The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-09-27
NOT IN FAVOR OF LOANS
Icontinued from Page one.l


1T is well there should be- Never IN
the worlds history has such large
commercial loan been attempted. a
loan of such magnitude and TO De
made under such conditions as now
exist should receive the thought OF the
greatest men of our country anu
should not be determined hastily put
should rather receive the careful con,
sideration of our most able men ana
every detail considered from every
viewpoint, in order that the pupI1c
may know every fact in connection
with this transaction. In other Woros'
throw on the searchlight OF pupilclty
to the smallest and most minute detall
in making this colossal loan.
LET us ask the great financlers VINO
are favoring this loan, why they FAVOR
it-why this country should make 1t
what are its benefits to our people
how do the borrowers expect TO pay II
how can they pay it and how could
we force collection? Then let the big
financiers show that they themselves
are not interested more in providing a
way for these borrowing nations TO
nav for munitions of war that they
have already bought and expect to BUY
in the future from the concerns III
which the big financierS OF our coun-
try have a money interest. Let thenl
show to the investors that they be-
lieve this loan will be for the benefit
of the whole country and not only Lor
manufacturers of war supplies OF the
different kinds needed by the coun-
tries now at war.
Pay for Our Own Wheat.
When the big financiers tell us they
want to furnish way for Great BRIT
ain and France to pay the people OF
products. our cotton and the many
other things we have to sell them, 1t
might be we'll to suggest to these
financiers that the rapi6ity with
which these people are now killing one
another that they certainly are dlmln-
ishing the number of consumers OF
the different articles whlcn we sell
them at an astonishing rate, and at
the same time diminishing their ability
to pay their debts already contraaed
as well as the proposed new loan they
are seeking to make from us.
1t might also be we'll to say to these
eastern gentlemen who pretend to be
so solicitous about the sale of our ag-
ricultural products that there is suS-
picion in the minds of many that these
big financiers have more money inter
ests in the steel plants, in the mum
ton plants in the powder plants and
many other plants, whose success or
even their existence depends upon
their being able, not only to get their
pay for goods already sold but to also
furnish a demand for their products
as long in the future as possible.
promote and cake"
There has been such an advance in
the stocks and securities of many
of these concerns that some men think
perhaps some other men are trying.
to get ''Out from under" and the easy
and successful way would be to loan
the investing public'S money so the
borroWers-Great Britain and France,
will be enabled to pay us-the finan-
ciers, what money we have in these
very much inflated manufacturing
concerns. In other words, that the
financiers will underwrite (for this is
the genteeI word for promote, and pro-
mote is the genteel word for blue sky,
and blue sky is the genteel word for
fake) this loan to be handled by the
banks-they in turn to dispose of it
to their friends and customers for
commission of one-half of one per
cent
What is the security offered" is
generally the question bankers ask OF
parties who desire money of them.
The answer in this instance is the
bonds of countries at war on a scale
so stupendous and appalling as to be
beyond the comprehension of the hu-
man mind and with no assurance of
success, and if successful, it will be at
a sacrifice of lives and property so
great as to make the payment of this
loan extremely doubtful.
Call 1t First Mortgage.
We are told that this is to be the
first mortgage If that is so, how
about the other obligations these
countries owe at the present time? If
a government can borrow money and
create a new Indebtedness which they
obligations, it would seem if they can
do this in one instance. they might
do it in another, and thereby make
our loan payable after they had agreed
to pay a loan made of some other
country. However, this could hardly
happen, as there is no country on the
face of this globe where these coun-
tries could borrow a billion dollars,
and in that connection, if we are going
to make this loan, why not get rate
of interest commensurate with the
risk and the ability of the borrowers
to pay to get the money elsewhere.
We are told no sentiment or spec
ial favor exists in this transaction.
That being the case, let's drive a good
bargain and get, say per cent. Some
times borrowers are not so particular
about the rate when they need the
money very badly. This country
seems to be in very good condition,
as we seem to be the only country who
can furnish these warning nations with
munitions of war to kill themselves,
with food-stuffs to feed them, with
cotton to clothe them while preparing
to kill, and now they want us to fur
nish the money to buy all these things
from ourselves.
This is surely high finance-as
high as the blue sky. 1t seems to me
that this is about the same kind of
finance as is sometimes displayed by
the gambler who desires to stay in the
game after he has lost all his finance
and is trying to borrow money from
his fellow-gamblers in order that he
may stay in the game to recuperate
his losses from the other fellows
money.
Wanted by Our Farmers.
While on the rate question, it seems
to me that it might be we'll to call
attention to the fact that New York
City recently issued and f1oated hun
bred million dollars in bonds at the
rate of per cent. 1t might also be
proper to say that the French loan
due next March can be had on a bet
ter than Z per cent income. and to the