The Forrest City times., 1902-09-05
PRIESTHOOD OF REpuR1,c,
One of the Gres. Ni.
 r'nd old Part,'." c'''As paign rext-BooL

The republicans in oaa;-,
 9fhclal documents and .- ana un. in fact, have been ho.st, where, very high prices at which at the per cent. bonds sell. or ia our two words, at the very low r.+s Other terest at which this goyern,1 a in. borrow money as compared eH' can other nations. Thus, in tbe;. @ith palgn textbook, the republica. eaa' 'I ncle Sam is the only one saE who can borrow money at efiA cent. and the bonds be at or.. o pe' at that" fenga
 A half truth is always the n
 klnd of lie, because iS k Ns to disprove. 1t is not onIv mt
 compare our bonds with the bona.
 most other nations. but jt is =,
 lutely false to state that Tnelo can borrow money at two her as-. sa and have the bonds sell at @ mium. pre-
 ]. The bonds of Great Britain .., of some other European connt.;.s 4 are subject to income and ,,,.t.' are exempt from any and all kin5' of taxation. anus
 Z' A direct comparison betws., the price of our two per cent hosa. and the government bonds If c-e.s Britain and France is unfair oceans. the price of our bonds k nndplv a, hanced by the artificial demand era. ated by our federal hankinc la,r. which require national banks tn own these bonds and deposit thsm with the United States treasurar This enhances the price of all on- bonds.
 3. But in the case of our t,yo ,a. cents. there is a further artificial stimulus or special privilege in inc provision that the tax on national bank notes secured by these bonds shall be one-half of one her cent less than the tax on notes secured hX all other classes of bonds This makes these bonds. for purposes of national banks. practically 2fs Der cent. bonds as compared with all the other issues. The government pays only two per cent. outrigbt but, so far as the bonds are held as the basis of bank currency (and most of them are SO heId1 it pays another half per cent. in remission of taxation on the bank currency his explains why the two per cent. bonds sell so much higher in pro- portion than the three. four or five per cent, bonds. The four per cent bonds of 1925 now sell for abont is3 and the tWos for about los This is on the basis Of about a15 ger cpnf interest for fours and l75 for the twos. If. however, the so-ealletl twos are considered as 2l Der cent bonds, as may be properly done, they will be found to be selling on the basis of about 2.12 per cent. interest
 Virtually, then, the United State. pays indirectly a premium on bonds of one-half of one Der cent. to tht holders of two per cent. bonds | it would raise this premium to 2K per cent. it could borrow money without interest. If it would make the premium five per cent. it could receive interest on it's own debts and its creditors would he bidding against each other for the privilege of owing Uncle Sam money, just ai walters in restaurants. where tip: are numerous and large. pay the pro prietor for the privilege of serving his guests.
 All of our government bonds en joy special privileges, and our two per cents are more favored than tho others. If all privileges were taker away from our bonds, they would probably sell so as to yield a net income of about 2.25 per cent That is. the government could issue 2A per cent. bonds and sell them at par It cannot. then. borrow money al two per cent. on ordinary bonds ana sell them at par, and the statement in the campaign book is false.
 r,x-DCN " HOLT