Omaha daily bee., 1898-05-08
THE PLEA FOR A BOND ISSUE.

IffE FLEA run a DolND fsSctbs
In trying to controvert the argument
advanced by The Bee against the pro-
posed $500, 1000, 600 national bond issue,
Henry w. Yates takes exception to the
declaration that, viewed from the bond
holders standpoint, the bond issue COM
mends itself, while frou the standpoint
OF the taxpayers it is indcfensible. Ac-
cording to Mr.. Yates, this Is fling at
the bankers which f1avors strongly Of
populism and comes with bad grace
from q republican paper, which thus
condemns what republican house has
voted.
Mr.. Yates Is altogether too sensitive.
whose interests are at variance with
those of the bond payers The Bee sim
ply slated admitted facts. No cardinal
doctrine of the republican party com-
mits its members to support bond issues
when the welfare of the nation can be
better promoted by other measures. The
Bee Is firmly convinced that in opposing
bond issue it voices the sentiment OF
republicans more closely than the re-
publican congressman who voted for II.
When Mr.. Yates asserts that The Bee
knows, as he knows, that bankers have
no interest in the matter and as class
| are as patriotic as any of their fellow
| citizens, he connects two distinct prOpo-
sitions, one of which is true while the
| other Is decidedly debatable. Nobody,
| in opposing the bond issue, assails the
| patriotism Of the bankers. Yet every
| one conversant with the banking bust
ness must concede that as q class they
are vitality concerned in perpetuating a
| bonded national debt If this We're not
so why are all bankers practically a unit
in favor Of the bond scheme? For
that, however, no blame attaches to
them because that is their manifest in
terest.
Mr.. Yates denies that he favors a
permanent national debt and declares
that nothing in his former letter justifies
Il different conclusion. How are we to
reconcile this position with his plan of
bonded debt for which no sinking
fund shall be accumulated? Without a
sinking fund to redeem the bonds the
debt must surely be perpetual.
Simmered down, the plea for the pro-
posed bond issue lies in the assumption
of Secretary Gage that there is not
money enough in the treasury to meet
prospective war expenses to the end of
the year and that there is no other way
Of raising the money except by taxation
This assumption is grOundless. The
estimates Of Mr.. Gage as to the probable
cost Of prosecuting the war are So, 900,
600 n month, or $15O,OOO, 900 from July
q to January next. This is at least $15,
100000 month more than the esti
mates made by the War and Navy de
partments, which totnlled $12O,OO0,OO
for the entire period from its outbreal
to January, 1899.
Even accepting Mr.. Cages inflated
figures, there will be no occasion fol
authorizing a bond issue at this session
Of congress. Instead of issuing twenty
year bonds, the treasury can, withOu
trouble, float $1OO.OOO.OO0 treasury Ger
tificates ut par, which amount, with th'
increased internal revenue receipts
would meet all the demands withOu
paying a dollar interest.
If the protraction of the war make,
necessary an interest-bearing loan thel
there is no reason why the common peo
pie shall not be given the privilege o
investing their savings in United State
postal savings banks. This feature
however, Mr.. Yates does not want t
discuss at this time, contenting himsel
ut expressing surprise at the inconsist
) ency of The Bee in opposing perma
: nent bonded debt while favoring a pei
, manent debt to postal savings deposl
tors. On this point The Bee is willing t
be charged with inconsistency. 1t ha
I consistently supported postal saving
. banks for many years. 1t believes tina
j the OppOrtune time has arrived for thei
> establishment in this country, not onl
because they would afford immediat
:. relief to the national treasury throug
the most popular of popular loans, bu
i also because they would promote prac,
cal patriotism by giving every deposito
direct interest in the stability of til
I government and in the soundness of II
u currency.