National Republican. (Washington City (D.C.)) 1872-1888, 1877-06-25
TIE POPULAR CHARACTER OF THE
NEW LOAN.

The sale by the Government of S25,000,-
900 four per cent. thirty-year bonds was an
event of marked importance in our financial
history The fact that they were taken ut
par with so low rate of interest is graft
flying evidence of how firmly our national
credit is established, especially as, the great
Empire Of Russia is now begging the world
to take her loan at seventy cents. The sue
cess of this loan renders it certain that the
provisions Of the resumption act can be car
ried out, and that at no distant period we
will have an unfluctuating currency upon
which the business prosperity Of the country
can be restored.
A new and most important feature of this
loan is that for thirty days the public are
to have the privilege of taking the bonds at
par. This is movement in the right di-
rec,ion, but VIC fear II will not be of much
practical advantage to the people, owing to
the fact that the period allowed for popular
subscriptions is entirely too short There
are many millions of dollars held by people
in moderate circumstances which they
would be glad to invest in these per cent.
bonds, especially if time were allowed suifi-
ciept to explain to them the advantages of
this Investment Besides, thirty days is too
brief period within which to change in
yestments already made, and even of
people who have money in hand, many will
| not be able to learn within that period how
they may get hold of the new bonds, owing
to their want of familiarity with financial
transactions Of this kind.
II il a matter Of very great Importance
| that this four per cent. loan should be pOpu-
larized but in order to accomplish this re-
suit ample time should have been given to
the people to study its advantages, and plain
/ instructions issued rs to the mode Of pro-
curing the bonds. Very just complaint has
been made that by the terms of the adver-
tisement the thirty days was made to begin
upon the very day it was issued, instead OF
giving reasonable preliminary period fol
the public to receive full notice. Such a
course does not indicate any anxiety 10 give
the people chance to get these bonds at
par. The syndicate doubtless desire tina,
the public subscriptions may be as small as
possible.
Under such circumstances, therefore, there
IL no probability that the popular subscrip
tons to this loan will he success This il
to he deeply regretted. If this measur,
could be carried out in good faith, it woult
do more than anything else to give the PEG
pie an interest in the stability of the Gov
eminent, and in its judicial and economical
management. The interests Of all classe
of citizens would be closely bound up will
those of the Government, and this countr,
would become nation in realty as well q
in name.
We earnestly hope, therefore, that som
means may be devised by which larg
portion of the S7OO,0OOOO0 four per cent
bonds which the Government proposes (,
issue may be placed in the hands of tn
people The sum is not greater than tn
surplus earnings of the people, which woulI
gladly seek an investment SO safe, were
} plain way opened for doing it, Millions o
dollars have been lost by wOrkingmcI
=, through bad Investments which might hav
been saved to them had system been de
yised by which they could have placed thei
savings in the custody of the Government
Besides, nothing would do 50 much to en-
courage industrious, economical and thrifty
habits among the people as the assurance
that their surplus earnings could he so In
vested az to be absolutely safe.
/ There are many considerations in favor o
, the policy of making such change in tn
financial system of the United States rs /,
make it rest entirely upon popular support
, This might be effected by establishing
? fiscal agencies of the Government in ever
l city having over ten thousand inhabitants
These agents should at all times be pre-
pared TO issue bonds of small dcnOmina
| lions to persons who wish to invest thei
e surplus earnings 1t would still furthc
: promote the public interest if these bond
/ were made exchangeable at any time wit
2 these fiscal agents for currency, under sue
{ regulations Us would prevent an OyerdraI
upon the Government in extraordinar
emergencies. In ordinary times gener