Ceredo advance. [volume] (Ceredo, W. Va.) 1885-1939, 1898-06-29
THE POPULAR WAR LOAN.
a Valuable Object Lesson I'm Finance
for the American
People.

The objection has been urged against
the policy of 'popularizing~ the war
loan that such method of floating
the bonds i expensive. In order 10
distribute the bonds in small amounts
over the entire country so rs 20 give the
general public chance 20 subscribe
for them in minimum quantities IL IL so
desires. il will be necessary for the
treasury department TO do vast
amount OF detail work. Such work VIII
Toe expensive. tedious and veNatious.
and might be largely avoided 10y dis
posing of the loan through the usual
channels
Then again the government must be
the loser by some millions on account
of the necessity of selling the bonds 20
the general public at par. whereas the
capitalists OF the country are offering
10 take them at a premium. Finally. il
is said that the attempt to popu;arize
the loan will practically fail OF its pur-
pose because the bonds will soon be
bought mp 10y spectators and find their
way into the vaults OF the capitalists
anyway
IL must be granted that the economy
argument has at least n temporary
force. IL would surely put a million or
two more money into the treasury II
the whole issue of 5000. 0OO. 900 could be
sold 10 the highest bidder. But there
are compensatory features in the pop
plar" method That will much more than
Offset any temporary disadvantage.
There Is an inherent principle back OF
popular loan that we believe will
work 10 the great benefit OF the coun-
try-the principle of cooperation. 1t is
natural for us 10 he interested in an
enterprise in which we have invested
our money. Thousands and tens OF
thousands Of the common people of
this great country who have never be.
fore thought of owning government
bonds viii buy these securities I'm small
amounts. liy SO doing they become
financially concerned in the welfare OF
the government. The consciousness
of having come TO the aid OF the gov
eminent In its hour of need will invest
national affairs with new anil per
sonal interest. and inspire iu them n
feeling ot partnership and sentiment
of patriotic fervor.
Then the financial lesson which viii
be taught 10y popu'arizing this loan
must be taken into account. When the
common peopie-not the bondholders
hold S+oO.OC0.aC0 OF the national debt
in their own hands their concern for
the national credit viii he more than a
sentiment. When they possess the
bonds OF the United States. PAYABLE in
coin" they will be personally :nter-
ested in maintaining a money stand
ard that shall secure TO them payment
I'm a form of money worth just as much
as the money which they loaned to the
government The preservation of the
national credit and the highest ,nteg-
rity of our financial system will be-
come matters of personal interest
when the people themselves become
government creditors
The popular way of floating the war
bonds may therefore be looked upon as
affording most valuable object lesson
70 the American people i'm matters of
finance. The objection that the bonds
viii eventually pass into the hands OF
a few spectators may find some veri-
| fication as time elapses But we do not
apprchend that the masses OF common
people who invest in "a few of these Sc
curities viii be in haste 10 par; with
them. IL win bc matter of pride
with many of them to be counted
among the creditors of the nation.
Moreover, these bonds bearing three
per cent. interest and free from tax
alton viii prove fairly good invest
ments. WHY should the man who has
invested his humble savings i'm these
gilt edged" securities be in haste TO
dispose of them?
Atall events there are strong grounds
for predicting that the coming distri-
hution of the war debt among the
masses of American citizens will nrove
not only great financial success. but n
means of strengthening the national
credit and confirming the sound money
principles upon which that credit de-
ponds. u such prediction shall prove
correct the popularizing of the loan will
bee thoroughly justified, even though il
may be somewhat troublesome and ex-
Pensive 90 get IL into the hands Of the
peopic.-Detroit Free Press fGold