The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-01-19
BANKERS LIKE It,
The Issuance of Gold Bonds
Suits Them.
Discussed By the MOneyed Men
of Chicago.
MR.. LYMAN j. GAGE
Thinks That Still More Bonds
Must be Issued.
MR.. LYMAN j. GAGE
One Banker Thinks the Reserve
Should be s2OO.OOO,O0O.


CHICAGO, Jan 19.-secretary John g..
Carlisle's action in placing $50,000,000 Of
United State five per cent bonds on the
market was the principal topic of discus
sion among bankers and business men at
the clubs last night. Many Of them had
anticipated move Of this nature on the
part Of the secretary and the only ques-
tion was one of methods.
.sWhen it comes to a question of
finance" said Lyman J Gage of the First
National Bank, s'all political prejudices
must be swept res0Iutely aside. Prong
and fearless action on the part of the fed
eral authorities may save great deal of
trouble in the business world.
u think there was no doubt the time
had come when If was necessary to make
a bond issue. / think the three per cent
bonds better by all odds than the present
forms of five per cents. III IL always
better to have the c0untry's secu-
rites ia the hands Of people of moder-
ate means. 1T would also have furnished
an outlet for considerable amount of
money now locked up by those who are
distrustful of The financial situation. i
ana ia hope that congress viii see fit to
recommend a change of the five per cent
bonds to three per cents.
ssThere is no doubt that the issue viii
be taken promptly by the capitalists at
the specified premium Of IL percent. or
even more. / don't know yet whether
Chicago bankers viii take any of them
or not. 1T is questionable whether they
would pay SO large premium or not lr
rs not improbable that more bonds viii
have to be issued in the near future.
Henry f. Eams. president Of the Com
mercial n National bank. thought that the
secretary had been little TOO hasty i'm
his action and that IL sufficient pressure
had been brought to bear upon congress
am issue of bonds more agreeable To the
wishes of the masses could have been
obtained lie believed unquali6ediy in
three per cent bonds
s.As far as bankers are concerned the
per cent bonds would be much more
convenient than the 5 per cents. The basis
of the deposits of government securities
guaranteeing the circulation of national
banks Is the par value of the bonds We
are allowed to issue 30 per cent of the
face value of our deposits" said Mr..
Eams. THE per cent bonds would sell
practically at par, and when deposited
there would be the margin Of 10 per cent
contemplated bv the law. The per cent
bonds, on the other hand, sell at III. and
III we deposited them the margin would
be ~ per cent and we would loose the in-
terest On the surplus
George Schneider. president Of the Ma
tiOnal Bank of Illinois, said:
@Our business success depends on what
foreign financiers think of us, and the
gold reserve should be at least $780,
O00,0 600. Personally / believe it should
be $500, 100000, especially lin times like
these The question of silver coinage
and the rapid reduction of the ordinary
surplus in the treasury, has already af-
fected our credit in Europe, and unless
prompt steps are taken To prevent fur
ther depletion of treasury funds, all
American bonds viii be sent back & few
of the new issue of five per cents may be
bought in Chicago, but / think the ma
jority of them viii be taken in the east
President Elbridge q. Keith Of the
Metropolitan National bank said. "Ihe
nation Is simply like any other great cor
pOration. 1t is pressed for money and
has got to borrow. It signifies no insta-
bility. and the fact that the bonds sell so
much above par is sufficient evidence
that its credit is the very best. Further
more. i can see very little difference
whether the bonds are Issued at per
cent and sold at par or at 5 per cent and
sold at 117.223. The result is same in
both cases.
John J. Mitchell Of the Illinois Trust
and Savings bank. "Cleveland should
have foreseen what was coming and
taken immediate steps to put an addi-
ti0nal 500, ,0C0,OO0 into the treasury lit
would have put ali questions of reserve
entirely into the bac4 ground and ena-
bled the nation to meet its obligations
promptly. I think that most of the bonds
VIII be taken in the east