New-York tribune., 1909-09-03
HIGHER INTEREST RATE
asked on L. S. BONDS.
Report Financial Circles Want Coz
rrnmcni fo Pan More.
- Il. -. =.

washington. sept. what Be- -o sa-Iog. ~
affecting the credit of the United states as -o
reduce tho premium ON !fs securities or % make
necessary a higher rate 81 interest Why is 70
that the government can no longer borrow
money NJ per cent when th. tariff legislation
has been disposed ~ and all tho signs of the
times point 20 increasing prosperity and thar
tho bonds oC fh" insular possession, ~ this
country. notably Of tho Philippine. are bringing
less and Jess premium AZ time when new
ta-iG arrangements promise greatly accelerated
industrial development Of tho islands These
questions are being asked with great serious
ness by number % experts who have given
careful attention 20 the fiscal affairs ~ The
government
4 wear or more ago the government disposed
~ 10000 600 worth u Panama bonds bearing .
por cent interest az premium and without
difficulty Now IL is asserted ou all Sides that if
the government desires &" borrow additional
funds with which t. construct the lSthmau
Canal IL must pay higher rate. and so serious
lv is this assertion taken that the recent tariff
bin authorizes the Secretary ~ the Treasury 20
nav as high rate as per cent. I'm his dlscr"-
ton.
The National city Bank of New York has just
issued a statement regarding the new issue "t
pb,lIpnino bonds which It offers At 1o2i2 call
ing attention 10 the fact that earlier issues sold
March I. 1905 S2.5oo.ooo at 100 O6. and February
! 1906. 81 600 600 lUs3I. The issue "f August
I 1909. sl5o0.O0O sold at 1928 All Of these
,.opds hear interest At the rate 81 per cent.
The philippine bonds are not. it is true. guar
,ntecd bv the government OF tn" United states.
I,,, there can bc no issue of bonds 10y the Philip
,,Ipe government without specific authorization
bv Congress Interest is guaranteed 10y the
United states. and there Is no reason Whatever
Ia assume that the government will not tax"
.yerv necessary precauticn to insure the prompt
,.,,Ipcnt Of the bonds of its iusular possessions
SO that they are. in fact. sound as federal
securities.
Under these circumstances the most kindly
critics Of the fiscal affairs of the government are
forced 10 the conclusion that there has been re
ruarkably bad management of affairs of the
nation SO materially diminish its credit. or
else and this is seriously suggested in some
quarters that there is a determined effort in
certain financial circles to compel the govern
rnont to pay a rate Of interest higher than
,.r cent. irrespective Of the standing of its
credit and the constantly enhancing value Of its
assets the wealth Of tho nation.
The Secretary of the Treasury is not in Wash
ington and most OF the government experts are
absent hut II is urged by those who cspouse the
latter view that the situation is which de
ulauds their careful consideration with "A view
o. determining If certain moneyed interests have
not decided that per cent liz lower rate than
they care 10 see the government paying and are
not, accordingly. dexterousy moving the pawns
on the financial chessboard with a view to COM
pcIng the payment OF "A higher rate on future
COVE rnment issues.