New-York tribune., 1896-02-07
WHAT THE LOAN TEACHES.

WHAT 1UL LOiN ILit MS.
The popular loan, into which President Cleye-
land was forced by indignant public criticism
would clearly have failed most lamcniably had
not the terms Of the original offer been modl-
fed. The great number Of comparatively small
bids above 10 by individuals and banking con
Germs throughout the country were nearly all
secured beyond doubt by the supplementary CIR
cu,ar of Secretary Carlisle modifying the original
terms proposed. nor would it have been possible
to provide for the payment through such chah-
ncls without some financial disturbance unless
the terms haG been modified. The earnestly re-
iteratcd advice Of The Tribune. which was, III
fact supported by direct appeal to the ADMIN
istration by some influential bankers though ac-
ccpted only in part by Secretary Cariisic' turh'u
into a great success Il proposal which was orisl
naly expected to fail. and doubtless would nave
failed as originally made. 1t would not be 1alr
10 assume that the President intended the oiier
TO fail so that the banking syndicate would YIN
dcate' IN open competition his previous con
tract. but shrewd bankers generally anticipated
no other result and expected the syndicate 10
secure practically the whole OF the bonds at Il
low figure until the proposal was modified after
about half the time had expired.
Thus the President was practically forced into
what will rank as the greatest achievement Of
his Administration. 1t demonstrated the credlt
of the Nation so impressively as to amaze foreign
observers, even at Il time when the messages OF
the President regarding foreign affairs and what
he called the fatal defect Of the currency
tended materially to weaken that credit 1t
told the whole world that the clamor ana fuss
of the silver extremists. which seemed so threat
cning to foreigners. largely because the PreSi-
dent had labored 10 magnify their importance,
were not regarded by sober and experienced III
yestors and bankers in this country as cndanGcr-
Ing the future in the least degree. The fact Is
that the whole amount Of bonds would readily
have been taken by the people on 3 per cent
basis or less If adequate provision had been MADE
for q truly popular loan. As ii was, the change
in the terms proposed probably saved the Gov
ernment from S5O0O,OO0 to SG,O00,00O.
This magnificent success does not alter in the
least the duty Of Congress regarding the revenue.
II provides against a current deficit for a time,
II js true but over S.OO0OOO0 Of the amount re-
ceived ought to be retained to make good the
depletion Of reserve by the past deficit. Accord
| ing 10 Mr. Morgan's statement when dissolving
| his syndicate last month. the Administration
| would have preferred TO borrow S2O0,oOO.Ooo, in
| order to meet probable needs for the two years
| until another Congress could assemble in Deccm-
Der. 1897 1t was the Presidents intention 10
! borrow money enough to enable him to treat with
defiance the public demand for larger revenue
But IT is all the more plain duty of Congress
to see that the deficit is stopped 50 that further
| borrowing shall be without excuse
This urgent duty IS pressed home with great
| emphasis by the uncertain condition OF foreign
relations No one can tell whether British. Span
ish or Turkish questions will suddenly require
heavy expenditures. 1t would only invite for
eign affront and provoke indifference 10 Amorl
| can rights II Congress at such juncture should
persisteny refuse to furnish the Government
means enough for its ordinary expenses. Moth
| ing else could operate more strongly to make
foreign trouble possible than demonstration
| that purposes scarcely short of reasonable, or
| the part Of some Democrats and silver extremist:
in the Senate, had so crippled the Government
| that II could not meet current needs in time O
peace without borrowing. 1t IS high time fol
! Senators to yield something Of their factou'
| spirit in obedience to the public demand, as th'
| President has done In the bond matter. Are
| mon like Senators German and Jones prepare
TO take the responsibility Of refusing an adequate
| revenue TO the Government at such time 81
| thisI