The daily journal. (Salem, Or.) 1899-1903, 1901-08-28
Editorial

Editorial
Salem has brought about most desir-
able condition OF affairs in city finances.
All debtmaklng has been stopped and
IA borrowing operations there 10 sharp
competition between the private cap
italist and the banks. The first two
popular loans we're noated at four per
cent by selling the short-tims call bonds
at pGr direct TO the citizens. The local
banks we're friendly 70 the plan and gave
II their hearty endorsement. When sa.
lem undertakes the third popular loan
the banks are again first 10 offer 10 carry
the loan and one bank goes 80 far as to
offer to take the money at 80 per cent.
This might be embarrassing 10 friends Of
the popular loan plan Of handling city
debt, II II were not great compliment
10 the present city government, when
we consider that heretofore the city has
paid five, six or eight per cent for the
use OF money, and that the city Of Port
land has recently sold street improve
ment bonds drawing six per cent, and
that Baker City and other towns are
now Offering for sale six per cent water
bonds. While the offers OF the Salem
banks are fattering 10 our city, the
principle underlying the popular loan
idea should not be loet sight OF by this
administration, and that is not central
ization OF financial operations In the
hands OF few individuals, but scatter.
Ing the loan as widely as possible among
bonafde residents OF the community.
II one man or set OF men would
loan the city money for nothing
II might still be unwise 10
use that kind Of loan al
compared 10 just and equitable policy
Of having the largest number Of citizens
possible interested as stockholders and
10 that extent guarantors Of good
government. II must not be forgotten
that Il was the masses Of the
common people who made a business
administration possible In Salem, II
was the body Of our citizens who made
the popular loan possible and carried 4.
10 success twice. We might get three
per cent money OF j. p. Morgan but II
would be cheaper In the long run 10 In.
terest few hundred Of our own people
In our city debt II We expect 10 establish
this policy aud pull our city out Of the
miro. To give the $4,000 reiundina
bonds 10 one man or one bank at even
three per cent would be grand pick
me.up ior all the bOnd-buysrs in the
east because II would be saying 10 On,
world that after several years trial Of the
popular loan plan at salam il had beer
abandoned. IL would be the first steT
10 return 10 the old monopoly methodi
where the bankers handled the inanc,
and the politicians handled the city
government and both would be doing 4
for all there was In Il. The only safe
way Ia 10 keep alive competition be
tween the small holders Of capital ant
the banks. The whole world 10 ready Il
loan money to this city. The ques tioI
now 10 be decided Is whether We shal
adhere 10 the popular loan plan OF plAe-
ing the city debt with the largest number
of people possible or Of returning 10 th'
old way Of selling city debt to the loves
bidder. The rate is Of little consequence
compared 10 the principle Involved
That principle IL that the people hay,
the fret right 10 lend the municipality
money when Il makes loan and tha
all shall have an eqnal opportunity I,
subscribe for H. That principle involves
the proposition that II 10 better 70 hRv'
three-hundred people who live here loAI
the city 800 apiece than 10 have on,
man loan the city $4,000 even II h'
could do ID hall cheaper. II S,S per oenl
is the right rata Of interest for popular
loan LET Rll have che same chance 10 SCI
ID. What Salem and all Oregon needl
most Of all 30 DO Is 10 make saie small
investments q capital. No community
needs 10 look out for the large holdings
as they will take care oi themselves
Unless We make Il possible for the small
sagings 10 get 10 earning something there
is no object 70 save aud We place 3
premium on thriillesaness, when The
community should offer its premiums "a
honest industry aud the accumulation Of
capital BY working people. The popular
home loan does that
q oo
The antitrust Republicans 10 con
eress are talking u uaklng q aght 90