New-York tribune., 1906-07-25
THE PANAMA BOND ISSUE.

Secretary Shaw fully deserves the cOngratu-
lations he is receiving on the success of the
Panama bond issue. In the face Of DeSsimistic
prophecies and not little beariSh strategy in
tended TO depress the selling value Of the new
per cents the Treasury has disposed of the
first $3O,OOO,OOO allotment at record breaking
figures. The issue was fourteen times over
subscribed, and the average price obtained
1O3.95-netted the largest premium ever real
lied on government , per cents and the largest
premium, relatively, ever realized on govern
ment bonds Of any sort 1t is no wonder that
even the disappointed bidders are felicitating
Secretary Shaw and that President Roosevelt
has publicly congratulated him the outcome
Of his latest venture in the security market.
1t was argued when the sale was advertised
that the banks could not afford to make liberal
offers for new low rate, long time bonds be-
cause their funds were needed for active use
i'll daily business. The abnormal rates for call
loans which have prevailed at times in the last
six or eight months were cited as evidence that
the market could not we'll spare the $3O,OOO,OOO
asked for by the government. Secretary Shaw
met the argument by announcing that he would
redepOsit with subscribing banks 1914 per cent
of the par value Of the bonds taken by them,
and this notice seems to have queted all conf
plaint At any rate, both banks and individuals
have cO-Operated with the Treasury to make the
new loan glittering success. Such q demon
stratiOn of the sOldity of the federal govern
ments credit is at once a tribute to sound adj
ministratiOn and a symptom of national pros
perty and confidence. Only eleven years ago.
under the second Cleveland administration, the
government was driven-Or thought it was
driven-tO throw itself on the mercy of a synd-
cate Of bankers in order to float it's bonds. Sec
retary Carlisle, taking alarm at the persistent
depletion of the gold fund through "endIess
chain demands for the redemption of green
bacls-a process made possible by chronic short
ages in the revenues-dispOsed of an issue of
thirty year per cent bonds to Wall Street
bankers for 10449. The transaction was pri-
vate, the Treasury authorities having persuaded
themselves that an advantageous public sale of
securities was out Of the question. In this they
grossly erred, as was proved in 1896; and this
private sale of 4 per cent bonds at 10449 did
more than any other one thing to discredit the
practical capacity and sound political Judgment
of the second Cleveland administration.
It is hardly just, perhaps, to contrast that un-
fortunate venture with the sale just concluded,
for conditions were vastly different in 1885 and
President Cleveland had some cause for fearing
a serious Treasury crisis. Yet the positive ad.
vance made in administrative methods and in
the sense of public security is obvious and this
advance is cheerfuliy testified to by our neigh
bor THE World when it says that the Treas
ury's striking success in dispOsing OF the new
bonds sis one OF many things that make strong
land popular the clean, patriotic and Intelligent
government OF the United States under TheO-
''dOre Roosevelt as President" This tribute
from an opponent is well earned. for our present
public credit is only one of many evidences of
increased popular confidence in the government