Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1906-08-01
The country's SPLENDID Credit.

The success Of Secretary Shaw in
selling $4,000, ,OOOin Panama bonds
at nearly 104 indicates excellent
handlingofthe governmental finances
and makes conspicuous throughout
the world the unprecedented credit
of the nation.
In no other country would such a
sale of bonds be possible. The
reduction of interest on British
consols to q per cent, was thought
a clever stroke in Mr.. Goschen's g time,
but the Boer war and other causes
latersent them down into theeighties
The huge debt of France, in some
respects financially the soundest of
European nations, bears interest at
3 and 81 per cent.
1t is not fair to ascribe the high
price of American 2 per cents wholly
to their use as a basis for national
bank circulation. Only about five
ninths of them are actually SO used.
Nearly S4OO,O0O.O00 of bonds of the
United States are still held as invest
ments at prices returning, when their
date of retirment is considered much
less than 9 per cent.
What contest this publicly ad-
vertised sale of bonds, with many
bidders and a return that amazes
the financial world, presents to the
secret sale Of bonds to the Morgan
Belmont syndicate by the Cleveland
administration eleven years ago.!
70 maintain the gold reserve,
weakened by the "endless-chain''
operations of Wa1f street, Secretary
John G. Carlisle on Jan. II, 1894,
asked for bids on $5O,OOO,OOO in
ten-year 5 per cent bonds. There
was no secrecy. A minimum price
of III 22 was fixed, and the bids
actually received ran up to price
yicldingIonly % per cent, to the
investor. A second series was sold
with similar result.
1t was then the arrangement was
made by President Cleveland and
Secretaries Olney and Carlisle with
August Belmont and j. P. Morgan
to sell to a syndicate $62,315, 900 in
4 per cent, thirty-year bonds at 1O4,
40. The interest was twice as great
as that which the new Panama bonds
of 1906 bear, the price obtained was
scarcely greater. Within twenty
two minutes after the bids were
opened these bonds were resold to
the public at a profit to the syndi-
cate of $S,4lS,757.
That first gigantic exploitation of
the nation in February, 1895, was
arranged in secret. A second Sec
ret sale was planned and would have
been arranged but for The Worlds
energetic protest and its pledge,
afterward fulfilled, to buy on its own
account S 100000 3 per cent, bonds
offered to public subscription.
The protest was caught up by
other papers and was by publicity
made irresistible. The voice of the
people was heard in Congress
through their Senators and Repre-
sentatives. The World sent out in
one day, Jun 5, 1896, lO,37O tel
cgrams to banks and investors.
Two days later it published cable
grams from foreign bankers. There
was on all sides the utmost eager
ness to get a portion Of the bonds.
And finally, on Feb. 5. 1896, a pub
licly offered loan of $lOO,OO0,OOO
was over-subscribed more than five
times, and the policy of secrecy and
favoritism was smashed.
Compare the secret sale un-
der Cleveland Of 4 per cent, bonds to
a favored syndicate at 1O4, 40 and the
public sale under Roosevelt of 2 per
cent, bonds at lO4 for measure of
the enormous public value of Pub
licity.
This result is one of many things
that make strong and popular the
clean patriotic and intelligent Gov
ernment of the United States under
Theodore Roosevelt as President.
That Mr. Roosevelt has faults of
and method is undeniable-
his jingoism, his policy of warlike ex-
penditure, his brandishing of the
Big Stick, his substitution of the
Roosevelt doctrine for the Monroe
doctrine in South American affairs;
but the people will forgive all these,
i they do not forget them, in the
light of his great achievements in
great alfairs.-N. Y. World.