Delaware gazette and state journal., 1896-01-23
A pnnrnr That Threatens.

bleton & Co. OF Baltimore, a concern of
established reputation and acknowl
edged ability, have this to say
What pity IL is, and how lamenta-
bic it is, that the offer OF the Morgan
syndicate to furnish the government
with credit Of 500, coo, 600 gold could
not, because of the opposition de-
veloped in Congress, have been ae-
ceptedY No doubt, some who may
happen to read this sentiment will say
that it is bankers opinion, and,
consequently, a self-interested one. /,
Well, II ia a self-interested one; but
not because we had any interest either
directly or indirectly, in the Morgan
syndicate, for we had none, but be-
cause we are interested in seeing the
government relieved of its present en-
barrassment, and in the prosperity of
the country.
II tho Morgan proposition had been
accepted, and II was announced that
the government had at its disposal
credit of 5000, 600, 000 gold. not one
dollar OF which would have come out
of the Treasury, we consider the whole
question would have been settled and
doubt whether it would have been
necessary to issue sl00, 000, 900 bonds.
The demand for gold is only senti.
ment made real by the fear that tho
gold may not be obtained il desired.
Now. change this apprehension to
certainty that the government has
command OF more gold than it could
possibly require, and not only will no
one want gold, but it will be i'm
material whether the gold reserve fund
4
confidence, not gold, which the people
want, and confidence was what the
Morgan syndicate offered TO provide.
Therefore, we say it is great pity
that the offer could not have been ac.
cepted.
In the course of the same letter, re.
ferring to the success that is likely
to attend the bond issue under the pre-
vailing conditions, they say:
Instead of this, what have we? The
500, 900, 600 loan will be success.
Undoubtedly. But the most OF the
bonds will go to those who were in
terested in the Morgan syndicate, and
the buyers will he entirely uncontrolled
and large part OF the gold will come
out Of the Treasury. Don't deceive
yourselves, gentle reader, into be
lieving that the owners of gold, even
if they do not draw gold from the
Treasury in advance Of the payment
for the bonds, will not reimburse
themselves subsequently.
Ii Congress would permit the ma
tional banks 10 take out circulation up
to the face value of bonds deposited
and reduce the tax on circulation, the
uNk nit II.
portion of their gold, and keep the
bonds for the purpose of taking out
circulation, but will Congress do thisY
OF course not. Many of the learned
Senators do not hesitate 10 accuse the
banks of conspiring against the govern.
ment and of being harpies, cormorants
octoni, &C., who are managed by men
so degraded and contemplate that they
would not stop at any low and disgrace.
full methods to make money. or course
those who really are informed know
better, and whom we hear such ranting
against banks we feel inclined to be.
lieve that some Of their oefamers must
have an overdue not pressing for pay
ment
Well the bonds will go, and so eyentu
ally will the gold, and we may have a
disturbed money market and probably
continuation of uncertainty and dis.
trust That is what q popular sub.
scriptjon means. The markets have
been quite firm all week. The large
brokers at New York have been doing
all they can, not only to make the loan
success, but TO keep the money, az,
change and stock markets, quiet and
undisturbed.
Il is doubtful if the papers and The
people who have raised the clamoI
against tho bond syndicate, and thus
reduced tho issue Of bonus to the cor
ditlcna mentioned above, are aware d
the wicked misehief they have beer
guilty of. A tightness of the none,
market, is one Of tho greatest evil,
that the business Of the country has il
contend against and IS frequently at
tended by dire results When the re-
lations under which SO many busines,
concerns are conducted are considered
it will be seen how much danger i
sure TO attend any condition oT affair,
that compels the banks, by reason OF
tieing up Of any considerable portion
of their available funds, 10 refuse th,
ordinary accommodation to their Gus
toners.
Take an industrial concern. for in
stance, with rated capital Of a mil
lion dollars The bulk Of this cauital
naturally, Is represented by its plan
and business facllities. Its product
are sold onstime, for commercial pane
which is discounted, and its purchase
OF material are made by note or bor
rowod money. Tho result 10 such
concern, should tho banks he eom
PEELED TO curtai its accommodations
would be fatal. 1t would mean bank
ruptcy, and the shrnkage Of its asset
10 the extent of three fourths of the;
real value, If put to a forced sale.
would mean ruin to the concern am
consequent distress to it's employes An
their families.
And yet, in the face Of such rray
contingencies, many newspapers an
many men in Congross and out vii
no desire save to mako rulitical canita
VIII rush into print with thes
damaging assertions, 50 destructive {
public faith ami credit II N ir
credible that they can deliberately fo
low such wicked course Surely soii
interest, il nothing else, should imu,
them to avoid such dangerous factic,
The disposition of the present Cor
gress seems to be in the direction of !,
increase of the appropriation for pel
sions, notwithstanlin,, 5 -