The New York herald., 1871-08-22
THE NEW LOAN.

The European Syndicate to Open the Smb-
scription Book. Tn-Dny-What tho I.osn In
and What Amount Of Ii Ii To he Disposed
Of
As the books for the subscriptions to the new
United States loan Will be opened to-day In London
by the European Syndicate 1t may be of interest TO
the general public to know just what the loan eay
Is and upon what conditions the Syndicate abroad
and at home were willing to take hold OF it,
The law which authorized the loan was passed on
the I4th of July, 1870, and was somewhat amended
last January. IL reads as follows
AN ACT TO AUTHORIZE THE REFUNDINd OF TIE Ma
TlONAL DEBT
be at enacted 3c mst me ,sse ~ S 'n1 or
sums not exceeding In the aggregate TWO hundred
millions OF dollars, coupon or registered % bonds OF
OF denominations OF nifty dollars or some multi
pie OF that sum, redeemable in coin OF the present
standard value az the pleasure OF the United States
after ten years from date OF their ISSUE and bearing
interest payable semi-annualy IN such coin at the
sums not exceeding in the aggregate three Hundred
millions OF dollars OF like bonds, the same in all
RESPECTS put payable at the pleasure Of the
date Of their issue and bearing interest at
the rate OF four and a half per centum per an
gate one thousand million dollars OF like bonds, the
same IN all respects, but payable at the pleasure OF
their ISSUE and bearing interest at the rate of four
per centum per annum, all oil which said several
classes OF bonds ana interest thereon shall be ex
empt from the payment of all taxes duties OF the
United States well as from taxation In any form
by or under State, municipal or local authority: and
the said bonds shall have set forth and expressed
upon their face the above specified cOndltons and
shall, with their coupons be made payable at the
act or in any other law now in force snail be con-
strued to authorize any increase whatever OF the
bonded debt OF the United States.
SEC 2. That the Secretary OF the Treasury Is
hereby authorized to sell dispose OF any OF the
bonds issued under this act at not less than their
a.lof
to the redemption OF any OF the bonds OF the United
States outstanding and known as fve-twenty
same Tor such % tive-twenty bonds par and par; but
the bonds hereby authorized shall be used for no
other purpose whatsoever; ana sum not exceed.
authorized Is hereby appropriated to pay the ex-
pense of preparing, issuing and disposng OF the
same.
Sec 8. That the payment Of any OF the bonds
hereby authorized alter the expiration OF the said
several terms OF ten fifteen ana thirty years shall
be made in amounts to be determined from time to
time by the Secretary OF the Treasury at his dscre
ton the bonds so to he paid TO be distinguished and
described by the dates and NUMBERS, beginning for
each successive payment with the bonds last dated
and numbered, OF the time or which intended pay
ment or redemption the Secretary OF tile Treasury
shall give public notice. and the interest on the par
Jlcuar bonds selected AT any time to be paid shall
date OF such notice.
SEC 4. That the secretary of the Treasury is here
by authorized with any coin In the Treasury OF the
United States which he may lawfully apply TO such
purposes which may be derived from the sale
OF any OF the bonds the issue OF which Is provided
for in this act to pay at par ana cancel six per
centum bonds Of the United States OF the KIND
known as 1ve-twenty bonds, which have become, or
shall hereafter become redeemable by the terms OF
their issue; but the particular bonds so to be paid
and cancelled shall in all cases be indicated and
specified by GLASS; date and number in the order OF
their number and issue. beginning with the frs,
numbered aud issued. Public notice Is 10 be given
by the Secretary OF the Treasury, and in Three
months after the date OF such public notice the
interest ON the bonds SO selected an1 advertised
-, pi... .a Saa~~.a-- Of the n.~asuIy Is
from the passage OF This act to receive gold COIN OF
the United States deposit for not
less less tnsn thirty days, in sans OF not
urer any assistant treasurer OF the United States
authorized by the Secretary OF the Treasury to
receive the same, who shall issue therefor certa
Gates or deposit, made IN such form as the Secre-
tary OF the Treasury snail prescribe, and sain
tincates OF deposit shall bear at rate not
exceeding two and half per'centum per aunum;
and any amount OF gold coin or bullion de-
time after thirty days from the date OF deposit and
after ten days notice, and on the return OF SAID
certificates, provided the interest on All such de.
posts shall cease and determine At the pleasure OF
the Secretary or the Treasury. and not less than
twenty-five per centum OF the coin deposited for
represented by said certificates OF deposit shall
retained IN the Treasury for the payment OF said
certificates; and the excess beyond twenty-five per
centum may be applied. at the discretion OF the
Secretary OF the Treasury. TO the payment or
demption OF snch outstanding bonds of the United
States heretofore issued aud known as the five.
twenty bonds as he may designate. under the pro-
visions OF the fourth section OF this act, and any
certificates OF deposit Issued as aforesaid may be
received at par, with the interest accrued thereon
IN payment for any bonds authorized TO be issued
SEC g. Tha, the United States ponds purchased
and now held In the Treasury In accordance with
the provisions relating a sinking FUND.- OF section
five Of the act entitled IAN ac to authorize the issue
OF United States notes and for the redemption or
funding thereon, and for funding the floating debt
OF the United States, approved February -. 1902;
and all other United states bonds which have been
purchased by the Secretary the Treasury with the
surplus funds IN the Treasury, and neld in the
Tran nj lt,tfn hail
DESTROYED; detailed record Of such bonds
cancelled and DESTROYED to be hrst made
Any bonds hereafter applied to The said
sinking fund and all other United States
bonds redeemed or paid hereafter by the United
states shall Also IN like manner, he recorded can
celled and destroyed and the amount Of the bonds
OF each class thai have been cancelled and de-
stroyed shall be de0ucted respectively from the
amount OF each class or the outstanding debt Of the
United states. In addition TO other amounts thai
may be applied to the redemption or the payment OF
The pubic debt, an amount equal TO the interest
all the bonds belonging 10 the aforesaid sinking fund
snail from time TO time direct 10 the payment OF the
pubic DEBT provided for IN section nve of the act
aforesaid. and the amount 80 10 he applied Is hereby
appropriated annually for that purpose out OF the
receipts for duties on imported goods
The law, 1t VIII be seen, authorizes an expend
ture or one-haf cent upon each dollar subscribed
elmer by an actual exchange of gold Tor the new
bonds or by an exchange Tor them OF the old SIX
on each dollar Is made up by the allowance OF
commission OF One-quarter or one per cent and
for advertising OF one.quarter Of per
cent. When the loan was first put upon the market
Mi. Boutwell, made the national banks AMI
a large number OF private bankers the agents
for the receipt ol subscriptions, but. after
nearly five months OF hard eXertion was
successful IN placing only S,0,O00, 900 out OF the
81 10000. 600 authorized 10 he borrowed re-
funded. In this situation an orer made by the
Syndcates-One mere ana one In EurODe--tO SUB
scribe outright Tor sZ5 000 900 Of the loan condi.
ton that It's further negotiation, win all profits
arising tnereiron, should De theirs exclusively. The
total amount OF the national bank subscr prIons
were up TO the time the syndicate plan was brought
into play only seventy millions ana this subscrip-
ton was lor the hve per cents exclusively. II is no
wonder, under the circumstances tnat
SECRETARY boutwell, LOST HEART,
and on the l4th inst. issued hIs circular withdraw
ing tue loan, WIN the exception OF thar portion
offered 70 the national banks or the 10Th inst IL
Will thus be seen that there s,ill remains In the
market $500 600 600 Of the $500 900 600 OF i've per
cents-al the four and hall and four per cents
and $500, ,o00, 900 ol 6ne five per cents lmaKinQ
81, 300, ,o0o, 600 out OF the 81, 800 00oO 900 that
were 10 be refunded) having been Withdrawn
The $lSo, 900 which have not been withdrawn
are now 10 be negotiated bv the Syndcates How
the European syndicate ana The American Syndi
cate were called into life bas already fully ex-