St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-13
SYNDICATE OR PEOPLE.


The principal interest in the placing
of the new bond issue lies in the ques-
ton whether it will be taken by
bankers syndicate, or, to some extent,
by individual investors. That it can
not be popular loan, in the true sense
of that term, we have already seen.
There is no such thing as a real popu-
lar loan except where the authority
Issuing the bonds places fixed price
upon them and offers them for sale at
that price by public agents in small
denominations. Where bids are invited
and the price is uncertain, the multi
tude Of small investors cannot COM
pete on equal terms. 1t will be re-
menbered that an attempt was made
to place the first bond issue with the
people at large. When the bids were
opened it was found that the offer of
the syndicate was the most favor
able to the treasury. But the syndi-
cate bid required that it receive all the
bonds or none. There were many Of
fers for small amounts from different
banking concerns and private capital
lists which were better than the terms
Of the syndicate. But the government
had to consider it's interests as a whole;
and if these lesser bids were allowed
and then the remnant of the bonds had
to be dealt with on such terms as could
be made for them, the treasury would
be the sufferer.
The same thing would be pretty GER
tain to happen over again if the bond
syndicate remains in the field as a bid
der AS we have seen, the people are
at a disadvantage by having to bid in
an uncertain market. The man with
$40 or $1G0 or $500 which he would glad
ly invest in government bonds Is not
going to study the table which Mr.
Carlisle has given out, of the net in
terest return on bids at various fig
ures, and send in to the treasury a
sealed bid for his little sum at such
price as he thinks he can afford A few
might do this, but to suppose that any
considerable portion of the $100,000 900
will be taken in this way violates prob
ability. The indications now are that
the banks of the country, not as an or
ganized syndicate, but individually, will
absorb the new loan. 1t is reported
that the syndicate has practically dis
solved. We may believe that this is
true in the sense that it is unwilling TO
appear as forcing down the price re-
ce1Ved by the government for it's Sc
curitics, and that the banks belonging
to it are to he left free to make bids
separately. At the same time, it is
more than probable that these allied
banks, as syndicate, will put in one
bid for the entire $100,OO0,O0O If this is
better than the aggregate ofeall smaller
bids, or if the sun, total of such bids
is less than the entire 100000, 900, then
the syndicate will get the bonds.
There is thus an opportunity for the
patriotic feeling of the people to ex-
press itself. and an especially good
chance for those who have wasted
much ink in denouncing Mr.. Morgan
and the other syndicate members. to
step right up and bid so high, SO loud
and so long for big blocks of these
bonds that there will not be a crumb
left for the capitalists to gather I'D
after the feast is over. The disposition
OF these new bonds, and the amount re-
cefved by the government, is entirely de-
pendent upon the popular attitude and
action. 1t is matter for great regret
that, whatever the people may do, and
whether the bonds go to syndicates.
banks or individuals, their sale cannot
protect the treasury against the dan
ger that threatens it in the continued
existence of the legal tenders and treas
ury notes.