The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1902-08-29
FALsEHooD OF REPUBLICANS.
oss ef the Gross Misstate me nts % the
.Grand old Party's' Came
patgn Text-DSok.

The republicans in official and I'm.
official documents and everywhere,
in fact. have been Boosting at the
very high prices at which our two
Der cent. bonds sell. or, in other
words, at the very low rate Of in
terest at which this government can
borrow money as compared with
other nations. Thus, in their cam
paign textbook, the republicans say:
Uncle Sam is the only one on earth
who can borrow money at two per
cent. and the bonds be at a premium
at that"
4 half truth is always the meanest
Kind OF lie, because il is diiheult
10 disprove. IL is not only unfair 70
compare our bonds with the bonds OF
most other nations, but il is abso-
lutely false TO state that Uncle sam
can borrow money at two per cent.
and have the bonds sell at pre-
MUM.
/. The bonds OF Great Britain, and
Of some other European countries,
are subject to income and perhaps
are exempt from any and all kinds
Of taxation.
2. A direct comparison between
the price OF our two per cent bonds
and the government bonds of Great
Britain and France is unfair because
the price OF our bonds is unduly en-
HANGED by the artificial demand ere
ated by our federal banking laws
which require national banks L
own these bonds and deposit then
with the United States treasurer
This enhances the price of all on
bonds.
2. But in the case of our two pc
cents. there is further artificial
stimulus or special privilege in IN
provision that the tax on nationa
bank notes secured by these bond
shall be one-half of one per cent
less than the tax on notes secure
bv all other classes Of bonds hi
makes these bonds. for purposes
national banks. practically 2ia pc
cent. bonds as compared with a
the other issues. The governmer
pays only two per cent. outrigh
but. so far as the bonds are hel
as the basis of bank currency tan
most of them are so held 1T pay
another half per cent. in remissio
of taxation on the bank currerc
This explains why the two per cen
bonds sell so much higher in pr
norton than the three, four or fly
Der cent. bonds. The four per cen
bonds Of 1925 now sell for about -
and the twos for about los. This
on the basis of about 2.15 per cen
interest for fours and 1.75 for Il
twos. IT, however. the so-called tw'
are considered as 2R per Ger
bonds. as may he properly done, thu
viii be found to be selling on q
basis Of about 2.i2 per cent. intere'
Virtually. then. the United Stat
pays Indirectly premium on hon
Of one-half of one per cent 10 I
holders OF two per cent. bonds
II would raise this premium to
per cent. IL could borrow mon
without interest If il would ma
the premium five per cent. il cor
receive interest on its own deb
anu JUS tEFAAARlS NNAAN. ~ 'fN-Nf
against each other for the privile
Of owing Uncle Sam money. just
waters in restaurants, where Z
are numerous and large. pay the p
prietor for the privilege of servi
his guests.
All of our government bonds
Joy special privileges, and our I
per cents are more favored than
others. If all privileges were tai
away from our bonds. they wo
probably sell so ms 20 yield
income of about 2.25 per cent. +
is. the government could issue
per cent. bonds and sell them at
IT cannot. then. borrow money
two per cent. on ordinary bonds
sell them at par. and the staten
in the campaign book is false
pyRON w uOL