The Providence news. (Providence [R.I.]) 1891-1906, 1898-06-24
BIG CALL FOR
WAR BONDS.
Entire Issue Likely to Be Taken
Up in Small BIocks--Finan-
ciers Greatly Surprised.

New York, so that he knew long before
he asked the public to subscribe to the
issue Of bonds that the whole issue
would be marketed or could be market
cd at par in New York city.
IL Is nov the understanding in inner
financial Circles in New York that the
secretary Of the treasury vas also told
that he could instantly market the
whole amount proposed In the bill as 1t
was first drafted by the house commit
tee, and furthermore that in case 1t was
necessary to call for another loan he
knew exactly where he could go to get
the money on the terms proposed In the
house measure. That pledge still stands.
II the money borrowed on this issue OF
bonds Is speedily exhausted n IL be-
necessary for Mr.. Gage TO issue
another loan of 5000, 600, 900, he knows
that even though the Of the
plain people have been exhausted by
this first issue the second issue. will be
Immediately taken up at par by the
New York financiers.
Furthermore, it is the understanding
in New York that il will DO possible to
borrow as much as 81, 600, 600, 900 with
out appealing to Europe to take any
part Of the loan. Undoubtedly Europe
would get some part Of 1t, but il she
did it at first hand it would be done
under cover, and if she got it at second
hand she would have to pay a premium
for the bonds. In other words, she will
be obliged to 60 into the open market
to get them. There probably will be no
need, however, of another issue unless
the war be carried far into next year.
The $500, 000. 900 which the secretary
was authorized TO borrow will carry the
government along until the spring OF
1899, unless there should be unexpected
and very great reverses.
In contrast with this condition Is the
situation in Spain. Some faith is placed
in New York financial circles in the re-
ports that Spain is casting about for the
means by which she can, without too
great humiliation or modification to
her pride, begin suggestions which have
peace in view. But it is also the inn
preston here that this impulse Is not
due to the apprehension of military or
naval revcrses, but to the mere ominous
and in one sense dangerous portent Of
acknowledged bankruptcy at home. II
Spain is thinking earnestly Of peace, it
is because the ministry is aware that
the nation is practically bankrupt and
that the Bank Of Spain is in the same
condition. That is a danger more to be
dreaded in Spain than the reports of the
capture of Santiago and the destruction
Of Cervera's fleet or the surrender Of
Manila. Bankrupt, she can appeal with
less confidence to the nations Of Europe
for friendly mediation. If she appeals
after bankruptcy, she does 80 as an 40
knowledged pauper. Besides, the condi-
tion at home which would follow M
fessed bankruptcy would, it is believed.
be more dangerous to the dynasty, cer-
tainly to the government, than n
which the report Of the loss Of the Phil.
ippines, the defeat Of Cervera or the
capture of Havana would
1t is then because the belief is firmly
entertained in New York that Spain Is
now practically bankrupt that the re-
ports that she Is looking for the way to
enter into negotiations with the United
States for peace are believed to have
some foundation. The report comes not
only from interviews with members Of
the Spanish government, but by way Of
private information from financial Gen.
tiers of Europe. Yet coupled with these
reports comes also the astounding sug-
gestion that Spain hopes that the United
States will consider propositions look
ing to peace upon the basis Of the con-
dition which existed before the procla-
nation of the war. and it is said in
New York by those who are well in
formed that it seems TO be impossible to
persuade tho Spanish government of a
truthSwhich all the rest Of Europe
knowH to be q truth, that the United
States would refuse to listen to any sug-
gcstions of that character. Holland In
Philadelphia Prcss.