St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-29
A POPULAR LOAN.

Government loans arc lnVarlaDly pop
ular among capitalists, even though
they may not be popular with the peo-
pie generally who pay the taxes. But
even the latter may be made 10 regard
them with favor if due discretion is ex-
erciSed in making the loans.
1t has been said that public debt is
public blessing. This is scarcely true;
yet there are conditions under which
community may be led to regard
debt with less disfavor than they be-
stow upon obligations of the govern
ment generally. A popular loan draw
ing low rate of interest at the present
time would be indeed popular. There
There is an abundance of idle money in,
the country, distributed in small
amounts. The possessors are looking
for safe investment-one upon which
they can realize instantly if the necessity
should occur. The banks are generally
sound, but the interest they pay is.
small. and, as a rule, they require sixty
days notice of an intention of the, de-
position to withdraw his funds. II the;
man possessed of few hundred dollars
could procure a government bond for
his savings, he would generally seize
the opportunity. First and most i'm
portant Of all, it is absolutely safe. The.
man who places his money in suciFse7
curltleS is confident of its return, to-
gether with the accrued interest. The
Interest is low, but it is far better to be
receiving 3 per cent than nothing. as
the majority of those having surplus
of cash are now doing.
The new loan about to be issued will
be in great demand. and no difficulty
will be found in placing the entire
amount at fair premium But it will
scarcely fulfill the public expectations.
The denominations at present anthor-
lied are too large to permit the work.:
ing people to invest. Few of these ever
have $500, the lowest of all the bond de-
nominations. which they can invest at
any one time. If the bonds were for
twenty, twenty-five, and fifty dollars,
the popular demand would scarcely
know limit. Millions of our citizens
all who had managed TO save those small
amounts - would seek government
bond every time they had accumulated
enough to purchase it.
Such a loan would be blessing in
other directions. More people would be
frugal and industrious if there was
within their reach an investment by
means of which they could be con-
stantly adding to their store. The pos
session Of money IS to most people
temptation to spend it. and If the saw
ings of the ordinary citizen were safely
invested-placed where even he him.
self could not reach them-they would
not spend nearly as much as they ordi-
narily do. A single bond would be
nest egg that would bring many per-
son both comfort in their manhood and
relief from poverty in their old age. To
serve this purpose-to make the pro-
posed loan a popular one-Mr. Cum
mlngs has offered bill in the house
which provides that the secretary of
the treasury shall issue not more than
s150,000,000 bonds IN sums of $40 and
such multiples as he pleases, with in
terest at 3 per cent, and redeemable at
pleasure of the government after ten
years. They are to be sold at the SUBJ
treasures and money order postoffices.
The proposition coDmends itself to the
public generally, and is worthy ofstliel
immediate attention of congress. - ~