New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-07-17
4 GREAT SUCCESS AND ITS PERIL.

A GREAT SUCCESS AND IIS IEHIL
The new loan proves magnificent success.
Domestic subscriptions amount to sixty -eight
millions; at least fourteen millions III addition
are known to have been taken on foreign ac-
count but the amount of subscriptions abroad Is
not known, and may be much larger. Within
thirty days, about eighty-five millions have
been offered to the Government at only four
per cent interest. The entire domestic SUD-
scriptions are payable in gold If the Treas
ury so elects and it is now evident that
if assurance had been given that the Treas
ury would not put up the p1ce OF gold
within the next ninety days, by demand
ing and boarding it, the subscriptions would
have been much larger, and would probably
have exceeded $1OO,OCO,000. Under the
circumstances, the result is splendid sue
cess for the Government The advance in the
public credit, from five to four per cent with
in year. rests not upon manlpulatlOns OF IN
tluential bankers, but Upon general and solid
public confidence. Faith in the stability of the
Government, faith in its fidelity to all obliga-
tons for thirty years to come, faltn III It's WIS
dom of financial management, faith IN the
speedy recupcration and future prosperity OF
the country all are proved to exist i'll high
degree, and are UNNECESSARILY strengthened
by the brilliant success of this loan.
"Many men can win battles very few can
"reap their fruits" said an eminent military
stratcglst. Secretary Sherman has won dap
geroUs victory. To him and to the country IL
will prove most disastrous victory unless he
has the ability and the courage to harvest It's
best results. All intelligent men have seen
that large popular subscriptions to the new
loan would expose the Treasury and the conn
trv to grave dangers. The United States has
now bound itself to withdraw from the mar
ket in payment for the new bonds and within
ninety DAYS, eighty-iive millions jim gold, or
in egal-tenders obtained by sales of gold, or
in six per cent bonds. But to whatever extent
it calls IN SIX per cent bonds, more than half
of them must come from Europe, and. if its
calls exceed the amount of new bonds taken
abroad. must be paid for by shipments of coin.
Just at this time, as it happens, the imports OF
merchandise at this port exceed the exports OF
domestic produce by $1,750,000 last week,
and by S22 100000 since April. Shipments
of a large amount of specie to Europe on bond
account, in addition to requirements on trade
account, must put up the price OF gold. With
drawal of large amount of gold from the
market at such time will have the same
suit. Sudden withdrawal of a large amount OF
egal-tenders, it is by many believed, Will
cause serious trouble. Yet by one OF these
three modes the Government is compelled to
receive payment for the large amount OF bonds
now taken.
The course pursued as to previous sales of
bonds gives no indication of the manner i'll
pected emergency. Out of fifty millions of
four-and-a-balf and four per cent bonds taken
by the Syndicate under the last contract, the
Treasury arranged to call six per cents for
49,, 900, 900, 10 receive S15,0O0,OOO in gold,
and has thus far sold only $2,000,OO0 of the
gold. If Similar course should be pursued
with respect to the domestic subscriptions now
obtained. over sac, 100000 of six per cents
would be called, involving a shipment of more
than 500. 600. 600 in coin to Europe, and about
500. OOO, 900 more would be taken from the
market in gold, of which over $15,OOO,OOO
would be boarded in the Treasury. In effect,
over $50, 600 600 in gold would thus be with
drawn from the market, either by export or
by boarding, in addition to all exports on COM
mercial account. 1t is unnecessary to say that
such n course would make gold scarce, give
enormous opportunities to spectators, put up
the premium rapidly, and create, just before
the meeting of Congress. general conviction
that Resumption by means Of the Sherman Act
of 1875 is impossible If the Secretary intends
to prove that the Act is not a sham, as its
opponents have called it, he will take particular
care not to corner the gold market in October,
and turn the first half of that month into
succession of Black Fridays.
We believe, as we have repeatedly urged
the Administration to consider, that the safest
road toward Resumption is TO withdraw from
the market the Superfuous legal-tenders as
fast as possible. But ii is especially important
at this time TO avoid by some means the Sc
we're drain of gold. either to Europe or into
the Treasury, which the sales of fom percent
bonds compel us to expect in October. ii will
not do to cater to any mistaken western
opinion" mt the cost of a fearful disturbance
of all commerce and industry this Fall. Bet
ter for the Administration 10 lose Ohio than to
be defeated III its efforts for Resumption, and
to have the nation disgraced by non-perform-
ance of its pledges
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