The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-23
MAROTT URGES
BOND ISSUE TO
BUY U. S. SILVER
City Financier- Merchant
Sees Solution for. De-
preston Ills.
Continued From Page II

loans. which may not exceed IS per
cent OF the normal value Of prop
erty. real estate or securities loaned
thereon.
The federal reserve system. by an
act Of congress. can not make such
loans to any borrower TO make an
interest charge Including all
charges) IN excess Of 7 per cent per
annum. The majority OF such loans
easily could be made with safety at
rate Of from 5 10 6 per cent per
snnum.
II the American mines could pro-
duce $1,000 100000 Of silver and the
government should make the pur-
chase OF such mined silver. with
bon- issue having pc cent per
snnum interest. the silver being
loaned BY the federal reserve sys-
TEN at AZ per cent. upon ample Sc
curity, as above set out, it would
give the solvent borrowers Of said
silver a profit ranging up to 81
per cent in loans TO the public.
This would put our government
on basis Of l00,000,000 a year
profit. which would retire the bond
issue by a sinking fund in about
thirty-five years, and result in
total profit 10 our government.
Would Show Profit
In other words the sinking fund
of s1O0000,000 year could be used
in purchasing other outstanding
bonds Of the government which are
at a higher rate of interest, thus
relieving a burdensome cost TO the
government in interest charges. If
so regulated by law, the entire bond
issue. which may have all silver
purchased up TO $1,000. 900 900,
the total money outstanding, would
be a total profit to Uncle Sam, just
merely for the governments re-
sponsibility to redeem.
This would result in very bene-
fetal economy Of government to all
the people. A further consideration
of such enactment would be the
fact that the banks of the United
States could be benefited with in
creased circulation by the right to
deposit with the government the
aforementioned bonds. in which
they shall have the right Of bank
money circulation. which. with the
2 per cent interest the government
pays, and the legal right to loan
at 7 per cent, would permit an
elasticity. with safety of profit, TO
the banks from the 2 per cent upon
the bonds and up to per cent upon
the bank circulation.
Bonds as Low as $50
I further advocate that these
bonds shall be issued in denomina-
ton as low as $50 so that any work
ing man may make a savings account
with them, and also may make pur-
chases Of said bonds, instead Of
boarding his small savings. as under
present conditions.
I also believe that such bond is
sue, recognized as money, would be
accepted by merchants throughout
the United States in transactions Of
buying merchandise or any other
kind Of obligations, and pay the in
terest accumulated thereon to the
owner of such bond.
am convinced sincerely that I'M
less there be destructive purposes
by crucifying goldites) this bond is
sue would hold at par and be ac-
cepted with our present money unit.
Our governments per cent bonds
issued before the war, that carried
the right of national bank circula-
ton. sold at a premium. Why not
now!
In the financial dilemma which
now covers the world. I understand
that twenty-three nations Including
England, which nation before the
war was the center of the worlds
finance) have gone off the gold
basis.
Commerce Is Injured
These twenty-three nations have
billion population, more than one
third that Of the world. and these
people now are suffering, with their
silver money being depressed to
about one-half its value two years
ago.
This leaves these nations unable
to make purchases, and impairs in
ternational commerce. If silver the
world over was in value at least
thirty ounces of silver to one ounce
OF gold, I am sure this outrageous
panic rap dly would mend.
1t is said the World war cost a
total of approximately $4,000 .000.-
600. and much of it yet is unpaid.
Following this, our bond and stock
markets, through exchange opera
tions. have deprecated more than
100000 900 900 in the last three
years.
Besides this, we have $900O0.00o,-
0O0 increased capital investments in
the United States since beginning
OF the war. These three facts have
very much to do with our present
financial disaster, and in crushing
The price of silver below so cents on
the dollar of its value two years
ago means billions of depreciation in
buying power, and leaves the
Sill zoo, 100000 of gold taking over
all other assets and forcing values
down to 5 to 20 cents on the dollar.
II the present disastrous conoi-
ton is left open, the damage can
grow many fold. Hence the emer-
gency for governmental action 10
put silver threads with the gold"
for the good Of our country and the
happiness of all peoples Of tho
WLr.5.
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