Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1908-01-06
HORACE CRI7ICISES TARIFF FALLACIES
FORMER new YORK EDITOR ON
BOND ISSUE.
Horace White Writes Letter to the
Evening Post DenOunCing the Ad-
minisfratiOn for Issuing Interest
Bearing Certificates, as d Graft
for the New York Banks.


Mr.. Cortelyou's financiering is too
much for Horace White. 1t will be re.
memb bered that Mr.. White was at one
time editor OF the New York Evening
Post, and was conspicuous as champion
of the single gold standard in 1896
Writing to the editor of the Evening
Post Mr.. White says:
"Permit me to say that l concur in
your criticism of the action OF the treas
ury department in issuing lot OF three
per cent. certificates OF Indebtedness at
this juncture, aud to add thafthe objec-
tions are equally valid against issuing
Panama canal bonds. Both are schemes
to borrow money from the public at in
terest in order to lend it to banks with
out interest, at time when the govern
ment already has $240. .156,43l (minus a
small working balance) already loaned
in the same way. There is no pretense
that either class OF obligations is put out
to obtain money for any governmental
purpose.
s'The avowed purpose is to relieve the
money pinch. You have shown that the
money pinch was already relaxing, as
indicated by the decline in the premiums
on currency, both here and in Chicago.
You have pointed out how the premiums
on currency relaxed and disappeared
without government interference in 1893
You have argued truly that the treasury
department, by 'butting in at this
juncture, deprives the public of those
lessons in prudence and self-dependence
which are greatly needed as helps to
ward off like calamities hereafter.
lit seems to me that something more
might usefully be said in the way OF
pointing out the real nature Of the action
taken at Washington Mr.. Cortelyou,
with much simplicity, begins by saying
that he has already placed more than
$20O,000,000 in the banks. Upon this
money the depository banks are receiv-
ing rates Of interest varying from six to
thirty per cent. If we take the lowest
figures the income from this source is
$4,000, 900; but it is much more, because,
being legal tender money it can be
counted az each reserves, forming the
basis OF loans at the rate of 81 Of dis
counts to 81 Of cash. 1t may be assumed
that the profit derivabe from these gov
ernment deposits is at the rate Of $780,.
600, 900 per annum in the aggregate.
Now. Mr.. Cortelyou comes forward in a
breathIess way and says to the people,
and President Roosevelt echoes him (or
vice-versa): Il have exhausted my means
for loaning money to the banks free Of
interest. I can not place another cent
there except by borrowing. Congress
has given me only two resources in the
way of loans, both designed for quite
different purposes-one for digging the
Panama canal, the other for the war
with Spain. will try both, to the ex.
tent of $15O.OOO. 900, if necessary. So
please buy these securities. will pay
you interest at two per cent. on the
Panama bonds, and at three per cent. on
the Spanish war scrip. and then shall
be able to increase my loans to the banks
without interest. Perhaps they will use
some of these securities to increase their
own circulation
''Now il the banks had originated this
system of government financiering they
might be Justly classed among the hate
full trusts, for not even the Standard Oil
gouges the public deeper, but they are
not censurable in this way since the gov.
ernment itself originated it and even
now rushes forward with new millions
and hundreds OF millions and presses it
upon the bankers; and, like little Jack
Horner, who sat in corner, exclaims,
what good boy am l =
eff were banker suppose should
do what they do; that is, accept the free
offerings of generous government. do
not know why anybody should reject the
nuggets flung at him by the benevolent
treasury Of his native land. Of course,
the bankers and their newspaper organs,
which are more numerous than the pub
lie are aware Of, approve Of the arrange.
ment, and the chorus is re-echoed from
the other side of the water, where they
sing paeans for anything which promises
to prevent US from importing more gold.
But see that So, 100000 was engaged
yesterday after the Cortelyou scheme
was promulgated.
"HoRACE WHITE.
"New York; November 49,"