The herald., 1898-05-04
UNDER A PATRIOTIC CLOAK

The aggregate Indebtedness Of the
United States, on thefirst Of last Novem-
Der, was $1,22S, 32069O. The interest
bearing obligations aggregate but $S47,-
s865, $780, The war revenue measure,
which has already been passed by the
house and is now under consideration by
the senate committee on finance, provides
for the issue of $500, ZOO, 900 Of certificates
of Indebtedness, to run one year, and
$500, 900 of bonds to run thirty years,
both forms of obligation to bear interest
at the rate of three per cent per annum.
Should the certificates Of Indebtedness
be called in at maturity, very unlikely
event, the item will aggregate $1o3, 900, 900.
The bonds provided for, If issued, are
not likely to be paid before maturity, If
then. Thirty years interest at three per
cent per annum will aggregate ninety
per cent of the principal, or $3.50, ZOO, 900.
Thus the principal and interest Of the
new obligations contemplated by the
pending measure, assuming that both
forms will be redeemed at maturity, will
aggregate s1,053, 100000, a sum exceeding
by 1924, $40, 900 the Understanding debt
&2O5, 634, 440 less than the entire indebted
ress Of the country Of every nature.
A committee of the house, barring
from it's deliberations every member not
belonging to the administration party,
drafted the bill providing for this enor-
nous increase of the interest-bearing
debt of the nation, and submitted it with
out giving to the minority an opportunity
to debate it, and subsequently denied to
that minority the privilege of formulat-
ing or discussing amendments Of any of
its features. The house permitted lin
tied debate upon the bill, extending over
barely four days, and then, under cloture
applied by the speaker at the instance of
its author. rushed it through to roll call.
1t was adopted by practically partisan
division. The measure is now in the hands
of the senate committee on finance, and
the administration whip is being applied
with vigor to compel an early favorable
report
Without a word Of debate the senate
passed, on Monday an emergency bill,
appropriating 500. 100000 for war pur-
poses. The patriotism of the members
of the upper house may be depended upon
to vote, without question, all the money
shown to be needed for the conduct of
q war which it unanimously Joined in
declaring. But 1t is hoped and believed
that the senate will move with the great
est elaboration in the matter of doubling
the present Understanding debt of the
nation. We are confident that the ne
cessty for 1t has not arisen. 1t is OBJ
vious that the sum demanded by this bill
is not now required. 1t is by no mean sJ
certain it will be necessitated by the
events of the future. 1t is highly prob
able, in view of the occurrences of the
past few days, that the war will not be
prolonged beyond a few months. At all
events, so long as congress remains in
continuous session, the needs of the treas
ury can be supplied from time to time, as
they were on Monday, by the issue of
non-interest-b certificates of in
debtedness, the resort of all nations in
time of war, to be taken care of when
peace has returned.
1t is felt by many senators-and few
patriotic Republicans entertain the same
view-that an increase in the bonded
debt may be avoided altogether. It is
held by the minority that all of the funds
required may be secured in other WAYS.
and without imposing excessive hard
ships upon any class. They will contend
for the imposition of an income tax. and
for the collection Of additional internal
revenue taxes. And they will yield to
the bond proposition only after all other
resorts have been tried and exhausted.
They will vote for interest-bearin,
bonds only when it is shown that
adequate funds can be provided in
no other constitutional way, and in this
contingency they can be depended upon
to insist that the loan be placed with the