New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-07
CLEVELlAND BOND ISSUES.
The First Cost the Government
Nearly S3S, 100000.
rFRoM THE TRIBUNE BUREAU. ]


Washington. May 1.-TWO successive Repub-
lican administrations have succeeded in paying
all but 81, 151 POO OF the first S1O0OO0O0O loan
OF the Cleveland administration and Treasury
officials predict that the entire amount will be
closed up within the next few months.
This particular legacy Of Mr.. Cleveland cost
the government just $50. 7S9,O77. a which
would have come within few millions Of the
amount necessary TO pay for the Panama
Canal property and is a monument to the wis
dom and economy Of Democratic fnancierng.
In calculating the loss TO the government on
this issue of bonds. it affords little consolation
TO those who have the best interests OF the
country at heart to recall the fact that President
Cleveland entered into private arrangement
with the Morgan Belmont syndicate whereby, as
proved by the subsequent experience OF the
same administration. the syndicate obtained at
about 1O4l5 bonds which would readily have
brought lis in the open market. thus affordtng
the purchasers a profit of upward of SS,OOOOOO.
with a corresponding loss to the government
In other words had Mr. Cleveland sold this
issue in the open market, the cost TO the gov
eminent Of the 1898 bond issue would have
been approximately $24 7S9O77 instead Of S32.-
7s9O17.
II is further regarded as something OF coin
cdenca that almost simultaneously with the ball
ancing Of the federal ledger the Cleveland
bond issue or 1880, Inc tribune mas dIliloII4SSO
that August Belmont. together with ex-senator
Hill Senator AIcCarren William F. Sheehan and
Cord Meyer is planning to raise in New-1ork
CITY a campaign fund of s.. 100000 TO be used in
electing Alton B. Parker. the who bears so
conspicuousy the hallmark OF Grover Cleveland
There is no immediate prospect OF the necess-
" for another bond issue. although such neces-
sity might be precipitated by the election Of
Democratic President. but in the opinion OF
prominent Republicans in Washington. Mr.. Bel
mont. at least has sufficient occasion for graft
tude 20 the Cleveland administration TO warrant
unusual efforts on his part to raise campaign
fund commensurate with the undertaking which
cOnfrOnts those who hope to secure the Presi-
dency for the Cleveland-Hill candidate.
The bonds issued by Mr.. Cleveland in 1895
We're 70 be retired by purchase or redemption by
February .. 1904. II the entire amount had
manned outstanding until February OF this year.
the interest would have amounted to S0O.OOO.OOO-
The government has however. by purchase
127 in interest. which leaves the amount paid
as interest from the time the bonds were issued
until they were redeemed, $40. $50. S73. Adding
this interest the 800 600 900 face value OF the
bonds, the total cost to the government for the
retirement OF these bonds amounts to S149. 550.-
$40. At the time they sold. however IN
1899. the bonds commanded a premium and
brought S117171 1856.
AS ii cost the government S149 $50 $40 TO re-
tire the bonds for which SIT. III. 796 was orig
inally paid into the Treasury, the experts figure
out a net cost of $50. 7S9 OF on the first bond
Interesting developments are expected when
the cost TO the government OF the remaining
SI6OOOOOO0 of the bond issues OF the Cleveland
administrations shall be computed.