Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-08-13
All Talk About a Bond Issue by the
Treasury.
NO One KNOWS What TO EXPECT
Uncertainty as to the Extent of the
Syndicate Contract.
THE PRESIDENTS POSITION

All talk about the action of the Treasury
Department in the event of further trade
being ma lie upon the gold reserve is pure
ly speculative. 1t is evident, and confessed
by officials, that the department does not
know what to expect. Even the action Of
the syndicate, which is the chief reliance
of the administration, as 1t has been since
the contract for the last bond sale was
made, is a matter of doubt The contract
was partly written and partly merely
verbal understanding. The syndicate side
of the written contract has been complied
with. and, as far as that goes, all obliga-
lions are relieved, except that the syndicate
has an option on other bond issues until
October.
One Feature of the Verbal Contract.
One feature of the verbal contract was
that the syndicate was to so manipulate
exchange as to prevent withdrawals of
gold from the treasury for shipment
abroad. One element in this verbal agree
ment, however, was that the gold derived
from the sale in Europe was to remain
abroad for a certain time and to be used
1t was announced some time ago
that all this gold had been paid into the
treasury, and it is known that the bonds
have been delivered abroad. According
contract made by the treasury officials it
would appear that with the payment of
this foreign gold into the treasury the obll-
cations on the syndicate ceased There
seems, however, to be some doubt on this
point in the department. and in vague
sort of way the syndicate appears to be
still looked to for assistance. PROBABLY
the only thing the syndicate is called upon
by the contract written or verbal, to do
now is to try to place. other bonds il an
issue is decided upon before October.
VIII BE Guided by Circumstances.
AS far as the treasury officials can judge
now, it may not be necessary to make
another bond issue before Congress meets,
and all that is known is that the Secretary
will be guided by circumstances, and any
thing deemed by him necessary to be done
will be done without much regard for 9TH
er considerations. The idea is held out
that Mr.. Cleveland is afraid of what Con-
gress might do about the matter If he per-
mitted another issue of bonds during the
recess. This is probably based on mis-
apprehension as to the situation. Mr.. Reed
will he Speaker of the next House, unless
something extraordinary happens between
row and the first Monday in December
He will have about everything to say as to
the policy of the majority in the House
While not indorSng the syndicate idea,
Mr.. Reed voted for and spoke in favor of
the proposition to issue gold bonds, and
from the nature of his surroundings he is
opposed to having the republican party
take the responsibility for any action ex-
citive of financial agitation. Those people
who indorse Mr.. Cleveland's bond transac
tons are chiefly the bankers and money
holders of both parties, and in the east
most of them are probably republican.
No Adverse Action in the Next House.
Whereas they may place the responsibility
for the condition that makes the bond
issues seemingly necessary, they take
ground against any questioning of author
ity to do that which appears to them i'm
proving to the financial conditions under
the circumstances. This influence was
credited with leading Mr. Reed to take the
position he did during the last session, and
it is probable that the President feels that
he can rely on it to protect him against
any action by the next House adverse to
him on account of his proceeding along the
same line of policy which he has been fol-
lowing up to this time. He probably has
very little apprehension on that score, cal
culating that the silver men, chiefly of his
own party, will be the first to attack him,
and that the sound money republicans
cannot join in the attack without associlI-
ing themselves with that element. and
being classed with the ''disturbers of the
financial tranquility of the country"