Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-02-06
THE BOND ISSUE
Mr.. Cleveland Will Delay 1t as Long
as Possible.
REEDS SUBSTITUTE COULD GO THROUGH
1t viii Probably Be Defeated With
the Administration Bill.
PRIVATE OR PUBLIC BIDS

II Is the intention of Mr.. Cleveland to
delay the issue of bonds as long as possi-
BILE. Unless a greater emergency arises than
at present exists there will be no issue Until
after there is some official action in Con-
gress to disclose whether or not anything
can he done through legislation. This wait
ing upon Congress is not based upon any
, hope of legislation. since the President.
Secretary of the Treasury and democratic
leaders in Congress have despaired of this.
but merely because they want to avoid
appearing to assume anything as to what
Congress may do. 1t is generally con-
ceded by the democratic leaders that the
Reed substitute is the only thing that could
be got through the House. and yet up to
this time fe@ of them willing to vote
with the republicans to displace the orig
inal bill with this. Many democrats who
would vote for the Reed proposition If it
<-Stood original measure will not vote
TO substitute il for the committee bin.
Waiting for Further Run Gold.
II both the administration bill and the
Reed substitute are defeated when the vote
is taken tomorrow afternoon. as il is very
generally expected they will be- that will
be notification to the administration that
Congress will do nothing and the consid-
GRAFTON OF Congress will no longer stand
in the way of bond issue. 1t is doubtful,
however. whether there would be an i'm
mediate issue of bonds unless a further
run on the gold in the treasury should
develop.
A heavy run on this gold might cause
the notice of a bond sale to be issued even
before the vote in the House. but If there
Is no further run on the gold the issue of
bonds will probably be withheld for con-
siderable time. In other words, it is known
TO be MIR. CleVeldnd'S Judgment that as
long as the amount of gold in the treasury
stands pretty steadily where it is, or in
creases slowly. there should be no further
issue of bonds. He stands ready, however.
to put out bonds imme diately upon the
renewal of raids on the gold.
How to Dispose of the Bonds.
The discussion of the bond issue has been
upon the assumption that the bonds would
be placed privately at fixed rate. 1t is
extremely doubtful that this will be done.
When bond issue is made the bonds will
probably be offered to the highest bidder.
The negotiations on the part of the bank
ers have all looked to taking the bonds by
an agreement made beforehand upon a
fixed rate, and the representatives of those
having the gold to invest have insisted
upon this. There is q disagreement be-
tween the administration and the bankers
upon that point, and there is said to be also
difference of opinion in the cabinet By
disposins of the bonds by private arrange
certain to get the desired gold, but as
against this consideration of expediency is
urged the danger of exciting criticism on
account of the irregularity of the method.
1t is regarded as extremely doubtful that
the administration will agree to the bonds
being placed by private arrangement
Vain Efforts mt Compromise.
Ex-Speaker Reed of Maine, Mr.. Dingley,
ard other republican leaders have been
in constant consultation since the House
convened. with Mr. Springer of Illinois,
Mr.. Hendrix of New York. and other DEM
ocrats who are pushing the administration
plan of relief for the treasury with a view
TO compromising their differences If sucn
a thing is possible. The administration
leaders were willing to accept the Reed
BILL providing for per cent bonds to re-
plenish the gold reserve. and an issue of
debt certificates to meet deficiencies In the
current revenue. providing Mr.. Reed would
make the bonds gold instead of COIN
An authorization for coin bonds. say
those who claim to speak for the Presi-
dent would not afford relief to the tress-
ury. Mr.. Reed refused to accept the pro-
posed modification.
Mr.. Springer of Illinois stated that the
attempt to effect a compromise had failed.
. The administration refused to accept any
bill that did not carry authorization for
gold bond.
The Latest Information.
The latest information In regard to the
proposed bond issue is that an oiIicial an
nouncement may be looked for FRIDAY
afternoon, after the cabinet meeting OF
that day. and not before.
1t is understood that negotiations with
representatives of London bankers are now
in progress with indications of an early
consummation. There is no longer any ex-
pectation of a popular loan, to be placed
in this country, as in that event the eXpe-
rienCe of the last few months would be re-
peated and the gold reserve again depleted
The purpose of the administration is, IL is
. understood, to place the entire issue of
sloO. 100000 bonds with London bankers,
who would pay for them with London gold,
thus avoiding for the present at least the
necessity for paying out gold in exchange
for legal tenders.