The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-04-22

Notwithstanding the magnitude OF the task
imposed upon him, the general agent had no
monopoly in the disposal of the loan. The
treasurer the assistant treasurers, and several
of the designated depositaries were also direct
ed to use their best endeayors to obtain sub
scriptions and were authorized to allow one
eighth, and In some cases one fourth OF one
per cent. to purchasers for resale. ,,+L
Having undertaken the work, Mr.. Cooke
proceeded to organize general system of agen-
cies. For time the result seemed doubtful.
When, however, at the next session OF Con-
gress, the absolute right of conversion swas
limited to the 1st of July. 1868, and the system
of sub-agencies had been thoroughly organized
and extended throughout the country, SUBJ
scriptions gradually increased until, at length,
the unwearied labors of the general agent and
his sub-agents were crowned with complete
success. Not only was the whole loan taken,
but subscriptions were made on the day 1t was
finally closed for nearly eleven millions of dol
lars In excess of the amount authorized, for
which excess the general agent was allowed no
compensation. -
1t is impossible to exhibit in detail the Ser
vices thus rendered. or to estimate their yalue
in money. 1t may be sufficient to state that
the number of sub-agents employed by the
general agent, aud for whom he was response
BILE, was about twenty-five hundred; that the
work of the agency extended into almost every
county and town ofthe loyal States, and among
all classes of the population; that its fruits
were subscriptions for five-twenty bonds
amounting in the aggregate, to the sum of
1851, 1925, $50; and that without these subscrlp-
tons neither the army nor the navy, nor the
general creditors OF the government, could
have been paid
The benefit of the work was not limited by
its direct results. The interest In the loan,
excited by the efforts of the agent and sub
agents. operated powerfully upon subscriptions
with the assistant treasurers and the designat-
ed depositaries. These subscriptions amounted
in the aggregate to $14S 1923, 500, of which
$92 178 800 were subscribed by purchasers for
e.sale and $56, 645 250 for direct investment
The whole compensation to the general
agent and sub-agents for services and for all
expenses incurred in obtaining and paying
over subscriptions amounting as already sat
ed. to 1851 952.95O was 81, $50, OI3 II, of
which $i35 700.31, was paid TO the general
agent as compensation for responsibility, for
services, and for expenses chargeable upon the
One-eighth allowed to him.
To the cost of the agencies. in order tC as
certain the total expenses of the loan must be
added the commissions allowed TO purchasers
for re sale by the assistant treasurers and other
officers OF the governments these commissions
amounted to 1922, 1909. making the entire
cost of the whole loan IL, AZ. POS 81. This
cost is little less than three-tenths of one per
cent. Cor eighteen days INTEREST," on the whole
amount, and, as is believed, is less than the
cost OF any other great loan, either American
or English, heretofore negotiated.
The Secretary has already stated that the
best terms he was encouraged to hope for in
case of resorting to negotiation of fifty millions
with capitalists, in tue ordinary way, were from
ninety-seven to ninety-eight cents for q dollar,
and there was every reason to believe that for
the additional sums required to complete the
loan he would be Obliged to submit to much
more disadvantagcOuS rates. Had he negO-
tiated fifty millions at ninety-seven and half
per cent. the cost of enc tenth of the loan
would have been S1,2500O0, a sum nearly
equal to the whole cost of the whole actual
loan of $51O,776, $50 upon the plan actually
adopted. Had he attempted and succeeded,
in negotiating the whole at the same rate the
cost would have been ST., 500 600.
The foregoing statement, it is hoped, suffi-
GENTLY answers the inquiries, what have been
the services Of the general agent to the Gov
eminent in the sale of United States securities.
and what was the rate and amount of COM
pensation therefor.
The other inquiries of the RESOLUTION may
be briefly answered.
No sums of money have been paid out of
the Treasury for advertising ordered by Jay
Cooke & Co., and none for advertising Or
dered by the general agent, except as above
stated.
1t only remains to add that the Secretary Is
clearly of opinion that the services rendered
by the general agent and the sub agents could
not have been as successfully performed, nor,
indeed, performed at all, 10y the Treasury De-
partment. am. very respectfully,
g. t.g-.1 Your obedient servant,
..t .. 8. P. CHASE,
Secretary of the Treasury.