The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-05-19


There are rumors adoat that there VIII
not DE "a rush go secure the $1,000 OF
coin bonds which the state u Georgia
is Offering 20 meet portion Of the
state debt. which natures July next. The
bids are not to be opened until Nay =.
ana IT, w-u not be known therefore be-
/ fore that time what capitalists VIII Of
fer for the bonds. There are rumors that
the offers wiz not be as satisfactory as
Gov. Atkinson would like them 10 be. He
was TO have been present at the savan-
nah May week festivities. but. owing To
matters connected with the bonds, he
was compelled 10 go north.
The chief thing in the way OF a very
satisfactory sale Of the bonds IS the clause
in them providing for the payment OF
the principal and interest in coin. That
means. of course. that the state can
pay them in silver at her option.
IF the cause Of independent and unlm-
ited silver coinage should triumph at the
presidential election next fan. silver would
become the standard. and our silver dol
lars would have "A value only about half
what they have now. in that event the
bonds would De worth about half what
they would De IL they We're gold bonds.
or if the present gold standard should be
maintained.
IL is true that the United States govern
ment bonds are also coin bonds. but
IL is the declared policy of the govern
ment to pay the principal and interests
Of it's bonds in the best coin. which is
gold. Il is believed. therefore. that even
If the country should be forced to a
silver basis by the silver agitators. the
principal and interests of the bonds
would DE paid in gold. That reason. in
connection with the belief that the great
majority of the people favor sound money.
is what caused the last lot Of government
bonds that was put upon the market TO
sell al so high a premium.
Georgia, however, has never declared
it TO be her policy to pay her coin bonds
in gold, ana in view Of the fact that
there is such a strong silver sentiment i'm
the state, it is believed She would not do
so if silver should become the stand
ard
Under these circumstances. it is said
that the bids for the $2WO0O Georgia
bonds are not likely TO be at all salts
factory-if i'm fact they can be sold at
all under the conditions fixed by the
legislature for their sale. IL is rumored
that Gov. Atkinson was told quite plainly
by capitalists in Boston that there was
no disposition on their part to loan gold
at 49, or 4 per cent with the prospect
Of being paid in silver worth only 81 cents
on the dollar
The governor may meet with greater
success in New York. though there does
not appear to be any good reason for
thinking so. He IS silverite, and is re-
ceiving some practical lessons in fnan-
eial matters. 1t is unreasonable to expect
that capitalists will loan gold at low
rate of interest with the chance of be-
ing paid back in money worth only about
half as much as gold.
There is, of course, nothing the matter
with the credit of Georgia. That is as
good as any one could desire it to be.
The states debt is less than $S.5OO.OOO. and
she is prohibited from increasing it, ex-
cept for few well defined purposes. Be
sides. there is a sinking fund of 100000
year for the payment of the small debt
which She has.
1t may be that Gov. Atkinson will re-
turn to Atlanta much embittered against
northern capitalists, but would he loan
gold to the state at Sla per cent. If he
thought the state would pay him his
principal and interest in money worth
only about half what gold is? We are
sure he would not. That being the case,
he has no ground for complaint. He and
other silverltes, who are trying to de-
grade the currency, are responsible for any
difficulty the state is likely to have to
get money at the rate of interest al
lowed by the act authorizing the re-
funding of the part of the stated debt
v-i,fob fa1te duo ", T,,1,-