
ten years after date.
On this basis, we will not face
the crisis that England now has
passed through, as these bonds can
not be exchanged for gold until the
bonds have reached maturity and
our citizens will have no oppor-
tunity to hoard or hide gold from
circulation as was done in England.
Before maturity of these bonds,
our Federal Government will bal
ance her budget and collect tax suf.
ficient to pay off all outstanding
bonds, if any.
If we decide on Double Stand
ard, these bonds would be payable
in Gold or Silver at the option of
the u. S. Treasurer.
WE MAY NEVER USE THESE
BONDS
This increase in currency and
strengthening of bank credits will
naturally have a tendency to in
crease barter and trade, to insure
safety in the opening and operating
of local enterprise. Instead of
making real estate a poor asset, it
will strengthen the demand for
real estate.
We must demand an improved
system of Bank Examination, ex-
aminers must be more carefully Sc
lected and chosen for their ability,
not to pay political debts; the ex,
aminer must assume more respon-
sibility and be given more au-
thority.
Unifcation and Capitalization of
examinations by expert account
ants would be advisable. Laws and
penalties governing banking in all
its branches must be strengthened
and enlarged.
Bank examiners should have au-
thority to remove from office such
bank officers or directors who are
guilty of violations of the banking
code and those who persist in prac-
tice of unsafe and unsound risks;
this power to remove from office
would have tendency to lessen
bank failure.
The Federal Government should
examine and scrutinize
the past history of bank officials
seeking to affiliate with the Ma
tional Reserve Bank System, and
prevent the establishment of new
banks in localities where existing
provide necessary bank
ing service. Chain banks shall be
GOLD AND SILVER THE DOU-
BILE STANDARD
If we desire to compete for the
worlds markets, we must stand
ardize Silver. How can that be
done?
Our Nation now owns almost half
of the worlds gold supply, and 9TH
er nations owe us the other half
we are in a position to
talk turkey to other nations, and
where we lead, others will follow.
If we do declare a Double Stand
ard, what will be a fair ratio be-
tween gold and silver? To be fair
to other nations, we cannot place
the ratio on today's market value of
silver, and in justice to ourselves
we must consider the ratio on a
basis of Quantity, we must learn the
amount of the worlds
supply, in ounces, or pounds of both
gold and silver and then decide on
a fair medium. If the total worlds
supply of Gold and Silver was at
the ratio of 16 ounces of silver to
each ounce of gold, then 16 to /
would be fair DOUBLE STAND
ARD VALUE. My Investigations
show the following results:
The worlds production of Cold"
is approximately 19,500,000 fine
ounces per annum. I'm 1929 it
was 19,496,721).
The worlds production of "Sil-
ver" is approximately 255,0O0,OO0
fine ounces, annually; on this basis
the production of silver on a ratio
with gold is less than IA to i.
The present market value of sill
yer is on a basis of 76 to /.
II We base our currency on a
basis of present production IA to l, +,
we know that Silver production
would increase, as many silver
mines are idle, but would resume
operation on the new basis; there