The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-09

The sales on the first four days Of January
were more than thirty times greater than
those on the first four days OF December.
AT first view il may seem that this aston
ishing increase in the sale of the four per
cent. bonds Is matter for congratulation.
Bankers know differently. The large sub
scriptions Of the past few days come imme-
diatcly from banks like the First National
OF this city, which have been Withholding
their orders until they could get the benefit
Of the increased commission offered in Mr..
SHERMAN's circular dated Jan. /, but pub
lished long before that date
But, ultimately, the subscriptions come
from individuals, and in comparatively
small amounts. Because bank or a
few banks, acting as agents for Mr.. SHER-
MAN on one side and for private investors
on the other, lump the subscriptions
OF a month into a few days for the sake OF
the larger commissions on large aggregates,
II does not follow that the process OF refund
ing Is advancing more rapidly or that the
financial condition Of the country Is bettcred.
john SHERMAN would probably like to have
II understood so, but JOHN SHERMAN's wishes
do not alter the facts.
IL Is hard to escape the conclusion that
there is a tremendous job in this sudden
change OF the rates OF commission. The
people, the direct purchasers Of JOHN SHEER
MANS popular" bonds, have lost very
material inducemcnt to subscribe, while in
four days the banks or bank through
which the last S25 100000 were made to
pass, have directly gained ss7, 800 in COM
missions, besides the profits on the use OF
enormous deposits Of Government money
left indefinitely in their hands.
In his last annual report JONI SHERMAN
made the following true and judicious re-
marks
"Prior to May. 1877, United States bonds mainly
sold through an association Of bankers Experience
that under the pre- plan OF selling TO all sub.
scrbers on terms fixed by public advertisement though
the aggregate Of sales may be less their distribution is
satisfactory. Undera popular loan the interest is
paid at home and the Investments available at all times
without Toss, 10 meet the needs OF the holder This policy
has been carefully lostcred by other nations AMI should
be specially 50 IN ours where every citizen equally par
ucipates In the government Of his country The holding
OF these bonds AZ home In small sums well distributed,
Is Of great Importance to enlsung popular interest In
national credit, and in encouraging habits OF thrift
and such holding In the country is far more stable and
less likely to disturb the market than 1t would be in cities
Orby corporations where the bonds can be promptly
sold In quantities.
Carrying out his wise and patriotic views
for the encouragement OF thrift and the
Becurer establishment Of national credit, Mr..
JOHN SHERMAN issued his circular Of Aug.
l. 1873, in which the merits Of the popular
loan were laid before the people. He in
vited cltlzen capitalists, little and big, 10
make the four per cent. loan a storchouso
for their savings" Every citizen OF the
United States" he wrote, is Interested In
the success OF this loan. 1t Is the interest OF
the public that the bonds be distributed In
small sums among the largest number OF
our fellow citizens. No facility or advantage
lciu be Oiuen to large subscribers" And he
made this offer:
"Upon the receipt Of full payment, the bonds will be
transmitted, free OF charge 10 he Subscribers aud
commission Of one fourth OF per cent will he allowed
the amount Of subscription, 10 be paid by check
only. TO parties subscribing or sending subscriptions
That put the shopkeeper or the day la
borer with $50 10 invest in Government
securities on precisely the Same footing as
tho First National Bank with orders for
Sl0,O0OOO0 Tho shopkoeper or laborer
would get his commission or rebate OF one
quarter Of one per cent, and the First Ma
tlonal Bank would get the same, no more.
" No facility or advantage" was given 10
large subscribers.
According to JOHN SIBERIAN himself, the