The advocate., 1891-01-28
MORE BOND JUGGLING.
Irrom the NallOnAI EeOn0mIat.

MORE BOND JUGGLING.
From the National Economist.
Senator Sherman, from the committee
on foreign relations, reported the sub
gtance Of the following bill 90 an amend
ment TO the Nlcaraguan canal bill OF
February, 1889:
The capital stock Of tho company 10 TO 30
limited 10 Si0O,000,000. The existing STOCK
and contracts OF tho company are 10 90
made 20 conform 10 tho requrement OK Jh9
bill. To secure the means 10 construct ana
complete the canal tho company is author.
ized 10 isgued bonds la denominations OF
moi lees than 500 nor more than $1,000 TO
am amount not exceeding Bl0O,O0OOO, 10 DO
dated January 1, 1891, and 10 be payable
January 1. 1891, with interest nc tho rate OF
three Der cent, payable quarterly. The
bonds are 10 be- secured by q first mortgage
on the property and rights Of property OF
the canal company, including all cOnces-
si0ns and franchises, and the mortgage Is
10 be 30 framed as TO be hrBt lien under
the laws of Nicaragua and Costa kica' Inc
bonds are TO be printed and deposited IN the9
United States treasury, and are 20 be issued
by the secretary and treasurer TO the COM
pany only as the work on the canal pro-
crosses. The bonds are TO bear the guaran,
tee OF the United States for principal ana
interest as ID accrues, and the company ~ 10
issue no other bonds. The secretary 10
authorized 10 pay the interest on the bonds
aa Il becomes due II not paid by the COM
pany, and an indefinite appropriation Tor
the purpose 10 embodied in the oiu' IL bne
company fails 10 pay the interest as II rails
due, and upon the payment thereon Dy the
| United States, the company 10 required 20
nav to the United States the amounts paid
by the United States on the guarantee, with
/ interest annually at 4 per cent, until paid
For sums paid by the United States under
Che guarantee the United States 10 to be
gubFoRated 30 the rights under the mort
| GAGE which the bOndholders would have had
| if the same had remained unpaid by the
company and had not been paid ny the
United States.
The same old scheme by the same old
manipulatoTs. When the bill passed In
1880 everyone acquainted with leglsla
tive methods knew that 1t was simply
the fOrerunner Of the one given above
II ls simply another Pacific railroad
dodge TO plumber the people. The gov
ernment was asked TO guarantee the
bonds and interest Of these roads, anc
did TO the amount Of S94,09S,512. Since
which time the government has paid
S96,S69,909 as interest, Of which $62,965,
500 remains unpaid by the roads, making
a total to date Of Sl28,SS6,tl1 as prInCipa
and interest that will be a total loss. Th'
interest yet to be paid will make the en-
tire loss to the people foot up more thar
S15OOOOOOO. Let no one mistake abou
this; the securities that Congress author
lied to be taken for this guarantee are no
worth single dollar, In view OF thi'
do the people want TO go into anothe
experiment that will involve a create
/ lossP SlOO,OO0,OOO Of bonds running 10
years at 8 per cent, would at simple IN
terest amount to S3OO,0O0,0O0, or $4OO
100000 principal and interest, This vii
be the exact loss 10 the people unleP
future legislation should make II create
The canal Is Of no use, and even il bui
. would belong to a monopoly who will us
IL TO their own advantage instead Of tn
public good. The whole thing Is
wicked scheme to pl lnder an alread
sorely distressed people, Let the reforI
i papers take up the matter and deman
!, Of Congress 70 go no further in thi
direction.