Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1901-10-18
FINANCIAL POLICY IS BAD.
sY-%~----s-..t Nav IN Which Repub.
icans Are Running Govern-
ment Affairs,

Tight money in Wall street means
lower price for securities and stocks of
oil kinds, because many of the specu-
o rate that will leave any margin of
profit. So but few want to buy stocks,
hnd those who have borrowed money
bn call with stock as security are
forced to sell. ThsSe are therefore
tgJre ssIl<s sfon buyers and down
Ee tile prices. WheA the banks call
fSr the money theY htve loaned, it does
Hat always mean tans they want It,,
but they have an opportunity to loan it
at higher rate, come times running
up to even 90 per cent, and in times
of great panic even higher.
Now, we would naturally think
that all these gambling transactions
did not concern the people of the Unit
ed States and that therefore the gov
eminent and the treasury would not
be interested. But 1t appears that Sec
rotary Gage when the late furry &C.
CURED issued an announcement that
he would receive proposals for the sale
of $4,000 900 of bonds, so that the
cash in the treasury to that amount
could be paid to the banks or to those
who sold the bonds and thus add to
the money that could be loaned. He
also sent the following telegram to
the chairman of the Clearing House
association, of New York:
Recognizing the unfavorable infiu-
ence upon general business affairs OF
continued absorption into the pub
lie treasury of revenue beyond ex-
penditure, I have directed that In
coming internal revenue receipts be
placed with national bank depositaries
until q balance with each is reached
equal to the par value of the bonds
held as security from such deposita
ries. This will divert about $5,ooo,oo(
from the treasury vaults.
1.-THE secretary will to-day invite
proposals for the sale to the govern
ment of $20,Oo0,Oo0 OF United States
bonds other than the new twos. 1t l!
believed that these steps will obviate
che otherwise possible embarrass
hents which are pointed out in you.
telegram of yesterday"
All this means that the United States
treasury is helping out the bull spec
nlators by buying back the bonds a
q very high premium, that not lons
ago the government sold for par or a
small advance and in addition to tina
toaning them 100000 without in
Eerest. When 1t is considered tina
The treasury has already loaned to tn
banks nearly s1oO,OOo,Ooo without in
serest, which they have he'd for owe
two years, it will be easy to understan'
how the banks and the trusts compa
MES are able to pay such enormous div
idends.
1t would appear that the Unite
States treasury was in some way in
terested In these great financial inst
buttons and was anxious to see ther
accumulate all the loose money in tn
country, so that they can dictate tn
price they shall have to those who mus
borrow.
Thus through these undergroun
workings Of the financial end of tn
government the people are paying a
both ends; they pay In the money TO
taxes, and then the government loans
to the na1hs without interest and th
banks loan 1t to the people at the high
est rate they can make them pay.
This is the extravagant way in whfcl
the republicans are running the fnan
Efaa affairs Of the government, b