The Portland daily press., 1896-01-01
A NEW BOND ISSUE.
Its appearance is Now Practically
Certain.
A POSSIBILITY THAT 1T WIIL, RE
ABSORBED BY RUSSIA.
The Loan Expected to be 100000 COO

The Loan Expected to be 100000 COO
Say-President Doesn't Expect Help to
Come From Congressional is His Way
Washington, December 3l.-President
Cleveland will advertise bond issue as
ne and Secretary Carlisle regard such a
stop as necessary to prevent a financial
panic and the treasury from being placed
on a silver basis. Both of these events
are likely to happen in q very short time,
The administration thinks, if the gold
reserve is not replenished. 1t is not the
continued heavy export of gold that gives
the President alarm; 1t is the boarding
OF it by the American people, who be-
lieve that it will soon go to premium
The President is not holding back the
new bonds issue now ouJ of any mock
courtesy for the Senate, for he knows as
we'll as anybody that there is not the
slightest chance of action in that body
on the House bill. The President more.
over, would not withhold the bond sale
even if the Senate did act, for he regards
the bill passed by the House as utterly
inadequate to meet the situation, and the
publication OF Secretary Carlisles state
Inent, pointing out the shol tcomings of
the House meas ure, had the sanction
and approval of the President The ad-
ministration men in the House asked of
the Republicans, permission to offer an
amendment providing that the bonds pro-
posed to be issued, should be payable in
gold or silver at the option of the holder,
but their request was refused, and the
President says that he has absolutely
nothing to hope for from Congress.
The President and the members of the
Cabinet think that the Republicans made
a great mistake, politically, in not COM
ing out hat-footsd in favor OF the ret ire
ment Of the greenbacks and declaration
that all obligations of the government
should be paid in gold, and that in not
doing SO they have advertised to the
world that this government Is OIL the brink
OF being placed on a silver basis. The
friends of the administration say that
with FREQ silver majorIty Of 10 in the
Senate and the House under the control
of Two Maine Congressman, who do not
tteAiO ~ lOlSo tHO pdi W III w " u6CidFhUlOu
in favor of the gold standard, there is
every reason to fear that before the close
of the present administration the trea-
sury will be operated on silver basis.
Indeed, the President and his advisers
fear that this state of things cannot be
long DELAYED, and it is to prevent it if
possible, that he is now arranging to sell
another issue of bonds. No agreem ent
has yet been entered into with tnan-
ciers, but it is tine intention of Secretary
Carlisle to have the new issue underwrit-
ten before advertisement is made, so that
there will be a sure market for all the
bonds not subsDrib bed by private purchas-
eTS.
When the first bond issue of the Cleve-
land administration was advert sed only
$500, 0G0 were bid for by individuals.
and the assistance of the banks was neces-
sary TO float the loan. The public will
have an opportunity this time to SUBJ
scribe, but it will ne previously ar
anged who shall take the bonds not so
ubseribed. Il is not at all certain that
j. Pierpont Morgan will have an option
on this sale.
When he oame here last week the Presi-
d ut fatly refused to see him when an at
tempt was made by Cabinet officer to
arrange the interview. The President
was annoyed and embarrassed but Mr.
Morg n and his old law partner, Francis
Lynde Stetson, came here unlimited, and
he therefore declined to see them.
1t is understood that the adminisJra-
tion expects the new bonds to be taken
by Russian capital sts-not by the kus-
sian government, but by the Imperial
bank of st. Petersburg, or some other
81 ong financial Institution of that city
which has large quantities of gold in It's
vaults. This Russian government has
made no offer to advance gold. In 1893
the Russian minister to this country did
suggest that his government would be
willing to lend the United States $50, eco.
coo without interest, butsthis offer was
declined, as tie Cleveland administration
did not care to be under suck heavy OBJ
legations to foreign power.
The offer has not been repeated, but
IL ST. Petersburg capitalists desire to
purchase 500, 0,000 600 or more of per
cent 3O-year bonds at a premium that will
make the interest to be paid by the
United States equivalent to 8 per cent,
they will be accommodated just as soon
as Pr esident CleYe and and Sacretarv