The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-02-14
1T MAY NOT BE A SUCCESS
Popular Loan Is Not so Desirable When One
View is Taken,


Chicago, Feb. 13.-Walter Wellmar
writes as follows from Washington il
regard to the popular loan:
Is the new loan to be a success after
all? This is a question which mem
bers of the administration are asking
one another somewhat anxiously. That
# was a great success in developing the
presence of large quantities of gold in
the country and confidence on the part
of the people in the stability of the
present monetary standard goes with
out saying. But is its wholesome in
fuenoe to stop there? Is 1t to be q fail
ure SO far as the practical object in
view is concerned? Some of the Off
Gals of the treasury fear such Will
prove to be the case. They point to
the withdrawal Of nearly two and a
half millions of gold from the New York
subtreasury yesterday, and of another
million today for confirmation of their
suspicious. They mention also the re-
marka ole scene which was presented
in the subreasury yesterday, when a
broker drew gold at one window and
paDceled il out among his customers
right in the building. these customers
then presenting the metal at another
window in payment for the government
bonds. If an object lesson We're want
ed of the absurdity of the system which
congress insists shall be maintained
1t is found in this incident
The recent loan. despite its impress
1venesS and popular features, was
unscientific and clumsy. Any one could
bid, whether he had gold or not. II is
pretty certain that millions were bid
by persons who scarcely had a dollar
n h.n1r
i've bids. and they are of course TO he
transferred TO banks or other institu-
tons which have gold or the means Of
getting it. The result is that gold is
practically q premium in New York
and Boston. 1t is a small premium.
but just enough 10 tempt the cupiditv
OF many men who have bids for bonds
III they ind they must pay an eighth
Tor gold al bank brokers', but can
get II without a premium at the sub
treasury, where carriage expenses may
be avoided by simply carrying the stuff
from the pay 10 the receiving window
where are they going 10 get it? HUI
man nature is human nature. and no
one has as vet discovered that il Is any
less human among bankers. brokers
ana BOND spectators than Il IS among
other people.
These bonds have been bought nv al
sorts of people. and without any other
requirements than they deliver gold
according 10 contract. They ara nm
DER no obligations 10 import gold from
abroad or to take il from private wants
Nothlng but sentiment. patriotic mo-
1--WE or pride prevents them drawing
II from the government stock Mem
bers OF the administration had au
hA 10
these bonds would in large part no
drawn from the treasury. bur they has
hoped the first paymentaofn DIN OHM
hoped the first and PERHAPS -ha So
ond payments would he clear gain. Now
il looks as If the the first payment was
10 De paid in unpleasantly large pa--
oy SIMPLY A process Of CARRYING from
window 10 window IN the subtreasury-
from one OF Uuucle Sans pockets IL
me other-the endless chain. indeed
Perhaps we are all too fast IN con-
Guiding that The success of this ruh-
lie loan indicated the government.
would never again replenish lis reserve
by private contract. have talked IN
DAY with prominent officials of the al
ministratiOn who believe thar he mo-,
Cd employed in floating this loan VS.
8 mistake; that il would have. baa, -
ter. 10 sell the bonds brought a svp,7i-
cate that would have made i-salr "a
sponsible for results and which wor,l7
have agreed not 10 draw gold from
the treasury. II is feared the loan VIII
not be success as means Of protect
ing the reserve; that It's speculative
feature Will break down the fine points
of honor which has prevented large
houses working the chain, and that.