The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-02-14
JOBBED BY A SYNDICATE
How the Senators View the Proposed
Bond Loan

Washington, Feb. 13.--A financial bill
on the lines Of the Presidents last mes
sage to Congress was presented today by
Villas. The measure is entitled t'bill to
save the American people SIG, la, no. "
1t recites the Presidents statement that
he had agreed to issue $62, 400, 900 bonds,
payable in "coin" at interest equivalent
to 8 81 per cent, but had retained the
right to issue bonds payable in gold at
per cent, if Congress granted the author
ity The bill states that this difference in
interest amounts to $3.50, 159 a year, or
$161 40 for the thirty years during
which the bonds run. 1t is provided that
the Secretary of the Treasury shall be au-
thorized to issue $65, O00 900 bonds at per
cent interest, payable in gold in thirty
years, to be used in redeeming legal ten
ders and be exempt from tax.
Hoar, addressing himself to Villas, said
"Will the gentlemen tell us the author
ity for the great savings he sets forth I;
which are the persons with whom this
arrangement for buying bonds has been
made? Where is the contract We ought
to be fully informed"
~ am not the keeper of the executive
documents, - responded Villas.
"The President has given us his views
in message, but" insisted Hoar, 1--WE
should have the details. We have only
the statement of certain facts and conclu-
sions by the President but there is an
4 entire absence of details"
N II have no more details than any other
>'enator" said Villas.
Wolcott gave a new turn to the discus
sion. "The morning reports tell us, I"
lid he, "that these bonds are being ia
N to London at II 1-2, and by this
means a syndicate of Jewish bankers
which he'd taken the bonds are netting a
profit of per cent"
Villas said that was an additional reason
why the new form of bonds should be
authorized. 3.
Mr.. Teller said th e President had given
no details as to the contract with bankers.
The Ways and Means Committee of the
House had been trying to get at the
facts, but had not yet found out the names
OF all the parties interested in the bond
contract. A few months ago our bonds
sold easily at less than per cent interest.
1T could not he possible" said Mr..
Teller, that the utter lack of tact of the
Treasury Department had forced up the
rate of interest from less than per cent
to 3-4 per cent interest, when the last
bonds are much superior to the former
ones. If their bonds were selling at such
a handsome profit in London, it showed
the credit of the United States had not
been so disastrously impaired as the
President sought to make the country
believe.
At this point Mr.. Sherman came for
ward with another financial measure. He
offered it as substitute to the bill for the
unlimited silver coinage reported from
the Finance Committee yesterday. The
bill is similar to the one introduced some
time ago, although he now gets it directly
before the Senate. 1t provides for bonds
st per cent, payable in gold coin, and
Tor rhe issue OF gold certificates. Both the
bills of MIR. Villas and Mr. Sherman went
to the table. Thereupon Mr.. Hill, Demo-
crat OF New York, raised the point that
they ought to go on the calendar, where
they could be gotten at and would have
the same Advantages as the silver bill re-
ported yesterday. There was u spirited
lcolloquy, but the bills were left on the
liable.
MIR. Aldrich, Rep, OF Rhode Island,