The Coconino weekly sun., 1895-02-28
A DlsCREDITiNo DECKER.
Degradation of the Government Credit by
 Democrats.

Democrats.
 The folly of the new bond contract, now that it's terms are published, is almost incredible.
 The resources of our country are inn measurably greater than those of France or England. Yet the adminis- tration has based it's bargain with the bankers upon the assumption that 3A per cent. is the lowest interest rate at which we can expect to borrow money, when French rentes and British con sols are everywhere deemed desirable investments at 2h per cent.
 Our own per cents. with twelve years to run aia eagerly sought for in vestment at 1l0 and above, which would make these new bonds worth about 1l0. Yet the treasury has agreed to sell sixty odd millions of them at about 104.
 The treasury thus consents to bar. gain which puts us as nation upon a credit basis scarcely better than that of n South American republic. It con sents to pay a rate of interest, which, if it were applied to British or Trench securities, would breed instant panic.
 In addition to this the government has placed itself helplessly in the hands of this grinding syndicate for eight months to come. It has agreed that it will sell no bonds to anybody between now and next October without giving the syndicate the option of taking them.
 It is bad bargain, and foolish one, hoprinntnc fn and thrntyQ away sl6,OO0,0OO or more at the outset. It permanently impairs the national credit. It threatens to make further borrowing to meet emergencies impos- sib!e upon any reasonable terms.
 It is no wonder that when such Q bargain was to be made the negotia- tion was conducted behind closed doors, and that an effort was made, even after the contract was concluded, and despite the foolish denial of Secre- eary Carlisle, to keep its terms secret an effort that was abandoned only after the worlds call to Turn on the Light"
 Until the government dickered in the dark with syndicate of bankers for this last loan it's credit was very high. Its per cents. with only twelve years to run were worth 110 or more in the.market, its per cents. with thirty years to run were therefore worth about l19.
 But in this dicker the government discredited itself in most extraordi- nary way. It sold thirty-year 4 per cents. for about 1O4. Thus, as the World showed recently, it assented to the theory of the banks that our na- tional credit is smaller than that oi the negro colony of Jamaica, whose 4 per cents. are worth III, smaller than that of British Guiana, whose As are worth 107, and not much better than that of the Fiji islands, whose 4111's are worth l02.
 Now, let us make some comparisons nearer home. At a time when the treasury itself fixes upon 1o4 or l04A as the proper price of government As and sells them at that rate the As ot Athol, Mass. (did you evCr hear o1 Athol?), are selling in the market at 1O714; Boston Water As at III to 115, according to term; the As of Broclxton, MaSS., dJ lUo' InOSe OI SdIuDrliSt, Mass, at 10s and 1O9; those of Detroit at lO7. those of Haverhill at 10S and lOS1I, those of Hudson county, New Jersey, at l0s4, those of Lawrence, Mass, at 1O9, and so on through a list that might be extended to great length.
 Of course the credit of the govern ment is not by any means so bad as this extraordinary treasury operation would suggest. It is so good indeed that even such blow has not beer able to depress the price Q10 of the old As, and the new bonds presently tc be issued to the syndicate at 104 are al ready eagerly bid for at III and above.
 No explanation or defense that has been offered excuses this wanton deg radiation of the credit of the United States. The refusal of congress tc authorize popular loan did not war rant secret sale of bonds by the presi dent to foreign bankers on their owr terms-and such terms! The bottom of this scandal has not yet been reached N. Y. World Dem.)