The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-01-15
NOT A POPULAR LOAN.

Secretary Carlisle's call for sealed bids
for 500. Vo.ooo Of the new per cent bonds
may be regarded BY some as furnishing an
opportunity for a popular loan. but The loan'
Il the bonds are subscribed for, VIII hardly
have those characteristics. 1t IS public
loan. IN that II is not negotiated behind
closed doors. with syndicate OF bankers.
but in the sense OF giving everybody
chance TO subscribe IL viii be IN no sense
popular transaction, In which everybody
can participate. First OF all. the bids must
be sealed. and payments for bonds must be
made at the treasury In Washington City
or at the Elb-treasuries In nine other cities
Of the country. AS 20 whether there viii
Dc a very general popular subscription
seems very DOUBTFUL When Secretary Car
Isle called for bids for s5o,ooo0oo OF bonds
in February, 1854. there were In the first ten
days offers for only $4,000. 1t Is
true that in the end subscriptions OF nearly
SO. 900 90 were received, but it was only
after a syndicate had been formed. There
was no element Of popularity In the sub
scriptions.
II the present issue OF bonds Is taken. 1t
VIII probably be by a syndicate or syndi-
Gates. The people generally will have no
opportunity to help the government out,
for the bonds are practically accessible only
10 banks and bankers. No one else has the
machinery for delivering gold and rece.v-
ing bonds. No one, outside OF those In
financial circles, knows what TO offer. The
at Ia NOT I'm fba hah Of r.
scribing by sealed bids for bonds. ard out
side of a few capitalists, few will do It.
For this reason, the new bond issue Is not
what might be termed popular loan. I'll
though 1t is Infinitely better than secret
negotiation, such as was concluded last
summer by Mr. Cleveland and his secretary
OF the treasury with the Morgan syndicate.
To have provided a popular loan the
treasury officials should have fixed an up
set price for the bonds, say on a 3 per cent.
basis, which would have been about Liz.
Instead OF allowing only the moneyed men
10 subscribe in large amounts, the appeal
should have been directly to the people.
on October /, 1895. It Is estimated that there
was outside OF the treasury $3.50, 0O0. 900 of
gold in the hands OF the people. This is
the gold it would be desirable to have. In
order to get II there was but one course to
take, namely, TO put the bonds on sale at
every large postofflce and national bank in
the country. Then any man with gold
would be able to step into a postoffice or
bank. pay his gold for a single bond and
receive 1t as soon as the treasury could
deliver It.
The instant Il was known that per cent.
could be obtained on unquestionable Sc
curity. certain to rise in value. there is no
doubt that gold would come out OF its
hiding places. This is the system OF popu-
lar loans IN France. and II that country can
sell Its bonds direct TO holders Il Is diff
cult 10 see why the United States could
not do IL. Rather than ask for sealed bids,
which VIII probably come only from mon
led syndlcates. It might have been better
had there been an attempt TO make the
new loan distinctively popular one. Pub
lie opinion would certainly have approved
the making Of an upset price which would
have placed the bonds on sale to small in
vestors. and had Il been done and the
bonds offered everywhere there is little
doubt the people would have responded in
way 10 show the world that they are al
ways ready TO help the government out in
times OF trouble