New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-15
LIE EOND OPERATION.

The bond contract has now been published,
and can be criticised with knowledge. Evident
Is il is 10 be- assaulted with a great deal OF pas
sion 10y some Of The Presidents friends ana Tor
those very features which are least objection
able 1t is indeed TO be regretted that any Such
contract became necessary. To every American
II /, painful that the President and Congress
have brought the country into such condi-
ton that iis solvcncy and its prosperity were
protected only by such IN agreement But the
poiniS which the Presidents friends criticlse
most severely deserve different treatment.
Secrecy is one sore point with the great iinnn-
cicrs from The bnckwoods. But no such con
tract. No. other contract which the President
had legal authority Ia make. could have been
made in the ordinary way. He had put the
Treasury where 1t WAS practically at the mercy
II all the world and could get help only by pri-
yaic and exclusive negotiations Next II Is said
that q high price was paid. and il Is indeed
most hnmliatiug that The country should have
io pay 4 rate Of interest So much higher than
WIS proposed by competent bankers near the
.lns. ~ President Iarrison's Administration.
But the conditions hay. changed The Presi-
dent aud his party have cut of larg" part
If the. public revenue. ana have seriously pros
course. has Ia nay the higher price which re-
fleets the impairment of credit and the public
prostration.
1t is also triI, that the bankers who have I'M
deriakcn 10 protect the credit OF the United
States have u more costly task than many real
zc They have 10 bc prepared 10 ship large
amounts Of gold his way ~ Il time when other
influences would take gold 10 Europe II is moi
.itt.t- N-il l,.
heavy Tor some months. Eui the new ana
lower duties invite larger imports. and tend 10
create an adycrs. balance. The cost of con
trolling foreign exchange for six months, in the
teeth Of adverse conditions largely caused by
Democratic unwsdom may not be light. The
credit ~ these bankers helps and the remark
able increase Of confidence which appeared rs
soon as It was known that sound international
bankers were ready within rates authoriz,e 10
supply the Government with the funds II needed.
hut they do not know. nor do their critics, how
much ~ their seeming profits will have 10 he
expended in holding the rate Of exchange where
they mus, hold il II they are TO succeed AT all.
The fact il that the Government had been
brought into most difficult position 10y the
course of the President and Congress that
II was questioned whether any of It's gold re-
serve would have been left forty eight hours had
not new resources been quickly assured Many
~ the best bankers had openly declared that no
foreign ucgOiiatiol could be effected with coin
bonds. and the President could issue no other,
but nothing except a foreign negotiation II was
believed. could arrest the rapid outgo Of gold
Whatever the previous errors Of the President,
his Administration or Congress. II was then the
one necessary thing 10 accomplish some ar
rangcment which would stop the outgo Of gold
and that done. Whatever the cost. IT meas
ures the faults and errors which had brought
the country into that strait.
The stipulation that any further bonds the
Government may offer within the next eight
months shall first he offered. not necessarily at
the same any other stipulated price to the
same syndicate which has undertaken Il contract
possibly running through the next six months
Is by many harshly ccnsurcd Yet II Is "A nat,l-
raj business incident of the contract which II
was found necessary To make. The Government
is In no way bound To offer any other iss,Ic Of
bonds on terms other or better than II can make
elsewhere, but it engages to give 10 those who
will hold over SG0OO0OOo Of it's securities the
first refusal if ii has occasion 10 make a new
proposal. In this, as in the other features of
the whole affair, the public ought to recognize
evidence of the extreme difficulties into which
the country had been brought by Il Democratic
Congress and President Cutting off revenue
prosrating industry, threatening the National
banking system, trying 10 revive State banks
trying TO force more small silver notes into
Observation-Disclosures are all costly and disastrous,
and the country has 10 pay for such perform
ances.