The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-24

the payment of our government debt, Mr..
Eckels?' l asked
''Not necessarily So was the reply. when
the government bonds paid some other
note-issuing device will be obtained and sub
stituted. Such plan has obtained in Can
ada, and is the basis of what IS known as the
baltimore plan, as we'll thar suggested by
Secretary Carlisle two years age to congress-"
What do we owe. anyhow, Mr.. Eckels?"
What is the amount of the government
debit"
Il can give you the figures to June 80 1885,
At that tine our interest-bearing bonded debt
was $847, 1858 $780,
1T is enough" said |. "And what interest
de we pay upon it?"
Last year our interest account amounted
to more than $35, 600 0OO."
Was not that a great deal?' / asked.
1T does seem large but when you figure
1t out you find that the rate Of interest paid
on the whole averages only AZ per cent. This
is much lower than the interest rates which
prevail in the dealings of private individuals
or corporations"
CLEVELAND AND THE BONDS
How about the bond issues, concerning
cised?"
mlnlstration was necessary from the fact that
II was essential to the maintenance of the
credit of the government that Its demand OBJ
legations known as greenbacks and Sher-
man notes should be redeemed in gold in
accordance with the enacted legislation of
congress- which declared 1t to be the policy
VI the SOVeFun0nI Cnat the various forms OF
money in circulation should be kept at parity
Some OF the money obtained from the bonds
was no doubt used for meeting the deficiency
MADE by lack OF revenue, but in the first in
stance the bonds were issued for the pur-
pose stated. and had 1t not been for the law
made for that purpose they could not have
been issued at all. think the administration
is entitled to the very greatest credit for hav-
ing maintained the parity of gold and silver
and having prevented a loss Of national and
individual credit The amount of interest
n cd iG 9noic
loss that would have come to every indi-
vidual citizen If the government had permit
ted itself to go to silver basis. What the
people will pay in taxes to meet this interest
charge is a trife as to what they would
have had to pay If any other policy had
been pursued. Had these bonds not been
have had to be redeemed in silver. The law
to maintain the parity of the metals would
have been repudiated, and our credit both
national and Individual would have been lost
Every foreign investor would have with
drawn his money from the United States and
every lender of foreign capital would have
refused to send money here o.---.
BUSINESS DONE ON CREDIT.
1T is said, Mr.. Eckels, that we have not
enough money in the country to do the bust
ness. Is that true?''
Il believe" said the controller, ''that the
volume OF currency in circulation at the pres
ent time is of less Importance than the DUAL
fty OF the currency. You will see this when
you consider the enormous amount that credit
mas to do in the carrying on Of our business
today. The need of actual money has grown
less and less 1t has been found on careful
investigation that the average use of credit
instruments in the business transactions of
this country and others, where banks of dis
count and deposit prevail, is over 80 per cent.
The use Of checks, drafts and bills of ex-
change in making transfers of money makes
every dollar in use efficient dollar so that
instead of supporting single transaction, it
supports many.
What is needed continued Mr.. Eckels
"is an enlarged opportunity of obtaining
credit on the part of those who are entitled
to 1t. This would come through the establish
ment of banks of deposit and discount and the
branches Of such banks. 1t is demonstrable
that the whole surplus loanable capital of
the world is always available to the people
of every country where credit is maintained
and where investments are offered which
promise fair margin of profit Modern meth
DDS of banking and modern methods of trans
portation make it immaterial whether the
volume of money in the world is greater in
London or New York, in Chicago or New
Orleans, in Boston or in San Francisco 1t
is equally available for one place or the other
financial character and ability of those who
desire to borrow. If you deprive a commun-
ity of It's banks and bankers, you take from
it the channel through which 1t make
known that it has good security to offer to
investible capital"
WHY WE HAVE HARD TIMES.
Gust one more question, Mr.. Eckles, What