| Show Congressman Urges U. U S. S Earn Way Out df of f Debt I By j Its Its' 12 Federal Reserve Banks I By Bj William E. E Lowell 1 WASHINGTON April 6 fl- fl JF If the power to issue money were restored to congress and if it the government owned the 12 federal reserve banks the American people people people peo peo- could earn their way out of ot the huge national debt Representative Representative Representative Voorhis D D. Cal Cat declared Thursday But Voorhis fears f ars that only the imminent threat of a national fi financial financial financial fi- fi debacle w will f 11 awaken enough interest to accomplish what he calls this simple solution solution solution tion of the nations nation's financial problem lem lern However he has introduced two bills to accomplish this purpose and from time to time he addresses I the house on the subject People are just overawed over ov r awed by bythe bythe bythe the subject of money he told a reporter They seem to think theres there's something terribly something terribly involved about it Really its it's easy to understand un un- I Senator Murdoch D D. Utah also a student of monetary matters matters matters mat mat- has made the same comment and he like Voorhis believes the government only should issue money Under present methods Voorhis Voorhis Voorhis his when the federal re re- serve board believes that addition 1 additional 1 al money is needed in circulation it purchases government bonds from the private commercial banks transfers the bonds to the portfolios of the 12 central federal federal federal fed fed- eral reserve banks thereby putting putting putting put put- ting more ready cash into the hands of ot the banks to replace the interest-bearing interest securities N When such an exchange takes place the size of the public debt is just as great as it was before Nothing has happened except that we owe the money to the private 12 central banks instead of to the private commercial banks If the 12 central banks be belonged to the they I government these bonds could be retired Voorhis estimates that the average average average av av- av- av I growth of the business the commerce and th the production of the United Up States has averaged about 4 per cent a year over a period of time Earn Way Out If If that 4 per cent increase takes place It is my contention he said that the nation as a whole has a right to a 4 4 per cent expansion expansion expansion ex ex- of money in circulation without the Incurring of additional debt That 4 per cent increase should be accounted for as net income income in income in- in come to our treasury for the benefit benefit benefit ben ben- of ot the American people without without without with with- out tax burden in order to maintain maintain maintain main main- tain a balance between the volume of the circulating medium on the one hand and the volume of real I goods and services on the other I 1 I Thus were we to apply this one rule over over- overa a period of time time- the American people could earn their way out of debt simply by increasing their production of ot real wealth One of the Voorhis bills would I I substitute bearing certificates certificates certificates for the interest-bearing interest bonds the government now issues The 12 central banks would be re required required required re- re to purchase these certificates certificates cates on the same basis as they now purchase the bonds bonds by by issuIng issuing issuing ing credit in favor of the government government government govern govern- ment for the face value of the certificates It would provide that no interest-bearing interest certificates c cat a t e s could be sold to any bank or financial financial finan finan- cial institution except for cash |
