Show I OTHERS VIEWS MAYOR ROAN HOAN ON CITY FINANCES Dear Editor The following communication from Daniel W. W Hoan Honn Mayor of Milwaukee will wUl be of interest to the readers of The Record at this time Frank Connor Text of Mayor Hoan's Com Corn When the banks get Into I trouble they go to the govern- govern I ment mente The government obligingly obliging obliging- ly gives them loans protects them em I against withdrawals and in other I ways extends them a helping hand o When cities get Into trouble as many cities clUes have they must go to the banks They must borrow borrow bor bor- row money for which they pay interest Now where do the banks get their money First they buy U.S. U.S. U. U S. S Bonds which yield about four i I per cent interest Then they de deposit deposit de- de j de-j posit these bonds with the Comptroller Comptroller Comp Comp- I of or the Currency in Washington Washington Wash Wash- Wash Wash-I ington and are given in return the right to issue an equivalent I amount After issuing I of or currency I lIng lug ing the currency they loan it to the cities firms and individuals I I getting an average of six per cent I In other words their manipulation I tion of money with the aid of the i I government nets them ten per percent I cent profit I What I woul dUke to know Is IsI I II I this why cant can't the cities be given the same right to issue currency by depositing their bonds with the I comptroller of currency in Washington Washington Washington Wash Wash- ington Milwaukee would save I in interest in fifteen I years and would be able entirely to pay payoff off its debt I Municipal bonds are fully as asgood asgood I good as government bonds If not better They are a first lien Hen on onI all of the e taxable real estate in the I community Why then should cities be at the mercy of banks S when they ought to have the right to issue currency with which to toI I finance their improvements and thus free themselves from the burden burden burden bur- bur I den of interest I IThe I I The Wisconsin League of Municipalities Muni I has adopted a resolution I to this effect and I have referred the matter to the U. U S. S Conference of Mayors of which I am a trus trus- ru te tee I |