The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-16

what YOU owe me! Your property
is still worth the debt. If you
have played in hard luck l VIII
gladly give you more time ana
even go so far as to let you OH
with half the interest, but you
can not reasonably expect me 10
let YOU off of half the principal
but you say. "Half the princlpal
lis worth more now in purchasing
power than all of It was WortG
when I borrowed" 80, my gooo
friend, but how am l to Know
what the purchasin~ power Oh my
thousand dollars will be at the
time YOU say you can pay only
half of it. Suppose the currency
were inflated, or that much gold is
discovered, or silver is money
tized, would it not be reasonable
to suppose that at the time you
propose to pay me only $500 that
that $500 in the medium in which
YOU NAV have a. that date the
right to pay it might not be worth,
in comparison to the present date
at which you want me to agree to
take $500 years hence, as mucA
as 5000. Would it not be better
for YOU to request of HE the low
ering of my interest rate upon
the present basis Of the worth OF
money and reasonable extension
of the time in which to pay than
to make such demands as you are
making?
"But 1 say, you fail to take
into consideration the fact that a
taxpayers strike might prevail
over the country or the economic
pressure otherwise get so tense
that a general breakdown might
wreck our whole financial struc-
ture and by such an agreement as
I propose. if carried throughout
the debt structure, we might be
enabled to not only avoid such a
catastrophe but put pep and CON
fidence in the people, whereby
they would be encouraged to car
~ on, and through such psyckoI-
ogv provide the foundation OF
business recovery whereby all OF
us. YOU and the rest of us, would
be saved from business stAgna-
ton and long period of business
ills, only to be followed by years
of business convalescence.
"That would be good way 10
look it it. my friend, if you were
not compelled to look at another
angle which you have not APP
preached. Surprising that ! agreed
with you and set the pace for u
general scaling down of The
bonded debt q suppose you I'M
derstand that what ! might do for
you l would have to do for ALL.
My bank holds so many thousands
of dollars of your bonds or bonds
of your state or other state on
local bonds. How long will my
bank last when my investments
shrink to soc on the dollar? My
bank will fail and my depOsitors
will probably lose most of their
savings and great suffering and Il
further lack Of confidence de-
velop. Then. too, my life and fire
insurance company are heavy IN
vestors in your bonds, or like
bonds. If these holdings drop to
soc on the dollar my companies
must fail. What, then goes with
the premiums you have paid these
companies to protect your families
against the ravages Of fire, and
what to those hard earned dollars
that you have intrusted with nc
to protect your family from want
III case you pass out? 1t will be
all wiped away. Then, too, you
must remember that when your
bonds are known to be worth at
time of redemption, under your
plan, only soc on the dollar. what
effect will this situation have on
your government bonds? viii
they not go down by reason of
the shrinkage of your state and
local bonds. What will the small
investor do who has many Of your
state and local bonds, when he
finds he is only going to get half
interest. and that uncertainty, and
only half the principal when it
comes due at a time projected
into the future greatly beyond