The Caucasian. (Clinton, N.C.) 188?-1913, 1895-08-08
to save the country from ruinf But
we also must make condition that
you give Us the option on all bond
issues up to October. Will you
d. it7n

d. it7n
CLEVELAND WAS WILLING.
AS every one knows, Mr.. Cleveland
did rs he was asked, and a great
wave OF indignation swept over the
country at the news. Profits of $lO,-
OOO,OOO put In the pockets of for
elgn syndicate for the asking, when
this amount might have been saved
to the government! Is it any wonder
that people cried out: What it does
all meant"
The farsighted managers of the
syndicate clearly saw that the $1O,-
100000 at the beginning was only a
small part of the profit in this con-
tract. They had the pledge of the
government to offer all bond issues
up to October to the combination, so
they had the backing of this great
country for their operations. Ii the
syndicate had imported $32, 900 600,
it would have cost them, according
to an exchange expert, about 2 cents
an English pound, or $l28, 600 ex-
pense for the $32, 900, 600. But, as a
matter of fact, only about $l3, 3,0O0.-
900 came to this country, 50, as far
as eau be seen, the total expense
borne by the syndicate was about
$52, 200.
The syndicate is nothing more
than a gigantic trust and takes
profits out of the country at its own
figures. Think of it! This little
group of capitalists forcing the
enormous import trade of the United
choose to ask for money with which
to pay debts abroad! Was there ever
anything like it'
REALLY WORTH TALKING OF.
Yet that is just what Mr.. Cleve-
land and this sagaclous Secretary of
the Treasury have done-consigned
us to the tender mercies of a group
of bankers, whose whole passion in
life and reason for being are to
amass all the wealth possible in
their short lives. Isn't this subject
worth talking aboutl Suppose a Re-
! publican President had done this
thing! Why, the Democratic news
papers would have had Mysteries un-
til they had reached a condition OF
hopeless dementia.
No wonder, then, that the forei gn
bankers who were seen by the writer
either professed absolute ignorance
of exchange conditions, or SAID
"Well, now, if were you l wouldn'1
tackle this subject; it is very intri
cate and difficult to under stand; and
anyhow, the syndicate does not care
to have the matter discussed"
There is no doubt that the syndi
cate does not wish to have the sub
ject discussed, and right here i
should be said that the Press was th'
first paper to draw attention to 1t
That was about two weeks ago, ant
now everybody in Wall street ha
taken it up. The only possible ex
planation for the high rates Is tn
profit which the syndicate banker
make out of them. At normal rate
there is little profit in exchange.
Under prevailing conditions tn
, , only persons who make the profit ou
of exchange are the members of tn
syndicate, and the rates for its bills
! Importers have stood it patiently fo
long time, hoping that rates woul
,, soon come down, but the tax is to
oppressive and they can stand it n
longer, so the complaints are grow
ing in volume, day by day, as tn
retes will keep around 400.
wRETCHED MISMANAGEMENT.
1t should not be forgotten that tn
: real reason the syndicate is enable
> to keep the rates at such exOrbltal
! figures is because wretched DEM
: cratic Encouragement has increase
r our enormous debt abroad. If traC
g were in normal condition thel
s would be no demand for exchang
n and even the tremendous power
l. the syndicate could not keep up Il
II rates.
Now, suppose you have bill
pay in London of 900 and "
buy a f1,O 900 bill of exchange, or
: draft on a foreign bank (Which is Il
t. same thing) from member of Il
te syndicate. AT present rates he W
1t charge you $4,9O25O, as exchange
r now at $4.9O IA. Sterling exchan
o. at par is $4.S6 2-3-the value of
III English pound in our money. NJ
ut your bill of E1,0OO is worth in Lo
is don 81 500. so on the basis of actu
is weight. AS the banker here charg
ps you 81 9O2.5O for the draft, he a
es parently makes the difference
Id tween the two amounts, or $36.
Is RESENTMENT NATURAL.
- c.. Schumacher & Co., the forei
exchange house, yesterday sent
90 this circular:
l,o although some round amounts of sh
uo sterling and cables were sold this week
ny further various American and Canad
at bond emissions in London, the syndlt
Id prices of exchange have not varied mat
Lo ally since our last review OF the lZth II
"o The attitude OF our bond syndicate IN h'
RS, ing it's price of exchange so tar ABOVE
KS, normal gold export pOlnt is being more
~, more severely criticised by many REMIT
and we are ourselves inclined to think
no it was mistaken policy to have screwed
of prices as high as it did. Being IN tuil s.
pathy with its work and fuli OF admlra
for what is has accomplished. we VIC
rather leave the syndicate the full merl
dr.. it, unalloyed by the suspicion, now so ol
.ad ly expressed, that private gain more I
,ev patriotism prompted its action: Resentn
~ of its attitude is, therefore, quite natura
seq the part of many remitters, and this se
ley ment it is, no doubt, which prompted
re- gold shipments by tomorrow's steamers
,as when considering these transact
iue ~, from the purely business standpoint
the are perfectly justified, nor can the syndl
ay- accuse either of these shippers of any
of patriotism, as long as Its own mem
are not themselves willing to sacrifice
ent smallest part of the big profit made on
or $62. .3l5, 600 government bonds: 10
nv. Kept demand exchange at q 80 instea
~ 49O would not have cost them over
no twentieth part of their profit on the bon
nce MIR. Schumacher is well known
" one of the best info1 med men on
ai1. au eign exchange in the city.
he ONE OF THE WORST PHASES.
any Now we come to one of the W
tne phases of the situation-the lncr