New-York tribune., 1873-01-15


MIR pnnoso-1s to the pout at which the int interest st
Sa on @ s5e sus or O IL Europe Ny own view that
American Is that IL should DC paid herei IoI @ a
not quite certain but shat the satisfaction OF paying O
debt in the place where we live 2nd where II Is properf
due is not greater than the possible advantages "lch
maine the bonds in currency other than our own
Taere no denying the fact hat there are certain au'
The Cnairman-Aro they such as 10 Justity sucn
Mr Duucan-That depends altogether upon how much
weight You would that national teenng OF ihde-
pendenoe which enables us TO pay our oonsaohS Where
Mr.. MaynaTd-The feeling of personal selfrespect.
Mr.. Duncan--The feeling OF national selfrespect .
The Chairmau-Do you think It possible 10 place the
loan in this country without depending on foreign cap
itaists
Mr.. Duncan-Not at present. understand that tho
loan which has been already placed by the Syncates Is
slant transnissons OF five per cent bonds here from
Europe that take it for granted that these bonds are
only coming back in drblets whenever the national
banks make small profit in exchanging some other
classes of bonds held by them.
pretty considerable amount on the other side aud
the impression that they will be paid one OF the
preston exist in Europe that under the same process
which is now going on the five per cents VIII soon De
back here and would the new bonds take the place oi
Mr. Dancsn--I do not think that the lvo per cents
placed by the Syndicate found their resting place
Mr. Kerr-3y that Won mean that they are only owned
| by hnaneiers and dealers in stockf ..
Mr.. DunCanIheY have not fOund tne same peIuiahehV
! location that the old Six per cents bad .,
Mr.. Kerr-Do you know at what rate they are quoVou
| MI Duncan-I think they are quoted at about from
three-Qlarters to one per cent below par .bo roro
| Mr.. Kerr-Do you know at what rate tney were
| negotiated by the Syndicate3 ., .
| MIR Dunca1-I understand they were negotiated at
Mr. KeFrGThat is the deduction Of the expense Of
funding -. too, ~,
the parties who took them the shape OF Interest
merely got hat information from tne report ho %cn me
Committee, which report 1 suppose to be reasonably
Mr. Becl-How are the six per cents quoted
| Mr.. DunCau-As nearly as possible, par ~ ROd 80,
The ChaTman-You spoke OF your dshsnel ID inc ioli
ity 70 place any considerable amount Of the balance OF
the ave per cents 10 the way hat the si3SoOJog nave
been placed Suppose you could be satisfied hat was
| possi6e-suppose the proposition was made to take
them the same terms on which the balance O 1he
S2OOOOO 600 placed, would you think IL adYlSlDe
NOT IN FAVOR OF FUTURE SYNDICATE OPERATIONS.
| Mr. Duncan-If done in the manner that the
original S13J 100000 paced in Europe should sui
object 10 its being done tae interest Of tho credit OF
the United States
The Chairman-Although you satisfied that it
could be done you would still object TO its being DONE
State specifically what your objections assuming
that It could be precisely as in the case OF the
| S135,OOOOOO.
| Mr. Duncan-As sav, my information is from hear
cav NOT having had any part in the matter have
the impression that hearsay that the placing OF the
loan ON the London market was the result OF very
i~orous Ingenious and able stock operation cnsting
the shape OF commissions and orders buy and SELL &c
thus virtually getting the loan off and not having 1t
The Chairman-Be kind enough TO state for the infor
nation OF those who are unintated what that means
! Mr. Duncan-Sy Indicate is another name for what we
call ring in New-York which manpu'ates the mar
The Chairman-To put upon it fictitious valnei =.
Mr.. Duncan-It does not necessarily mean that IL ls
getting rid of thing which is not worth the price Dut
it getting for 1t value winch an acIVe arAct gives
The Chairman-stimulating the markets
| Mr.. Duncan-stimulatng the market by numerous
baHe po eo and t. to baS what they do not want thus
| creating unnatural demand
parties who propose take the bonds, how does the
Government the people of the United states suffer by
Mr. Duncan-Tf the takers Of the bonds suffer by the
a P9e bsye made 4ne good trade the United States
| will suffer when they come into the market again.
poIey Of it, as piece Of wise statesmanshp, rather
Than financial result ON this particular trans
Mr. Duncan-of course. 1t is OF no consequence how
1t appears as sonaty nanc & t th boiders baf
loss would naturally initiate against the United states
| Mr. Roberts-Is your objection then that it not a
good operation; that those who have taken the bonds
| those bonds terms which were not good for them
Mr.. Duncsn-It certain number OF parties subscribed
for the loan the which was offered 10 the
eommssion beyond the half per cent which accrued to
t6 svBdeate these persons have suffered because the
loan offered at price which did not include thus
MT RoborsDO you mean to say that any transaction
in which the buyer OF the bond does not receive his
share Of the commission which goes TO the negoator Is
Mr D1ncan~i mean to say that u the buyer only
oeyed nehalf per cent and purchased the BOND at 9s
the bond Is selling to-day at one per cent discount,
naturally loses 0nea d per SnS cent M o. Shs Sn al As eta
gamer to the amount OF one-hali per cent. ~
the broker who negotates bonds makes percentage,
ana is it not nearly always the that when large
5y little faii in the case Of almost ali securitiesi
Mr.. Duncan-NO, Sir it is not The broker bro = should
cline you speak OF generally occurred there would be
| very soon an entire end to an such negotiations.
Mr.. Beck-Do understand you to regard the Govern
made the subject of gambling operations, whereby
those who purchased, and who outside OF the
ring, lose money; that the GoVernment VIII suffer- In
the SYNDICATE are DISSATISFIED With the bonds put upon
Mr.. Duncan-I viii take the liberty of changing
word in the question. We don't call gambling opera
9n 9ut If the carrying out Of the the S results ss IN
uray initiates against the government which issues IT,
future operations when its other bonds put upon
market suffers In the estimation at least OF those
have themselves suffered through the other trade
Mr. Roberts-Does not this all turn upon the question
cOmpleteda If the bonds above par, those who
took them would have thought it good operation; and
operation. Then does It not all turn on the market
value Of the bonds after the negotiation Is closed
duced the market value because the loan might bo
pSg ana bas Sesp onsed by s
having been nndpy forced or ~ 9e Of is @ oens
| ernment in its future operations.
Mr RobertsTnen understand you to imply by that,
there is popular impression abroad that some undue
| measures were employed TO fund these new boDds2
mir Duncan--I 10 not know that such an impression
| exists.
| Mr. Roberts-Excuse me, but that is my Inference
from what you did say May ask you then whether you
understand that the fact of these bonds being below
is caused by the impression that undue influence
exercised 20 get of these bonds
Mr. Duncan-No do not think IL Isl II is caused by
the fact that the bonds are held not by investors but
persons who have bought them for the purpose OF sell
! ing them again,