The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-09-08
THE BOND SYNDICATE.

"A. B. Hepburn, president of the Third
National Bank of New York. contributes
to the Forum an article on "The Bond
| Syndicate and Its Excellent Work" He
says that at first the national treasury
was not so much in need of gold as It
was in need of funds, and il the secretary
| of the treasury had possessed power to
issue exchequer notes or to negotiate a
popular loan he could easily have met
the deficit in the revenues and main
tained his god. Being denied the power
to borrow money to meet current ex-
penses the secretary resorted to the act
of 1875 and borrowed to strengthen his
gold reserve. The borrowing was done
ostensIb.y to strengthen the reserve but
really to provide funds for current ex-
penses Thus the government was forced
to attack its own credit, to fix the atten-
ton its own citizens and of the world
upon its vanishing gold, emphasizing ana
thus aggravating the danger of going
upon silver basis. The only relief con-
gress offered was a bill to coin the
seigniorage bullion, which would have
been imitation, pure and simple
The president vetoed this bG and ex-
erted all the power of his great office to
prevent the debasement of our currency
and maintain our commercial honor. In
the fact of the recalcitrant attitude OF
congress was all the more alarming and
induced foreign holders of American Sc
,curities to liquidate the same lest in
future they be compelled to receive pay
ment on a silver basis. Car,isle's re-
quest to congress last December, supple
mented by special message to congress
by the president, failed to obtain author
ity to borrow money in a way most ad-
vantageous to the government. The re-
fusal of congress to cooperate "was the
result of the deliberate purpose on the
part Of the silver interests to afford no
relief to the governments necessities ex-
cept through the use Of silver, the logi-
cal result Of which would be to force
the country upon a silver basis" II
looked as IL the free silver extremists
would succeed. The export of 25 millions
of gold in January and the withdrawal
from the treasury of nearly 20 millions
more than was exported showed that Il
was withdrawn In anticipation Of a profit
from the expected premium. The golc
in the treasury went down to less thar
43 millions, against over Ais millions o.
greenbacks and treasury notes which
were redeemahle in gold.
The president and his secretary wer,
/
have criticisms to offer because of tn,
high rate of interest the government 4
compelled to pay should bestow then
upon the dominant influence on congress
which refused to save In the taxpayer
| this extra interest. The banking hous
of J. S. Morgan & Co. and the Roths
childs became the sponsors for American
| credit not by word of mouth, but by th'
investment of 32h millions of their money
in United States bonds, payable In coin,
thus proclaiming their faith that the
gold standard would be maintained. For
eign criticism vanished in the light OF
tangible action like this. Liquidation
ceased and investment began. Withdraw
ais from the treasury ceased, and sew
eral large sums already Withdrawn were
returned as soon as the terms OF the
contract were made known.
Mr.. Hepburn then tells how stock ex-
change prices and the quotations for
wheat and cotton were strengthened by
this action and says we cannot expect
the business interests OF the country to
realize the Obligations they owe to the
bond syndicate for protecting them from
panic and commercial crash upon the
brink Of which they were trembling. He
adds that the silver interests have DOM
mated currency legislation for many
years; that silver hardly is "demonet
lied" when we have 64S millions of 1t
in circugation that the great decline in
the price Of silver is due to cheapened
production. etc.; that "silver has ceased
to serve the convenience of mem; that
the free coinage of silver dollars con-
tanning only BIN grains OF silver each
would mean silver monometallism. the
driving out OF our gold, and resulting In
money stringency, currency famine, and
commercial crisis For protection
against such a calamity we are indebted
to the bond ISSUE" and 1--WE must COM
mend the wisdom and craftsmanship
Of the president in reseuing the country
from such serious danger"