The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-11
Hi Action Regarded as a Virtual
Lowering of thc Credit of the
Government He Represents.
AGAINST CARLISLE'S ADVICE
UNFAIR ARBITRATION PROPOSITION
FROM EUROPEAN POWERS.
Proposed Treaty Which, il Accepted,
Would Place the United states at
the Mercy of Monarchics.
special to ths 1ndianapolls journal.

Special to the Indianapolis Journal.
WASHINGTON, Feb. 10.-Comment in
Washington continues to center entirely on
the remarkably high rate of interest at
which President Cleveland has sold his last
issue of bonds to the representatives of
foreign money lenders. Mr.. Carlisle, it was
well known, was strenuously opposed to
paying more than 3s per cent. interest, and
he was equally anxious that there should
be proposals issued to the general banking
public, inviting all Americans to compete.
In both matters he appears to have been
summarily overruled. a press statement
from Mr.. Cleveland attesting TO the warm
personal relations existing between himself
and his distinguished Secretary of the
Treasury seems now again in order and
Il might be strengthened. this time by a
diplomatic hint at Mr.. Carlisle's possible
elevation to the Supreme Bench to succeed
Justice Jackson.
More significant than columns of discus
sion are the figures given below. which
tell a plain, unvarnished tale Of what Mr..
Cleveland. in selling our bonds to foreign
money-changers at a rate higher than any
American citizens were ever paid, has done
TO lower the credit OF the government. A
comparison of prices for government secur-
tiles compiled from the list of the London
Stock Exchange for Jan. &c. makes a time
ly exhibit Of credits. British government
securities twenty-six in number, all yield
less than 3A per cent, and most of them
less than 3 per cent. Bonds of the follow
Ing British colonies yield less than 34 per
cent: British Columbia. Canada, Cape OF
Good Hope, Ceylon. jamaica. South Aus
fralia, Western Australia, Hong Kong
Natal. New Foundland. New South Wales
and Tasmania. The following governments
bonds sell on a better basis than 3% per
cent: Egypt, Norway, Belgium, France,
Germany and Denmark. These Comparisons
are more significant as indicators than for
present purposes. United States four-per-
cents. at 1101s yesterdays price. yield buy
ers 3 per cent. On a basis of ~ per cent,
they would sell at about 1922. Their de-
cline has been checked by strong support.
which points to the marketing of the
new bonds at a large advance on the syndi-
cate price Of 104lla. The market price would
need be about 1885 to make them equiva-
lent to the present tours at 1101s, because
the present fours will mature in 1907 and
the new ones will run until 1926. At what
ever figures the market may settle for
various classes Of bonds, it seems certain
that the London comparison will not apply
to the forthcoming issue. General investors
cannot buy the bonds at a basis anything
like 3% per cent. If the gold reserve were
to be depleted again In a few months. as
1T was after the last two loans. making nee
essary still another bond issue. on a basis
higher than 3A per cent, for the govern
meat, so that general investors might get
S4 per cent, the credit of the government
might be said to have fallen below such
financially discredited ountries as Egypt or
New Foundland.