The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-11-05
LOAN ISSUES AND OWNERSHIP.


LOAN ISSUES AND OWNERSHIP.
The stability of OUT government has been
enormously increased by the Liberty loans, for
twenty-five million bondholders are now direct
'ly concerned that it shall be solvent and strong
Every district filed its quota OF the fourth loan
with something to spare, which means that IN
the aggregate there is handsome oVersub-
scription. Furthermore, the loan has been
taken by the public In perfectly bona 1lde
manner, it being unnecessary for the banks 10
take any unsubscribed remainder. Ihls is as II
should be, and is particularly gratifying IN
view of the fact that within the FIVE months pre-
ceding this offering of six billion dollars, four
billion, one hundred and fifty million dollars
had been subscribed and paid upon the third
Liberty loan, besides about two billion dollars
of federal taxes.
Tn a dav when governmental forms are
changing, this financial unity is a guaranty OF
the perpetuity of ours There is reason also
ito believe that our experiments in temporary
government ownership or control OF pubic
utilities will disillusion hosts of people who mad
come to see, think they did, advantages IN
that course It has been q trial OF the socahs-
tic panacea for economic ills and demonstra-
ition that it does not. work out in practice as
theorists have insisted that it would. Even
with the increased rates that were denied to
railroads when they were under private man
agement, there has been a deficit OF some hun
dreds of millions in the few months OF govern
ment operation. This must be made up by
taxes; and when the proposition is mooted, as
lit probably will be in the early future, to make
government control permanent by purchase.
the country will have had experience on which
Ito found wise opinion. The choice between
a privately owned utility which pays taxes to
the government and the same utility publicity
owned which pays no taxes but must be main
tanned by taxes on other property will seeming
Ily be easy to make.
If terms Of peace are agreed upon at an early
day the governments construction and manu-
featuring program will be considerably cur
tailed, but expenditures upon the army and
navy will necessarily remain very large 1t
must be remembered that the proceeds of the
fourth loan have been to great extent antica-
pated by the treasury and already expended.
the seven offerings of treasury certificates hav-
| ing brought in four billion, six hundred and
| sixty five million, three hundred and twenty
thousand dollars. It is evident therefore that
great deal of money will yet have to be rails
ed for the war, both on our own account and for
our allies
| It is not improbable that the European gov
ernments which have been borrowing here will
want to continue doing SO for some time after
they have done purchasing war materials
They must all make heavy importations Of food
at least for year to come, and they will also
want quantities of raw materials for manufac-
turing, and probably merchandise, and equip
ment. These purchases cannot be made unless
credits are created here, and of course it is to
the interest of this country that such purchases
shall be made in order that the business shall
be sustained in the critical period when the
war business is disappearing. If our govern
ment should continue making loans for this
purpose, of course it will have to cover them
by borrowing to an equal amount.
A lot of pacifsts, seditionists and traitors
are not particularly vocal just now, but it
should not be forgotten that snake is never
so dangerous as when it is not making so much
as a rustic in the grass.
eve are sitting on the ruins of thirty years
of the Hohenzolerns, says Maximilan Har-
den. Time to get off and gather up the frag
ments
Hindenburg tells his men the war is still ON
1t seems as though they ought to know it.