The herald., 1898-04-22

have, indeed, already commanded con-
siderable attention at the hands of the
house committee charged with the for
mutation of revenue measures. 1t is nc
secret that the Republican members OF
that committee have already practically
agreed upon a measure, which has in
advance been promised the support OF
the president and secretary of the treas
ury. 1t will provide for a loan of 500, 900,
900, upon bonds bearing 8 per cent inter-
est redeemable at the option of the gov
ernment in five years, and maturing in
twenty years. They will be made pay
able in 'coin," and for obvious reasons.
for the prompt passage of the bill staring
II in the face, will not hazard lengthy
discussion upon the question, certain to
arouse bitterness of feeling in congress
and throughout the country. An effort
will be made to place this first loan
with the people, instead of appealing to
the banks, as has been the invariable
custom heretofore, and it is to this phase
Of the scheme The Herald desires to
call the special attention of the public.
The bonds are to be of small denomina-
ton, and they are to be offered for sale
through the medium of the postoffices.
It is obvious that the failure Of the
government to place this loan promptly
will be taken advantage Of by the cap
italists of the country, who compla-
Gently acquiesce in the experiment. con-
vinced that it will fail, and that its fail
ure will give them free hand in the
financing of future loans, the terms of
which they will be able to dictate. Evil
dences of this purpose are not wanting.
Secretary Sherman has already given
hint of it, in declaration made only
yesterday, that popular loans have never
been successful in this country, although
the experiment of a popular loan has
never in good faith been attempted.
The New York Evening Post exposes the
reasoning of the money lenders in the
subjoined paragraph:
1t is believed at the treasury that
about $40, 900 900 of the proposed popu-
lar loan will be at once taken in small
amounts by the people. from motives
of patriotism, as well as from desire
to put little boarded money in safe
place, and that the remainder of the
amount will be promptly subscribed
for by the banks. The notion that the
general public will absorb the whole
loan is regarded as delusion. The
number of people in the country who
cannot make better use of money than
to loan it to the government at per
cent interest is not believed to be very
large and patriotism rather than self
interest is counted on to induce sub
scriptions.
It remains to be seen whether the
American people are as pusillanimous
and as lacking in patriotism as the Post
believe it. We prefer to withhold judg-
ment upon that point until the oppor-
tunity has been given them. We are
not ready to believe they are less pat
riotic than are the people of Spain, whose
sole dependence at this moment, for the
necessary increase of its navy, is upon
the voluntary contributions of its sub
jects, and for weeks we have daily been
informed as to how the funds are pour
ing into the peninsular treasury from
this source.
We are not ready to believe that our
people are less patriotic than the yeo-
manry of France, who have eagerly alb
sorbed every dollar of the Indebtedness
a1f inf init fol
able to invest in low Understanding
securities. The total deposits in French
savings banks at this time are but $685.
600 900, and of Spain but 100000
whereas the people of the United States.
to the number of 5,2O1, 1872, have deposits
in savings banks aggregating $685.
376, OBS! In the single state of California,
1S6,02S people have deposits in savings
banks aggregating 1927 7.929,2S1.
This is but a straw, indicating the
financial ability of the people of this
to take care of popular loan
Not all of the surplus is kept in savings
banks Because of the low rate of inter-
est paid, but a small proportion of the
earnings of the masses ever get into their
vaults.
That they did not subscribe more
promptly and more literally to the forced
loans of the war period was due mainly
to two facts-one, that they were not so
we'll equipped financially as they are to-
day, and the other because they were not
given an opportunity. The bonds were
issued in large denominations, manipu-
lated through the complex agency of the
as unpopular" as was possible. The ag
of savings banks deposits in the
United States when the war broke out
was but s149,277, 5O4, but little in excess
If the amount now held in the savings
banks of this state alone.
The people of this country are not only
better able to provide the government
With all of the money it may need, but
hey are more willing. They are not
livided, but unit in support of the con-
tituted authority Nor is there any
loubt as to the issue of the war, no ques-
ion as to the ultimate redemption of the
,onds in money good as gold. The hun
lred millions to be asked for will be sub
crbed in twenty four hours, if there be
publicity of the purpose of the
and the machinery is as
simple as it should be. The loan will
90; t,-Ao Il ,ea,,tl