The Lafayette gazette. [volume] (Lafayette, La.) 1893-1921, 1895-04-20
THE BOND CONTRACT.
Wisdom OF tho Administration in tho
Great Emergency.

6O1ue lCnGnS cuJOySu VAAC uASCAASoAoA "a |
being the worst abused man in the
country. 1t is not very pleasant po-
sition 70 occupy, but Mr.. Carlisle has
maintained it with his customary dig
nifty, and, so far as the world knows,
without serious disturbance to ms
temper or digestion.
Mr.. Carlisle did not. of course, expect
to satisfy his critics when he arranged
the sale of the ncw-bond issue. 1t has
not astonished either him or his friends
that the contract with the new syndt-
cate has caused him to be denounced
by the republican and populist orators
and press from Dan to Beersheba. He
has too long been their target to care
for such firccracl<cr artillery when he
knows, and knows that the public
knows, he has done the best possible
for his country.
All the assaults made upon the gov |
eminent have sought to establish two |
things: That it was unpatriotic and I'M |
just to American citizens to sell the |
bonds to a foreign syndicate, and TINT |
they were sold at too low a price. Few |
have the hardihood to say that they |
should not have been issued. |
Unquestionably it would be best to |
place all loans with our own people, |
all things being equal. It is also true |
that q low price was realized for the |
issue.
But every thoughtful mon who care |
fully examines into the condition OF |
affairs must not only approve the sale
abroad, but also the bargain made with
the great banking houses which took
the bonds.
BY the terms Of the contract the mem
bers of the syndicate obligated them
selves to check the expectations OF
gold. The only way to do this is by
keeping down the rate of exchange.
both by importing gold and by the en-
ployment of such other means for in
| Aucncing the markets as lie in the pow
| er of the Morgans and Rothschilds and
| their associates who have great credits
| abroad which may be drawn upon at
will This is really the principal con-
| sideration in the sale; it could have
been obtained from no other combine
| ton, unless, perhaps, the associated
banks OF New York could have been
prevailed upon to enter into such on
agreement. It is unfortunate that they
did not rise to the situation. The New
York clearing house is made up of
an aggregation of financiers who have
shown themselves equal to any great
emergency. While the Bank of Eng
land had to call upon the richer Bank
of France for assistance after the Bar
ing crash, the New York clearing house
weathered the great financial storm of
| 1893 without soliciting a penny OF help,
and held up the whole country in SO do
ing. Had this great association desired
to help the government 1t could have
y
long ago. The members have not cared
to assume this patriotic duty, strained
relations having grown up between
some of them and the secretary of the
treasury, who has acted as he thought
. best independently of their wishes and
advice. Private pique Influenced them
. to such an extent that with over eighty
:. one million dollars in gold coin In their
: vaults and with O further stock to
> draw from of over Ave hundred million
dollars scattered over America. they
1 | refused to spare one dollar to relieve
the treasury.
Under the circumstances Mr.. Carlisle
made the best and vvisest arrangement
possible. Knowing that no matter at
, what price the bonds might be sold in
a this country the gold would be imme-
diate1y withdrawn md again boarded,
,, he decided to treat with a syndicate
!, that could not only furnish gold. but
also give some reasonable guarantee OF
:, it's preservation for at least time.
Only such houses as the Rothschilds
O and the Morgans could give this guar
- antee.
There is no sufficient ground for sup
posing that the syndicate either cannot
!. or will not do much of what 1t has
- agreed to do. It can control hostile
- bankers, some of whom there must be
= by indirect influences, and thus, vir
~ tually secure the cooperation OF thu
=, New York clearing house and the grea
- continental and English banking in
- situations. The Rothschilds hav'
branches in oil the great money cen
,. tiers of the world-London, Vienna
Paris, Brussels and Fraukfort-ane
through them can sell commercial bill
SO as to keep down on the rate OF ex
change in favor of a country they or
helping. They have been doing thi
', tor nearly a hundred years, and thi
:. they have no doubt agreed to do again
If necessary, for the United States
from now on we shall be able t.
watch for the first time, at least il
~ many years, an intelligent manipulu
~ ton Of the money markets for praise
>, worthy and patriotic purpose. We ca
|" hardly see how the syndicate can fa
to preserve q satisfactory gold ba1anc
in tho treasury for many months
There will undoubtedly be attempts
~ cut it down. Such o one was Russe
CO Sage's recent withdrawal Of $55O.O(
from the subtreasury and the effort
Nc to force gold to a premium BIZ
these movements will almost necessa
~, ily be individual efforts disconnecte
-. ind of little consequence when exerte
d. against the syndicate's influences.
com bination to bear the government
10 credit would not be tolerated. The G:
II" portation of gold ceased as soon as q
~ intima ton of the contract got abroa
81 5, and there Is no indication that it wi
", :, be resumed, though at q time OF tt
-, year when the tide sets its strongest