The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-07-29
Terms $500 pen. ann,.ns, In aa,aace
The Cost of Unser,.,u.x

We commend the following article from
the New York Post to every Republican who
feels himself travelling Pendleton-ward. II
ought to prove complete antdote:
Inc average rate of interest at which per-
10y soivent borrower can obtain money in
cent. pe'
II Is True mat the rate of interest Is now
iu1'eu at ihueh lower rate, and often at a
rs '.a. o' ns pue tnese quotations represent
months bills, and do not represent the RATE
OF interest at which capital can be borrowed
tor long term OF years.
In England the rate of interest M which
money can be borrowed on MORTGAGE for In
dustrial purposes is seldom less than Eve nor
cent; but, as we have said, an undoubted
government bond bearing interest at four
per cent. per annum will bring par in Eng
land, if not in Germany. .r- 7-...
We may therefore say that whatever we
pay for loans above 4per cent. per annum is
not interest, bat guaranty or insurance
charged by the lenders to protect themselves
against the risk of the loss of the whole or
part OF their capital.
Neither the bankers of Frankfort nor those
oi London have any doubt OF the ability of
the United States to pay their debt, or to
meet their annual interest and yet the bonds
of the United States sell at 73 in London;
this quotation being made in gold of a higher
standard than our coin, the true quotation in
dollars is little under 80.
That is to say, an English banker will give
gold enough to make less than so American
dollars Tor the promise OF the United States
10 pay hlm 100 American dollars at future
date, and In the meantime to pay him dol
lars year interest.
Six per cent. on 100 is equal to I 1-2 per
cent. on so. The Engishman and the Ger
man are therefore wiling to lend US money
at the rate OF Z l-2 per cent. which they
would lend us at per cent. if our credit was
undOubted.
We therefore pay per cent. per annum
interest and ) 1-2 per cent. per annum guar
anty. ..-r - I'D. .
Why do we pay this guaranty? ....
How much does it cost?
Who pays it?
lit be true that no sane man doubts the
ability OF the United States to meet their
promise, then the doubt must be as to our
will. In other words, the Englishman and
the German suspect that we will cheat them.
How much does it cost?
Our interest-bearing debt is over $2000,-
100000; our interest in gold is over $l20, ,000,-
eOO per annum. Yet it need not be over $780,
100000, except for the suspicion of our good
faith cast upon us by the false leaders and
their followers.
Forty million dollars year, in solid gold is
the cost Are such men as Butler and Ste
vens cheap or dear? Every man has his price
it is said. Truly these are high-priced men.
They ought to be models of all the virtues.
They cost many times their weight in gold
every year. ...- -5.. I'D. .....
Who pays it? The "bloated capitalists?"
They laugh in their sleeves. They know
that the people OF the United States will
learn, by experience. that they must be hon
est whether they will or not. They know
that reputation is practically impossible and
in the mean time the guaranty pays! They
know that it is the tinid and ignorant only
who are prevented from investing in bonds
which must be paid, or anarchy and utter
confusion rule. Uvf. .H
1t is the mass Of the people. the consumers
Of taxed products, who pay this S400OOOOO
pee annum cost OF being cheated and made to
wish to cheat.
Most OF the capitalists who hold bonds per-
manently in the United States are depositors
in savings banks, trustees who own bank
stocks, fore-handed farmers, and the like, to
whom the high rate would be great benefit
mjustly earned.