Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1871-09-01
The Syndicate.

In the Funding bill, approved July IA,
1870, and in a previous act, passed during
the war, there were three provisions which
the Secretary of the Treasury has deter.
mined to employ In the negotiation of The
five per cent. loan. The substance of his
intention in this respect has already been
embodied in his correspondence with the
national banks. The law allows the ex-
change of the five per cent bonds for six
per cent. bonds, or their sale for not less
than par for gold, the gold 30 procured to
be devoted to the redemption of outstand-
ing bonds. This Is the first provision.
The second is that q ninety-days' notice is
required of the Secretary Of his purpose
to redeem outstanding five-twenty bonds,
during which ninety days interest con-
tinues on bonds so called in. The third
provision authorizes the Secretary of the
Treasury 10 designate national banks, at
which may be deposited all public moneys,
except customs receipts
The five per cent loan was offered by
the Secretary of the Treasury in February
last About seventy millions were sub
scribed in this country. The Secretary
has now made arrangements for the dis
posal of the remainder, about one hundred
and thirty millions. These arrangements
are made with several English and Amer
ican bankers, who associated themselves
in what they call syndicate" This
syndicate agrees to subscribe at once for
ten millions of dollars of five per cent.
bonds and subsequently for at least five
| millions per month on the average. The
money thus subscribed is to be deposited
with the national banks, to be withdrawn
only for the redemption Of the FIVE.
twenties, to the redemption of which
u is by law exclusively devoted.
| While the money remains in their
hands, the banks are required to
keep with the Treasurer United
States bonds to an equal amount. In ad
dition to the advan ages of deposit OF
| public moneys, during the ninety days re.
| quired to elapse before the five-twen les
can be called in, the national banks are
to be allowed, as announced to them in
the Secretary's letter, to suscribe for
amounts not exceeding fifty millions OF
the five per cents. within sixty
| days from the 10Th of August. On
the other hand the intention of the Sec.
retary is to call in twenty millions of the
| five twenties of 1852, over and above the
amount subscribed from all sources to the
| five per cent bonds. 1t is not improba.
bic, should the state of the treasury and
the country generally seem to justify It
that the Secretary may call in still fur,
ther amounts of the five-twenties-per
haps as much as thirty millions-making
| fifty millions in all.
The method which will be employed in
selecting the five-twenties for redemption
with its effect, has already been explained
in our financial columns. 1t is at once i'm
partial, and calculated to stimulate the ex
changes of five-twenties for the new five
per cents.
That the condition of the arrangement
above stated meet with the approval oi
the President and his Cabinet may be &C
cepted as matter of course. 1t may be
added, however, that they are also re
| garded by Senator1 to whom they have
been submitted as eminently advantageous
| - Nosn Y,,rk Ty3nps