The New York herald., 1871-08-19
In. ..syudlc.es,,-wbu, It Is.I


the high-soundng agency which has come to
the relief Of Mr.. Boutwell, in negotiating the
new loan. The gender of the thing seems to
be much In doubt. Some want to know "WhO
ne Is and others again, thinking, like the
Algerine Cad that woman is remotely or
closely connected with everything, ask "Who
she isY' Others modestly ask 'What is 1t p
and not few ''who are they?"
The Syndicate, in brief, is a combination of
bankers exclusively entrusted, in this case,
with the negotiation of the new loan. The
law authorizes an expenditure of one-half cent
upon each dollar subscribed, either by an
actual exchange of gold for the new bonds or
by an exchange for them of the old
six per cent bonds, dollar for dollar.
The one-half cent on each dollar is made up
by the allowance of commission of one
quarter of one per cent and an allowance for
advertising of one-quarter of one per cent.
Mr.. Boutwell, originally made all the banks
and host of designated private bankers the
agents for the receipt Of subscriptions, but
after nearly five months of hard exertion was
successful in placing only $4,000, 900 out Of
the 81, 500, 900, 900 authorized to be borrowed
or refunded. In this situation an offer was
made by a combination, or, rather, two COM
binations-one here and one in Europe-to
subscribe outright for $25, 900, 600 of the loan,
on condition that its further negotiation, with
all profits arising therefrom, should be
theirs exclusively. Mr. Boutwell,, having
given the old plan time enough to prove
its lack of prompt feasibility, has
decided to test the availability of the more
concentrated efforts likely to be made by these
combinations He has therefore turned over
per cent bonds as remained untaken, reserv-
ing a fraction for so many of the national
banks as wish to subscribe upon the
original invitation. The arrangement seems
to have been made with number of firms
having European origin or connection or both.
Such combination is known in Europe as a
Syndicate. And now for the word Syndi-
cate.
Brushing up our etymolOgy we find that the
word is derived from the Greek sun, with, and
dixie, justice. Hence the Greek word
s,asdihOs, a Judge, which the Romans
adopted in the form syndicus. Delving
into our historic lore we find that
with the infusion of the Italian or
Latin element into the population and govern
ment of Northern Europe away back in prime
val times, the chief man of town or village
corresponding to our Mayor (the mayor or
magiSte7) was designated as the Syndicus by
reason of his being the chief magistrate.
German theology and politics took kindly to
the introduction of Latin terms. much more so
than the Anglo Saxon to the Norman French.
The Syndicus in English become syndic, quite
q common title for the president Of council
or corporate body in Europe. In French,
syndic corresponds to our word assignee. In
course of time the Stock Exchanges of Ger
many were formed and the managing commit
tee were designated the Syndicate. The gov
change would be the Syndicate in Berlin.
Later on the brokers and bankers
began to make combinations for the
negotiations of loans for railway and other
projects, to receive subscriptions for the capt.
tai stock of these enterprises and to undertake
the initiation of such matters generally They
assumed the title of Syndicate in these opera
tons. Finally the wordwas applied to COM
bnations generally, and now has meaning
on the Berlin Bourse capable of embracing
even the smaller and less dignifed combina-
tions which in New York would be known as
''pools." In its migration to Western Europe
| it has as yet lost none of its respectability,
and Syndicate in England is very dignifed
| affair. For some reason the American tongue
does not glibly pronounce it as yet. May be,
we like the Anglo-Saxon better than the Eng
lish themselves. The word seems sort of
grand monarchical foreigner who has not as
yet taken out his papers.