New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-18
NEWYORK THURSDAY JANUARY 1s9A-FOURTEEN

no lack of private comment upon the days de-
! velopment and The Tribune summarizes the tone
| so far as 1t could be learned.
Intense disappointment is felt at the nature OF
the first real venture Of the Administration to
attempt to restore the National Treasury to
solvent condition. The feeling was the greater
because 1t followed hopeful sentiment that per-
vaded Wall Street early in the day. The morning
newspapers had contained the official assurances
Of Senator Voorhees, chairman of the Finance
/ Committee Of the Senate. that the public credit
would be sustained by a resort by Secretary Car
Isle to the powers conferred upon the Secretary
of the Treasury by the Act of 1875.
PRICES ON THE EXCHANGE.
! There was a feeling of relief and encouragement
/ which sustained market values at the Stock EX-
/ change in the face Of adverse foreign news. A
/ remarkable slump in the prices Of American
railway shares at the London Stock Exchange
preceded the opening of the New-York market and
/ the cable sent rumors Of important forced hqui-
4 dation at the British capital Later in the day
news of the suspension of the Banca Gen.
crale OF Rome having important branches at
! Milan and Genoa. with liabilities reputed at the
equivalent Of $5,OO0O0O. The cable also spoke Of
uneasiness manifested in London at the fresh
! outbreak Of financial troubles In Italy. But New
! York speculation resisted these unfavorable in
nuenccs because Of the encouraging news from
/ Washington with regard to the resolution of the
/ Treasury Department to end the distrust and un-
certainty in which the National finances We're in
| voved.
Bankers did not hesitate to express their APP
/ proval Of the first advices from Washington an
nouncing Mr. Carsles decision to make 5
/ per cent loan. But wished to discuss the
subject until further details were learned Plny
Fisk, the head Of the firm of Harvey Fisk &
! Sons. which prominently identified with
/ the refundng operations OF the Go jernment In
! past years said that he strongly approved the
| issue of Government bonds. and he thought that
per cent issue, If offered at fair price. would
have decided success. But Mr. Fisk declined 10
discuss the terms which he considered to be
! fair"
When the terms Of Mr. Carlise's circular be-
| cane known astonishment. If not dsmay, was
the result produced on financial men. There is
little confidence felt in Wall Street in the ability
of the Government to float a bond issue through
the agency Of the postofiices and Sub-Treasuries
with the same success that would attend direct
dealings with the syndcates Of capitalists which
distribute all the great loans OF corporations.
When the decision Of the Administration to Issue
) per cent ten-year bonds a basis equivalent
To a 3 per cent issue at par was learned expert
estimates figured that the price would be equal
to 1l7170. Bankers were astonished when they
were Informed. late in the day that the Treasury
Department haG calculated the equivalent at
III 223 and would not receive subscriptions for
less price. Such a price is regarded abso-
lutey prohibitory 10 purchases by capitalists
seeking any degree Of profits, and 1t places
the bond issue upon purely patriotic grounds.
The needs of the Treasury are universally rec
ognized as so pressing and the relations of the
Government credit to the whole financial fabric
are so vital and intimate that It admitted
that perhaps capital could be secured even for
loan made upon basis which ignores business
considerations The proposition of the Govern
ment exhibits such sublime faith In the patriotic
devotion Of the country that many persons hope
for ts success even II they doubt its practicable
ity.
no ADVICE ASKED HERE.
In adopting it's policy the Administration has
not sought in the slightest degree the advice or
| suggestion Of men who have been the sup
porters Of the Treasury In the past and who are
disp,s,l I'm -very way 10 help The Government
in It's financial troubles. This fact is stamped
upon the fac, Of Mr. Carlisle's proposition. and
1t is I'm harmony with the Indifference II not
hostility to the monetary interests Of New-York
he has shown ever since he assumed the Treas
urv portfolio BY ignoring the aggregations IF
capital that make this city the leading centre or
the country. Mr. Carlisle throws himself upon
the Response that may come from widely
scattered interests which are accustomed To fol-
low the advice Of the leaders Of financial thought
and action. In view OF this situation, bankers
regret that the Secretary has limited the time
Of public subscriptions to February Ia period or
about two weeks.
1t Is also pointed out that by adopting his an
nOunced policy Mr.. Carlisle il compelled 10 call
attention to the question of interpreting the
word ''coln'' In Government obligations. An
Arrangement conducted through the usual bank
Ing channels would have permitted the Secretary
t. make Il private agreement for the payment or
subscriptions to the new bonds in gold even
though the law compes the Government 10
promise payment only in "con.' But by his
public circular Mr.. Carlisle is forced to ad-
vertisc that he Will receive no payments except
I'm gold and will have only "cOin" bond TO
offer Ordinarily this point would have at
tracted no notice. But bankers and Wall Street
people have been unable To forget that 1t was
the Secretary OF the Treasury himself who,
in the spring of 1893. first drew the
distinction between gold ana com py
suggesting the possibility of redeemng the
Treasury coin notes in silver only The
confidence of the country since the repeal OF
the Silver Purchase clause Of the act OF 1880 had
not been disturbed on the question of the mean
ing Of ;he term "coin" until the silver men in
"segniorage' certificates not only without public
! disapprovaI ny the Administration. but in
harmony with the actual suggestion made In
Secretary Carlise's annual report looking toward
the coinage of the silver bullion In the Treasury
and the utilization of the seigniorage as an
asset
Financial men also regret that the issue Of
Government bonds is to be limited TO $50,o00,00O
This will little more than enable the Treasury
To- rnca its past-due debts. The money will be
paid out Immediately II the solyency Of the
Treasury is 10 be- restored. and therefore. IL Is
argued the gold balance will be left at $7l,OOOoOO.
the point to which 1t has already fallen. and the
future needs of the Governments expenditures
will be forced to depend upon Il tariff bill for
reducing revenue. plus whatever other scheme
Of taxation may be devised and passed by Con-
grgss
LIULESS UHTTEs ~ ARKANSAS.