The Providence news. (Providence [R.I.]) 1891-1906, 1896-02-07
POPULAR LOAN.
President Cleveland Gives His Views
on the Subject.
UGLY STORIES OF FAvORITISM
In Connection With Opening of
the Bids.

WASHINGTON, Feb. 7.-"Seldom have I
taken so much interest in anything as in
the success OF this bond ISSUE" said
President Cleveland yesterday. Both
Secretary Carlisle and myself have had it
very much at heart"
In response to a reference to the syndi.
cate contract OF last year, the president re-
marked that he had no reason to question
the wisdom of that ngem under
the conditions then existing. THAT con-
tract" he added. "hclped Us out Mt a time
when 4S hours delay might nave pro.
duced serious results.
az sympa6hize, nevertheless, with objec.
tions made TO hat form Of placing IA loan.
The difference between the price obtained
from the syndicate and the price currently
quoted can be twisted into m argument
which will appeal 10 people who do not
stop TO calculate the actual cost 10 the
syndicate of floating the loan at. that time.
my preference would have been to
have had this loan mach more popular
than appears on its face, but we have done
the best we could. The people who hoard
small savings of gold, or the equivalents
Of gold, are unaccustomed TO transacting
business on the basis ON which these
bonds had TO be issued; they are unused
to premiums or 20 the formality OF max
ing bids.
"If we could have sold thcm q 8 per cent
gold bond at par, / think IL would have
brought out a good deal OF this gold, but
the only bonds the law allows us 10 Issue
have to be sold considerably above par In
order to yield "a reasonable rate Of net in
terest.
'As / said, / wish It could have been OBJ
viously still more of a popular loan, but
from such information as cOne To me
from various private sources i am con-
WINGED that more small holdings of gold
will come into the treasury by tho present
arrangement THAI appear on the surface.
The small country banks, for Instance,
which are buying bonds for their custom
ers, have made their bids through their
New York and Boston correspondents
and this gives tho loan. the appearance o.
having been taken up by the big financial
institutions at the money %centers, while
as "a matter Of fact not "a little of it will
ultimately come from the small invest
ors.''
Although the president was too modes
TO publish the part he had taken person
ally in making this loan a success, in jus
tice 20 him il should bc said, since IL car
be done on excellent authority, that since
the bonds were offered for general sub.
scription IA month ago he has been untir-
ing in his efforts To enlist interest in the
undertaking.
He has sat mp late each night writing
photographic letters 60 such of his friends
In different parts of the country as could
be induced to take hUtt and work for the
success of this loan, aud 10 Is beyond ques-
ton that the generous response has beeu
due in no small measure to his individual
work and hat OF Secretary Carlisle along
the same line.
Disappointed bidders Talk.
There is AN ugly feeling among a mum.
Der of the bidders for the 4 per cent bonds,
There are stories of fayoritism atloat which
are so serious as to warrant the most care
full statement.
The midnight circular of Secretary Car.
Isle said that sealed proposals will be re-
ceived ut the Office of the secretary of the
treasury at Washington until ~ o'clock
noon on Wednesday, Feb. ., 1925" When
the gentlemen representing the great
financial interests OF New York and other
cities appeared at the department. TO wit
ness the opening In public ot the bids Tor
bonds IN the manner prescribed by law
and custom they were astoundcd at dis
covering hat the committee appointed for
the purpose had been no work for hours, u
not MI night, putting I'm tabulatcd form
the offers which had been received up To
and including "Wednesday.
Nc public explanation was offered for
this departure from the regular proceed
ings. But the reason given unoficially
was that there had been such an over
whelming number of offers as to make IL
absolutely necessary for an early opening
I'm order TO expedite matters.
When IL is admitted that the bids were
opened before ZIG O'Clock on Wednesday,
when the evidence is presented To tho eyes
OF oil present that the bids which they
had come TO see opened had already been
Transcribed in supposed privacy, there is
revealed u tremendous possibility TO-
scandal. In such circumstances the only
safety OF tho administration lies In the
character of those officials concerned 81
the extraordinary proceeding.
This being said, that which follows and
which Is current gossip becomes Interest
Ing. IL not significant. J. L. Morgan came
to Washington Tuesday night In his pri
waite car, arriving at $3.50 on the limited
train. He had every opportunity, so far
as timc Is concerned, to get all the In.