Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-02-09
THE NEW ISSUE.
CIeveland's Response to the
House Statesmen.
THE BONDS TO PROTECT CREDIT
BeaStng 3-4 Per Cent. Interest Net and
I'd Run Thirty Years, with . Few Re
m tks Refecting on q Money ~Option," /"
and What He Says 1t Costs Thi. Time
The Dole People In Hawaii Proposing to
Hang Some Americans.

Hang Some Americans.
WASHINGTON, Feb. 9-Nobody guessed
the facts about the bond sale-as to the
amount Of bonds, the terms of sale, or the
method that would be taken to inform the
public as to the particulars of the transac-
ton The secret was well guarded, and
the result shows that even those who
thought themselves best informed were
decei red Speculation had credited the
administration with n determination to
sell anywhere from go, ,O0), 900 to s5Oo, coo,
ODO in bonds, bearing anywhere from 4 to
8 per cent, running from ten to thirty
years, at an upset basis Of from per ceat.
to 81 per cent The last semi-official mis-
Information that was allowed to leak out
through the treasury department sources
fixed the amount at $Ioo, ,OO0, 900 and the
basis Mt als per cent.
Substance Of the Latest Message.
The truth, as finally disclosed by the
President in his message to congress, yes
terday that a private sale Of Co., aOn. 900 in
per cent thirty year bonds had been
negotiated on basis Of 81 per cent. was
in the nature Of sensational surprise.
This amount the president thought suffi.
cient to cover the present necessities. He
plainly intimates that he is not looking
for any currency legislation, and says the
negotiations were cautiously concluded
for the loan so that in the event of failure
of timely legislation no time might be
lost in reinforcement of the gold reserve.
The bonds are payable 'cOin," and the
interest, everything deducted, will net
the holders 374 per cent.
Has n Whack at the aOption."
The president tells congress the word
''coin'' costs the United States q per cent.
interest which in thirty years on the loan
will amount to Sl6, l74 40, a sum, he init
mates, that we have to pay for the sus-
picion that the United States might
claim that "option" to pay in "cheap"
money. He says the lenders in this case
would willingly let the government have
the money mt 3 per cent. if given bonds
payable in ''gold," and there is u privilege
reserved in the contract for the United
States to substitute at par such gold
bonds at 3 per cent. for those negotiated,
If con grcss will authorize the same.
Should Never he but One Standard.
The president says: 'Of course there
never should bc IA doubt in any quarter as
TO the redemption in gold of the bonds
of the government which are made pay
able in coin. Therefore the discrimiua-
tion in the Judgment OF investors between
our bond obligations payable in coin and
those specifically made payable in gold is
very significant. 1t is hardly necessary to
suggest that whatever may be our views
ON the subject the sentiments Or prefer
ences of those with whom we must nego-
tiatc in disposing of our bonds for gold
are not subject to our dictation." He
closes with the statement that the loan
announced is believed the best
II cans at this time to ENSURE
the maintenance of the parity in
value of the coins of the two metals and
the equal power of every dollar at all
times in the markets and in the payment
of debts