New-York daily tribune., 1864-04-09
Chase and the Firm Of Jay COOKE
g. 90. -.
TREASURY DEPA

resolution; o,,be T,ea,urv be requested
o., ,er,r, 10 is Ijogse win been the services oi Jay
~ w. "a ~ II, bsy. en- the and whole amount Of
compensation therefor aso "elci - ~ re,sTv De
1870 ~ o,.u s M ~ y5af Gums Of money, if any have been
si oGt Of the Treasury advertisements ordered oy jay
so, oV proceeding 10 answer these inquiries, it is
,roner O soy that Jay Cooke & Co. have never nech
employed render any services 10 tAe dnd 49,
bat tas Air. jay Cooke Of that lrn has been ePoyeu ns
ecent for the sale OF United States bonds and treasury
notes Che resolution Will be answered as II II h"o Dccn
prepared In reference TO him individually
The whole OF the fye hundred millions fiyetWeniy
loan leine now taken and the accounts connected
witt II closed l respectfully submit the following
statement in response 10 the resolution Witlot await
ipr the completion Of the delivery OF the N0ndS SUP.
scribed for in excess which VIII involve no auui'oha'
payment on account Of compensation or expenses.
The first inquiry requires statement OF the services
Of jay Cooke in the sale Of United States securities
and Of the rate and amount Of his compensation there
Mr. Cookies first services were as agent for the sale
Of three years Treasury notes. popp'aEiy known as
Sevcnthirties.
banks of New.YOrk Boston. and Philadelphia in July, |
1861 of 900 for three years 73O Treasury notes
the Secretary stipulated to open subscriptions through
out the country to effect the sale and distribution W
these notes by agents acting under the current super
of the Department the proceeds OF such sale ana
of such distribution be pcid the banks in ren
bursement whole in part of their loan, in order TO
secure the prompt taking of second loan Of equai
amount In fulfment OF this stipulation the seer
".
ment appointed one hundred and forty eight agents
Of whom Mr. Jay Cooke was one, 10 receive sub'clip
tions for the sale Of the 15s su{PeH art oar
printed blank books of subscription. Dank certn
ot deposit, blank forms Tor correspondence WIN o
Department, and envelopes with printed GdIleSses
thereon. In addition to these expenses anu te cN-
enses ~ tbe neccssorly increased force of clerks
poyed he paid these agents 0neih Oh one per cent on
The first $4,000 obtained by them feSpecu.e!' anu
one.eighth on all sums excess and allowed for adyer-
tisng stipulated varying according to iocahty'
but in case exceeding Slou
The several agents thus employed returned subscHp.
tions the aggregate amounting TO e2lboe 800 a. of
which Mr.. Jay Cooke obtained 90 iV'l or more tnan
fifth OF the whole for which he was paid the hxed
percentage amounting to S66eO O6, aud for adyertis
I'M IlJO making his total allowances for the sale oi
MrSooke az the close Of his labors in obtaining sub
scripons the seventhrtics and making his hual
payments TO the Treasury submitted an account, sub
stantiated by vouchers showing disbursements ny hm
for advertising amounting 10 S3O4l "A. not including
sums paid for which he had no specinc vouchers lie
was allowed only $50 or less than onetwent'eth OF LIS
expenditure.
The services of Mr.. Cooke in connection with the
seyenthrty loan, valuable and important but OF
little magnitude compared with those rendered IN the
monty known the "fvetwenties." When this loan
authorized by Congress. many experienced and
sblo financial men expressed tier belief that would
DO impossible negotiate bonds redeemable after so
short period FIVE ears, and bearing an interest OF
only per cent. and for time appearances were de-
cidedly against the success Of the loan.
Under the law every holder Of United States notes
had the right to convert them at Lis pleasure into the
hve.twenty bonds at par. a privilege which can be
used at any time is often not used all and II be-
came clear that voluntary conversions would supply 4
only small proportion of the large sums required for
the disbursements Of the To excite and promote
better disposition the Assistant Treasurer designated
depoStores and special agents were authorized TO re-
ceive deposits of notes and issue certificates cnng
depOstOrs to bonds bearing interest from the date OF
deposit. Still conversions Jagged. and were altogether
inadequate to the demands upon the Treasury
II was indispensable that these demands should be
answered with the least possible delay and the Secre
tary endeayOred TO ascertain the best terms on which
the bonds cond be negotiated by sales Careful inquiry
was made through tie Assistant Treasurer at New
York and other experienced persons and il
tanned that negotiations could not be effected at higher
rates than from to ninetyeigh cents for
dollar which would involve a0ss each hundred mill
IONS L. lu loan Of from two 10 three millions Of dollars
unWlsng to submit TO this loss, the Secretary, IN
October ie62. determined 10 appoint general agent
with authority 70 appoint snb-agens throughout the
whole country, for whom lie should be personally re-
sponsble. and in this way to organize direct appeal to
Che whole people. lie accordingly selected as general
agent Mr.. jay Cooke, who was recommended for
preference by his responsibility by his integrity, aud
By his energetic and successful services in the uegyta
tion Of the first national loan and committed the whole
work TO him
1t was agreed that his commissions for services and
to cover disbursements should be Onehal Of one per
cent the first ten millions, and threeeighths sub
scriptiOns beyond that amount O these threeeghths
Mr. Cooke was bound to pa! one eighth subscription
sub-agents and another eighth 10 travelling agents and
for advertising and other expenses OF making loan
as widely and favorably known as Possible. He was
allowed 10 retain the other eighth as compensation for
his own labor and risk and Tor expenses c rg able 10
his own proportion.
His responsibility covered all acts Of bis sub.agents
untpayment into the Treasury OF all moneys subscribed
and delivery 10 subscribers OF oil bonds subso rihrG
for. No liability snd duty except that Of furuislir
the bonds, was assumed by the Government while 10
insure the faithful performance of the duty VI the
general agent and the full satisfaction Of all demands
upon himself and his subageDts, bonds were required
and given in the aggregate sum of sGOOOO0
Notwithstanding the magnitude Of the task imposed
upon him. the general agent had no monopoly in the
disposal Of the loan; me treasurer the assistant
were also directed ~ use their best endeavos TO Oh
tain subscriptions, and were authorized 10 allow one
eighth and cases. onefourth OF one per cent TO
Purchasers for resale.
Having undertaken the work Mr. Cooke proceeded
20 organize general system of agencies. For time
The result seemed doubtful When. however, at the
next session Of Congress the absolute right Of cOnver
sion was limited TO the s Of july le6 and the system
of subagencies had been thoroughly organized and
tended throughout the country subscriptions gradually
increased until at length the unweared abOrs Of the
general Ggent and his sub.agents crowned with
complete success. Not only the whole loan TAKEN
but subscriptions made the day il was finally
closed for nearly eleven millions OF dollars in excess Of
the amount authorized for which the general
agent allowed no compensation.
IL Is impossible TO exhibit in detail the services thus
rendered or 10 estimate their value in money 1t may
be sufficient state that the humber Of subaeents en-
plOyed by the general agent, and for whom he was
responsible, was about 300; that the work OF the
agency extended into almost every county and town Of
the loyal States and among all classes OF the pOpua.
ton that its fruits subscriptions for fVetwenty
bonds amounting ia the aggregate To the sum OF SOL
e52 9J0 and that without these subscriptions neither
tie army the navy the general cTedOIs of the
Government. could have been paid.
The benefit Of the work not limited by its direct
results. The interest in the loan, excited by the efforts
OF the agent and sub.agents, operated powerfully |
the designated depOsitaries These subscriptions
amounted in the aggregate 70 Si46e23 700, OF which