New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-07
PUBLIC OPINION PREVAILED.
THE BOND CALL A CONCESSION.
LITTLE BELIEF IN IT'S EFFICACY ON THE
PART OF THE PRESIDENT
,,ore HE INTEND IT AS ANOTHER OBJECT LES
SON?-THE SENATE WILL NOW DROP THE
EIKlNs observation-disclosures OF
MEMBERS OF CONGREss-OTHER
BOND ISSUES OF THIS AID
MlNISTRATION.

IBY TELEGRAPH TO TIE TRiBuNE.l
Washington. jan 6.-Secretary Carlsie 'hiu-
night call for subscriptions t. popular loah vi
500 900 900 to repenish the Treasury oepe'eu
gold reserve is received here as a prudent 'housh
somewhat tardy surrender to the overwhelming
sentiment in and out of Congress. which mas
angrily repudiated the Administrations cosby
and scandal breeding policy OF secret Dohd safes
to favored syndicates. That Mr.. Cleveland wouid
attempt in the face of the hostile DEMONSTRATIONS
in tn. Senate last Friday. to carry out the c'h-
tract which, according to general beIlel' he hau
already made with Mr.. Morgan for renewal Vi
last February's losing bargain seemed scaI'eN
cred,bIe TO observers here who have noted with
what facility the Chief Executive has repudialeo
other partially concluded negotiations and coolly
shouldered the responsibility for such broken
agreements on unprotestng subordnates
There can be little doubt that Secretary Car
Isle. again the Administrations scapegoat' had
practically arranged week or more ago LOT an
other secret sale of bonds. and was prepared
,.h ,ba ai1 Of a second guarantee contract
with the Morgan syndicate, to cut loose from all
financial dependence on Congress for the remain
inc fourteen months of Mr.. Clevelands fresl-
DENTAL term The violent hostility openly dis-
closed in the Senate and undoubtedly snare" oS
the whole country, to this high-handed anu "'"'-
trarv progra NINE had the effect OF SHAKING eve"
NJ c,.veland,s confidence in the proprlety OF his
recent financial operations, and there Is ever!
raason ~ heliev. that under the sting of popular
d;sannroval the tentative bargain with the syn
dictate was hastily called off and the propos"''
for a popular bond subscription were framed anu
hurried into print between sunset yesterday anu
sunrise to-day. 1t is also pretty evident 'ha' 'n
President hopes, through the possible ia'iu'c VA
the proposed popular loan. to vindica'e ul'l-
ma,elv the necessity and soundness Of the secret
contract system
SUCCESS NOT EXPECTED.
Thu exnressions Of the m,n in Congress VINO
are in closest sympathy with the AdminlsUauo"
indicate that they have little or no expectation
that Secretary Carlise's Gull for bids VIII result
In the placing of the sl0OOOOOoo OF new p''"S va
,.r,,e favorable to the Government. II is Re-
gartei as by means improbable by IN" fIe-.-
dents apologists that the Morgan syndicate Wiii
eventually get the bonds through competitive
bidding. as the Stewart syndicate dd little
,,ora than q wear ago. This is clearly what Is
desired by those who uphold the contract policy
They oxnect TO see il proved that the contract
svstem is the best and in fact. the only system
which will meet the present emergency
The conditions have been prepared FOR JHol
.uch a demonstration. The syndicate has had
long notice and is thoroughly informed as 1"
the conditions Of the bid which VIII De most a.
ceptable to the Department. II has been gather
ing gold and will put In bid Tor the Whoi"
amount Of the bonds under the CONDITIONS OF III"
contract which it was expected to execute Inv
other bids will come in various amounts ana d.
various rates Any or all can be re]ec'eh o"i''r
of the friends Of the Administration 20 80 IdI
as 10 predict that there will be no offers whi'h
can be accepted and that the syndicate VIII nave
10 be dealt with afterward. They evidently look
for a vindication in this way OF the course {"
the Administration in arranging last February
cxtravagant contract
ON the other hand those who have been IN
sisting upon a popular loan, both Republicans
and Democrats. predict that the Administration
and the syndicate Will be disappointed IN thls'
and that the Secretary Of the Treasury will find
more gold at his disposal than he has asked
for and at a lower interest. They say that
unless the Secretary has made up his nina that
the syndicate is to have the bonds, whether or
not the popular loan will be successful. Senator
EIkins says that he expects all the bonds to he
! taken up promptly by private individuals. The
leading Republicans Of the House, without dis
cussing the good faith Of the offer generally cx-
press satisfaction that attempt to float the
loan should have been made in this way
EIKINS RESOLUTION TO BE DROPPED.
one effect Of last nights proposal Will be to
end all the manoeuvrng for position which has
been INDUCED In in the Senate for the last ten
days The Elkins resolution. having served To
force the Presidents hand and to drive him to
abandon his secret contract policy, will now be
laid aside indefinitely. The free-coinagc men,
who control the Finance Committee and have
ma jority the floor Of the Senate. will re-
port their bill Tomorrow as a substitute for tn"
House Bond bill. and with the passage of this
piece of wildcat" legislation by the "delibera-
tive branch the financial record Of the session
may be considered az practically made up. Mr..
Cleveland has considerably left loopholc in the
call issued last night for further Congressional
action. But the Administration is well aware
that no bond issue will be authorized by the
Senate under present conditions. and that the
allusion in Mr. Carlise's proposals to the posi-
b!lity of amendatory financial Legislation is only
the hollowest political irony
one contingency is suggested which may result
, in an immediate annument Of the Treasurys
plans to float a popular loan under the terms Of
Mr.. Carsles circular. \ raid opportunely
started on the existing may result. 1t is
limited. in the recall OF all outstanding proposals
and resort a secret sale to Mr. Morgan and
his friends Every one ii is argued who wants
to buy bonds may go TO the reserve at once for
gold or the members Of the syndicate themselves.
wanting to demonstrate the dangers of advcrtis
ing for a popular loan, may make the raid. The
success or failure Of the popular loan Will. 1t Is
believed. depend upon how favorably the bank
ers look upon It, II there should De raid within
a short time, such as to drain all or about all OF
the gold from the Treasury before February ..
when the bids for the bonds are to be opened. the
Treasury would have to resort TO the most effec-
tive and speedy means possible TO repair the
damage This is the danger which the Admins
tration has pointed out an objection to a popu-
lar loan II Is one which might become real II
persons in combination who hold the bulk OF the