Pine Bluff daily graphic., 1895-10-27
sNAGs FOR THE slLvrp,r..
4 Good Lesson for Them in the N,a.
 Loan Affair. fasp


 Loan Affair.
 A very interesting story fro,. , ragua appeared recently in tba Nlcs dispatches. All the Central AropIs pssa states have the silver standard saq their dollar is worth 4s.e cents al currency. This dollar contains a a, oal grains of pure silver, or about 21 -, va'7 less than the dollar of the fIaa nsslll States. ed
 Something over two years aoo government of Nicaragua. co,,. og 'as whose silver has never been s.strial down" wished to borrow 4oo.oon asQ ss dollars. The loan was nepot;atss the stipulation that the monaw q v nished should be silver, but K. ~. should be repaid in gold. The intsr.' was to be 24 per cent. per annun
 There has, of course, been a ror., tion in Nicaragua since the loan - made, and the present government ha pas refused to carry out it's terms. ItLs ass decided that as the bonds were sold @ silver they must be repaid in siIras The interest is also sealed to 15 Der oar. The creditors have agreed to tba. terms, as well indeed they may. as fhss are still getting rate of interest tbs ought to be highly remuneratire.
 The rule laid down in this settIemon. has a certain bearing upon anestors that have arisen in this country. T.s winter Secretary Carlisle had mada contract to sell a number of bonds fo gold, but under the law he could onls make them payable in coin. The prps ident informed congress in a special message that if authority were granted to make the bonds payable speei6caE in gold a saving of sixteen millions os dollars in interest could be made. f. was represented that as the bondswer0 sold for gold and nothing else tbev could not equitably be paid in anything but the same metal if the creditor do. manded such payment. This eonsid. eration had no effect upon congress which proceeded to throw away the six. teen millions of dollars. The men re. sponsible for this action have been abusing Secretary Carlisle ever since for paying too high a rate of interest for the bonds.
 The action of the free silver eountry of Nicaragua, though in it's own inter est, has laid down the same rule that was enunciated here last winter. The bonds, having been sold for silver, must be paid in silver, thereby plainly imply. ing that if they had been sold for gold they would have been paid in gold Tue bonds were not only sold for silver, but for silver value, the silver dollar not being kept at par with gold in Nicar. agua, as it is here, by the policy of the government. There would have been no advantage, therefore, in paying our bonds in silver unless, in the meantime gold had gone to premium. But the free silver men sacrificed sixteen mil lion dollars for the chance of paying the bonds in q currency inferior to that for which they were sold-a species oi commercial morality that is repudiated even in Nicaragua.
 The people who think free coinage of silver makes money plenty and interest low are invited to note the placing ofa loan in Nicaragua at twenty-four per cent. If they say that our credit is vastly better than tlrat of Nicaragua we agree with them. But how long would it be so if their system of paying gold obligations in silver were to pro. vail? And that is just the point. It pays to preserve the public credit, be- cause the better the credit the lower the nterest.-Louisville Courier-Journal.