The herald., 1895-05-16
A SUCCESSFUL TRANSACTION

Nothing is more striking as indicative
OF the practical value of the government
contract with the latest syndicate than
the official figures showing the amount OF
gold in the treasury at different dates
during the last six months. When the
award OF bonds was made to the so-called
Stewart syndicate. after a call for bonds
on November 9th, the gold in the treas
ury was down to less than S5S. 00O. Oo0.
By Decem ber 9TH it had run up to Slll,-
900. 900. Then it began to run down.
going under $97, 600. 900 by December 18th.
below $S7, 900, 900 by December 3lst, below
$50, 900, 600 by January 18th, below S70.-
900, 600 by January 9th. below 500 900 900
by January 25th, below $50, 000,000 by jan
uary 3lst. and below SAB. 900, coo by Febru
ary. Then negotiations with the new
syndicate were undertaken, and the pres
idents proclamation on the subject was
published on February Sth. The rising
tide in the gold reserve brought 1t above
S4s. QUO, 600 Oh February 18th, above So
900. 900 on February 23d. above $50, 600. 600
on February 9th and above $50 600. 900
on March 4th. and the amount has not
fallen below 1900. 900 since. As the OBJ
ject of the government was to procure
gold and to keep it in the reserve fund,
the figures show how successful its ar
rangement with the last syndicate has
been, in startling comparison with the
failure of the same object under the rre-
vious sales of bonds to the highest bid
der. 1t is worth noticing also that the
increase of business activity and advance
in prices in all our markets have set in
since the new syndicate undertook its
contract York Evening Post.
Time has justified the course President
Cleveland took TO maintain the financial
stability and reputation of this govern
ment. His administration had a condi-
ton disagreeable and not of its own max
ing to meet, and he met it promptly and
practically. There was no time nor op-
portunity to quibble over terms and min
or considerations. In the stress of cir
cumstances presented the wonder now is
that bargain so fully responsive to the
needs of the government and protective
of its immediate financial future was so
successfully consummated.
The fact that the syndicate made a
good profit on the deal in no way fur
nishcs grounds for the violent and hys-
terical spasms of Indignation that have
shaken the frames and disordered the
digestion of certain class of malicious
and bigoted critics. IL is for the purpose
Of: making a profit that people buy
bonds. No bonds of any kind, munich
pal, state or federal, have ever been sold
with any other expectation on the part
OF the seller or buyer. Millions and mill
ions Of dollars worth of American public
bonds have been sold at prices which en-
abled the first buyers 10 make approxi-
mately as much as the syndicate that
took the last United States issue has
made. The original buyers of bonds in
variably buy them to sell again. They
buy them wholesale and sell them retail
the same as traders buy and sell COM
modities and gilt-edged security may
be negotiated half dozen times before
it reaches the safe of the man who buys
for investment purely. We have waited
to this day to find cut from the people
whose financial ignorance and jugglery
placed us in this predlcament that bonds
are marketed at the figures that actual
investors ultimately pay for them, and
that the men whose capital and business
ability made the purchase of $G5, 600, 0OC
in bonds in one block possible, do it fol
pastime. II, indeed, they made more
than the ordinary profit on the transac-
ton, 1t is to be also observed that they
contracted unusual obligations as part
OF the purchase price The perturoed
financiers who have been fretting over the
unfortunate but necessary bonded indebt-
edness incurred by Mr.. Cleveland, should
not have left the financial system of tn,
their country in the condition that made
it possible for men desiring to bleed the
treasury OF the United States for it in.
stead of gong into the worlds market.
and buying.