The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-02-13

department certificates Of Indebtedness,
properly endorsed, for the full amount
Of the debts. The secretary OF the
treasury would be authorized TO coun-
tersign them and distribute them TO
banks IN this country through the fed
eral reserve system.
Travellers Would Estimate Expenses.
a tourist arranging for passport
would be required TO estimate the
amount to be spent in a debtor coun-
try and also include steamship fare;
that amount Of certificates would be
sold to the tourist TO be used TO pay
fares, whether on a foreign or Ameri-
can line (American lines could use
them in paying foreign bills), and to
secure the currency Of a particular
country by exchanging them at the
banks upon arrival there.
1.-The debtor governments" O'Bryan
continues, would agree to refund the
certificates in specified smounts and
in place of them issue long term bonds
Of equal standing with other obliga-
tons Of the government incurred for
any other purpose.
The United States treasury would
be required to hold moneys raised By
the sale of the certificates In a fund
to retire the outstanding government
bonds Of this country. The result Of
this process would amount TO the debts
being liquidated in this country; and
at the same time they would be trans
fered into the form of long term in
ternal obligation Of the debtor-as
compared to an external long term OBJ
legation as they are now. The process
would go on until the entire amount
of the debts was liquidated; and the
results obtained in this way would not
require the transfer Of gold and the
attendant disturbing influence II has
over credit facilities in the debtor ma
tons"
The young author OF the plan points
out that additional benefits would &C.
crue TO the debtor nations, for their
tourist and travel business would be
stimulated without additional sales
promotion cost. Part Of the increased
taxes Of the debtor nations population
would be returned as profit upon this
| assumed increase in business.
Marketing the Certificates
O'Bryan is dabbling with several an.
giles Of the plan which would stimu-
| late travel by Americans. For in.
stance, If the writer follows him clear.
| ", he suggests that the part Of the
| United States national debt that re
suited from the war loans be kept In
| a separate account. percentage OF
every annual direct federal tax would
| apply on the liquidation Of the wal
debts: the citizen or corporation paying
the tax would be issued travel certif
Gates for an amount equal TO that per
centage of the total direct tax paid
| If the person or persons TO which Ger.
tifcates were so issued did not care to
| make use of them. the certificates could
be sold on the open market for what
| ever price they would bring. Thu:
| Americans wishing To travel would bs
able TO save money by purchasing Ger
| tifcates at the market price. which
would certainly be at discount from
the actual value in foreign currency
There would have TO be some sort o.
regulation. Of course. for If half o.
| America suddenly decided TO go abroad
encouraged by the cheapness Of travel
debtor nations would find ii difficult II
meet the certificates with an exchange
| of their own money.
In speaking of our travel expendi
lures in the debtor nations. O'Bryar
perhaps unfortunately misuses Tbs
word tourist" Tourists actual!
make I'D less than half Of the Amer
leans who travel abroad. and If hi!
plan would work at all, the certificate
would be attractive 70 al classes o
| travel.
In determining a representative
working figure of expenditures
O'Bryan takes the mean travel ex
penditures and immigrant remittance
in debtor nations for the years 1927
1929 and 1881. which Is an annual 10
tai of about one-third Of a billion dol
lars for all the debtor nations com
bined. On this basis he estimates tina
the debts Of all nations except Bel
GUM and England could be liquidate<
over a period OF about s. years
G Western Nevspap~ Union