New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-10
NO BOND BUYING.

EXCEPT for the recent offer to anticipate IN
tcrest on bonds. no one would suppose Secretary
Gage in the least likely to consider proposal
to purchase bonds He is quoted In Washing
ton dispatches as saying that "he did not con-
"sider any exigency TO exist warranting action
"by the Government" nor was there any basis
"for the report that he was to purchase q large
amount Of bonds Being nan Of ability
and banker of practical experience also, the
Secretary might be expected to meet the report
with precisely such n statement Had he not
held such rational views from the first the re-
suit Of the offer to prepay the interest on bonds
might have convinced him that the sole diff
Guilty in Wall Street Is one which the Treasury
can only prolong and increase by exceptional Of
forts to enlarge the supply of money available
for speculation.
It may as we'll be understood by everybody
who has to do with the money market or the
action of the Government that there has been
and Is no monetary stringency whatever ms ie-
spects legitimate trade or industry. The high
est testimony can he arraycd to prove that
there has been at time this fall any diff
Guilty in obtaining at fair rates Of interest all
the money required for such operations. But
the banks Of this city have devoted "A rather
large share of the funds usually at their com
mand 10 the financing and support Of great in
dustrial corporations. 1t Is the habit to speak
Of these as speculative operations, and In a
sense they are But the mind is only confused
II this particular form Of speculation Is mixed
up with others in which the funds employed
by the banks do not ut this time appear greater
than usual. The organization and financing Of
many great Industrial corporations have created
a new drain on the available funds ut New
York. which has repeatedly exhausted the por-
ton of such funds held applicable TO that use.
1t is we'll known fact that any form
of speculation will 90 on. expand and broaden,
and absorb more and more loanable funds. just
ms long as funds enough are found 10 support
such expansion and a rise In prices. No cor.
receive ever has been found or ever will be- ex-
cept the curtailment or exhaustion of rhe sup
ply of funds If Secretary Gnge were 70 pour
into the security market $100,000,OO0 the sum
would all be absorbed quickly by an advance
in prices of securities outstanding and by
creation OF new securities representing more
industrial combinations. There are at least n
hundred such combinations already proposed
and partly worked up which are held back
merely by 1.-The immediate condition Of the
money market" promoting concerns saw
What IL really meant is that the supply Of funds
directly available for operations Of that kind il
not more than enough TO carry on those in prog
ress without n disastrous relapse In prices.
More money by the CARLOAD or the sEipload
would merely increase the number of such en-
terprises depending upon Wall Street and the
amount OF securities to be carried for n time by
Wall Street
There Is not as Secretary Gage says, ANY
"exgency warranting action by the Govern
"mcnt," and it might be added that any action
by the Government such as is proposed by
promoters and spectators would only do harm
and not good The natural and legitimate re-
strictions which monetary limitations ought al
ways to provide for such operations are neces-
sary TO financial safety. Everybody will admit
that the business of company creation and pro-
noting can he overdone and so far as TO cause
a smash. so that II is to the interest Of all par
ties concerned, whether bankers or promoters
or stockholders, TO have reasonable measure
Of restriction applied at some point. But II