New-York tribune., 1873-01-17
THE SYNDICATE QUESTION.


WASHINGTON, Jan. 1e-The following is the
statement Mr.. Morton member OF the firm of
Norton Bliss Co. bankers. Of New-TOrk before the
Ways and Committee OF House, sn regard 10
MI BOatwelrs loan;
MI Morton remarked the Secretary of che Treas
airy expressed desire that he (Mr. Mortonl should
say somethAg the Committee in regard TO the loan
BY the Charnan-We presume inst you undenstand
the plan under which the Sl65oo0oOo funded. DO
yea know OF better way of efecting the loan OF 'ne
remainder Of the i've per under existing la"
A. do not knew OF any other Of negotiating Gov
erBment loan except by bankers.
Q. Can you suggest any change in the methodi A. 1
do ast know that can.
q. Do you know OF any alteration in the Jaw tnat
veuld be desirable for the purpose Of eectng the Da
ADoe OF the loan A. I do not
o Do think it advisable all things considered 70
proceed with the extent Of the balance OF the
s5eaeOosooi A. do not know of any better method
thai can be adopted present, unless Congress would
choose to change the rate of commission.
BY Mr.. KeDey-Y0u mean by changing IL. increasing
AZ A. Yes; the last negotiation the interest ac-
eruiue on the Sper cent bonds maturity of the
call OF the 2O the benefit of the Syndicate OF
the parties negotiating the bonds interest commits
By the Chairman-Instead OF that what would you
suggesti A. 1 do not think 1 would suggest anything
instead OF It
BY Mr.. Burehard-How the negotiation be made
reef1 A. / 90 not know how IL can be.
O. Suppose the direct commission increased li per
cent, being equal 10 cent commission and u per
cent for three months interest per cent bonds
A. That would reduce the of the negotiation TO
the Government.
U But could not the same machinery be used at
present with the payment Of this additional commssioni
A. Precisely; some gentlemen argued that the Gov
should walt for buyers 10 come to the Treasury
Department forl the conversion Of their bonds in
opinion the Government would have 20 wait for long
before would make any conversion OF per cent
bonds into per cent bonds.
By Mr.. Maynard-The money markets OF the world do
not justify such expectation A 1t is not the Gus
tom; 10 would be ike a Lowell manufacturer waiting
for consumersto 70 him. machinery must be used
intbe negotiation national securities well Of
other business.
this proposition t0place the remainder Of the
loan by syndicate made, what was the general
feeling on the part the banking community TO the
feasibility ultimate of the undertaking
A. II was supposed to be very doubtful.
BY the Charman-Were YOU member of that syndi-
eatef A. was not
q. Do you propose 70 be member OF the new Syndi-
catei A. / dare say
BY Mr Maynard-If you had thought that the last
Syndicate scheme that promised success and II
yon had been offered 20 have been admitted into it.
would Won have accepted the oferl A. The offer
made 20 u.s. but we declined it for certain We
had very much doubt 70 the negotiation
In the hands OF q house Europe. and there has
been that loan made up to the present
moment when the parties bought the bonds could
get their money back
By MI Kerr-Q. You propose now to become party
20 the next syndicatel A. We do.
Q state on what general principles outside Of this
mere machinery that YOU have talking about, you
think advantageous TO the country 10 put its loans
agency A 40 think there is any other way for
government 70 make snceess9u NEGOTIATION unless
ugh uriCe f0r var
selling Europe at 40 50 cents on the dol
the French Government during the Empire made pop.
ular loan. Bnt with very rare exceptions all national
loans made through bankers IN London or bankers
who have connections with the principal money ceptes
raised money under ITS last loan witnout ths ana OF
powerful houses like the Bar1ngs, ROt1schilds, and
Sheh sss aHS NJ p NOT With
take MS pIcseu, .o. ~ a ~ =. ., - ndor r,e, tbe
fOr the existing bonds is only 90 They must be
manipulated.
O THAT is part the tradei A That is part OF the
Nv Mr. Beck-state whether or not in the present
dition OF the money market men have & 1881 money on
have said that there has been NO ne 9es the hegota
made up 70 the present when the parties VINO
purchased the bonds could have resod Them without
loss: think that the OF new negotiation would
depend altogether upon the character Of the parties who
o What interest would parties have in undertaking
this new negoation y they lost money On "ast dhey
ernment in Instantaneous position in regard 10
stogetner upon who IL; money thar the
Government seeks to reach Is cheap money, trust funds
Mr. Keey-I understand IT, IL Is ike the advice given
by shakespeare In the play OF As You Like Il: nave
often, when lost an arrow iegalnedH II % shooting an
Nj Burchard-But these are different parties.
MI Kelley know they are, but the principle seems
Bv M. Maynari-You are the head Of the house Of
Morton, Bliss a co, presumel A Yes.
q 4 would like OeknOw whether these new i've per
cents ere coming back 70 New-fork IN Lae Ordinary
Of financial operauOnsi A. Al certaln peTlOoS
during the last they have come back but not TO Ia
large
O. Have they come back to the extent that they have
really needed FOR the establishment OF new National
banksf a. II s difficult 10 answer hat question: they
come back in scattered parcels, any
extent; fact. there has been no acuFe denano Ior
poses are NOT satisfied 70 paw 10 10 per
bends; to my mind success OF the negotiation de-
rsn be made. combination with three four Of the
most influential houses in Europe would make almost
prestige that people take anything they offer, they
feel they certainly sell at profit that which with
other houses would attract very little attention.
By Mr. Burchard-Q Do yoa think that tue negotia-
tons can be made successful under ne present Jaw:
interest on the per cents mounting 70 q per cent
more, a. II there direct commission OF
"A percent allowed A. do not know that anything
would be gained by making 10 dIeet commission III
Q You think that the old arrangement would be as
satisfactory 70 the community az II drec! commission
Of Il per allogedt A. think so the only
oiciion to IL s that IL Is necessary work through the
National Banks while ia te other way Al could De done
directly With tht Treasury Department.
q DO you ihnk that the negotiation can be made on
the plan Of allowing u per cent 70 the public generally
great many people % divide with and government
can negotiate loan on 80 small commission as that
OF "a Ier public would not effect the negota
o y the loan or the conversion OF per cents INTO 5si
A. DO not think Il would DO not think yOn can place
per cents IN this country except as basis for banking
that t gave TINS u cent Indirect commission t. those
who vent into u A. Yes
Y And did not offer IL TO the public generally A.
Q And YOU think that through that means the loan