HOW THE GOVERNMENT BORROWS.
When an individual wishes to borrow money, he looks around for some one who has the money to spare and who has confidence enough in him to let him have it. He gives his note or bond, and gets the money. Similarly the United States borrows. The secretary of the treasury looks for lenders in the money-centers of the world, consults great banking-houses, and sometimes advertises in newspapers.
A private borrower pays for the use of the money, and similarly the debt of the United States is largely interest-bearing. The notes called "greenbacks" bear no interest, because, being legal tender, they circulate as money, as do also the gold and silver certificates of deposit.