The San Francisco call., 1898-04-27
FOR THE WAR DEBT.

HE preliminary measures proposed in the bill o the Ways and Means Committee to provide sufficient war credit of necessity based on existing law That law authorizes the issue of bonds payable in coin" Under the existing provisions oi the Sherman act of 1890 the Government is pledged to maintain gold and silver parity equality, at the established ratio of I6 That obligation of the treasury of necessity makes a "con" bond a gold bond and these securities will be disposed of with that understanding and protected by that statutory pledge
 II Tn future emergencies, to protect the treasury against the drain of gold by redemption of green backs, the Government find it necessary to suspend specie payments there will arise the practical ques-
 ton of further definition of the contract between the Government and its creditors. Then the whole ques- ton of our financial policy will be in focus
 When that time comes 1t is already evident that the hatists intend to force resort to legal tender paper issue. When such issue IS made eye can foresee
 its voume but experience teaches reliably its effect The country will be where 1t at the cl SC of the Civil War with large unfunded debt represented by depreciated paper This mass will be added to by the whole existing issue of silver dollars fallen to their in trlnsic value whchw not much 50 cents on the dollar and the whole problem of resumption and re- demption will have be gore over again as it was in 1868 As alternative it would be better fnanciering II for the existence of 34ooooooo of the old greenbacks which might prevent circulation of the new certh cates The true way, however will be in the securing Of gold for bonds by making them definitely payable in gold With gold in hand the cost of the war will be as much less the amount represented by the dis count ot form of ununded paper or that of bonds payable in coin that carry the risk of redemption In depreciated silver.
 It should be easy to see that if the Government pushed to the necessity of paying out depreciated paper or selling bonds at a discount it has to pay more for every pound of powder, every equipment and ration that 1t must use in the wastefu game of war. This added cost falls finally upon the taxpayers There IS no room for doubt that this same method pursued in the Civil War made its cost just twice what should have been and for thirty years the people have been patiently parting with their resources to pay the bill In that time they have been paying two dol lars when they should have paid only one and it seems marvellous that in the light of such an expe- rience the fatSts should be able to secure any meas of popular approval for repetition of the costly experiment.
 As The Call said months ago, the real supporters of the credit and honor of the country will be separ ated from the pseudo patriots when war inancierng becomes burning issue
 Senator Allen of Nebraska has already flung the fiat challenge the administration in his resolution declaring that financial provision for the war shall be in accordance with the Populist platform of 1So6 That platform demands that oblg gations of the Gov ernment be paid n any kind of lawful money which the Government chooses to use Of course this means payment in the least valuable and most depreciated form ot such lawful money, and IS a policy which would do the country more damage than the Span iards are likely to nflict