The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-09-27
TIE NICARAGUA CANAL.


Capt. Bells address was thoughtful
one and in the main was absolutely
faultless. He advocates that the canal
be constructed, owned and operated by
the government, free to American COM
! merce, and that in order to accom-
plish this vast work, bonds in the sum
of 500, 900. 900 should be issued, said
bonds to draw per cent interest
Right here is where we take issue with
Capt Bell Instead of issuing $780,
600, 900 in bonds the government should
issue that sum in non-interest bearing
greenbacks, thus saving 5000, 900 an
nually in interest besides greatly in
creasing the circulating medium, which
is sadly needed at present.
| If congress would drop it's silly dis
cussion of the silver question with all
its ratios 20 TO and 16 to 1, and put
through bill providing for the print
ing of $780, GOO, 600 in greenbacks and
the immediate construction of the Mic
| araugua canal with the same, business
all over the United States would re-
ceive an impetus never before known
in the history of the country.
Why not? Can anyone give valid
reason why this should not be donef
Now look at this question fairly
and honestly. Capt Bell says tho
bonds, as per his proposal, might be
used as banking capital Here are the
two plans. If we issue bonds we would
have these figures:
Face of Bonds $500, 600, 600
Twenty years interest .............. 6O,0OO00o
Twenty years interes on 49,, 600. 900
banking capital as per present laws
ct an average Of 10 per cent 1870 600
Total. ..... x64 w ',OOV
Now let us look on the other picture,
the one with green back" ground
instead of a.yellow back ground.
Face of greenbacks. ............. 800, Co., 600
Interest on gold ............ ........... Not any
Interest on bank notes. ........... Not any
In either case the government would
assume an Indebtedness of 500, 600, 600;
in either case the canal would be built
and it would belong to the people, or
the government; in either case it would
put more money in circulation. But
now note the difference: In the first
case the people would pay 500, 10000
for the use of the money with which to
build the canal, and $3.50, 900, 900 inter-
est on 500, 600, 900, 900 of bank notes in
order to coax them into circulation. OF
course this latter sum would be paid
by individuals, and would be offset by
what the lenders might receive for
their gold in case the greenbacks were
used in building the canal, but we use
it for purpose which will appear later
on in this article. It would be mono
the less tax on industry, however.
Again, the increase in circulating me-
dunn under the first method would be
$40, 600, 900 less than under the second
method, so the benefit from this source
would not be as great Do you see the
difference?
For fear you do not see as clearly as
we would like you to, we will give the
different metals in detail
Bond method: Congress has decided
to construct the canal. 1t causes to be
issued 500, 10000 600 in bonds to be used
for banking capital. The bonds sell
readily at par. The bonds are ex-
changed for gold, and the gold is used
to purchase materials, supplies and
machinery, and to hire men for the con-
6UTuCUlOu O1 U1l0 Cdudl. NOW nOC0 UQGT0
is not dollar more in circulation than
before the bonds were issued, but tho
government has agreed to pay both
principal and interest in gold In or
der to stimulate business there must DO
an increase in the circulating medium,
SO those holding bonds start banks, and
issue money which they generously
loan to the people at from 10 to 90 per
cent. per annum, thus realizing from
ID to % per cent on the gold loaned to
the government Doyou see the point7
Greenback method: On the other
hand congress would issue 500, 900, 900
in greenbacks, thus immediately in
creasing the circulating medium, which
would be used in purchasing materials,
supplies and machinery. and to hire
workmen to construct the canal In
this instance there would be no interest
to pay, nor any bank currency neces-
sary. Which is for the interest of
labor?
Now some gold basis crank offers OBJ
lection to this plan on the ground that
we must have a money that would b
recognized the world over. Suppose,
for arguments sake, thst we consider
this to be necessary for the construc-
ton of the canal Here is the way we
would then proceed. The 800, 600, 600
in greenbacks should be distributed to
the various post Offices of the country,
and a call made for patriots interested
in the construction of the canal to
bring gold in exchange for them. Do
you think it would be long till the sum
was raised in gold? The country would
not be burdened with interest and the
canal would be built practically with
out a debt against it Construct the
canal, but do it with the best money
the nation ever saw-greenbacks.
Who objects to this plan?-TacomA
wash Sun.
There is great deal being said.
just now, about the price of whesA.