The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-23
THE FIVE PER CENT LOAN.
Two SyndicatcS Rolled Into Cne Undertake TO
Provide The ssOO,OOO,CCO
Jay Cooke & Co. and Morton, Bliss & Co.
TO Divide the Amount.
The Terms Substantially the Same as Before
Neither Syndicate Thoroughly Satisfied
Operations to Commence in April

Yesterday afternoon Secretary Boutwell, said
that he would probably decide to-day what he
would do concerning the funding OF the balance
OF the five per cent loan. Accordingly Henry
D. Cooke and II. J. Fahnestock, representing Jay
Cooke Co. and Others and l.. p. Morton and J. s.
Morgan, representing syndicate of bankers. met
at the Treasury Department to learn the decision
OF the Secretary. While these gentlemen were
patiently waiting for the verdict CLEAN Of intel
HERALD despatch announcing that General Butler
was ready to hight the Syndicate, and that he
would oppose any attempt to support banking
interests with Uncle Sans credit. When
Secretary Boutwell, informed the repre-
sentatives OF the two Syndicates that he
was not willing to give to either the exclusive
privilege of putting any portion OF the loan on
the market, the quartet of bankers were de-
mOralized. recess was then in order, and
Secretary Boutwell, resumed his daily duty OF
signing warrants and letters The messengers
hurried up the business Of the office, collecting the
mail while the bankers endeavored to collect their
wits At three O'Clock q conference was held by
the representatives Of all the capital OF Europe and
America The Secretary kept on writing; the
bankers went on talking. When the aspirant for
Wilson'S shoes had concluded his Typographical
labor he resumed his seat at the desk, and was
informed by Mr.. Morton and Mr.. Fahnestock
that the two Syndcates were ready to
unite and agree to take the remainder Of the five
per cents, amounting to $3OO,OOO,oO0 Assistant
Secretary Richardson was therefore informed OF
the fact, and General Butler, who had been
patient waiter In the Judges room for some time,
was also let into the secret and departed satisfied
that he had carried his point. The papers were at
once drawn up, and at Eve O'Clock the agreement
was signed. The following was then given to your
correspondents
The parties to. the two proposals which have
been pending before the Secretary of the Treasury
having united. the. Secretary has this even
ing completed contract for the negotiation Of the
remaining $500, 100000 five per cents funded loan
with Messrs Jay Cooke 4 Co.. representing N. NJ
ROthschild Sons, Jay Cooke, McCuoch Co.
and themselves; and with Messrs Morton, Bliss Il
Co., Drexel, Morgan \ Co., representing Messrs
Barring Brothers Il Co.. J. s. Morgan & Co., Morton,
Rose Co. and themselves"
The terms are substantially the same as the first
contract, the Secretary reserving the right to de-
termine when he will place the bonds and what
amount shall be placed. It was then proposed that
the operations should begin one month hence,
say the latter part OF February, which
was agreed to, and at half-past five the
business was concluded. 1t apparent that
Cooke h Company had shown that Syndicate was
practicable, and the other side were anxious to
enjoy even honors and profits. The biggest kind
of influence had been brought to bear upon the
Secretary to induce him to favor both Cooke ct al.
and Morton ct al. Mr.. Boutwell,, impressed with
the fact that the two Syndicates united would
world, and, having no other propositions to con-
slder, resolved upon the plan adopted. The In
terests of both combinations were thereby chal-
lenged, and neither dared refuse; but from the
temper of the representa- tives on both sides after
the transaction was concluded 1t was evident that
the marriage is not likely to be happy one.
1t is not probable that the first call OF the bonds
will be made before the 1st OF March next.
At a conference held tonight the representatives
OF Jay Cooke Il Company and Morton, Bliss Com
pany agreed to equally divide the three hundred