The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-03-01
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EXPLAINS "BABY BONDS"


considerations by the. city and
county unofficially, and by the
merchants and Citizens of Key
West and Monroe county.
The purpose of baby bonds and
coupons is to relieve the depres-
sion under which, not only Key
West, but all the country, north,
south, east and west is struggling
and suffering.
1t is the published opinion of
such authorities as Professor Irv-
ing Fisher, economist of Yale, and
by other economic writer's of note,
that only by increasing the cir
culation. by some medium of ex-
change in addition to present cur
rency, can relief be had from the
present almost intolerable situa-
ton.
A self-liquidating script has
been tried in Iowa, and it was a
great help, although the only
medium of distribution was
through the salaries of city en-
ployees, the payment for goods
purchased by the city for NUM-
cipal supplies, and building of
some roads and repairs of others.
In fact for city expenses, debts
and emergency employment only,
a very limited distribution, when
as a matter of fact, all the peo-
pie need help, not part of them.
There, are many real objections
to the script idea, in addition to
the limited scope of distribution
described. There is the possibility
that the merchants and citizens
will not cooperate. While back of
baby bonds and coupons, is the
credit of the city, county or school
board, backed by the pledge of
the merchants and citizens that
they will accept baby bond
coupons, and pass them on, pay
ing in so doing, a voluntary sales
tax collected automatically in
spending the coupon.
The coupons being issued in
one dollar and in fifty cent units,
the making of change is simple
and at no time requires any con-
siderable outlay of cash. And
the whole people take part in
paying the small tax, not the
merchant alone.
With the use of baby bonds,
the entire public debt, city, county
and school can be paid in full and
soon, and the relief at once is
bound to. be great.
A Merchants and Citizens As
ISOLATION organized in Key West,
with a board of directors Of Mon
roe county citizens, with a bonded
trustee to manage the business in
cooperation with the board of
directors, can:
1st. Take up county war
rants at par.
End. Take up city war
rants at par.
Bird. Take up school war
rants at par.
| 4th. Can distribute funds
in any safe way, such as.
.householders note for inn
provement of property, small
/ personal loans, where prop
/ erly secured, and too small to
| interest banks.
5th. In any safe and sane
manner that meets the APP
prevail of the board of direc-
| toys and the manager
| trustee.
| And, while the money buying
4 the redemption certificate STAMP
used to make the coupon self.
liquidating, is out of circulation
| for, a short time, just as soon a:
| fully stamped the coupons will BIZ
| paid at par at the office of the
| Merchants and Citizens Associa
| ton by the manager-trustee, thus
Iputting the money back in cir
| culation.
| Baby bonds with self-liquidatins
coupons are absolutely new, anC
| the idea of having self-liquidatint
coupons is original and never be
| fore used in the manner proposed
i The good effect of an increase,
medium of exchange is too wei
known to need comment here
And the fact that the coupons d,
their duty and are then retire,
! from the field, paid up and re
deemed, is all in their favor; ant
the taking up of the city, count,
and school debts, all of them ant
cancelling them all and turning
them over to the organization tina
issued them marked paid, can ant
viii reduce the overhead of gov
eminent expenses materially .ant
enable them to reduce taxes: AMI
in that way reduce the burden Il
the citizens. or in other words, Il
the Merchants and Citizens AS
] ISOLATION. thus reciprocating il
kind.
4 1t has been suggested by sons
| financial writers of note. that m,
idea is good and sound and shout,
succeed, and that the government