The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-05
THE TREASURY OUTLOOK.

The financial journals of the East are
much exercised about the defective leg
islation in the new tariff law on the
subject of issuing u. S bonds The
authorization of such issue was carried
in the law, allowing interest on them
AT ) per cent. But the main issues now
outstanding draw but per cent And
the Two per cents will not sink below
par when the three per cents are issued
ut par or with but nominal premium.
J T the two per cents were to sink below
par it would be something in the nature
of a financial calamity. II would un-
settle the basis Of the National bank
notes, and would destroy much Of the
foundation upon which many securities
rest.
If it were possible to float . per
cent issue of bonds, there would be no
difficulty. But, as The Financier tersely
puts it, "Tho credit of the United
States is not on a two per cent basis y
1t is not long since it was on that
basis, with boud-buyers anxious to take
up the Government bonds issued at that
figure. What has caused the change
The Republican party has been in
1t was in charge when the Government
credit was on a two per cent basis
in fact, II brought that credit to the
two per cent rate.
What, then. is the trouble now7 Why
has the National credit fallen off fifty
per cent? Is not the answer to be
found in the deterioration of the men
i'll charge2 Does not the bad faith dis
played in the enactment of the pledge
breaking tariff law react upon the Ma
tional credit? Is it not true that the
slide from the lofty craftsmanship of
Mckinley through the spectacular SEN
sationalism of Roosevelt to the placid
tiabbiness Of Taft is the real cause Of
the deterioration
When we note that President Taft
continually asserts that the new tariff
law is the best ever passed. in spite
of the fact that he himself failed to
bring it up to his own expressed stand
ard of good faith; when we note the
manifold imperfections Gone of which
was so glaring that curative bill was
quietly sneaked through Congress TO
correct iD of the new law, the de-
pressed standard of conduct of the pres
ent control as compared with the for
mer, is at once manifest. In those days
there were no Aldriches nor Cannons
in control, dancing in gIee at the
"smart trick they have PLAYED upon
the country. There was loftier stand
ard of public responsibility, clearer
vision, and superior practical ability
in charge both of public and of party
affairs.
The outcry Of the Eastern financial
press is stirred up by the imminence
of the call for the authorized bond is
sue. The working balance IN the Ma
tional Treasury is getting perilously
low, and something must be done, But
it won t do to issue per cent bonds
without some saving scheme that will
protect the two per cents, Congress
is franticalv appealed to to do some
thing. But Congress appears either IN
different or impotent. And in the
meanwhile, the country is drifting. No
wonder even Aldrich is frightened. and
is suggesting sweeping changes whereby
money by the wholesale can be saved.
But to this, also, Congress is indlf~
ferent, and all that the country can
do is to calmly wait for events to ma
ture.