The San Francisco call., 1898-05-21
WAR FINANCIERiNG.

HE breaking of the blockade by the Spanish f1eet l IS a revelation of the very serious nature of the
 military task in which we are engaged lhele has never been that did not exceed first esti-
 mates Ill time and cost, and this promises to DC no exception. When the people of the temperate zone have made war in the torrid zone they have always found it to cost them dearly, England and Holland and France can testify We about to add our ex- perience to theirs, and probably at higher cost.
 All of this outlook is admonition to wisdom in our financial scheme the beginning, that it will serve without change the end and be the promoter of economy instead of extravaganza. The atists in the Senate are willing to take advantage o the coun- trys necessities for the purpose of exploiting their theories The war revenue bill prepared Tn and passed by the House is the right lines It imposes war taxes which have served the purpose of every civilized nation in martial emergencies, and provides
 popular loan at low rate ot interest to raise $sooooo 1000. Senator Jones of Arkansas and others of the fiat side have antagonized this bill in the Sen ate They propose to strike out the bond provision and as one of them puts it, "strke out of the bill taxes on consumption and put them property" This is to be of the campaign cries, alternating with that against bondholders Consumption IS the of property Any any kind of property is tax on the use of that property. Stamp taxes on mort gages, checks notes drafts and bills of exchange are
 
 to an increased beer but is silent about on wine They are both imposed upon property, but Jones has an idea that the large German of the country will resent higher beer, aud will vote the Democratic ticket if 1t is imposed by the Repub lcans This is about high any of the fiat ing on the bill, and is low and grove- ing estimate of the intelligence and patriotism of people of German blood. The people were but re- gently represented by the fiat party in Congress hot for war. There is sorcery by which the cost of the war can be evaded It is contemptble in any man in Congress to vote for and then attempt make political capital with the people by misrepresen tation of the financial measures necessary to carry 1t
 It is evident that the is to exceed in cost all estimates heretofore made By and by there will ap pear proposition to recoup the country by holding captured territory either for to collect its public revenues until treasury is made whole but that is in the distance and does no present good The emergencies of to-day must be faced and those of tomorrow estimated. The fatsts propose to do this by adding $I5ooooooo to the greenback issue. They demand this without making any preparation for the redemption of such issue. Added to the greenbacks outstanding this will make that form of our pub lie debt $4oo,oooooo, with provision for canceng or funding or paying it. If this fiat plan be adopted other issues of the kind will follow, and there is power on earth that prevent the fall of these greenbacks below par. What then will be done tain their par?
 When this discount happened during the Civil War the only feasible plan in sight adopted by provid ing for funding the greenbacks in interest-bearing bonds, as the treasury had money in which to deem them This expedient probably kept the green backs from going discount of 90 per cent, but it did prevent them falling 66 23 per cent. At the Of nit est-bearing bonds to prevent further fall, but more ruinous and burdensome hnanciering undertaken. Yet If the fatists have their way will go all over that hard road again. It is highly prob able that issue of $500 100000 in greenbacks will fall to 30 per cent The Government will be able to pay with them only $25o,oooooo of the cost of the war Then they will have to be funded to prevent further discount An issue of $5oo 100000 of bonds in a popular loan at 3 per cent to twenty years would be taken at premium of at least per cent. It would produce $52o ooo in gold. The interest for twenty years less the premium would be $28oooo GOO, and the whole burden would amount at maturity to $78o,ooo ooo An equal issue of greenbacks, finally funded would pay only $2soooo,ooo of the cost of the war; and, adding discount to interest, would at twenty years maturity produce burden amounting to $Ioso 100000, or just 27ooooooo more than if the money were secured by bond issue in the first in- stance That the discount greenbacks will appear is certain That will be limited to 50 per cent is not certain but to whatever percentage it appear, so much will be added to the final burden compared with the plan proposed in the House bill
 "PURELY ADMINISTRATIVE"