The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-01-26
PROMINENT BANKERS
Mighty Views Prom Britain's Pinan-
cial Center, Threadneedle Street.
PAYMENT IN PRECIOUS METAL
You Americans Assert YOu Intsnd 10 Fay
Ia Gold. Why the Devil Dossa't rOur
Congress- Say SO?"
(By the Commercial cable to the New
Ynrk Herald

Cly the Commercial cable 70 the New
York Herald.
London. Jan. N.--The Herald represent
tative had a talk today with Mr. Albert
George sandemaD, governor OF the Bank
OF England. Seated In the governors
room OF that historic institution. Mr..
Sandeman discussed the financial situa-
tIon al home and abroad and the attitude
OF British investors toward United
States securities. The deputy governor OF
the bank, Mr.. Hugh Colin Smith, was
in the ROOM and presently entered the
Right Hon. William Lldderdale, who won
worldwide fame by his administration
while governor OF the bank during the
trying times OF the Barring panic.
had a running conversation with
these three. They evidently has no
thought OF cold type. and spoke OF hand
In a colloqulai way. quite unlike anything
they would have said In a formal inter-
View. Situated as they are in the very
center OF Great Britain's mighty COM
mercial and financial system. their views
ought accurately 20 reflect the senti-
ment OF the great trading and investing
classes.
Governor gandeman said that the mes
sage OF President Cleveland on the Ven
ezuelan dispute had given a dreadful
shock 10 the holders OF American secur-
tiles, a shock from which they would
require time to recover II was not so
much ;he message itself that astOnished
Englishmen as the manner In which II
was received by congress. This indicated
that the notion OF war with England was
agreeable to great number OF people
in the United States. However. second
thought had apparently modified this i'm
preston.
Before the Venezuelan difficulty, how
ever. there had been a serious loss OF
confidence IN American securities. Gov
ernor sandeman said, because OF the de-
faults OF so many railway companies
and the continued difficulty with the cur
rency. II might not have been expedient
10 make the bonds now offered payable
on their face In gold. because this would
cause discrimination in their favor
against older issues which are payable In
coin. The passage OF a joint resolution
by both houses OF congress declaring that
all existing obligations Of the government
should be paid in precious metal would
probably have rendered any change IN
the wording OF the bonds unnecessary.
l ventured to remind the three bank
officials that all the obligations OF the
government, even those sold at depre-
cIated prices during the war, had been
paid In gold. and that the Intelligent
and influential masses OF the United
States were fully determined that the
credit OF the country should be main
tanned on that basis.
Deputy Governor Smith broke In with
the remark: "You Americans all assert
you intend to pay In gold. Then why
the devil doesn't your congress say so
al fhfa frntablp 80
His colleagues Joined in the langh at
this sally. Then Mr.. Lidderdale said in
accents OF profound conviction:
II never entertained the slightest doubt
that the United States government would
pay all obligations In gold. Its conduct
In the past gives assurance that II will
do this. The great body of investors.
however. do not study history, and are
not satisfied with the general assurance.
They want the specific assurance that
they win be paid in as good money as
they lend. and the very fact that your
congress declines to insert the word gold
in its bonds raises n doubt in the minds
OF investors.
More than that" said Mr.. Smith.
here Is a point raised by investors.
When the treasury in February last rais-
ed loan on $50,0O0OO0 Of bonds It had the
option to borrow the money at three per
cent on gold bonds or at three and three
quarters per cent on coin bonds, Con-
gress refused to borrow on the gold basis
and the treasury took the loan at
higher rate on coin bonds. The country
will have to pay Sl6,OOO,OOO more interest
than the loan would have cost II II had
been made on the proposed gold basis.
Now, in case OF any change in the
currency by the time the bonds mature,
won't your government be justified In
saying that 1t paid Sl60OO.O0O for the op-
ton to pay the bonds in either gold or
silver. and that 1t elects to pay them in
sllver?"
Messrs. Sandeman and I.idderdale con-
CURED in this, but thought that when
the bonds came due the United States
would be prepared to keep faith with its
cerditors, as has always been done
The conversation then changed to the
depression in American securities, Mr.,
Sandeman remarked that the whole world
had been passing through a period OF
depression. British investors have sur
fered enormous losses through holding
Erie. Reading. Union Pacific and other
properties that had gone bankrupt One
trouble was that the fixed charges OF
railroads had remained substantially un-
NHOilEtut Mililt Nht NlttAhN AoNNS a'e'N
almost cut in half. These facts natural
ly brought American railway securities,
except the very highest class, into dis
favor
Mr.. Lidderdale said, with great delib-
GRAFTON, and his colleagues fully concurr-
ed in his remarks:
THE tendency to reduce this country's
holdings of American securities COM
menced before the presidents message
! The currency question and the numerous
defaults of important railway systems
having created distrust of all but the
very best railway obligations, this dis
trust was greatly intensified by the re-
! ception given TO Mr.. Clevelands message,
which created almost a panic In the
American markets here, and time VIII
be required to remove Its consequences.
/ what action in the United States, l
asked, would allay the distrust and en-
courage the resumption of purchases by
British investors?"
! "A formal declaration hy congress"
remarked Mr., Lidderdale. that all gov
ernment obligations shall be paid in gold
would in my opinion, have an excellent
| effect"
Messrs. Sandeman and Smith nodded
their heads in emphatic assent.
TESTIMONY CLOSED IN THE SEAL
CASE,