The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-01-06
A GOOD BREAK.

Word came over the wires yesterday
to the effect that a special from Wash
ington to the New York World repre-
scented that President Cleveland had
definitely broken with the Morgan
Belmont syndicate with whom it has
been supposed another government
bond purchasing scheme was being ar
ranged by the administration. The
dispatch represented that Mr. Cleve-
land was intensely angry with the
syndicate. declaring that its action in
preparing to purchase more govern
ment bonds was entirely unauthorized
and has greatly embarrassed the gov
eminent
We most sincerely hope that the
rumor OF the Presidents breaking with
the syndicate is true, and that his
anger against its chief representative,
Mr.. Morgan, is so intense that moth
ing can heal the breach which it is
likely to make between the admins
tration and that bond purchasing syn
dicate. It is also said there will be no
bond call until Congress has chance
to act, and then it will be q public
loan if the President is able to follow
his own will in the matter Let us
hope. too. that that is true. OF course
we deplore another bond issue under
any circumstances We believe it to
be unnecessary. We think there is a
better and surer solution to the gov
ernment's financial perplexity. Even
under existing law we think it is
within the power of the Secretary Of
the Treasury to stop raids upon the
reserve gold by using the prerogative
conferred upon him to redeem United
States currency in either gold or sill
yer, but the Secretary refuses to take
that view Of the case. His convictions
are against 1t, and while we are not
convinced by the reasons he assigns
for his convictions, we are willing to
believe that Secretary Carlisle is hon
est in them. But this is by the way.
If we are to have bond issue by all
means let the sale of the bonds be
public, and so far as possible taken
by our own people. If we must pay
If we must owe a. large bonded debt
let us owe it to our own citizens, in
a manner to ourselves. Then if diff
Guilty arises, IL foreign war threatens,
our bonds will be held by those who
have faith in our country's ability to
meet all its obligations. and the pa
triotiSm of Americans will save us
from witnessing the humiliating
spectacle Of our government securities
thrown upon the market to go beg
ging for takers at the first little furry
of war excitement
the sale must come. let it be public
and the purchasers Americans.
Then on the score Of advantage to
the government, the bonds ought to
be sold in the open market "In
February last" says the New York
World, some sixty-odd millions of
thirty-year 4 per cent bonds Of the
United States were privately sold to
a syndicate OF bankers at 1041k. They
were worth in the open market about
100. Shortly afterwards the syndicate
bankers divided these bonds among
themselves at the nominal price of
1121a. The moment the securities were
placed upon the market the price rose
to 1161h@11S. A little later it was 120.
On December q they were worth 49,
After the lingo message was sent to
Congress they declined to 116 and 1161a.
Now that the war craze is over they
have recovered to Us.
"At the same time British consols.
bearing ~ per cent interest, are worth
1o7 and French rentes a little above
par Is there any reason why a new
bond issue should be sold for less than
the market price of the last issue of
per cents? Is the nation to be again
discredited?"
Pertinent questions these, and we
hope the administration will give the
right answer to them. We prefer no
bond sale at all, but if the sale must
come. let it be public and the pur-
chasers Americans.