The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-06-09
.Rusiness and Finances
By W. S. Cousins, Editor The American Banker

eminent with the additional revenue
required for current expenditures.
This statement is important in the
fact that the new revenues will be OBJ
tanned by increases in the income and
inheritance taxes and by placing new
imposts upon munitions plants. Ii
Congress was controlled by the Re-
publcans the needed revenue would
be obtained by the re-enactment of
the former tariff law and large in
creases in the internal revenue taxes.
Nothing could place in stronger
light the fundamental and radical diff
ferences between the two great par
ties than the opposite methods of pro-
vidng for revenue deficit put for
ward at this time by Democratic and
Republican leaders. For nearly CEN
fury Americans have been divided on
the tariff question, and as yet there
is no hint that this division in sem
timent is becoming less the line of
political cleavage today than it was
eighty years ago.
Quite aside from any question be-
tween protection and free trade, so
called, this popularity of American
|
time and attentions is taken up with
tariff controversies that the nation has
no time for anything else. and many
other questions which are clamoring
for attention and settlement are not
discussed at all.
This unhappy feature of American
politics is serious drawback to
national progress, since it relegates to
the field of unconsidered issues mat
tiers which ought to be already settled,
so that the way might be cleared for
still other and greater issues. Did
anybody suppose that when the I'm
derwood tariff was enacted by the
Sixty-third Congress the tariff ques-
ton was settled? Not at all! All
that was decided was that a new tar
if bill would be enacted and remain
in force until the other party was able
to repeal it or amend it.
This keeps the business interests of
the country in hot water all the time,
and makes every Presidential election
a period of uncertainty and watchful
waiting on the part of the business
world, From these quadrennial up
sets Great Britain has always been
free, and it is taken for granted that
neither of the two great parties will
do anything prejudicial to the indus
trial and commercial development OF
their country.
Conditions which depend upon nat
ural laws governing trade, commerce
and industry continue without change,
from decade to decade, but conditions
which are created by statute and
which may be changed at any time
are temporary and highly disturbing
to the business life of the State.
May Renew British $4,000, 900 Loan
The committee of New York bank
ers which had charge of arrangem ents
for the six months $50,000,000 loan
) made to a syndicate of eight London
banks has taken preliminary steps for
the renewal of the credit upon matur-
ity on June 20. Frank A. Vanderbilt
president of the National City Bank
chairman of the American group, has
indicated to Lord Cunliffe, governor ot
the Bank of England, and chairman oil
the British bankers committee, thai
the New York institutions would BIZ
willing to renew the loan on the same
terms. if agreeable to the borrowers
The establishment of the $50,00O,00(
credit following close after the com
pletion of arrangements for the $500,
100000 Anglo-French joint Govern
ment loan. 1t was a strictly banking
transaction and the British Govern
ment was no party to it. The loar
was secured by the deposit of ell,
100000 of British Government AZ pei
cent bonds, deposited with the Banl
of England. The interest rate charged
the Lodon banks was AZ per cen
per annum. PARTICIPATION certificate:
were issued by the American commit
tee and it was reported that about two
hundred institutions throughout thu
country had purchased them. TIL,
$50,0OOO00 was placed on deposit will
the National City Bank, the Guarant,
Trust Company and the Banker:
;. Trust Company
According to bankers who are in
position to know, not dollar of thu
$5O,000,0O0 has been expended. Thu
unused credit, therefore, has cost thu
London banks 2H per cent per an
mum, or $o25,000, for six months.
is reported that the existance of thi
credit in the United States has mater
tally helped to steady sterling eX
, change and that the interest charge
were we'll worth while:
The original loan agreement mad
no provision for renewal, but it i
, believed that the London banks vii
desire to have continuation of thu
| credit and that they will readily agre,
to the terms,