The San Francisco call., 1898-04-11
WAR AND FINANCE.
\ AR will speedily disclose the vexatious con- \A| dition of our financial system and call the
 country's attention sharply to the need of re-

\A| dition of financial system and call the
 countrys attention sharply to the need of re- form.
 Experience proves that nation can carry on war and civil administration concurrently out of current revenues The Morrill, tariff of 1862 was pressed and passed as measure to approximate revenue to expenditure, but in that respect was failure.
 As in the war of 1872 and that with Mexico the treasury compelled issue evidences of debt and to borrow on bonds.
 The Senate having recently affirmed by resolution that our bonds outstanding may be paid in s- yer at the option of the Government, and that de- claraton being based the existing law authorizing the issue of bonds 1t will be seen that Government call for loan, under such law is adumbrated by the Senate's action As borrower the Government is no more than an individual Its ability to raise money by loans is limited by the same conditions Among these is the ability to contract for the pay Of the loan in the value as that which it receives.
 If war continue for a period which makes bond issue necessary the whole financial issue will be pre- cipitated. It Is probable that the Government will not be able to borrow gold basis without prom sing to pay the same basis Then Congress, if not in session, will be convened to effect the needed change in the law and provide for gold payment if gold is borrowed.
 This will test the patriotism of the silver members War cannot be waged without money With the countrys honor at stake with navy at sea and land forces action and revenues all devoted to the civil administration which must be maintained at home we will see what the advocates of the silver standard will do
 They will probably attempt to compel recourse to an issue similar to the greenback emission. Such issue however would be affected by the ability of the Government to redeem it in the par money of the world, and its volume increases so would its dis count and we will go back to the foot of the ladder where we stood in 1868, when resumption was undertaken by the funding of the greenbacks and liquidation of the floating debt left by the Civil War
 Out of 1t all the country may learn that prosperity in peace and power in alike dependent upon sound finance
 II this probable issue arise within the next few months will see who will be found standing by the administration and who will be against it by put ting upon the serious embarrassment that can come to nation engaged in a military struggle.
 The taxpayer is the final party in interest He must provide out of his substance the money that pays armies and navies and fights battles An issue of credit notes like the greenbacks which fall below par increases the cost of in exact proportion to its discount If 1t be 50 per cent below par it means that purchasing in that medium, the Government has to pay double price for every shot fired and every ration issued for 1t is bound to redeem its credit at par it did the greenbacks when they were funded
 These details may be outside the daily knowledge of the busy taxpayer but he gets knowledge of them in the form of increased taxation, which always fol- lows an unsound system of national finance