New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-04
BORROVING AGAIN.

The President hcsitates. Unless he is waiting
for friends whose transactions in the stock mar
ket cause delay. it is hard TO say why he waits
The announcement of his negotiation with FOR
eign bankers stopped exports OF gold and with
drawas from the Treasury in really surprising
manner and he has the best OF reasons TO fcei
that if his unwisdom has brought grave peril
the confidence of foreign bankers in Repub-
lican Congress will help him out.
The President would probably like to state
the case differently. But his negotiation is a
public confession that he has no hope from the
present Democratic majority in Congress. A
careful canvass Just made, not regarding the
measure he proposed in all its foolish defects.
but on the naked question of gold bonds. has
disclosed majority Of ten against IT III the
Senate More than twoihirls of the affirmative
votes. as is natural were of Republicans, while
more than three-ouartcrs of the negative votes
were Of Democrats The canvass was intended
to explain 10 constituents of sound money Demo
cratic Senators why they were powcrless 10 DO
ANYTHING but il also serves TO show why the
propOsed issue OF bonds was successful The
foreign bankers evidently have faith thar Re
publican Congress will provide revenue enough
for the needs of the Government.
According 10 press reports, ii is stipulated by
the foreign bankers that the gold shall be held
on deposit subject 10 draft by the United States,
and that the bonds shall not be distributed 10
buyers for some months. This provision. II there
were no other, dscloses the belief OF foreign
bankers that the bonds may be negotiated some
months hence. after Republican Congress
comes In, at better terms than they can now.
In effect. these bankers bet S15,000000 on a de-
cided improvement Of the public credit when
Democratic Congress ceases TO have power 10
make laws and 10 dsorganize the currency, ana
they are quite safe in that venture.
Sales 10 American investors. as was shown on
Sunday. would mean transfer of American
gold. or legal tenders redeemable in gold. 10 the
Treasury But sales 10 foreigners mean some
thing else, and the President was quite right In
avowing his strong Discrimination TO make such
a loan The foreign buyers Of bonds may pay
for them with funds otherwise unemployed. but
they are also likely to pay with the proceeds Of
American railway and other securities which
they may sell before the time comes 10 take their
bonds. There is no possibility of definite assur
ance that any considerable amount Of gold will
come to the country on account Of the bond
issue. although there is q strong probability that
a large proportion Of the bonds taken abroad will
be taken in place Of railway and municipal So
curities TO he sold in American markets.
The practical result. in every such ease. will be
that the foreign investor gets Il United States
bond in place Of a railway or city or county
bond 1t does not look as If the outcome
would be great Improvement In railway
securities ON the other hand. the foreign
buyers undertake 10 hold the bonds for
some months, which is advantageous for
the country. bui nothing can prevent their
selling the bonds in advance in the New York
market. if the price should show any improve
ment here and realizing in advance Of their
payment. The President has evidently ar
ranged things that the profits, whatever they
may be in this transaction. shall 20 10 foreigners
instead of investors in this country.