The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-04

4 NOl n fOf'lLAh lOANs
| The proposition OF the New York
| World to take 81. 00O. 900 OF government
3-per-cent. bonds. paying therefor in
| gold. is unprecedented itself and en-
phasizes a situation which is without
| parallel Never before in the history
of the world has such an offer been made
| 10 any government by any other than
a financial Institution, and never before
has any government challenged such an
offer by its stubborn adherence 20 an
unwise and unpatriotic financial policy.
Governments have sometimes made
forced loans and have sometimes ap-
pealed TO the people for aid. but never
| before has any government been APP
pealed to by its citizens TO give them an
| opportunity to subscribe for bonds which
it persisted in negotiating at disadvan-
| tageous rates through bankers syndi-
| Gates.
| On two occasions during the civil war
| the Secretary of the Treasury appealed
to the people for financial aid, and both
| times with conspicuous success. The
| first s100,000,000 borrowed by him from
the banks was stipulated to be repaid
with funds received from the sale Of the
seven-thirty notes through the agencies
for the national loan. In order to ne
gotiate the seven-thirty bonds Mr.. Chase
| appointed 14S agents, exclusive Of the
treasury agencies proper, among them
Jay Cooke, OF Philadelphia. The Secre-
| tary allowed these agents one-fifth of /
"A
dollars of subscriptions obtained by
them respectively, and one-eighth Of ]
per cent. upon all sums in excess; and
in addition to these commissions they
were allowed stipulated amounts, vary
ing according to locality, for advertis-
ing purposes, but in no single instance
exceeding $50. The several agents re-
turned subscriptions amounting in the
aggregate to $780, of which Jay
Cooke had obtained $5,224.050. He was
paid the fixed percentage. amounting to
| s6, 6S0.06, and, though he exhibited vouch-
ers showing disbursements for advertis-
ing to the amount of s3,041.44, he was
paid only $3.50 on that account. 1t was
the energy. success and square dealing
of Mr.. Cooke in this transaction that
caused him to be employed as general
agent Of the government in placing
later loan.
In October, 1852, Secretary Chase en-
ployed Jay Cooke as general agent to
negotiate the five-twenty bonds, with
authority to appoint subagents through
out the country. He was paid a commits
sion of one-half of 1 per cent. on the
first ten millions and three-eighths of l
per cent. on subscriptions beyond that
amount. OF these three-eighths the gen.
eral agent bound himself to pay one
eighth to subagents, another eighth to
travelling agents. and for advertising and
the other expenses necessary to make
the loan as widely and favorably known
as possible. One-eighth was to be re-
tanned as compensation for his own Ia
Dor and risk and for expenses charge
able to his own proportion of the loan.
His responsibility covered all the acts
of bis subagents until payment into the
treasury of all moneys subscribed and
delivery to subscribers of all bonds SUBJ
scribed for. No liability and no duty,
except that of furnishing the bonds, was
assumed by the government; while to
insure the faithful performance of the
duty of the general agent and the full
satisfaction of all demands upon him.
self and his subagents, bonds were re-
quired and given to the aggregate sum
of 100000. In addition to this agency
assistant treasurers and the several
designated repositories were directed to
use their best endeavors to obtain sub
scriptions, and were authorized to al
low one-eighth and in some instances
one-fourth of 1 per cent. to purchasers
for resale. The loan was widely adver-
tised, editors and correspondents of
newspapers being paid literally for work
in this direction. The loan became very
popular and was taken by all classes
throughout the country. BY the 1st Of
July. 1868, bonds to the amount of $685.
$50, 220 were taken; three months after
ward the amount had swelled to s27S,-
511, 800, and by the 21st of January fol- |
lowing the whole loan had been SUBJ
scribed for, and the rush was so great
at the end that an excess of nearly SILL
OO0,O 900 was subscribed and the money
therefor paid before notice could be
given to subagents that the whole
amount authorized had been taken.
If Messrs. Cleveland and Carlisle have
forgotten these facts they should read
the history of the war period anew and
learn that the patriotism Of the Ameri-
can people is never appealed to in vain.
For many reasons it would be good
thing to call out the boarded wealth |
and bring into activity the latent pa
triotism of the country. Mr.. Cleveland |
should stop dealing with bank syndi-
Gates and appeal to the people.