New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-29
THE BOND SYNDICATE.

THE BOND SYNDICATE.
The dissolution of the bond syndicate has more
significance than the Treasury or even wall
Street will soon discover. The syndicate expires,
very truc. because the term for which il was
created has cxpired but everybody knows that
If was intended TO continue until the profits of
IA transaction had been realized. and would
have been continued If the government !"
urging its State Bank BILL had not killed the
market for bonds and deprived the syndca'"
Of lis profits. No particular sympathy is due
to the bankers who have been thus treated by
the Government They went into the business
for private advantage. and their management
was not shrewd enough take precautions
against financial policy which most observing
neonln had expocted the Administration In adopt.
The plain truth is that some bankers here IKE
many others I'm the country were SO fascinated
with supposed advantages offered by the so
called Baltimore plan and SD blunderinsly blirl
10 its evil consequences. that they failed 1" see
that IFS expectod advocacy by The Administration
Xvould smash the market for Government bonds.
Probably the Treasury was equally blind. but
It was able to take advantage Of their weak
ness
The fact remains that it was not decent
10 issue bonds today and tomorrow announce
policy which destroys their lue fer pu'-
chasers The natural result IS Thar when the
Government wants to borrow again II will ma
ditticul,v. The bankers who now lind them
selves loaded with $4,000, 900 Of unsold bonds
will naturally be slower . exert themselves the
next time President Cleveland asks Loan ana
If gold continues to go abroad he will want 10
horrow again before long. His unrcscrved ap
nroval Of Secretary Carlslcs banking scheme
will then bear fruit. Indeed the Ouiso OF GOA
| Is likely 10 be- increased by European knowltcgc
that the New.York syndicate OF bankers has
| broken I'D because Of the Administration
policy
Rat-like optimists at the Treasury gave ont
Yesterday a theory that the fall in Government
honds WAS in no way due % he banking ID H.
but 10 preparations for annual settlements, ana
that bonds would recover their former pr'cr
AFTER New Years This is in line with n "in'r
notion which enanated not long ago from the
| same DEPARTMENT, that ii was no; necessary 10
| consider whether banks would be SATISFIED win
the banking plan as the ONLY business OF the
| Government was 10 look ont for Itself II dp's
not need a great financier 10 discover that every
| change in public feeling here or abroad DecrS-
sorilv affects the condition and prospects OF
| Treasury which owes several hundred millions
that it cannot Immediately pay. Whatever takes
| gold To Europe or out Of the Treasury and into
bank vaults. tends 10 push The Govcrlim' nt
nearer The gulf Of bankruptcy. II The banks are
not satisfied with the National policy, they hold
many millions more promis g 10 pay on dcinand
than the Government has gold, an could Graw
the last dollar of gold from The Treasury II ihcy
| chose
Also Treasury officials and Mr. Atkinson have
| been assuring the public thlt ai'"r Jandaiy ]
the full effect Of the new revenue lIw VIII b."
felt. and receipts will probably equal cXpcndi-
lures The income tax will not add TO the rev"-
me before April AT the earliest, AMI litigation
may dcterm' % whether il will adj anything
| then The assumption that sugar duties ana In"
| whiskey will begin 10 realize heir natural
| revenue next month is based upon 'he notion.
| for which there is no dscoyelable basis or iac',
| that consumption has about exhausted the sup
ply Of sugar imported free Of duty AMI the sup
! rly of whiskey taken ont Of bond under The old
| law II NAV be true. but nobody can possibly
| have knowledge that II il. The effect OF dulles
| ON woocns after January | is a cOnundrllm
| which the shrewd,st men In he trade cannot
| guess Imports will probably he Increased. but
how much 10 one can judge. That they will in
crease enough to fill The enormous gap between
receipts and expenditures which has appeared
| IN recent months no one expects. But all talk
Of a little revenue. more or less. is purely child
sh. If the Government Is to persist IN policy
which invites large redcmptons Of lis ouisand
ing notes. and threatens Ia compel enormous
| sales Of It's outstanding bonds.