The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-04-26

Senator Allen indicates that we are
Eoing 10 hare some Wild financial sus-
gessions about the conduct Of the war.
He has already INTRODUCED resolution
10 the senate which II passed would
proclaim II 10 be the sense Of the United
States senate that the cost OF the war
does not need to be betrayed b. the issue
of bonds. There has been such IN out
psople. Of whom more intelligence would
be expected. seem to have an unccm-
Portable molten that there - something
Of suspicious character attaching to
this form Of Indebtedness A bond is
nothing but an agreement on the part
Of the government or other authorized
body to pay what il owes. 1t Is prom
issoFy note. having the solemnity Of an
official standardization. II IL no more
than piece Of paper practically ac-
knowiedging that a certain sum OF
money has been borrowed from the
holder BY the maker and promising TO
repay him the sum with a certain specI-
fed interest.
Financiers Of the Allen stripe are wild
when any suggestion Ii made Of the
issue Of bonds" at three per cent in
terest; but they go into raptures over
the Issue Of . non-intsrsst bearing ac-
acknowledgement which may cost the MAX
er a. mich as fifteen per cent. because
Of the increase In price. which acts as a
discount on the non-interest bearing
paper. The cheapest loan that q gov
eminent can make Ii gold loan. 1t II
no use theorixing about It; the proof Of
this IL TO be found IN the transactions
of the world for the past hundred years.
There Is not a loan made by govern.
ment or q municipal corporation which
cannot be had at q lower rate Of interest
IL the promise Is made that II shall be
repaid In gold. This country Ia amply
able TO pay In gold; and why should the
taxpayers be required to pay more for
which Is Of no service TO us?
The cost II the civil war was very
considerably increased through the de-
probation Of currency. which simply
meant q non-interest bearing loan.
Ronds We're sold at a discount. 50 that
instead oil the six per cents. bearing only
the nominal interest Of six per cent, the
government paid from ten to thirteen
per cent. interest. 1t IA the same with
the Ave per cents. The government &C.
tuaily paid fourteen to seventeen per
cent. on the issue.
1t Is astounding that any man who
can remember the condition which ex-
listed during the war and until resump-
ton OF specie payments should suggest
to the government a repetition of such
a wasteful policy.
Not only did the government lose. but
the wage Garner and nearly every other
business man except the Spectator lost
moHey.
A United States bond payable in gold,
aud bearing three per cent. interest.
would at any place. at any time, In any
par; II the world. be worth more 10 the
person who held il, or who had to take
IL in payment for services or material
than gold dollar; If there were an
iesue IF non-interest bearing paper TO
any great extent II would nowhere be
equal 10 a gold dollar. and the most mis-
chievous result would be that nobody
could predict from one day to another
how far below the gold dollar In value
| IL would fall.
We do not have to theorize about these
things, the country has had a very cost
~ experience in ,inksying with finance.
4 piece Of paper can be made as good as
gold il there is a promise Of gold behind
IL: but IL there Is not. i,s value would rot
be Increased even II II were accompanied
by copy OF Bryan's speeches. explain
img Why ii ought to be" worth as much
IA sold.