Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-11-17
CLEvELAAD's NEW BOND ISSUE.
CONGRESS- WILL CALL ron INFoR-
NATION ABOUT IN.
wall Street contradiSted the Asser-
uon of Secretary Carlisle. and IL
Was RiEht-Even tho Mugwump
organ Declares II unjustinabie.

From the New York Times. personal
organ OF the president:
Bankers had figured that the presi-
dents wish to place gold In the treas
ury to the amount OF S1is.0O0.OOO to $780,
100000 might be met with q S5ooOo,Oo0
loan. Bonds In this amount. bearing
. per cent Interest and sold on
per cent basis. would yield the treasury
about SOS. 900 900. which sum. added
to the present reserve OF s6locoOOo,
would furnish the aggregate required.
The city banks hold about sI5'O0oOOO
IN gold. No one questioned that these
banks would willingly aAsorb the Is
sue II given chance to buy 1t at
price to yield them per cent. ~ such
price the bond would be more pro-
ductive than any other government Is
sue. Therefore, regarded Us a means
90 profit. the banks would eagerly take
them.
Last February's Issue OF the same
kind Of bonds that will now be offered
yielded the government tribe less
than III il. After running nine months
with interest at . per cent payable
quarterly, those bonds were quoted IN
the market Friday at ll9 l-2 and lzO
The advance in price has reduced their
productive capacity TO present inNes-
tors TO about S-5 per cent. prospects
OF a new Issue lowered the market price
which touched IFS l-24lig Ia yester-
day, at which prices the bonds would
Yield about . 8-4 per cent.
rHH.
as nearly at hand yesterday, the mar
iSot price OF February bonds enabled
bankers to estimate profits very close
~, II they could buy the new bonds
al III - There Is hnndsome mar
gin FOR profit between that price and
the market value. Il was generally
assumed that the holders Of the bulk
OF valuable gold In this city may set a
share Of the honda at the former hgure,
especially IN Wow OF the apparent Will
iugncss OF the government 10 soil on
3 per cent baaia.
The incentive OF profit IN the near
future OF from $500 900 TO 100000 on
tho issue wna In Itself suiii1lent 10
make bankers eager to absorb as much
OF tho issue "a possible, regardless
OF other considerations. Financial men
have complained 80 much aud 10 long
OF idle money that II seemed trlte
subject for revival at this time. II
was IN the minds Of all who talked
OF the now Issue yesterday and on
tho tongues OF many Of thcm, The
500, 100000 that the banks hold In OK
cess OF legal requirements Is a tire.
some burden 10 carry. They would
do anything to reduce II In safety, and
they Will not feel comfortable until II
is earning somethlng.
Troubles OF banks in this aspect are
multiplied among individual Investors
90 tgala Ars an tflf "a
principal because they could not lind
d means of getting interest. Chances
uf Individual Investment have been
curtniled lately by purchases for banks
In the market fug rsllw0y and other
bonds. II Is well known ~ wall street
that recent activity IN the bond market
was stlmulnt ted by bank purchases, Tho
result Il that nigh class nrst mortgages
are selling at higher prices than ever
before IN THIS country.
Prime honda have been quoted lately
ut prices which would Yield buyers as
low aH "a por cent. They are not
over abundant at those prices Bond
buying houses with orders from Invest
ora for gilt edged securities have eau
toned their customers that attempts 10
buy In quantities would push quota
tons Immediately upward at least l-2
OF per cent In such market the
promise Of per cent government
Nouu. Nulcn IN point OF SECURITY OUT
classes everything else, " hailed as
Il Eodsend. not only by the banks with
overlooking vaultn, but by the large
Investment houses, the trust companies
the Insurance companies and by in
vcators large and small.
The New York Mail and Express
Washington dispatch CRepublIcaul:
Callslc's position IN this matter Is
stlll emarltable. AZ late as Satur-
day he officially denled that bonds
would be issued. Now tho treasury de-
partment states that Mr. Carlisle was
misrepresentcd In the press, and that
an he meant to say was that he did
not know when the issue would be
made, and that the rumors thar he
was Ignorant OF the presidents action
We're Incorrect because "the secretary
has been In correspondence with Now
York bankers for some time, negotia-
ting the sale"
This explanation, however. does not
completely satisfy every one here. and
those who are cognlSant OF what has
been going on repeat and emphasize
yesterdays statement It the Mall and
Express that "even before his return
20 Washington from Buzznrd's hay,
Mr.. Cleveland was sounding Now York
tho bonds"
Indeed, so certain were the politicians
that the secretary had been ignored
IN thls matter that last night n Well
defined rrmor was abroad that tho
president was trying 10 devise an easy
and graceful method for Secretary Car-
Isle TO retire from the cabinet.
II was stated that the president was
trying 20 mud place FOR Senator Lind
say OF Kentucky, 20 that he would re-
Sign from the senate ana allow the
new legislature to elect Carlisle.
To offset this rumor. tho explanation
given above WAS put forth this morn
Ing I, Will not be long. however be-
fore the whole Of ths bond transac-
ton VIII he made public
Already a prominent Southern Demo-
crat has drawn up q resolution which I
VIII be offered In congress- as soon /
"a II assemblies next month. calling |
upon the president and the secretary !
OF the treasury TO inform aongiNsa eN. I
Aetls now this bond sale WAS nego- |
tiatca md why Wall street was Inc /
hfst 10 Rive out any in.imation IN re- I
gard to II, II " the Intention OF this I
southern Democrat 20 include In his /
resolution q provision for an inves-
LEGATION as to how wall street has had /
the earliest Information Of the financial !
policy OF the administration.
II i the Intention 10 put seeretarv /
carlisle on the witness s,anl and learn
MS exact position IN thls bond iasua
ana by this mpslhnd tharn pshafb,, -,