The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-08-19
OUR NATIONAL CREDIT.
some Significant Facts Brought Out
by the so-Cailcd Popular
Loan.


Loan.
The government Is borrowing 500, 900. o0f
with which to prosecute the war. This
means an interest charge OF only 1900 u
q ycar-a mere bagatelle TO a nation SO
rich as this republic is. All this money Is
offered TO the government five times over
The people offer practically all OF II in
small subscriptions OF 800 or less. Banks
offer II on any terms that the government
may make. and one New York bank has
offered to take II and distribute II among
the people without any fee or reward OF
any kind There never was a more splen-
did national credit than this. And when
we ask why, the answer is ready. At the
end OF the civil war the nation owed nearly
s3.oco.OoO,Oo0. and had a terribly dep reciated
currency. 1t has since enormously re-
duccd axation, and yet IL has made It's
currency sound and has so rapidly paid
It's obligations that its bonded debt on
November !. 1897. was only sSf7 1865. $50. once
In all those years was there a thought OF
increasing the bonded indebtedness with
out "A war necessity. yet even with that
Increase OF Sc. 600 OK during Cleveland's
time. the interest-bearins debt of the coun-
try has been reduced to one-third Of what
IL was. 1t is the man who pays his debts
that enjoys abundant credit 1t is precise
ly The same with the n~ations."-N Y. World.
The foregoing sounds well and
tickles the vanity of the th~oughtless,
but il will not stand a careful analysis.
The fact that the people are almost
breaking heirnecksin a mad scramble
to secure government bonds at three
per cent. is very far from being a cir
cumstance of congratulation. 1t
proves conclusively one of two
things: Either general business must
be extremely bad, affording poor OPP
portunities for the profitable invest
mcnt of money, or there must be some
peculiar or emotional advantages In
a government bond as an investment.
No nan will loan 10 the government at
feel perfectly safe. Persons who are
timid-who are afraid 10 assume any
risks whatever in business, may con-
tent themselves with what they con-
slider a sure thing at three per cent.
Now and then we find a person whose
fear OF losing is such that he will not
invest his money AT all. but will simply
hide II away. These, however. arc ex-
ceptional cases. When there is n grand
rush TO secure investments at rates so
low, il should lead people TO pause and
inquire into the reason Of II. 4 rem
orally low rate of interest does not in
dicate either general prosperity. or an
abundance OF money. On the contrary.
II shows that bnsiness is dull, that de-
mand for money is slack. il cannot be
proitably invested in productive en-
terprises. and consequently has be-
come superabundant in certain places.
In short, hat money is plentiful in The
hands OF the lenders. but scarce every
where else. This is one OF the simplest
principles in monetary science. and It
Is yet the most difficult for anyone TO
comprehend. Unquestionably the
credit Of the government is good.
Why should II not be? The gov
eminent Is backed UP and con-
trolls the entire wealth Of the ma
ton. a government bond is rs safe as
anything In human affairs can be. But
that is not the only reason for the low
rate. nor is Il the chief one. The fact
stated by the World that since the
civil wartwo-thirds Of our bonded debt
has been paid is rot the reason why the |
car borrow money at
three per cent. The English govern
Inent can do the same and even bet
ter. although il makes no pretense of
The principal Of its debt. In
in bonds do not want the gov
eminent to pay them, and the fact Is
well understood that bonds which have
long time TO run TIRE worth more
the same class Of bonds which
ire payable sooner. \ Cougar bond Is
worth more than n ten-year bond. At
the present time four per cent. United
bonds maturing in 1928 are
about 1875, while the same sort OF
ponds coming due in 1907 are only
Ill. There are two reasons why
he government can so easily float its
per cent. bonds, neither of which
$ touched upon or referred to by the
First, under the gold stand
Ird, which the World so strongly ia
'ors, three per cent. is just about the
anne 10 the ~bondho,der as six per
ent. was IS years ago. before the an
standard Of value was tempered
With. That Is 10 say, il will buy about
vic as much on an average Of the
lecessarics oflife. Forthe same reason
he people who produce these necessa-
les and have to sell them for half price
ind IL as difficult now to pay three per
ent. interest as they formerly did six
er cent. Nay, MORE, for in many
ases the fall Of prices has entirely
estroyed their profits and left them
Inable TO pay anything. The second
> that, besides being exempt from
the bonds can be used as 4 basis
or the issuance of bank notes. which
otcs can also be loaned and bring
lender anywhere from six 70
welve per cent. interest. This talk
bout poor people" all rushing for
onds Is bosh. Those who are attempt
ig TO Justify the bond issue by point
ig 10 the large number Of small bids
I $500 or less assume that every per-
on who takes a small bond Is ncces-
ef1.r :. 49,. - -.-.f r~t-. Y