River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1904-09-15
UNLIKE DEMOCRATS
FINANCIAL TRANSACTIONS OF
REPUBLICANS NEVER SHADY.
Sale of Philippine Bonds to western
Bank, the Highest Bidder = Demo-
cratic Deal with the Belmont
Syndicate Ridd1ed.

The fourth installment of the $4,000
600 of Philippine bonds was taken at
101.41 by the Western National Bank
of Oklahoma City, whose bid for the
bonds was the highest. The fact that q
western bank should outbid leading instr
buttons of Wall street for these bonds
suggests how the West is rapidly gaming
in financial power and Importance. No
western bank would have dared to bid
for such a large issue of bonds without
being perfectly satisfied that 1t could find
broad market for them amongst local
investors. The old financial problem of
the West was to get money from the
East. The present problem OF the West
is to find good channels for the invest
ment Of its own money.
By transaction such as this we find
investors in the Southwest become cred
itors of the Philippine Islands. In other
words, they are loaning some of the
fruits of their own prosperity under Re-
publican rule to help along the prosperity
of our nations wards in the Philippines.
The security which United States gov
eminent over the Philippines gives to
lives and property, trade and industry
uldh6S the cEpulL Oh Tic lSl6lAAbS SOOOS 81
that investors are quite willing to pay a
premium for Philippine bonds. If the
United States government were not SOW
ereign over the Philippines, 1t is ques-
ton whether the islands would be able
to float bonds even at a discount, hence
many needed Improvements Tor the ISL
ands could not be carried out. Were
the Democratic party to be successful
in the election this fall, the owners of
Philippine bonds would doubtless see a
quick slump in their market value.
Notorious Democratic Deal.
1t is the Republican policy in the case
of necessary issues of bonds, like the war
loan Of 1898 and this Philippine bond
issue to sell the bonds by popular sub
scription or by public competitive bid
ding for them. This gives the whole peo-
pie an equal chance, and all sections of
the country an equal chance, to secure
them for investment and to realize what
ever profit their ultimate appreciation
may bring. Under the Democratic plan,
as followed out during the last Cleveland
administration, the government ignored
the small investors, and had no use for
any financial institution west of Wall
street.
For instance, on Feb. IS, 1895, the
Democratic Secretary of the Treasury
signed a contract with a New York syn
dictate for the selling of $62,315,400 four
per cent bonds. These bonds the syndi-
cate sold to the public for $50, 116, PA,
clearing a profit for itself, out Of the
transaction, of nearly $3,000,000. The
price at which thp bonds wore sold tO
the syndicate was equivalent to 10412,
when the existing United States four per
cent bonds, with less than half as long
a time to run, were bringing III on the
market. The syndicate dictated to the
government the terms of the deal. ONE
OF THE MEMBERS OF THAT SYN
DICATE, AUGUST BELMONT, IS
THE PRINCIPAL FINANCIAL AID
WISER AND BACKER OF ALTON B.
PARKER 4 Or PRESIDENT.