The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-07-19
A Very popular" Loan.

When congress was asked by the
secretary of the treasury to authorize
a loan of $500 900, 600 with which in part
to ray the war expenses and in part to
cover up the deficits the Dingley tariff
act was steadily increasing, the oppor-
tunity for playing to the galleries was
too good to be lost. President CIeve-
land had made two bond issues to pre-
vent a suspension of specie payments,
one of which had been made. under the
emergency that brought the treasury
within two days of suspension, to
syndicate. Another went to the high
est bidders, bankers, capitalists or
groups of both. There was a tremen-
douS cutlery against this "Subserviency
to the money power" and denial Of ac-
cess to the loan by the public, the
small investors of the nation. So this
loan was to be made popular" one.
The denominations were made as small
as $50, so that everybody might show
his patriotism and secure a solvent 3
per cent security, killing two birds with
one stone.
The experiment has been made, and
we venture the prediction that it will
not be repeated IN this form. 1t has
not been popular" in the sense in
tended. People with $40 to spare have
not all invested, or else those with that
amount are very scarce. The sub
sCribers for bonds for less than $1,000
number, it is said, under 100000. OF
these an unknown number, but sup
posed to be a large one, are dunn
miles," persons making small subscrip-
tlCnS
anxious to get the bonds, but appre-
henslVe that large subscriptions will
be barred because of the rush of small
ones. Meanwhile, there is an anticipa-
tory demand for the bonds when issued,
and parties are Offering a premium of
212 per cent. That advance, possibly
one a trifie larger, could have been had
by the treasury for the entire issue,
mad the bonds been offered on bids re-
gardless of amounts. The treasury
loses several million dollars in the eff
tort to make little cheap, clap-tra D
party capital. The person who can
turn his investment over in less than
thirty days at a profit Of 21a per cent
Will be more apt to do it than to hold
II for twelve months for but per cent
and. in short time, the bonds will be
where they would have gone under the
the customary methods Of issue.
twenty-five million persons of both
sexes, in 1890, We're engaged in gainful
occupations. Two hundred and fff-
ty thousand of them subscribe
to this popular" bond issue. That
should settle its popularity" 1t should
settle forever the politicians clap-trap
and. in connection with the loss in
premiums, it should settle the critics Of
the Cleveland issues. 1t demonstrates.
however, that the people of this coun-
try have no idle money. What surplus
they have can be made to yield greater
returns in other directions. The small
accumuiator will not lend his money
at when he can get or or 6 Der
cent. Sixty cents seems an inadeouate
return fer the use of $40 for a wear to
such. The method adopted initiated
against the purpose. Had the bonds
oeen placed at the postoffices, as was
at frst suggested, it is possible that
the small bonds would have been more
largely taken. The point Of distrihu-
tlon was too far off, The purpose Of
distributing the issue as widely as pos
slble among the people has failed Thu
treasury loses s5,O00,O 900 in premiums
to be charged up to congressional f7ub-
dub.