New-York tribune., 1895-12-28
THE BOND QUESTION.


not pass yesterday only because there were good
reasons for delaying. This Bond bill, Secretary
Carlisle says according to Democratic accounts,
will do no good. That is the opinion of the bank
crs' syndicates, large or small. They all want
per cent bonds at par, which they can sell IL
20 per cent profit. But if Congress can do no
better than that, 1t might wisely refuse to con-
slider any bond bill at all, until the President
had consented TO an increase of revenue. Ihat
is the key of the whole business. and the Senate
Finance Committee, to which the bill passed
bv tho House has been referred, will probably
see that II cannot afford to take weeks or months
in rcachinc n decision which the House commit
too was able to reach in few hours. II may
wisely modify the bill passed by the House, I'M
loss II has better information than The Tribune
but II cannot afford TO waste time That is not
the Republican way.
At this stage it seems timely to recite what
was actually done by the President in the BOND
transaction of last February. This not Tor me
purpose Of questioning the ability Of the bank
crs composing the syndicate who performed
their undertaking with entire success, and ul-
doubtedly saved the country from great loss. to
which the conduct of the President and his party
had exposed it, If there is blame, it belongs
TO those who put the country into that dlS-
graceful position, and not to those who real
izod motifs for their services. Nor Will 1t be
forgotten that individuals. by obtaining some Of
the bonds early and taking part with the syn
djcate in various ways. realized Il part of the
profits. For the country it matters not whether
tho money went to the managers, in the com
mission Of threequarters of one per cent for
tn n q
original syndicate or to later purchasers. The
entire difference between the sum which the
Government paid for gold, and the sum which
the final holders paid for bonds, constitutes the
cost of the operation to the Government, and the
profit Of the various parties interested as
whole.
The syndicate delivered 100000 ounces Of
gold at S17 SO441 per ounce, which is .SOU2i per
ounce less than the Government rate, so that
If maid a premium Of 4i94 per cent for the
bonds 1t received bonds amounting to S62,3lj.-
400. and paid Government SG5,1l6,2I5 in god
at its valuation. Immediately the new ana
larger syndicate offered the bonds To thc pubic
at 1925, or $G9,949,075 for the whole issue,
making a profit of 81. So! 500. including the com
mission to the management above stated. so thar
the final profits divided among the members
who did not take any Of the bonds themselves
was 6.675 per cent on their investment. Bit
many of them-it Is not known how many-t0ok
part OF the bonds offered to the public, ana
those who did SO shared the further profit in the
advance of the bonds from 1l2.25 to l2O in less
than two months. and I'D in less than three
months These latter, therefore, realized i'll
three months II per cent Oh their advance OF
6 per cent Il month. If they held little longer,
the bonds were still going to the public III July
at 1231 - 10 124.12. AT the highest point the
profit over the price at which Government sold
was 1853 per cent. or $12,55I .i6l. and at l22l@,
at which price or higher the bonds were sold
for several months continually, the profits were
S11.120.929.
Hence the Government actually gave away
from Is to 1863 per cent for the privilege of
getting bonds sold which the people were eager
to take and aftcrward did take at 1225 to 12i.12.
In fairness TO both sides ii must be remembered
that the Government obtained valuable ser
vice. for which the bankers We're entitled 10
handsome revenue. But that service was need
ed only because the Government bad been so
ouraseously mismanaged, and It's credit and
the soundncSs of its currency 80 outragcously
assacd hy the President, that many doubted
them. until capable fnanciers took charge Ii is
not the habit of men who want 10 buy. but was
Tie plain duty of the President acting for the
Nation which sold 10 abstain from depressing
the bonds Ia be offered. In this case the PreSi-
dent also. as If he were actually one Of the
buyers. laborcd to put down the price of the
bonds he had 10 sell
He il going through the same performance
again For these were coin bonds. not gold
bonds. which the people were buying at 122.5
To 12412 and yet the President is now as he
WAS then. insisting that nothing but gold bonds
should he offered. His constant attacks upon
the currency system, declaring that there can
be no safety no matter how sufficient the reve-
nue.. until the legal-tender notes have first been
retired. are utterly senseless If not des,g gned. as
they are too papably calculated. TO make the
public believe that gold PAYMENTS cannot be