New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-28
THE CONTRACT CLOSED.

Tho closing of the Syndicate's contract win
| tho Government seems to have surprised some
Treasury officials But 1t Is in exact accord WIN
the Interpretation Of the contract when WAS iolS
ago set forth by The Tribune. The con'ract Is
"completcly performed" by the payment OF 'he
cold and the delivery of the bonds lhere Is ieil
of 1t nothing except the obligation on the part oi
tho Government TO first offer TO the parties Oh
the second part" the syndicate. any OF 'h'
bonds Of the United States" ii may desire 10
offer or sell on or before October !, 1870. Ih''
obligation stands but every other expires VIII"
the complctc performance Of the contract ~
deliver gold for bonds. The fifth section OF inc
contract expressly states that the syndicate VIII
| "exert all financial influence and VIII make III
legitimate efforts to protect the Treasury OF tue
Emitted States against Withdrawals OF god' penn.
"ing the complete performance OF the contract
but not aftcrward That the bankers concerheu
may FOR their own or the public interest exert
tho Same power still longer, 1t must be agreed III
No vav alters the fact that they have moi pouhu
themselves 10 do So According to Washington
disnatcbes they express the determination TO use
,hejr Influence still to prevent exports OF eoiu
and it is presumably for their advantage bu'
tho contract made by the Administration ooe'
not IN any way bind them to that course.
The closing Of the contract comes mt 1avor
ahlo time for the Government since II Is aDle 10
close the fiscal year with gold reserve restored
and with receipts for the last month only shgh'-
" exceeding apparent expenditures Inc ac'ua'
exnenditures of Government, the cost OF carry
ing II on according to existing laws anu coh
tracts. have been greater than the disDurseiheh'S
by the Treasury for some time. 50 that noa'ns
deht has actually been created by refusing 10
nav ALLEGATIONS past due In order TO make pet
tor showing for the fiscal year Instead OF the
ordinary s31 GOO 900 per month, which 1t actually
costs 10 run the Government. the pay men's III
Juno have been 500 ass SSS far. or at the rate
of so5 600 600 for the month. Payments for the
ascaI veor have been AZ rate about S1Iuoo"o
,oss than the actual cost Of the public BUSINESS
,he performance meaning nothing except forcen
loan from public creditors. In this way the
Treasury reserve Is maintained. and the appar
emf deficit for the year is reduced.
The closing of the contract by the syndicate
by no means implies that exports OF goa are
now IN he expected, since It may be altogether
to the interest of the syndicate to prevent any
BIT the suggestion was recently made In these
| columns not without some foundation, that the
| bankers might find it to their advantage to per-
| nit temporary Outso vi SoIu WI! s''"' '"'''
| is left the obligation of the Government, II II has
| 70 sell other bonds before October to offer them
first TO the same bankers, and the opportunity
| Of realizing another profit Of several millions for
their services will hardly be overlooked by then'
even II other interests make 1t imperative for
| them TO prevent monetary disturbance Money
| IS abundant at present. and some Outgo or gold
would be useful 10 many banks II there were
ground for confidence that 1t could he arrested
at any time before it could do mischief.
The plain truth is that the actual power to de-
! eide what the Government shall do belongs no
longer to the President Secretary Of the Treas
ury, because they have virtually signed 1t away.
By placing the Government In the hands OF re-
ccivers they have put 1t out OF their power TO
determine what 1t is TO do however wise 1t may
have been TO obtain at any cost financial direc-
| ,ion in which the monetary world would have
confidence No one is authorized TO assume that
the benefits Of that direction have ended Neither
has anybody authority to assume that its cost
| has ended