New-York tribune., 1873-01-15

The Chairman-What deduction do you thiuk would
be necessary
WHAT COMMISSION MR. DUNCAN WOULD Allow.
Mr. Duncan-If the Secretary of the Treasury simply
sits in the Treasury and transposes per cent bond
into per cent bond OF the expense would be
indnesma II he is obliged to bring in the aid Of for
elgn or domestic bankers. then the expense would de-
pend very much the condition OF the money markets
OF the world At time one-half of per cent would
be quite ample, while at another II per cent would be
small
The Chairman-Takng the whole field. what limits
would you allow for him in order 10 effect n loan
Mr.. Duncan-Granted that the form would be well
dgested and perfect II could possibly be TO meet
certainly nave at his disposal deduction OF per cent
the use Of which should be left TO his discretion a
powers possible When you have got the right Secre
taTy of the Treasury as assume you have Would give
him all the powers necessary, and make h~esPohslDe
The Chairman-Then You would suggest per cent
bond to not less than 80 years nor more than 80
years. and you would authorize the seeIet5 70 &
not exceeding one per cent In negovatlng tnat
Mr. Duncan--I have not given the matter any cOhsd-
eration should think that reasonable proposition
The Chairman-And the mode OF successfully uOihS
that; what do you think II would bef
THE BARINGs.
Mr. Dupcan-I think that the first mistake made In the
first issue Of the loan the policy pursued toward the
former agents Of the United States the other SIDE IL
necessary to speak OF the power OF tha house In
the markets of London and Of the world admit the
natural desire on the part Of the United states Govern
ment 10 conde its interests abroad TO the care OF It's
own citizens II any OF them capable OF undertaking the
same we're located IN places where the United states do
sired representatives and am sure by none would THIS
be more cheerfuly and readily recognized than by the
late agents themselves But apparently without any
notice previous ntmation the agency oI te Govern
ment in London transferred, and IN such way as
certainly not to secure the friendly anu hd
of the late agents Of the Government tnk tnat hat
the first mistake made by the government III regard
TO the late negotiations. -,
Mr. Secretary Boutwell-Mr Duneanis lMaporng M Under
a mistake In that respect The change OF the agency
from the Barngs was made subsequent 10 Tue arrange
ment with the Syndicate-not before.
Mr. Duncan-Then the more reason, In my Judgment,
for making that change i'll way 10 secure the ana OF
these gentlemen in carrying out these Syndicate opera
tOns But the change was nade IN suc Way as 10 se
cure their opposition II they were not 700 hghlnded
and too important to allow themselves to be influenced
by such considerations. l know that they were not
part that Syndicate They feel the deepest interest
In the prosperity OF this count try and naturally Tor tney
have very large business here but u was natural 10
suppose that having been treated III he way ney Werc
they should be very friendly to these negotiations
Mr. Beck want to get one matter clearly III my own
mind. Is your idea Mr.. Duncan, that when the new
bonds OF the United states are issued they should be
uniform. bearing the same rate OF interest instead or
being graduated from 6l00 per cent up 10 per cent?
Mr. Duncan-Yes, Sir; decidedly.
Mr. BeolI-And having the same length of time or, at
least some long period to run -. -, Ill.,. ..
Mr. Beck-Tcll us the special advantage of that over
the proposed systems -
Mr. Duncan-It renders them salable IN all the markets
of the world when there is any market or united states
bonds. ..,,,
M Il, ~
Mr. Dunean-Yes, Sir, in my Judgment. Zach market
might otherwise have its separate class OF bonds to the
discredit of the other issues.
WMr Beck-I understand you say that you regard IL
as serious injury TO the United states 10 cange bonds
winch are held by desiring 10 hold them perma
nenty into bonds held aud dealt III by street
iObbers. Wherein arc we injured by that
vesors the credit of the United is nOfected by
commercial pancs, which may have more or less founda-
mercial ceners When the bonds held I'm these CEN
ters the price uctuates violently in great financial ex-
Mr.. Beck-so that the United States, in your judg
ent ought to have kept their securities OF the stock
brokers' boards as much as possiDlef
good rule. aside TO Mr.. PattersonG Is IT n0tf
Mr. Patterson-UndOubtedly
Mr. Boutwe--As Mr.. Duncan referred to the accounts
t6a the United States Treasury does keep agent
abroad. The State Department has an agent abroad
parment could not properly appeal to the President 10
control the matter Of the change OF agency, as II had
nothing whatever TO do with it.
Mr. Duncan-Do not understand imputing any
blame in that matter to the Treasury :. .. ,so-
stood by the Committee tnat the Treasury had nothing
to do with that matter Whether or not the change had
The Charman-And in ront OF time the change took
place snbsequent to the negotiations. por,o,.
it occurred about that time The Barings had been
Mr. Duncan-The extent of IL understand it is that
the Navy Department exchanged about SOO.OO year
S anG the aE sae % exeRsd
about $4,000 with the Messrs Barings which 1t now
does through Messrs Clews Co.
Mr.. Boutwell-We deposit very little abroad to the
Of the State Department; the consular receipts
placed abroad but as to the Navy Department we do
not place money to its credit abroad.
WHO HOLD THE NEW BONDS
-, ~, -, IT, 60, a ,, ., ,.
Mr' Kerr ('o MI DuncanI-lia'e you ""S iuo" !" "na'
extent the bonds were taken by the holders OF the
old honds abroad9
~ -, -, -. 80. orr,o.,o n, ,bo Zoo.
MI Duncan-l nave no kho"'eoge vi 'ne iao''
Mr. Kerr-On financial theories, to what extent do you
~ ho,., opaAl
M Duncan-Sot to any appreciable extent.
Mr. Kerr-How do you suppose that these bonds were
obtained TO be returned in exchange the per
think 1t has appeared that the per cents were paid
for not in gold but in G per cent bonds. How wore
those 6 Der cent bonds obtanedf
Mr. Duucan--The per cent bonds were called in. and
OF course the holders of them Immediately overhaued