The Republican. [volume] (Oakland, Md.) 1877-current, 1898-03-03
War and Our Money.

war ana our money.
Should the United States decide to
go to war with Spain a great deal Of
money would be required in addition
to what could be raised by increased
taxation. A loan of over a million
dollars, first and last, would be re-
quired, besides current revenues. In
view of the adoption by the Senate of
the Teller resolution, declaring United
States bonds to be payable, principle
and interest, in silver and in view of
the majority in the Senate favorable
to the free coinage of Accent silver
dollars, loan of billion dollars could
hardly be obtained at the low rates
of interest that now prevail, while we
are still on the gold basis. At present
on the gold basis, money can be Dor
rowed as from to % per cent. on con-
dition that the borrower engaged to
pay in gold, or money exchangeable,
dollar for dollar, for gold. The Unit
ed States could, perhaps, borrow a
couple of billions at, or under, 3 per
leeqt., if Congress would enact law
making its bonds explicitly payable
in gold and abandoning the silver fet-
ish. But with the present equivocal
or hostile attitude of the Senate in re-
spect to gold, it is doubtful whether
the government could get $500, 600, 900
at less than per cent, and by the
time 81, 800, 900 was borrowed the rate
would probably amount up to or 7
per cent. The current being depreci-
ated silver, or treasury notes redeem
able in silver and at some indefinite
suitable time, the rate of interest
would be higher in proportion to the
lowness of the value of the prospec-
tive dollar of redemption'-the sill
yer dollar.
Should war be declared one of the
first lessons experience teaches would
be a financial panic. Our peo-
pie would rush to exchange their
greenbacks for the gold now
in the gold reserve. The 100000
900 of the reserve would be speed
lily exhausted, after which the only
metal left in the treasury with which
to redeem paper money would be sill
yer. The descent to the silver basis
might be gradual, but under the cir
q, 20
A currency of Accent silver dollars
would probably ensue, with CORES
pondingly inflated prices, impairment
of obligations and lessening of the re-
sources of persons living Oh salaries
and fixed incomes. The country would
be fortunate if it should escape an I'M
limited issue of worthless paper
money! such as cursed the Confeder-
ate States during the last years of its
existence. The higher the rate of in
terest consequent upon our devotion
to silver the louder would be the de
mand of inflationists for more green
backs, which they fondly think, ''cost
nothing The descent to the silver
basis and from that to Il paper basis,
in view of the present attitude Of the
Senate, is, in fact, the most important
consequence to be apprehended from
war. OF course, we shall go to war,
regardless of cost if our duty, or honor
requires us to do so, but it is not in
expedient, if neither duty nor honor
require war, to balance the disadvan-
| tages against the advantages of al
aggressive movement for the liberia
ton of Cuba.
War will, of course, necessitate q
large increase of taxes. In the past
seven months our revenue has beer
some $40,0O0,O0O less than expendi
lures. To provide means of fighting
we shall want large surplus in place
of deficit, in addition to what we
can borrow. A billion-dollar loar
would permanently increase our an
nual interest payments by $50, 100000
and a two-billion loan would, per
haps, double that figure. Larger rev
enue from internal and tariff take!
would, therefore, be imperative. The