The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-01
Neither Popular Nor Economical.

There is a subdued tone in the COM
ments made by { III r publican con lie m
poraries on the result of their "popu-
lar" war bond loan that is in decided
contrast to the acclaim with which
they hailed it's proposal, and to the
whitening satire with which they COM
pared this concern of their party for the
plain, everyday people with the
consideration shown the money pow
err by President Cleveland when he
was forced by Republican financing to
make an issue of bonds. One of these
ar ologists admits that there are but
about 200, 600 subscribers in and under
tire $500 class, and that not all of thesa
are bona fde investors, being stool
pigeons for capitalists to whom they
will deliver the bonds when received.
1t admits that the chance to make
premium of to per cent Immediate
ly will induce even these small bond
holders to sci! out at once. But it
finds consolation that some depositors
in savings banks did draw out their
4 per cent deposits to invest in 8 per
cents bonds, and that this quantity CT
evidence of patriotism is worth all the
issue costs.
We are not disposed to quarrel with
those who are so easily satisfied. 1t
is worth while, in view of all that has
attended our latest bond issues, to con-
slider the cost of each, for nations as
well as men should count that when
they go borrowing. Mr.. Cleveland's
bond sales gave to the treasury pre-
miums amounting to over SEQ, 100000.
Syndicates of bankers and individual
capitalists took them. There was
speculation which sent the premium
above that received by the treasury,
but the reaction later brought the mar
ket price back nearly to the price bid.
This issue of $500, 000,0 is offered and
taken at par. A subscriber for a $500
bond pays that amount and gets a
per cent bond. The first installment Of
bonds is being sent out. The recipient
can take S21.S7 for his $500 bond the
moment it reaches him. That is to say
investors are offering now, before the
bonds are out a premium of over per
cent. 1t is said they may go to 5. Here
then is a sacrifice of at least $S,000 900,
and possibly $40, 100000. Nor is this all.
lLlHS Tic O1)Ho lOuIl IlNOlNSu oil
immense amount of clerical work -Four
hundred additional clerks, we We're told,
had been employed to receive subscrip-
tionS, examine, enter, classify and ar
range the bids. Their salaries must be
added to the cost The limit is fixed at
the 81, 500 subscribers. There are 300,-
900 who take sums ranging from 500 to
$4,000. In various ways each name is
entered, with all it's details, ten times
in the treasury records, equivalent to
writing 100000 names. The checks
and drafts sent in payment must be
entered and collected, the bonds en-
veloped and expressed and the express
companies paid for carriage. When
these items of cost are added to the
premium lost to the treasury and gain
ed to the subscribers, and when it is
considered that there are less than 20O,-
900 subscribers for $500 and under, the
stupendous folly and failure Of this as a.
popular" loan can be fully grasped
We do not wonder that the major por-
ton Of the party press is silent, and
that others who attempt justification
founder and make sorry stagger at
their task. Again we venture the pre-
diction that this is the last popular loan
any administration Of any party will
undertake.