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Show THE C ance with the terms of the Armistice, and to promote firm treaty agreements with all nations to outlaw wars, abolish conscription, drastically reduce land, air, and naval armaments, and guarantee public referendums on peace and war. Everything is promised in that platform except the golden' $ggs of the famous legend goose. However, there is one vital question which each party has dodged wet and dry planks. The hopes of the under cover, men of the county court house in carrying Salt Lake City for their Ogden candidate lies in those who stay at home from the primaries. IT I ZEN 5 but it invariably has placed its short-ternotes at rates above the general offering for commercial paper of the same nature. What is wanted is an administiation of the Treasury always watchful for the interests of the whole people, not one so keenly alive to the desires of high finance. As an instance of the prgrarn, the June offering of $150,000,000 in notes maturing in six months might as well have been carried to a term insuring their payment at maturity, at a lower rate of interest, when the chances are for their renewal at an even higher rate than now. The business man who would finance himself as the United States Treasury finances itself would be deemed crazy, but he does not exist. Dearborn Independent. m . HIGH FINANCE The more the fiscal operations of the United States Treasury v&e studied ,the more convincing appears the evidence that such operations are conducted in the interest of high finance rather than to the profit of the people. To many who believe that the rise and fall in price of government bonds on the market is governed by fluctuations in their value, it would be enlightening to note that professional financiers hold no such mistaken idea. To them it is purely a game of chance, and business conditions afford them the opportunity which they use to make the most of the speculation. C. Frederick Childs, in the Central Western Banker for June, succinctly states this theory of the relation of United States bonds to general business activity, illustrating the point that the Treasury is conducting its financing in a manner to permit high finance greatest opportunity to profit. He says : The recent tendency of the market for all government securities has been due to the timidity of capital and lack of confidence respecting general political maneuvers. Capital recoils from venturing into enterprises which are sensitive to Congressional interference. The advance has also been helped by the reluctance of bondholders to sell and pay taxes on their profit, or reinvest the proceeds in other classes of securities. The explanation thus made appears to cover up the real cause which seems to be indicated, it may unintentionally, in what fol, lows: i , . !j When industry slows down capital seeks a safe harbor until it may again be permitted to work unmolested and unafraid in business undertakings. Consequently idle money is temporarily invested in the safest of all securities government loans. There is seldom an exception to this natural course of procedure. Government bonds, being in a class by themselves, move in an opposite direction to stocks and corporation bonds. As a general axiom : Sell long-ternotes when money rates are low and prebonds and buy short-tervailing prices high, and conversely, when mpney rates are relatively bonds and sell short-terhigh and prices are low, buy long-ternotes. That theoretical principle responds to every test and invar-'bl- y proves true and profitable in practice. The gamble consists in deciding when to act. Similarly, when price levels on the stock market advance, reflecting business prosperity, funds are withdrawn from government securities and reinvested in industry. In the light of the continued issue of Treasury Certificates of Indebtedness, on short time and at unnecessarily high rates of interest, could it be plainer than the financing operations of the Treasury have been intended to provide a safe harbor for high finance when money is easy? The Treasury issues, now aggregating more than four billions of dollars, are absorbed by the speculators of the East, where the funds concentrate. If agriculture, industry or commerce were thus tenderly cared i3r in the times of their depression, it. would be denounced as class protection, and justly. When money brokers should be invited to use the United States Treasury as a storm shelter, it is also class if protection. There might be a shadow of excuse for this situation the Treasury had taken the opportunity to reduce the interest rate, , m m m m The same gang who strong armed the voters at the primaries two years ago are planning to work the same tactics at the primaries next month. An outraged public will not stand for it. NOBLE WARRUM Noble Warrum will not be a candidate on the Democratic ticket for governor. ;He has accepted the position of secretary to the Mexican Mixed Claims Commission. The appointment was tendered Mr. Warrum by Secretary of State Charles E. Hughes and recommended and indorsed by Senator Reed Smoot. Mr. Warrum is specially fitted for the position because of his past experiences, business and socially, in Mexican territory.- In this position ability is necessary, regardless of political faith, thus two staunch Republicans select a Democrat for an important post. As postmaster for eight years, Mr. Warrum proved an efficient officer and left the department with great credit to himself and the respect of all citizens. He was a courteous public official and he gave the people the best there was in him. While he is a Democrat politics were not allowed to stand in the way for an efficient organization. There is no reason to doubt his success in his present venture, and the people may feel assured that he will have their interests at heart at all times. - Good government can be secured by good citizens voting at the primaries. This is what the under cover men fear will happen. It is to be hoped that in the State Convention some delegates will ask the state chairman how much the candidate of the HOW TO DO IT gang contribtued to the campaign fund at the election tow years ago? TRICKING SENATOR SMOOT Consternation reigned in the ranks of the under cover men and among their higher ups that the scheme they hatched to undermine Senator Smoot was exploded. Quickly word was sent down the line to deny that any such plan existed, but the evidence against them proved too strong and today they stand convicted. two years from the Senator Smoot comes up for coming November, but with President Coolidge elected in November there is a probability that Senator Smoot will be offered the position of Secretary of the Treasury, and if lie accepted it there would be vacant a United States Senatorship. The appointment to this position would have to be made by the Governor, and right here is why the HOW TO DO IT gang are anxious to control the state administration. There is the possibility that Senator Smoot may not accept a cabinet position, but in that event lie would probably be a candidate for two years from now, and with the Ogden crowd in control of the state administration they could give the Senator a hard run. With a united Republican party in Utah Senator Smoot is safe. . re-elect- re-electi- ion on Republican delegates to the state convention will demand that party loyalty and not disloyalty be one of the qualifications for party honors. |