Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1901-01-18
Interest Burden Increased.


Refunding operations under the
gold standard; debt-perpet uating act
of March last closed on the 31st of De-
cember, 1900, after the books had
been open for the exchange of bonds
for period of nine and one-half
months. In statement on the sub
ject, Assistant Secretary Vanderlip
alleges that the exchange of the IS, As
and IS which would mature within
the next eight years for gold 2 per
cents has effected gratifying saving
of interest. He says:
''The refunding has been successful
from every standpoint. Holders of
the old bonds IS, Is and IS of 1908,
1907 and 1904, respectively, have vol.
UNFAIRLY offered for exchange into IS
approximately s439,OO0,o00 out of $685.
100000 leaving outstanding of this
part of the Understanding public
debt less than one-half the amount
subject to the law. Exact figures will
not be known for several days, as some
bonds are still in transit. The net
saving to the government of interest
by these transactions is substantially
$40, 100000. This saving has been ac-
complished by the payment now of
of the sum Of s42,OOO,OOO which is real
1y an anticipation of the s52, 900, 900
interest which would have had to be
paid within the next eight years, in
case the old bonds were permitted to
run to maturity. The difference is in
the net saving.''
The government has effected the
saving by paying for the bonds pre-
sented for exchange premiums aggre-
eating s42,0O0,000 or $40, 100000 less
than the interest or the bonds would
amount to down to the time of matur-
ity. But this is a seeming rather
than an actual saving, for what the
government has done is to give for
bonds which would become payable in
1908, 1907 and 1904 respectively, bonds
mat will not mature for thirty years.
The interest rate on the thirty-year
bonds is per cent, so that when they
nave matured the government will
have paid on the S439, 900, 900 worth is
sued interest Taggregating the enor-
nous sum of 1868, 400,0 900, or much
more than one-half the principal. 1t
IS true that though the act of March
last had not been passed the govern
ment would be unpreparod to pay and
ca icel the IS, is and IS at maturity.
Yet is is also true that with revenues
largely in excess of expenditures, and
with the treasury setting aside mon
ey TOT the redemption fund, part of
the bonds would be redeemed and can
celled every year and that when those
outstanding became due it would be
practicable, as was done at the time
Mr. Window was secre tary of the
treasury, to continue them at the
governments option at a low rate of
interest. Under this plan quite the
S439,0o0, 900 upon which Mr.. Wander
lip boasts saving of $40, 100, 900 in in
tereSt would be wiped out in less than
fifteen years, and the Understanding
thus effected would amount to at least
100000, 900, or to more than Sl3 for
every family in the country.
ltisa libel upon truth and an atfront
to public intelligence to represent the
gold standard act as an interest saver.
@,,.>
purpose of maintaining extortion from
the taxpayer for the benefit of the
bondholder. Its aim is to take from
the government hundreds of millions
which it would not be obliged to pay
and transfer them to the pockets of
coupon clippers, 1t is we'll adapted to
its purpose and in operation it will
achieve it.-Dubuque Telegraph.