The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1896-01-31
A QUESTION OF PRICE.
Banker Morgan May Get the
Bonds After All.
THE ENTIRE LOAN SUBSCRIBED.
why the President Was Forced TO Oner
the Bonds to Competitive Bidding-Ex.
PLANTATION by Treasury Oncials-Th Hard
Times Cry.


WASHINGTON. Jan 90 - Special. -
Next week the treasury department. will
open bids for the new loan The success
of the loan Is assured. Treasury officials
said today there was no doubt of that.
Though 10 s impossible to tell from the
bids received just how much the offerings
aggregate. it Is known that the bids al
ready in hand and those to be received
during the last few days will take up the
entire amount and much more. Treasury
officials still adhere to the opinion that the
bulk of the loan will be taken right In
New York city, and by the banks and
other financial institutions which were at
one time members of the Morgan syndi.
cate This is true, not because the people
are unwilling TO subscribe to government
loan, but because the difficulties In the
way of private individuals are too great
They do not know how to go at 1t and
have not the gold If they wished to make
subscription. They do not care TO go to
much trouble about the matter.
Banker Morgan's Bid.
There is great probability that most
M
and it would not surprise treasury officials
If they were to find among the packets
when they open them next week bid
from Mr.. Morgan and his friends offering
to take the entire issue on terms better
than those which the government could
secure by dividing the issue among
number of other bidders 1t is all a mat
ter of price and has been wholly a matter
of price from the first. If Mr.. Morgan
and his associates had been willing to
make what the president thought fair
price in the first place, there would have
been no public sale of the bonds. A con-
tract would have been closed with the syn
dictate But Mr. Morgan did not want to
bid more than 106 for bonds which the
president thought were worth at least 10
or 112, and on that point they split The
president was forced to offer the bonds to
competitive bidding. 1t Is now believed
by treasury officials that the entire issue
will be sold at about 112, thus justifying
the president in holding out for better
price 1t is a mystery to some people why
the government cannot place an issue of
bonds at the market price. Bonds identi-
cal with these, issued last year, are today
quoted in New York at about 5, and the
people wonder why Uncle Sam cannot get
the same figure for his new output,
Treasury officials explain that there is a
great difference between selling a few
bonds in open market and putting out
at one swoop 500, 0O0 900 worth. Such a
large issue gluts the market. They say il
the government gets l IL or l12 for the new
ISSUE while other bonds are held at 115, it
will do very well. Gradually the new is
sue will be distributed throughout the
country, and gradually the quotations
will rise, just as in the case of the bonds
which the syndicate bought year ago at
104, and which afterward rose as high as
l23 and would today be quoted at perhaps
1870 were il not for the fact that the gov
eminent has advertised new issue. Sell
ing bonds, like everything else, has to con
form to the laws of supply and demand.
Hopeful Prophets.
In conversation with men who hold
high rank in the business and financial
world | learn there Is a general expectation
among them that after this issue of bonds
is placed and normal financial conditions
are reached the country will enter upon
period of prosperity. They believe the
slump, brought about first, by overpro
duction and aggravated by lack of conf
dence, which brought on period of con
traction and period in which people were
not willing 20 pay their obligations be-
cause other people did not pay them, is
now nearly at an end. The recovery has
been slow, and for that reason the more
healthful. These men say they can see
the signs of returning prosperity, and of
general range of higher values for all com
modities and securities. Doubtless the
people of the country will hope these
prophets are not mistaken in their forecast
Washington hotel keepers are not com,
planning of the hard times just now. The
Capital City is enjoying a very gay and
quite prosperous winter season. There Is
no other city in the country Of like size
with anywhere near so many hotels as
Washington and all of them appear to be
doing good business Ii is remarkable
contrast TO the business of last summer,
when only three or four hotels of the 80 or
90 In this city even paid their expenses
One of the largest hotels here, its propri.
etor tells me. lost money last summer at
the rate of sl0, 900 month. Yet he will
clear $50, 600 or $50, 900 on the years bust
ness, showing that the winter must be
pretty good for the hotel trade.
Another large hotel, in which trades.
man had embarked his whole fortune, kept
open last summer with single guest, and
a very lonely time of it that guest had
sleeping all alone in the great building
and taking his solitary meals In the mag
nificent dining saloon. Now this hotel Is
full of people, and its owners face is
wreathed In smiles. Every year a larger
percentage of the senators and representa-
tives and their families abandon boarding
houses and take TO the hotels. They like
the social life of hotel, the opportunity
To- make acquaintance and keep in the
swim and do not mind the extra cost.
One hotel here has 10 or ~ senators and
perhaps score or more of congressman
among its regular boarders.
Mrs. Cleveland's Fur Cape.
Even great and rich people do find it
necessary TO eoonomize sometimes A
story illustrative of this was told me by
one of the ladies of foreign ministers
family. She was one day at dyer's place,
when who should come I'm but Mrs Cleve.
land The first lady of the land, whose
husband draws the comfortable salary of
$4,000 a year and works hard for it,
wanted fur cape dyed. She was very
particular TO inquire about the price, just
as any other American woman would be-
rha for flxvs n