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61 A.B.A. J. 47 (1975)
Abolish Paper Money and Eliminate Most Crime

handle is hein.journals/abaj61 and id is 49 raw text is: Abolish Paper Money and Eliminate Most Crime by Stuart M. Speiser Crime does pay-but only in cash! By abolishing paper money most of the crime and corruption in the United States can be eliminated. A payment card system is no longer a mere science fiction concept, for the technology to create a system that can root out the profit motive in crime exists today. p APER CURRENCY is the lifeblood of crime and corruption in the United States. Without paper money, it would be virtually impossible for criminals and corrupt officials to profit from illegal activities. If all substantial transfers of money were recorded in bank transactions, nobody could conduct profitable illegal activities without creating highly visible permanent evi- dence of the illegal activities or of income tax evasion or both. With the chances for profit from illegal activi- ties so slim, it is difficult to visualize large numbers of persons running the risks of imprisonment. Crime would be reduced dramatically to, the point where today's police forces could effectively control it. Fortunately, technology has advanced to the point that today there is a substitute for paper money: a pay- ment card system keyed to bank accounts. Each person wishing to spend money other than coins, which would remain in circulation, would be required to have a bank account. The bank or the federal government would issue to each depositor a United States payment card similar to plastic credit cards. In addition to the necessary codings, each card could contain the photograph and fingerprint of the depositor if this were considered desirable. Every business establishment, including taxicabs, would be equipped with a terminal in which the pay- ment card could be inserted. This terminal would take the place of and probably be cheaper than the cash register. A customer purchasing a pair of shoes at a retail store would present the card to the salesman or cashier, who would ring up the amount on the ter- minal. The terminal would make a visual display of the charge so that the customer could see the exact amount being deducted from his bank account. The customer would then insert the card into the terminal and the computer system would record the entire transaction, giving a record of the name of the sales establishment, and immediately transferring the amount from the cus- tomer's bank account to the bank account of the retail store. In the event that the customer did not have the amount in his account, the terminal would so indicate. There are many sophisticated modifications of this system that could be developed, but the above gives the basic outline of how most transactions could be han- dled. Of course, there would be a continuing need for the use of checks in larger transactions. The checking system would be continued, since checks are rarely used in criminal transactions. It probably would be desirable to have payment cards tied in with the telephone system. This would enable each depositor to determine his bank balance at any time by simply inserting his card in the telephone and dialing the proper number. The telephone system also should be equipped to make payments and trans- fers, so that two, individuals dealing with each other in a transaction that might otherwise require paper currency could simply go to the nearest telephone and transfer money from one account to another. Newspapers, snacks, local transportation, and other inexpensive items can be purchased by coins, which would remain in circulation in small denominations, or tokens. However, it would be desirable for taxicabs to be equipped with mobile terminals for payment cards, since they are the target of many robberies. Advantages Outweigh Inconveniences No, doubt this system would cause a few minor in- conveniences to people who are accustomed to using paper money. If we scan all our uses of paper money today, however, it is obvious that the major legitimate use is for retail sales transactions. Even in retail sales, a very large dollar volume is handled by charge ac- counts, checks, and credit cards. Certainly this is true of the purchase of automobiles, major appliances, transpor- tation. and other high price-tag items. Probably the ma- jnr legitimate use of paper money is for the purchase of food. Fortunately, the supermarkets which do most of the nation's retail food business are ideally equipped for handling a payment card system, and they would welcome the chance to eliminate the accumulations of cash that make them a prime robbery target. We have taken for granted the use of paper money. January, 1975 e Volume 61 47

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