Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1896-02-15

Secretary of the Treasury, is estimat-
ed to be greater than this vast sum.
OF the $40 loan of 1862 FIVE hundred
and fourteen millions was placed with
the people, and the great 7-3o loan of
1896, amounting to ss1o, oo2. 500.
was popular loan. As | understand.
the cost to the Government in the way
of commissions of floating these two
great loans with the people, amount
ing to more than one thousand three
hundred millions. was about one-half
of the estimated profits made by the
syndicate on the purchase of sixty
two millions they brought in Feb
ruary under private contract.
These loans were first advertised
They were foated on the basis of a
commission, and not by selling out
right to syndicate under private con-
tract If the Government. when it
was in peril. could make popular
loans on the basis of Il per cent COM
mission why can we not do the same
now in time of profound peace?
The commissions paid for floating
the great war loans were in most cases
about n per cent, and in those times
remember very we'll that this was
considered fair commission insist
now that 81 900, 600 would have been
ample commission for selling the S62,-
600, 900 of bonds of the Government
that were sold at the last sale.
Now, Mr.. President. am not here
to say how much the syndicate made
under the private contract entered into
last February. The trouble is we do
not know the facts, and that is one OF
the objections to such contract.
The people should know all the facts.
We only have the rumors and what
is said in the newspapers. We have
estimates. We can figure ifsthe syn
dictate got these bonds at Io4 "a and
sold them at NIT is simply mat
ter of arithmetic to determine what
the profit was. only give the re-
suit of figuring on the subject Ac-
cording to the estimates. it took more
money to float the last loan of 500,
600, 900 of bonds than it took to float
all of the great war loans combined.
Are Senators prepared to sit here
and not protest? We are part of this
Government as we'll as the President,
and if we do not protest, if we do not
indicate that we have some ideas as to
the method of selling our bonds. he
can readily turn to the country and
say: Congress was in session, and
nothing was said objection was
made. -
LAST BOND SALE UNDER PRIVATE CON-
TRACT NOT FAVORABLE TO THE
GOVERNMENT.
But, Mr. President, we are not with
out experience altogether in this mat
ter. We have had under various Sec
retaries of the Treasury sales of bonds
from time to time; and l think l can
assert, without fear of contradiction,
that generally they have been made
to the people after due advertisement
and notice. l remember when the
distinguished Senator from Ohio Mr..
Sherman was Secretary of the Treas
ury and had occasion to float some
loans that he insisted and contended
that for thirty days the people should
have the right to subscribe before a
syndicate could take the bonds even
on commission.
If the Secretary of the Treasury and
the President of the United States are
to be believed as to the condition of
the Treasury, the Government is not
in position to lose S., 900, 600 or SIo,-
900. 900 by selling bonds under private
contract to a syndicate. The Gov
eminent needs this money if it is in
state of bankruptcy, as charged. No
transaction in the history of the Gov
eminent invited such adverse criti-
cisms and comments all over the
country as the bond transaction in
February, 1895. Americans were hu
inflated to see a syndicate virtually
take possession of and enter into a
contract to manage the finances of the
Government for six months. The
best opinion of people on this subject
was that this Government should have
made the profit that the syndicate
made; and hold now that the people
would have bought bonds from the
Government just as readily as they did
from the syndicate, only the oppor-
tunity was not offered them.
am told do not know how true
it is-that this contemplated loan of
500, 900. 900 has been already oversub-
scribed in New York. and the syndi-
cate is even now counting on 10 per cent
profit that it will make of the Govern
ment. Are we as American Senators
to sit here silently and not protest
against transaction of this kind?
It is said in the New York Tribune
of January 1, which I will read from.
that one banker coming from New
York to Washington and returning
with the privilege to float this loan
charged $1,000. 900 for getting the
contract, besides the profit that he and
his colleagues in the syndicate will
make, which will be about $40, 900,
900. These vast sums are beyond the
comprehension of the people of the
United States. Where are we drift
ing if few men. under a private con-
tract with the President, can make
millions and tens of millions in a few
days3 And it is easy to be made if
the great Government of the United
States, the richest in the world,