New-York tribune., 1873-01-20

oOfnmtssiOn4
Mr. Patterson-Tt is apparently. a question OF
cost advanta gcous 10 the Government 10 pay ~
indirectly because In the one case II would be an actual
payment OF money Of the Treasury and in the other
IL would be only the without interest OF the
money OF ae Government, which might aiteTward nor
be sed and therefore, II does not apparently involve
a loss 20 the Government, the payment OF coinmls
sion Of equivalent vaue would but that view does not
present the objections TO IL.
Mr. Burchard-You believe IL desirable to leave un-
limited the length Of time that the money can remain VI
deposthe length OF time for which the agreement eh
Mr.. Patterson-No. Sir. think that it would not be
safe or proper TO do that - ,....,,.,,
% daysI -.
or longer by the purchaser that gave him advantage
and II il was nothing more,dt was loan OF money ~
the Government that time without interest the GOV
enment at the same time paying interest thereon.
THE MORE BONDS KEPT IN THE COUNTRY THE BETTER
Mr. Burchard-In that operation was capital Brought
10 this country in exchange for bonds was there an
exchange OF bonds abroad per cents for per cents
Mr. Patterson-I have no knowledge of that further
than what any other citizen could obtain was not IN
Mr. Burchard-Is your hypothesis Of the future based
the idea that there WI be orngng m OF eaptl 10 ee
MI Patterson-I suppose that substantially it will be-
or could be- made largely simple exchange OF bonds
IL would naturally take that course, and think hat all
connected with il would endeayor produce that result
Mr Bnrchard-Are there not as many per cent bonds
held abroad proposed to be negotiated by this Syn
Mr. Patterson-I think that there are
Mr.. Burchard-Would II not be an advantage TO our
people induce exchange OF These per cents into
Mr. Patterson-Yes provided cannot exchange
them on any better terms to the Government now or
Mr. Burchard-Your proposition is to have these bonds
Mr PattersenNot TO limit them to this country but
the more that kept here the better. would make
bonds at lower rate OF interest," certainly less 5nan
to present illustration OF the advantage Oh long
time bonds in commanding higher prices The currency
udc NJ fhaG GOX "A
pal and interest. ASIDE 10 Mr.. BoutwelIs it not sol
Mr. Patterson-they are now selling at ll3, at which
rate the holder about per cent In currency
ITo Mr. DuncaDl-Am correct in my calcuationi
Mr. Duncan-A little more than per cent; 5 and a
Mr. Patterson-Not 80 much as 81 currency. The
PLANTATION OF 1t is probably that those bonds have 70
The Chairman-Please to state that again.
Mr. Patterson-The United STATES per cent cur
reney bonds having Is years run, selling at
IS, pce which does not pay the holder quite 50 per
cent interest in currency.
Mr. Beck-Are many of them offered for sale
Mr. Patterson-They are being bought and sold every
Mr. BoutweI-The length OF time that these bonds
have 70 run mas certainly SOM eaec upon the ptee p
there is general expectation that before these bonds
mature currency will be as good as gold
Mr. PattersOn-I do not think that enters largely into
it. The advantage OF long time having place for IN,
vestments OF trust funds for estates. is very great
think it shows that we selling bonds at lower
prices account OF the form in which they issued,
with options at short time.
MI Kerr-Carying your mind back to the suggestion
about free banking, would like to know whether, In
your Judgment, that system Of free banking should
divorce present connection between the banks and
business OF credit currency-making, whether the
banks should be allowed 10 have currency issued on
the deposit of bonds
Mr. Patterson They should he allowed 20 have a
currency by deposit of United States bonds without
that privilege Of circulation there would be induce
ment 10 organize banks under the National law. but
when organized they would be under the State laws.
There state banks now IN existence III many OF the
States.
Mr. Duncan-Free banking as I understand II, is the
adoption OF the stem formerly pursued the state OF
NeWYOrk, which allowed any bank obtain circulation
any extent for which 1t chose TO deposit acceptable
security with the Government and to conduct the rest
OF its business at its peril
Mr. PattersOn-I only suggesting that 10 would eX
tend the market Or United States bonds or course,
free banking system would require certain restrictions
10 make L. useful and safe 10 the people think that
very low rate of interest bonds would have restrain
and conservative influence, and banks would not be
organized any extent beyond the necessities
convenience OF the public. strict system OF redemp-
tiOn IN the Eastern cities would be absolutely essential,
in view of return 10 specie standard, which should
be kept in view as commercial ana financial neces
sity.
A DECISION BY THE SECRETARY RESERVED.
WASHINGTON, Jan. 19.-The propositions made
Secretary Boutwell, yesterday from two distinct
syndicatesone by L. p. Morton. representing Morton,
Bliss Co. and Drexel, Morgan Co. Of New-YOrk, Bar
ing Brothers Co, j. S. Morgan Co. and Morton Rose
d Co. Of London for either SlOOOOOOO all Of the re-
manning S3OOOOOO00 Of five per cent bonds The other
proposition by Jay Cooke * Coz who reported TO
he associated with the ROthschlds, for sl0OO0O The
Secretary reserved definite decision until alter meet
ing Of the Ways and Means Committee called for Tues
day next, when the subject VIII up Tor final action