The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-04-26

I.112 CHEAPEST WAY 10 D0D0OW.
Senator Allen indicates that We are
going 10 have some wild financial slg-
gestions about the conduct Of the war;
He has already introduced . resolution
to the senate which II passed weuid
proclaim II 90 be the sense Of the United
States senate that the cost Of the war
does not need to be betrayed by the Issue
of bonds. There has been such an out
cry against "bonds" that unthinkIng
people. Of whom more intelligence would
be expected. seem to have an uncom-
Portable notion that there ID something
Of . Suspicious character attaching to
this form Of Indebtedness. A bond is
nothing but an agreement on the part
Of the government or other authorized
body To pay what II owes. II Is q prom
issory note. having the s0lemnity Of an
official naturalization. II IL no more
than a piece of paper practically ac-
knowledging that a certain sum of
money has been borrowed from the
holder BY the maker and promising to
repay him the sum nth . certain speci-
fed interest
FInanciers OF the Allen stripe are wild
when any suggestion 10 made Of the
issue Of bonds at three per cent. In
terest; but they 60 into raptures over
the issue Of . non-interest bearing ac-
Acknowledgement. which may cost the MAX
sr AZ much as fifteen per cent. because
OF the increase in price, which acts as q
discount on the non-interest bearing
paper. The cheapest loan that q gov
eminent can make is = gold loan. 1t ID
TO use theorizing about It.; the proof OF
OF the world for the past hundred years.
There In not q loan made by q govern
ment or = municipal corporation which
cannot be had at lower rate OF interest
II the promise is made that 1t shall be
repaid in gold. This country 10 amply
able to pay In gold: and why should the
taxpayers be required to pay more for
the privilege Of retaining an option
which 10 Of no service TO US?
The cost Of the civil war was very
considerably increased through the de-
probation Of currency. which simply
meant y non-interest bearing loan
Bonds were sold at a discount, SO that
instead of the six per cents bearing only
the nominal interest Of six per cent. the
government paid from ten to thirteen
per cent. interest. 1t IS the same with
the ave per cents. The government ac-
tually paid fourteen to seventeen per
cent. on the issue.
IL Ii astounding that any man who
can remember the condition which ex-
listed during the war and until resump-
ton OF specie payments should suggest
TO the government a repetition OF such
a wasteful policy.
Not only did the government lose. but
the wage Garner and nearly every other
business man except the speculator lost
money.
A United States bond payable in gold,
and bearing three per cent interest,
would at any place, at any time. In any
part Of the world. be worth more TO the
person who held II. or who had TO take
ii in payment Tor services or material.
than gold dollar; IL there were an
issue of non-inteFest bearing paper to
any great extent II would nowhere be
equal to geld dollar. and the mos; mis-
chieyoas result would be that nobody
could predict from one day To another
how far below the gold dollar i'm value
II would fall.
We do not have 20 theorixe about these
things; the country has had very cost.
ly experience In tinkeving with finance.
\ piece Of paper can be made as good as
gold II there is a PROMISE OF gold behind
IL; but II there Is not. it's value would not
be Increased even II IL were accompanied
by copy Of Bryan's speeches. explain
ing Why IL ought 10 be- worth as much
"a go,d.