New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-28
A RESULT OF CARLISLEISM.
GOVERNMENT BONDS GO DOWN BECAUSE
Or HIS CURRENCY PLAN.

GOVERNMENT BONDS GO DOWN BECAUSE.
Or HIS CURRENCY PLAN
TIE SYNDICATE WHICH TOOK Up TIE WHOLE or
TIE RECENT ISSUE pIssOLvEs Of ACCOUNT
OF POPULAR DISSATISFACTION WITH
THE sEcRETARYs "crRRrXcY
REFORM" PROPOSALS
The Administrations idea for currency reform
expressed in the PRESIDENTS message. Score
tary Carlise's bill and the Springer subst-
tutc has been the means of causing a serious
depreciation in the price Of Government bonds,
and has been the cause OF making the last bond
issue far the sale OF the bonds Is now
concerned. a fat failure. Yesterday the syndi-
cate which bought the entire Issue announced
that there was no longer 4 market for the bonds
on account OF the attempts o. the Administration
to tinker with the currency. and that By mutual
consent Il had been dissolved Breach Of faith
on the part # the Administration is what the
banking community gives as the reason for the
syndicate to 60 out Of business. and they point
TO the fast-fallinE price Of Government bonds as
tho result OF the effort c: the Administration to
reform" the currency.
When President Cleveland and Secretary Car
Isle got on their knees 10 the banking COM
bonds on unfavorablc terms, that the credit
of the country should be kept intact. they did
not say that Immediately aftcrward they would
launch a currency scheme watch would If passed.
throw 100000 Of Government bonds upon the
market They pledged their word that the New
York bankers should take tho bonds and be able
TO soil them at profit. blu, directly in the face Of
their pledge they recommended that banks
should no longer secure their circulation b. Gov
crnmcnt bonds and they advised currency plan
which would cause an upheaVal Of the business
interests Of The country whom they Were just b.
ginning - settle from the panic caused by
previous mistakes Of n Democratic Congress.
DREXEI.. MORGAN & CO.'S STATEMENT.
Yesterday Drexcl. Morgan & CO.. representing
the syndicate which bough; the recent Issue Of
Government bonds. issued tho following eiate-
mcnt which shows only too plainly how the bank
ing community feels about Carlisle and his Dur-
rency plan:
The action % the United states Treasury on cur
rency questions having stopped progress In the sale
Of bonds for the account Of the per cent bond
syndicate. and The period Of thlry days Mon
the syndicate IS dissolved
The peculiar features 81 Secretary Carlislc's
currency plan have frightened holders % the
bonds 10 nquliate and the market has fallen
below the syndicate prize. and within the last
week the bonds have fallen point. and are now
quoted at ll7isdlls There IS not a member II
ihc bond syndicate who docs M; express To-
sentiment at the action ~ Secretary Carlisle IN
advising such unsound currency legislation after
having made a bond issue. ana even ihos" who
are friendly - the Administrator do not hesitate
u express strong sentiments against IT, Ihcr"
IL already talk ~ another issue ~ Government
bonds 20 replensh the fas, falling gold reserve,
and from. thc most trustworthy sources il hts
been learned that President cleveland has talked
the subject over with prominent banker in
Wall STREET but the feeling In the street IL that
he Will not again BE- supported In his "Noris 70
build IN the gold reserve from the accumulation
here when legislation is advised whi'h causes
diStrust here and abroad.
J,bn 4 Stewart prcsldcAt - Tho United states
Trust Company. who was the organizer 81 N"
bond syndicate. and stands close to the Admins
tration said yesterday. that he did not win I"
critics.. Secretary Carlisle. but D." shid
enlhatically that in his opinion the currency
ideas II the Secretary had caused IN" d'rr"c1a-
ton in the price ~ the bonds. The syndicate
had no idea at the time II the purchase ~ IA"
bonds that A currency bill would be proposed los
tn, Administration. and II was able t. e"l some
or th. bonds 10 Western banks - ll3's, hut 49,
soon as the Idea %; creating 4 currency "ih'Ni
bonds - a security appeared. the holders 90 10"
bonds threw them upon the market. ana me
result was that the s}ndic'i" sold only Np'")W'o
- IN. bonds and 90 now had on hand 30 dis
tribute 20 the members so o"ooO Il th" issue.
The syndicate DIVIDED S2onoo0Oo - ~" bonds
among The members when they were first issued.
Vice-Trcsldeni james \. Garland. ~ m" First
National Bank. had this t. say yesterday "O'"'
the end OF the bond syndicate:
In dssolying the syndicate the parties 10 X COX
into consideration the unset tl.m"nt OF -" marker
rnrrcn~v tlan % Secretary carlisle. which by ~
provisions would have compelled me Nauonai
or hefore iuiy l. 1876. with such possible block
OF bonds TO come on The market 'he question OF
continuing the agreement 10 ho'u INV "V''"' va
not even thought or
A member Of the firm OF Harvey Fisk & Sons.
the selling agents o. the bond syndicate. said:
The reason why the bonds deprecated IN value
was that the Administration by It's currency plans
Killed of the market for Government bonds.
An INCOMPETENT SECRETARY
II can be said that there is scarcely n man In
Wall street who lis not utterly disguised with
the course OF the head of the Treasury Depart
man. His Iamentablc lack Of sound financial
knowledge. his colossal blunders az the man
aper Of the National finances and his Inability
% make good his promises have given him the
reputation Of being about the worst Secretary
-, tho Treasury I'm the history OF the country.
Thc low price Of the last Issue of Government
bonds and the falling of In others nave caused
cousdcrable talk among bankers recently, and
II Is Interesting to note the chahge IN 'he price
sjnce President Clevcland's m"ssag" recon-
,nn,dnp Secretary Carlisle's currency plan
The day before the Presidents message was
road quotations for United States bonds were
" HdAskcd Eid.Askcd