St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-07
WILL TAKE A SLIgE
A ST. PAUL BANK LIKELY TO IN
VEST IN GOVERNMENT
BONDS.
ISSUE REGARDED FAV0RABLY.
j. j. HILL SAYS THAT THE AMOUNT
WILL BE TAKEN
UP.
HE THINKS IT A GOOD MOVE.
Crawford Livingstone Also Pleased
With the Offer-What the Bank
ers Think About 1t.

The directors of the National Ger
man-American bank held a meeting
yesterday and authorized President j
w. Lusk, in his discretion, to pur-
chase 100000 worth of the proposed
popular bond issue. This is the first
bank in the city to take action in the
matter of investing in the proposed
! government loan, although the mat
ter was considered informally by the
| leading officers of the various local
institutions yesterday.
Bankers are inclined to differ in their
! opinions as to whether the issues will
be popular although there seemed to
be no doubt in the minds of those
seen yesterday but that the issue
would be taken up. Some people think
that a much larger issue than the
$100, $1,000 proposed would be taken
if offered.
A number Of kilograms were received
from New York newspaper asking
how much the ST. Paul institutions
might be expected to subscribe, but
as a general thing, no reply was sent
as the banks were in doubt themselves
yesterday as to what they wanted
The Merchants National bank, for in
stance, would probably subscribe foI
| some portion of the issue were the
! bond issued on q slightly different
! basis. There did not seem to be any
| question but that the government will
have call for the entire amount, al
! though the Western banks may not
subscribe as literally as might be ex-
pected.
The proposed issue seemed to meet
with the approval of business men, a
| number Of whom were asked their
opinion yesterday.
MIR. HILL APPROVES IT.
will the offer of a popular loan be
likely to meet with success? Mr.. Hill
vas asked by reporter for the
| G ! o be.
81 think the loan will be over-sub-
scribed for. The national banks, saw.
1ngs banks, insurance companies and
| people throughout the country who
have little savings, have always beer
| ready to invest in government bonds
| and have kept large sums so invested
! untll the government bonds went tC
| SUCH premium that the rate Of in.
| terest on the market value of the
|
| have been forced to take other securi.
ties The subscription for these bonds
| by the people Of the United States
| without calling in the aid of foreign
investors, will go far towards restor.
ing European confidence in our gov.
| eminent finances -'
HAS the present financial distress
been brought about by Presiden,
| C1eveland's war messenger"
81 do not think II has baya COW,
eral correspondents in Europe, and al
| my information from there has been
| tEat for the past six months there has
been growing distrust in every com
| merclal country outside Of our own, liz
regard to our financial methods. The
| United States treasury is practically
| the largest bank of issue in the world
and is responsible both for the guam.
tity and quality of our money, and is
| also responsible for the redemption OF
| our currency, inasmuch as the secur.
| ity for the national bank currency is
| based upon government bonds which
would have to be sold to redeem the
national bank notes. President Cleve
lands message has simply brought this
| growing distrust sharply to a head
| The present system of running the
United States treasury as a bank en-.
| tirely governed by statutory regula
| lions without any provision for pro.
| tecting itself as other large banks en-.
| JOY, leaves the national treasury help
less in every time of financial disturb
ance. The business interests of the
country have lost certainly over $500
100000 in the past thirty days, an6
this will make itself felt for a Ions
| time to come. If congress will pro
vide sufficient revenue to enable the
| government to meet, in addition to the
| running expenses Of the government
the appropriations made by congress
and will SO provide for the govern
ment requirements that it will not be
necessary to continue the reissue OF
| treasury notes which have been re
| deemed with gold, the present trouble
will soon right itself. The different
European nations have a way of pro
tecting their gold reserve, while the
United States is, under the present
law, utterly helpless in that respect
In other words, if the congress of the
United States will keep it's appropia
items well within it's income, leavins
the national treasury a good round an
nua1 surplus, and not compel the treas
redeemed with gold the business of the
country will soon right itself. The
action Of the president has put con
gress in position before the country
where it is squarely responsible for thu
financial future of the country, ant
unless the Republican majority of boil
house and senate realize this withou
delay, they will have lost all the ad
vantage they have gained PRACTICAL,
in the past two years, and the mex
presidential election will not be al
easy matter for them