New-York tribune., 1896-01-10

II would be more fair and honest not to call
the pending bond proposal popular loan
Men who have good sense know that II is not
that and only those who wish 10 dscrcdli oiher
modes of raising money, in order to leave Gov
crnmcnt entirely dependent upon syndicatcS,
should give this performance misleading title
\ Droposa intended 10 be taken by the people
would name Il definite price say the equivalent
of 3 per ccnt-at which all bids would he ac-
ceptcd IN the order OF their reception because
the millions will not figure out percentages or
send bids unless assured that they Will be re-
coived. and il would provide that on deposit OF
the gold at any postotce or Sub-TreaSuTy for
transmission 10 the Treasury receipt should
be given stating the amount Of bonds 10 be- de
liycred and in Such denominations aS the de
positor might desire. \ loan OF that kind would
be taken by the people in few weeks. Inc
money would come mainly from individual
boards or from depoSiorS in local banks. SO
thai its withdrawal would cause minimum
OF disturbance at financial centres.
There i too much reason 10 suppose that the
President and Secretary Of the Treasury had a
very different purpose II may be said that they
did not know how TO raise money In that way
hut II is far more probable that they did not
intend 10 raise money in that way. They pre-
sumahly meant 10 have the loan fail, as respects
popular subscriptions, and therefore carefully
omitted TO name any price and gave no oppor-
tunty 10 enter subscriptions at any pOstoillce
which would have made the offer acceptable 10
the millions Their idea appears 10 be That al
popular bids VIII cover only a part OF the bonds
offered, So that it will then be in the power or
the Secretary 10 decide that the bid OF The syn
dicate for all the bonds or nOne should be ac-
cepted as the best for the Government on the
whole
Senator Elkins came rather hastily 10 the con
clusion that the offer OF bonds 10y the Treasury
left his resolution without excuse whereas II
should have been passed at once with such
notifications as to prohibit any sale Of bonds
except on offers at fixed price, and at all offices
Of the Government throughout the country. 1t
would not take long to find out what figure, the
equivalent Of 3 pes cent or some other definite
rate. the Treasury ought 10 accept. lie meant
70 shut out bargains with syndcatcs. and the
Senate and House would probably have passed
Il bill 10 that effect by majOriues large enough
to carry 1t over a veto; but, as matters stand,
the Administration doubtless expects that the
9TH Of February will see the syndicate the only
bidder for the entire amount Of the bonds offered.
1t is not too late TO put the proper restrictions
on borrowing by the Government. The plain
truth is that there ought to be no borrowing.
Congress ought to provide for revenue enough
10 meet all the legitimate needs Of the Govern
ment and II ought also 10 take from the Sccrc-
tary Of the Treasury the power TO remit penal
ties for fraudulent undcrvaluaions Of goods
imported, as testimony shows he has been doing
10 a large extent. But IL the Senate proves in
capable Of passing a decent revenue bill, be-
cause Of the balance of power held by the silver
men and the Populsts, the issue of bonds will
be made apparently Of necessity, and the Senate
and the House will be largely responsible If it
is made in such fashion as to give millions to
favored bankers.