The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-24
A POPTLAR LOAN.

with those who think the government
ought TO issue money to people who want
II there is little use In attempting 10 dis
cuss the present monetary condition The
United States government is compelled 10
rely upon a syndicate to preserve 1t from
insolvency. The reason Is that, in the first
place the government has no business TO
be engaged IN money traffc any more
than il should in the wheat market, and.
In the second place, there would be no cc-
casion for the bargain with the syndicate
IL the government were not running be-
hind In it's current expenses.
1t may be worth while, however, TO
point out 10 people who think on
business lines and not In the neb-
ulousuess of hazy theories. that
England, France and other European
countries no less than this country expe-
rieBee fluctuations In their gold reserve.
when gold accumulates in the Bank of
England or the Bank of France those in
stitufions lower the rate of interest and
SO utilize the surplus IL the accumua-
ton falls below what is considered safe
limit the bank raises the rate of interest.
Nobody outside OF the banks and their af-
filiated interests worries about it Nobody
In the United States worried about these
fluctuations when the revenue was sufti-
Gent to pay expenses. III that increases
during the next two months to an appre-
cIabie extent the outflow viii cease, other
wise 1t win not.
IL the New York hanks, since there is
no great regulating institution, should
unite and raise the rate OF interest, very
slight increase would tempt the gold back
from Europe. Maintenance of the parity
results In making the government the
only debtor in this country which is
obliged to pay it's debts in gold. All
others are allowed TO pay in government
notes. The government must either re-
deem its notes in gold or admit its insol-
vency. Its interest in keeping a reserve
is not TO retain gold in the country. but
to be able to meet fits own obligations.
1t Is no use to talk of the greatness and
glory of the country when dealing with
peoples pockets. There is too small a
number of people willing to risk loss to be
depended upon for any patriotism. There
would be no trouble even through very
considerable withdrawal Of gold IL people
were not timid and FASTENED to make
sure that whatever money was due them
should come to them in gold. lest it might
not hold out. The result would he a strin-
gency just as there was before. hut it
would be due TO want of confidence and
not TO any actual decrease in the money
resources of the world.
There would. notwithstanding that in
evitable effect, he great objection on the
part of many people to the further issue
OF bonds, yet 1t would be better to have
the issue than to hazard any obstacle to
our return to prosperity by another panic.
1t would only be courageously admitting
the fact that we are running into debt and
meet 1t with bonds instead of having a
floating Indebtedness. In case Of such an
emergency the government might profita-
bly, follow the example of Philadelphia,
which has Just issued locally a popular
bond. The amount of the loan was si.2oo,
GO the bonds being issued in denomina-
tons as low as sio0 The entire issue was
disposed of within two weeks. the daily
sales increasing rapidly as the people be
came acquainted with the proposition.
The plan was resorted to because the
banks and brokers refused 10 take per
cent. bonds. claiming that they could not
sell them to investors at anything less
than per cent. return.
The daily indications OF deficient reve-
nue. and the diminution OF the gold re-
serve warn us OF an inevitable emergency.
which only a very marked Improvement
In the revenue can avert.