Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-02-07
The Bonds.


of very severe criticism decided to call for
popular subscription for 500, 900, 900
3o-year, four Fer cent bonds it was
apparent that it did so with misgivings,
Friends of the administration wanted 1t
understood that those misgivings arose
from fear that the loan could not be
placed under such conditions. But 1t was
also very apparent that should this popu-
lar subscription be a success 1t would
ment of the President in making his
secret decker with the bond syndicate one
year ago.
If all the misgivings were Of the former
nature they have happily been dispelled
for tho government has opportunity to
place nearly six times the amount called
for If the misgivings were of the latter
sort they must weigh heavily, for it is
demonstrated that the government could
place 5000, 600 coo in bonds to far better
advantage than was obtained from the
Morgan syndicate
1t must be apparent to all that the con
ditions are more adverse to the success OF
Il popular loan than they were last Feb
ruary when President Cleveland and
Secretary Carlisle, in close communion
with j. Pierpont Morgan, secretly sold to
a bond syndicate the same kind Of bonds
for l.Os =, ..bonds at that time worth in
the open market about 1.l9. The Vcne-
zuelan scare had not then been heard of,
foreign investors had not shown any
Weakening confidence in American invest
ments; there were good prospects that
Congress might be able to provide some
way to increase the revenue and put the
government on a debt paying basis. And
yet what now are the results of the
awkward and inadequate call for a popu
lar loan, a call issued under adverse cir
cumstances?
We now know that there is ample gold
in the country; that American credit
was itNtt tAab ciN buhtiS'A
lion dollar ccin" bonds can be sold at an
average rate of l.l0l4, of the very same
kind as were sold to the syndicate for
/ GA 4 that similar issue could be sold
for three per cent at a'premium.
OF course it will be argued, for I'M
doubtedly the administration will en-
deavor in some way to escape the indigna-
ton which its disgraceful policy, now
exposed, deserved, that the syndicate
fact it injured the financial credit of our
government abroad far more than it pro
tected our treasury at home. This protec-
ton was of an unknown quantity. We
now know that the reserve is no lower than
it was then and we also know that virtu-
| ally all the gold for the syndicate bonds
finally came out of the treasury vaults
We also know that unless the government
is obliged to pay out its greenbacks for
safe as under the syndicate.
IT is worth every dollar of this bond
| loan to demonstrate to the world that our
credit did not deserve the slur which an
| incom petent administration cast upon it
by cringing to a foreign bond syndicate
that our people have gold; that they have
no doubt COIN bonds will be paid in as
good money as they sold for; that the free
silver lunacy is powerless to injure their
confidence in the financial stability of our
government. Moreover the country is
assured that another loan il needed can
be placed to even greater advantage than
| this.
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