Omaha daily bee., 1898-05-08
MIR. YATES ON THE BOND ISSUE.
Defends His Position in Favor of In
crensinE the National ROnLed Debt

| crensfnE the National ROndet Debt.
I OMAHA, May ITO the Editor of The
Bee: In an editorial in last Saturdays
issue Of The Bee you reply to my communi-
cation concerning the necessity for bono
issue for the prosecution of the Spanish
war, and what you say in opposition to my
views Is embraced in the following extracts
From the bondholder's standpoint the posi-
; tlon OF Mr.. Yates may commend itself
From the standpoint of the taxpaying citi.
; zen who has no interest in the perpetuation
Of bonded debt it appears indefensible.
with $SO. 100000 of gold lying idle in the
! treasury In excess of the $100 900 900 gold
reserve and with at least O,OOO, 900 in sight
I as receipts Of the internal revenue war
| tax before the end of the calendar year
| would not national bond issue of s5CO.
oooOoO, $500 OOO,O 600, or any other sum be q
monstrous imposition upon the wealth pro-
| ducers of the country?
! The suggestion that the interest burden
on S3OO,OOo.CC0 Of bonds would be trivial
as there would be no need Of levying taxes
Tor sinking fund, is nothing more nor less
! than proposition to create a permanent
bonded debt. reversing the policy of the
nation since it's birth.
Ihe estimate given by me as the probable
cost OF the war was based upon your own
ngures OF S15O,OOO,O0O to January l. 1892
We all hope that peace will soon be
great concern as to the provision to be made
Tor the expenditure already incurred, but
Whatever may have been the divergent views
entertained as to the necessity for the war. I
am quite sure that we are now as a people
practically unanimous in the opinion that II
must be prosecuted to an honorable and
satisfactory conclusion, whether it costs
eventually $50 or 1000 millions of dollars
Your fling at the bondholders and conse-
quent inttmation that l as banker speaR
as the representative of class who have
an interest In the question which Is inmical
to that Of other taxpayers, would be expected
II 1t was the utterance Of a populist. to
whom banks and bondholders are a continual
bugbear, but it sounds queer coming from
republican newspaper whose party in the
house OF representatives only a few days
ago voted unanimously in favor of this bond
lssue-thereby sustaining this "stand-
point which you think so wrong.
Ihis circumstance Of itself,
admit, makes no difference as
to the real merits of the question-you
deserve credit for holding to an independent
opinion-but 1t is not good argument to
appeal to populistic prejudices for support
in your conclusions.
You know as well as do that the bankers
and bondholders of the United States have
no special interest in the matter and as a
class are as dsinterestedly patriotic as any
other body of their fellow citzens-but even
II this were not the case, their special in
terest. If 1t existed, should not be permitted
to influence an adverse conclusion which
might produce disastrous consequences.
There Is nothing in my communication to
indicate that favor permanent national
debt-on the contrary, | stated exactly the
reverse. l alluded to the immense debt in
CURED during the civil war (Which by mis-
print you publish me as stating was $780,
100000, when l wrote $4,000. 900, ,OOO), and
showed that within twenty-five years from
the close Of the war the entire sum was
practically liquidated, ana that during the
greater portion Of the time when 1t was be-
Ing paid the country had not experienced
the burden of the excessive and onerous tax
alton which usually attends a war condi-
tion In every country. The largest expendi-
ture estimated for the present war ia
bagatelle compared with the cost of the civil
war, especially when the resources of the
country now are compared with what ex-
listed then. and referring to the issue of
bonds now proposed. ! said: "The resulting
surplus from slightly more than ordinary
taxation with the improved trade conditions
sure to come would retire the bonds within