New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-18
THE DAv WASHINGTON

, bonds the opening Of which heran ~ A
o'clock this afternoon. there is already
evidence that the issue of go 600 oo ia
greatly oversubsCribed. and al nrices which
compare most favorably with those at
which former issues with the circulation
privilege have sold. This issue Is attended
with exceptional interest, because II &c tho
first In which the bonds have not carried
the circulation privilege. That is the
privilege conferred on national banks OF
depositing the bonds with the national
Treasury and then issuing banknotes 10
the amount Of ~ per cent of their value
This. Of course. enabled the bank to make
on the investment such rate of interest as
the bonds themselves paid and the current
rate Of interest on the hanknotes for which
the bonds stood as collateral less Of
course. the small tax on such circulation
Secretary MacVeagh has long opposed
granting this privilege in any further bond
issues az violation of economic principles.
Horace White, in his Money and Bank
ing" mas seriously criticised the practice.
which made the amount OF the circulating
medium dependent on the amount Of the
national debt. In that treatise he asserts
that when. in 1890. the 2, 4 and per cest
wears. the loss To the government was
enormous. because, with a surplus of $40
Oco.O that amount might have been ap-
piled TO the extinction Of the debt and the
interest thereon entirely saved. Secretary
MacVeagh has contended all along that the
credit Of the government was so good that
8 per cents could be sold at a premium
without the circulation privilege, although
there nave been many who doubted the
correctness Of his view. The great number
OF bids received. approximately four thou
sand. and the prices offered, seem clearly
10 uphold the position of the Secretary
one bid alone is for $4,000 o0 at 1925, and
bidders offer as high as los.
DEMOCRATS IN A HOLE.-There is
panic among the Democratic leaders ri the
House this evening and distress signals
are flying from the House end OF the Capt.
toll Az no time in the day could a quorum
of the House be marshalled. and II was,
therefore. impossible either 10 provide for
an adjournment over Monday or 10 con-
tinue the legislative day OF Saturday, and
Monday will be one OF the days on which
the discharge calendar is in order. This
means that there is every prospect that the
dreaded Anderson pension bill. which
would increase the pension budget by
$4,000. go, will either come up for considera-
ton, or that to prevent It it will he neces-
sary 70 take such action as will make Obvi-
Gus 10 the old soldiers the opposition OF the
Democratic House The Democrats are
actually hoist by their own petard.' They
have provided the rule by which motion
10 discharge a committee from further con-
sideration Of bill is in order on the first
and third Mondays OF each month. The An
derson bill is the first on the discharge
calendar" and the motion is certain 10 he
made unless an immediate adjournment can
ne forced The Democratic leaders realize
that II would he political suicide 70 add
$4,000 no 70 the pension budget after their
boasts OF economy. and all those members
who have old soldier constituencies believe
il will mean their political suicide if they
do not. Thus far the trouble has been
avoided by adiourning oyer each first and
third Monday, but the absence OF a quorum
made that impossible to-day. kilograms
have been sent 10 all recalcitrant Demo
Gratis and il is expected that a quorum
will be present Monday noon. but in the
mean time the leaders will have TO decide
whether 10 force an immediate adjournment
or 10 instruct "A sufficient number Of their
party to remain away to prevent the pres
ence Of a quorum, and then force adjourn
ment by calling attention % the fact. II
is realized. however. that either course will
be seriously injurious 10 the political
chances Of Democrats with many old SOL
ders in their districts