The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1898-05-11
The Raising of War Funds

ANU As<nAoahS VA w "h uneAc.
The effects of war on trade and
party are not to be overlooked.
War between great European ma
tions would undou btedly bring to
the American people measure OF
prosperity and of no ephemeral
kind, and from prosperity the Re-
publican party would profit great
ly. But war between the United
States and Spain, accompanied, as
there Is reason to fear II would be,
by bond issues so marketed as to
force currency contraction, falling
prices and encouragement to in
dustry, would result in quite the
reverse of prosperity, and so, per-
haps. loss, not accretion, to the
strength o: the Republican party,
although the war was signalized
by fiattering military and naval
successes that would rebound in a
measure to the credit Of the admin
istration.
OF course If the funds for carry
ing on a war with Spain were not
raised by forcing bond issues upon
our markets in such way as to
cause contraction and falling prices
but were raised by the issue oi
Treasury notes in payment for
army and naval supplies, which
would be the course of wisdom,
there would follow the outbreak OF
hostilities with Spain no stagnatiOn
of industry but quite the reverse
even though the treasury notes
thus issued were made convertible
into interest bearing bonds at the
pleasure of the holders. The roasoI
for this is plain. Just to put 6
bond issue upon the markets and
prescribe that payment should bt
made in gold or silver or nationa
paper currency, made in the mon
ey now in circu alton, would in
evitably lead to a withdrawal o
money from the channels of pro
duction, cause virtual contraction
depress prices and undermine pro
fits in way that would cause stag
nation. But provide the means O
subscribing for bond issue befor
making it, provide the means o
payment by the issue of treasur.
notes and all the evils Of contrac
tion resulting from q bond issu
put out,in the other way would b.
avoided.
And by simply issuing treasur,
notes convertible into bonds at tn
will Of the holders, we would d
more than avert contraction, d
more than avert the withdrawal @
money from the channels of In
dustry. We would put money int
those channels and In those chan
nels 1t would be kept until its us
} in such channels did not yield a
great profit as the bonds int
which such money, such treasur
notes might be converted woul
yield interest.
Ifthis policy was pursued lii
would be thrown into industry b.
the war, stagnatiOn would not b
engendered. We do not sugges
any inflammation Of our currency, d
not suggest the forcing Of any ne,
Issues of notes into circulation, bu
simply the issue Of treasury note
for which provision for conversiO
into bonds may be made at time {
issue, an issue so that bonds ma
be fioated to meet the costs of tn
war without forcing contraction q
our currency by taking money ou
of the ordinary channels Of trad
and industry and directing 1t int
the channels opened by the wal
These channels should never b
filed by depicting the channels G
industry, for to do 80 would G
necessity deaden productive Ia
dustry and detract from our ma
tional strength; they should b
filed and kept filled by treasur
notes.
| AS the war materials prodcce
and paid for by these treasur
notes were used up. such note
might properly be converted int
bonds and new treasury notes issu