, 1873-02-18

than that hmount ae tlme on account or tho
great trouble Of handling 1t. But if tho sub-
scrtptiohs Of lase weok do not reach the amount
OF tho proposed call, tho Secretary will roduco
the call to conform to tho amount Bubecsibed,
unlena Tho Syndicate como forward md shoulder
cate lacked in their subscriptions q few million
Of their hundred Million, but thoy, mnuo up tho
deficit and aaid nothing about 1t. How 1t will bo
in thia case will probably not bo known iii the
THE SYNDICATE CONTRACT.
Tho Washington correspondent. OF, tho Now
York! Jotirndt Of Commerce gives tho following
synopsis Of The eontract betwenn tlle Secretary
and Tho Syndicate It will be seen that It ia in
tion Of por coniu: "Tho Syndicate agreo to
take s300, 900, 900 OF tho nor bonds boar1ng ID
terest 'at 5 per cent, for which they are to pny
Government. They havo until tho 1Ht day Of
December next to complote their purchase and
Is bpeclM induccmont they receive double in
forest for ninety days, being tho interim betwoen
the presentation OF old bonds for redemption>b by
actual delivery of the for,nor.. THUS tho in
creased: interest for ninety days anounte. to ~
Of Il Of 1.per cent for. oxponaos OF negotiation
the bonda is Turned oYor to tho Syndicate as COM
missions. This commission amounts to about
81 Snie Of Per m sent e. perhaps little more.
cents the, the syndicate's remuneration for their
work OF negotiating tho loan. Whom thoy feel
warranted i'll stating that certan amount of
subscriptions -haye been received, they stato to
tho Secretary ot tho Treasury that such is the
case and ask that IN amount Of G per cont
bonds equal to tho amount of s per cents SUBJ
ecribed, bo called in by tho regular notice that
lnterest will cease In ninety oays: 1t must DO
docs not originate tho call. Il Is based Oh tho
request Of tho, Syndicate, and tho SECRETARY
win call the bonds us ,faat as 80 re-
quosted Upon three conditions: First, that
the amount has boon subscribed, or, SECOND,
that tho Syndicate give satisfactory oyidonce
that like amount of tho now honda will be paid
for in gold Or the cal1ed bonds, and third, that
tho Syndicate deposit with the Secretary Of tho
Treasury . gold eertihcats equal to tho amount
OF the subscriptions. Whom tho call was made
IaBt week the Syndicate depoBited their check or
certificate that s19o ooo, 600 in gold had boom de-
posted to the credit OF the United States. This
was duly signed and handed to tho Secretary,
md was the biggost check ever received by, tho
Government, or seen by any ono who had tho
privilege Of neeing it here. 1t will be remom-
bored that in q few hours after issuing tho call
for s1oo, 900 Of 'e2s the Secretary revoked it
on account Of tho discrepancies hetween the
torma Of American and European subscriptions.
After reyoking this call tho i,syndicatos
check was returned to them for tho reason that
be dated March 1; 10 as to mako tho limit Of it's
idleneBs reach to, but no longer than, the tmo
whom tito calod bonds Bhnl cease to henr interest.
Ine UNDERSTANDING ls Llat tno Gold cnocRB upon
which tho calls arc based will not bo presented
forpsyment until tho expiration Of 30 days. At
that time the called bonds, ceasing to bear in
serest, arc paid in instead Of gold, to redeem the
ehook. Tho check is practically q aguro-head,
there may not be dollar Of gold held by. tho
depository mentioned In the check, but the check
itBe]t blnda oil parties to the contract to Its rc
demption at the end Of 90 days, and they redeem
itby substituting $50 bonds tor tho gold they
promise to pay .,.-. '-..~' -.,7
WHO IS TO 1.ost: pY nA1sEn" oHEoKs7
A very curious case to bankora and business
men. n.gensrally has reccntly been decided in tho
California Conrte OH tho question as who is TO
lose by q "raiaed cllock that has been paid by
. bnnkt as good. Tho statement OF tho ease ia
aH follows: 4 stranger having applied to .
broker for $3 800 in greonbacks, and learned
that their va1,Ic in coin YVES @2,eo1. .25 wont OF,
and soon camo back with a check for tlat supl
drawn?by prominent merchant in favor of the
brokor. Tho broker indoracd tho check and
sent it to tho bank to ASCERTAIN whether it was
good; Tho bunk paid It at once. and the broker
gave tho value Of tile check In groonbacks to the
stranger, who disappeared forever. Two weeks
later, tho bank discovered that tho check had
been .1;d "Fa!sea " fraulglont1y from $50, md q;
payment Of him till .nino days lator, and
did, not return tho oheck to him
81 Sat tho psre ofSngt Gsg o, y r1sno, ns 0sn snd
appealed to tho Supreme Court Of tho State,
which reversed the decision OF tho Court below,
Rnd decided that tho loss should fail Oh the
bank, Tho leading argument OF tho Court in
support OF this decision was that the bans d.d
not return the check as soon aa 5ta character 4eas
discouercd, while tho fact that tile bank Ind pro-
nouncod tho check good, md paid it, thus maxi
ing itsolf sponsor for tho check md being tho
nj sno Of ss ssSas: sss s
1nontine on this ruling says:
Tho effect Of the dscia!ou Ia that the bauka ey pay
raised checka and yet recover tho deficiency II they
return The checks ~ soon III the frauds discovered
Thus al tho losHes for fraups n altered cbeska nro Ia
be borne by third parties who take them. Third par
s 10 oh lie and nd tSs awse @
tain whether is good, for neither can settle tho !es
on and a e. syor tnsfes ss ss
y should rest entirely upon tho drawce after he a
paid, and that my inquiry must bo made, ho III ths
proper party to MckeH It.
Tho ruling of the California Supreme Court IL
at least curious ono, and, IT 1t should govern
similar caaoB hero, would put serouB impodi
mont In tho way of business transactions. 1
check onco certified BY a bAak, OF pronounced
sSSa sSty is vle aea's''fSs aSs bank p'ssns saa
escape. such a. check, passo
current through dozens Of hands who hayo II,
means Of assuring themselves by application t
tic drawer 10 gao wllother it IL good. Accord
check was raised or forged year. aftor it ha
paid 1t, and yet. by aonding it baok as soon a
The discovery was made, bring suit hgal,Bt MI
recover from party who waa not only innocent
blit ono who had boon ylctiulizcd by tile inrorma
tion from Tho bank itae!f.
THE CANADIAN PACIFIC RAILROAD.
Tho text OF the cliarter OF tho Canadian Pa
cjtio Railway was publinlod at Ottawa, 4 fo'
days elnce. Of which tho following IL a summary
Tho Company have period OF nearly ycar al!owe
10 nuii anil void unless thsae arrangement. CON
peted to tho satisfaction Of tho Government by the