The Maryville times. (Maryville, Tenn.) 1884-1944, 1898-07-30
popULARIZING THE WAR LOAN
A Valuable object Lesson In Finance
tor the American
People.

loan that such a method of floating
the bonds is expensive. In order to
distribute the bonds in small amounts
over the entire country so as to give the
general public a chance TO subscribe
for them in minimum quantities if it so
desires. ii will be necessary for the
treasury department to do vast
amount of detail work. Such work will
be expensive, tedious and vexatious,
and might be largely avoided by dis
posing of the loan through the usual
channels.
Then again the government must be
the loser by some millions on account
of the necessity of selling the bonds to
the general public at par, whereas the
capitalists of the country are offering
TO take them at premium. Finally, it
is said that the attempt to popu!arize
the loan will practically fail of its pur-
pose because the bonds will soon be
bought up by spectators and find their
way into the vaults of the capitalists
anyway.
II must be granted that the economy
argument has at least a temporary
force. 1t would surely put million or
two more money into the treasury if
the whole issue of 100000, 900 could be
sold to the highest bidder. But there
are compensatory features in the pop
plar" method that will much more than
offset any temporary disadvantage.
There is an inherent principle back of
popular loan that we believe will
work to the great benefit of the coun-
try-the principle of cooperation. tits
natural for us to be interested in an
enterprise in which we have invested
our money. Thousands and tens Of
thousands of the common people Of
this great country who have nevet be-
fore thought of owning government
bonds will buy these securities in small
amounts. By so doing they become
| financially concerned in the welfare of
| the government. The consciousness
of having come to the aid of the gov
eminent in it's hour OK need will invest
national affairs with new and per-
sonal interest. and inspire in them a
feeling of partnership and sentiment
of patriotic fervor.
Then the financial lesson which will
be taught by popularizing this loan
must be taken into account. When the
common people-not the bondholders
hold s4O0.OOO,0O0 of the national debt
in their own hands their concern for
the national credit will be more than a
sentiment. When they possess the
bonds of the United States, payable in
'coin." they will be personally inter-
ested in maintaining money stand
ard that shall secure to them payment
in form of money worth just as much
as the money which they loaned to the
government. The preservation of the
national credit and the highest integ-
rity of our financial system will be-
come matters of personal interest,
when the people themselves become
government creditors.
The popular way Of floating the war
bonds may therefore be looked upon as
affording most valuable object lesson
to the American people in matters of
finance. The objection that the bonds
will eventually pass into the hands of
few spectators may find some veri-
fication as time elapses. But we do not
apprehend that the masses of common
people who invest in a few of these Sc
curities will be in haste to part with
them. 1t will be matter of pride
with many of them to be counted
among the creditors of the nation.
Moreover. these bonds bearing three
per cent. interest and free from tax
alton will prove fairly good invest
ments. Why should the man who has
invested his humble savings in these
gilt edged" securities be in haste to
dispose of them?
Atall events there are strong grounds
for predicting that the coming distri-
button of the war debt among the
masses of American citizens will prove
not only great financial success, but a
means of strengthening the national
credit and confirming the sound money
principles upon which that credit de-
ponds. If such prediction shall prove
correct the popularizing of the loan will
be thoroughly justified. even though il
may be somewhat troublesome and ex-
pensive to get it into the hands of the
peoplc.-Detroit Free Press Gold
Dem.).