National Republican., 1877-08-17

syndicate. This temporary depreciation is
easily accounted for by the fact that con-
siderable sums of the new bonds were taken
during the first thirty days on speculation,
and not for permanent investment. 1t was
supposed that the syndicate would imme-
diately put the price of the bonds above
par. The price was not raised, We pre-
sumo, on account of the labor troubles, so
the persons who bought for speculative pur-
poses are obliged, in some instances, to
throw their bonds on the market below the
price demanded by the syndicate in order
to realize promptly on their investments,
for the purpose Of meeting pressing engage
ments. There is nothing, therefore, in this
circumstance to indicate that the credit Of
the nation has been affected by the recent
strikes on any other cause.
The fact that bankers are now Quarreling
with each other about the profits which
will be made by the syndicate by the per-
centage allowed them for negotiating the
loan is suggestive fact. II will lead peo-
pie to inquire whether it would not be well
to dispense entirely with such an eNpen-
ive agency. THE REPUBLICAN advocated
from the beginning the plan Of making the
four per cent. loan purely popular one.
We believe that il should be done yet, pro-
vidcd the Secretary has the legal power to
withdraw the loan from the control Of the
syndicate.
There is no necessity for paying an asso-
ciat,on of bankers for negotiating loan
which the people would gladly take if they
had an opportunity. This was proven by
the large amount oil them which was taken
as investments during the very brief period
an opportunity was afforded the people 10
get them At par. Although they still remain
al par, the people are not informed of the
fact, and do not understand the methods
prescribed for getting them, and conse-
quenily the popular demand for them has
ceased.
In order 10 make the loan success and
save the percentage now paid to the syndi-
cate, it should be offered by the Govern
ment directly TO the people. Full and ex-
phcit direc,.ans should be given as to how
aud OF whom The bonds could be obtained.
They ought 10 he made Of such small
amounts us would enable the humblest people
to Invest their little surplus earnings in
them. THIS is especially important at this
time, for the failure of numerous savings
banks has destroyed the confidence OF the
people in those institutions, and they would
gladly make the nation their bankers
No better means of increasing the attach
neut Ol pcOplt 10 INC tfVNtiI-
ncnt could be devised. If the people had
their surplus earnings invested in Govern
nltnt bonds, they would have an interest in
the stability Of the Government greater
than could he gwen them in any other way,
and il would create IN the country a spirit
ol ne nationalism. THIS Republic would
then he nation in the full sense Of the
term like Great Britain or France. We
hope this quarrel Of the syndicate and
the bankers will have the effect of
calling public attention to the unwise
policy of the Government in paying bank
ers TO sell bonds which the people would be
glad 10 take directly from the Government
without any expense TO it. The people OF
| France took the entire amount of u much
larger loan by popular subscriptions. 1t will
surely not be claimed that our people ART
less patriotic. Another advantage to be de
rived from making the loan popular in its
character would be that the policy of pay
ing OF the public debt might be suspended
for the present at least. The bonds beinl
utilized as a substitute for savings banks fol
the people, they would not want them takeI
up BY making them interchangeable with
the Government for currency under prope
regulations, their popularity would b
greatly increased, for thereby people VIII
wished to convert them into ready none,
could do so without any sacrifice.