The commercial. (Union City, Tenn.) 190?-193?, 1922-02-10
Too Many Bond Issues.

and patriot in whom there is n
guile, has sent what follows to tn
Banner:
Plainly speaking, is not the gov
eminent in our United States hasten
ing to the precipice about in sight, t
avoid plunging over which repu
diation or scaling of interest bear
ing bonds will engage the excite
and perhaps angry attention of
heavily taxed people?
The bonded debt resting upon thu
people, when you consider that O
the United States government, ant
that of the several States, counties
and municipalities, is already stag
| gering in amount. But the outlooE
is that the Federal government will
issue from three to five billions more
of debt to pay what is called bonus
to the soldiers of the late war. The
/ farmers "bloc" is also demanding
that the Federal government issue
several hundred millions of bonds for
the benefit of our farmers. And
States, counties and municipalities
are issuing bonds for all sorts of pur-
poses, good and otherwise. In addi-
tion to all this, the railroads of the
country are preparing to issue null
tiplied millions of bonds to rehabili
tate their roads.
The interest on all these bonds will
have to be paid out of the surplus
earnings of the productive industries
of the people in the main.
Before this interest can be paid
there is, in the nature of the situa-
tion, a prior claim and right of the
people to live, and the payment of
the necessary expenses incident to
the operation of our government,
Federal, State, county and municipal.
With successive couple of crop
failures, with the resulting depres-
sion of other industries incident
thereto, situation would be faced
exceedingly dangerous in it's import.
1t is time to stop, think and see
whittier we ere going.
The sender of this matter says:
1T may suggest an idea which seems
to me vital, and which you can prob
ably fully and beneficially develop"
The idea is indeed vital, and the
correspondent has put it in sue
cinct form that doesn't need elabora-
tion to make it clear.
The Republicans in the Senate ap-
pear to have summoned the courage
to raise the proposed soldier bonus by
a direct tax, as Secretary Mellon says
it must be raised. If that is done it
will not be in the form of new bond
issue, but it will be, just the same, a
lavish use of public money and add
to the already burden
some national obligations. Chairman
Fordney of the House Ways and
Means Committee, still talks of get
ting it out of interest on the foreign
debt. That would mean refunding
of that debt with bonds Endorsed by
the United States.
The bonded debt of the nation at
the beginning of the present year
totaled the enormous sum of $685.
That is staggering
sum of money, and under the best
it will be many years and
long after the present generation has
passed, that the annual interest pay
ments will cease TO be burden on
the taxpayers and an impetus to ma
tional progress.
Still every State, county, munich |
Dality and private enterprise seems
20 have the propensity to stretch its
credit to the utmost in the issuance |
If bonds, and as is said in what is |
quoted above, ''the interest on all |
hese bonds must in the main be paid |
,ut of the surplus earnings of pro-
luctiVe industry" If for some reason |
here should for several years be no
UGH surplus, then there would be
financial collapse, followed by do
orous times and perhaps by dire ca
amity.
There should be check to the ex-
rayagance, and especially to the
ond issue practice, by which an ex-
ravagant generation may fasten the
of its prodigality on a
uture generation. But the evil re-
ults are not always postponed, and
hose who sow the wind sometimes
cap the whi-lwind.-
The man who sent the Banner the
natter quoted is still in active life
nth close survey and acute com
rehension of what is passing,
I,o.,,~h ~ s,.d <~~,,o,.4 80 ,.ao-cre 4