Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1898-08-06

WOTJn more tldn Tie SdIDc CldSs VI
bonds which are payable sooner A
twenty year bond is worth more
than ten year bond. At the pres
ent time per cent. United States
bonds maturing in 1925 are worth
about 1875, while the same kind of
bonds coming due in 1907 are only
worth Ill
There are two reasons why the
Government can so easily float its
3 per cent. bonds, neither of which
is touched upon or referred to by
the World.
First, under the gold standard,
which the World so strongly favors,
3 per cent is just about the same
to the bondholder as per cent was
twenty five years ago, before the an
cient standard of value was tamp-
cred with. That is to say, it will
buy about as much on an average
of the necessaries OF life For the
same reason the people who produce
those necessaries and have to sell
them for half price, find it as diff
cult to now pay 3 per cent. interest
as they formerly did 6 per cent
Nay, more, for in many cases the
fall of prices has entirely destroyed
their profits and left them unable
to pay anything. The second is
that besides being exempt from
taxes, the bonds can be used as a
basis for the issuance of bank notes,
which notes can also be loaned and
bring the lender anywhere from 6
to II per cent. interest.
The talk about poor people"
rushing for bonds is all bosh Those
who are attempting to justify the
bond issue 10y pointing to the large
number of small bids of $500 or less
assume that every person who takes
a small bond is necessarily IA person
of small means. That is absurd.
There is nothing to prevent man
worth ii million dollars from buy
ing "a $500 bond. There is nothing
to prevent him from getting numer-
Gus friends to buy bonds for him,
That a very considerable number of
the small bids recently made have
been put in by wealthy men can
admit of no reasonable doubt. AS
stated in another article, it is GER
tain that no matter who buys them
in the first instance the banks will
ultimately own nearly all of them.
Every person, not densely ignorant,
must know that it is not the poor
people who are constantly demand
ing "bond issues" Who ever heard
of an agricultural convention or a
labor organization asking for an
issue of interest bearing bonds? 1t
is the great bankers and financiers
who have special interests to sub
serve, with few special pleaders
and now and then "small fry"
chap who thinks that it makes him
look big to echo the cries of the
great financiers." 1t is we'll un
derstood that the class of men who
were most anxious to have $780,
100000 in bonds issued for the re-
tirement of greenbacks, were also
the loudest shouters for "war bonds"
to the same amount, not only before
they were necessary, but before
there was anything in the situation
to indicate that such necessity
would ever arise
But this is not all These bonds
are permanent investment, calling
for certain number of "dollars."
During the last quarter of a century
dollars" have practically doubled
in value; e., purchasing power
They will buy about twice as much.
Should the same process continue
for the next twenty-five years, as
under the gold standard it is quite
likely to do, a $500 bond will be-
come in effect $1,000 bond, and
will require as much OF the products
of human labor to pay it as III 900
bond does now.
Like all other defenders of the
gold standard the World is dazzled
and its Judgment blinded by the
spectacle of the Government bor-
rowing money at low interest rates.
Very naturally men will accept a
-. - &c ;ntaraSf if thav ara uYvap