New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-17
SOME RESULTS.

The first effect Of the bond transaction mas
been to put premium on gold. by tns one
fact light is cast both on the expenses whlch the
syndicate has undertaken 10 meet and on the
probable effect Of It's operations upon the Treas
ury reserve In order TO get together the gold
10 be sold for bonds the syndicate has 10 Duy
gold in omen market here or abroad and 10 pay
nremium. which increases the cost OF the Donds.
II has also to regulate the market for foreign
exchange. and to that end Is liable III any ume
n no comnelled TO sell exchange at prices below
those of other bankers, thus sustaining loss
which has also to be charged as part OF the cost
Of the bonds No doubt the able bankers who
ara IN charge calculated on these and other
losses and risks in fixing a price which they
hoped would in the end bring them profit, but
it is only right to have in mind these with other
items Of the cost Of rcplenishng the Treasury
by such a process.
On the other hand. it is already clear that
there can be no certainty as to the extent Oh 'ne
addition to the Treasury's reserve OF gold. mat
addition may fall much below the sum expected
Thus one prominent tinancier has already soIu
81 900 900 in gold bars TO n syndicate mousse CD
tanning n premium. but then, wishing TO nave
gold within reach in case>of need. he has drawn
a large part Of that amount from the treasury
by presenting greenbacks for redemption IL Is
not possible for the Treasury nor for the syhhi-
cate TO say how much Of the gold To be trans
ferrcd may thus be virtually drawn not ny
the syndicate nor any Of its members. but py
others from the Treasury itself. Even In opera
tions for raising gold abroad. there Is some pos
sibility that individuals or banking concerns
there from whom gold may be procured. VIII
in fact obtain it themselves through others from
the Treasury of the United States.
These are not objections to the contract winch
the Government has made, but are oDViohs!
limitations Of its usefulness and results. Ihey
make more clear the amazing unwisdom Oh IL
policy which first cut down revenue $" 1ar mat
a great deficit caused distrust ana wlthdraWaiS
of gold and made repeated borrowings heces-
sary and then wasted away the whole session
of Congress in financial schemes OF purely par
tisan character and for purely partisan ends IN
stead Of submitting at the outset simple
proposition which good men OF both parties
could support, for borrowing money at low
rate from the people
For all the cost of getting and maintaining
gold reserve under such adverse conditions,
whatever that cost may be. the responsibility
rests directly upon the President himself, be-
cause the ruinous curtailment OF revenue could
not have taken effect had he refused; ana De
cause 1t was by him, or at his desire mat one
PARTISAN scheme after another has been forced
upon the attention Of Congress since the session
hogan. The Cabinet and the majority III Con-
cress have their share Of responsibility Oh
course. for they should have checked the fresi-
dents headstrong unwisdom. The great body
Of Democratic leaders. managers and Journals
have their responsibility also. for instead OF pro
testing with yigor against ruinous partisan
measures. they have spent months in demanding
them in vociferating that each in its turn was
the one and only thing to save the country ana
in abusing those who have pointed out their de-
fects. In short. Il party has been on trial, and
has shown what II can do in the government or
the country. All the cost. however great IL may
be. must be charged to the account OF the party
as a whole, and to those who have represented
or directed It, That the charge is a heavy one
everybody is already aware.