New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-07-29
The Five Per Cent Funding Loan.

The Five Fer Cent EuuOIu2 AOHu.
The Washington correspondent of the
New York Tribune Of the twenty fourth
says:
For sewers, days the bankers, brokers
and heavy business men of the country
have manifested grave interest in the
subject of the sale Of the remaining
$l79 100000 of the five per cent funded
loan, bids for which were invited by the
circular of the Secretary Of the Treasury
on the second instant Wall street has
been especially interested. and several OF
the heaviest operators arrived here this
morning to be present at the opening of
the bids. Contrary to general expectation,
however, the bids, which reached an un-
expectedly large number. were opened
privately, the Secretary, the assistant
secretary and the chief Of the loan division
only being present. The course OF the
upon, on the ground that the rates offered
ought to be given to the business men OF
the country at the earliest moment in order
that the condition of the loan and the
credit of the government among the people
might be known. 1t was also urged that if
the prices offered and the amounts desired
were given to the public at once, the opera
tors and business men throughout the
country would have an equal chance, but
withheld the government would he liable
to the charge of having helped tavorites to
profitable speculations. Most of the bids
are from New York, and embrace the firms
of Seligman g. Co., Morton. Bliss g. Co.,
Drexel, Morgan & Co., Won Hoffman g. Co.,
and other leading bankers. The aggregate
amount of firm bids was $4,000, 900, and
one bid contained an option clause OF six
months tor the whole Of the $4,000, 600.
priot that haaida fhA
formal bids, he has received large mum
ber of applications for the direct pur-
chase of the new bonds at par. the pur-
chasers to pay tae gold and take the bonds
at once. Some OF these bids were very
large from single firms. To all Of these
the Secretary replied that, under existing
laws, lie was forbidden to accept such
offers, as he could not make direct sales of
bonds and increase the public debt in addi-
Secretary is fully satisfied with the re-
sponses he has received from his circular,
and is in strong faith that he will be able
to dispose of the entire loan at advanta-
geous rates. From the tenor of the dis.
patches and letters opened at the depart
ment today, the Secretary is forced to the
belief. that if he had the power to dispose
of new bonds to all comers, upon demand,
he could place the whole loan in very
DrlcI Dut W PlNOO CAO VAoAo AoesAA
Immediately in this manner, and use the
amount to call in an equal sum OF five
twenties would increase the public debt for
a period of three months, and this the law
does not allow. The detail Of the bids will
not be made known until the President
sees fit to permit their publication. Alb
stracts of them were conveyed to the Presl-
dent by the Secretary tonight.
The following is special dispatch from
Washington to the st. Louis Globe, dated
July 25:
The announcement from Long Branch Of
the comparatively small amount Of accept
ed bids on funding fives, is a genuine dis
appointment to most persons who have
watched the Secretary's policy. There was
nearly $l1 600, 900 not accepted, outside the
Rothschild-Seligman bid of $4,000, 900.
This rejection is due to an informality,
which may yet be arranged. The Secre.
tary's circular was undoubtedly too indei.
nitely worded. The $55,O0O, 900 bid was
made by a pool, represented by Messrs.
York, London, Paris and Frankfort;
Mr.. Lucke, for Belmont g. Co., who
represented the Rothschilds, and Mr.. Fa-
henstock, for the First National Bank of
New York, which bank the Jay Cooke g.
Co. bond business has passed. The Roths-
chilGs and associates wanted $4U,OUU,OOO,
the Seligmans the other $15,000,OOO. A
London house is said to be joined with the
Rothschilds, and, from Fahenstock's ap-
pearance in the matter. it is probable that
Of Mccullough g. Co. The deposit in gold
was $l,lOO, 900, bids to be considered to.
gether, the understanding being that the
two parties were acting in concert to take
the SIS, 5000, 900 in ninety days and have the
privilege of calling within a specified time
for the remainder. It was for par and in
terest, gold, with one-quarter per cent
| commission deducted, and on condl-
tlon that all other bids, except for
investments, should be thrown out.
The President and Secretary at once re-
jected this, because of the condition re-
Guired, and OF asking too long option. The
condition was waived, but the bid was still
declined. New York advices assert the
houses embraced believe the terms will be
accented within q week. The Western
bank bids accepted are three amounting to
only 5000, 900, and replace called skies on
denosit to secure circulation. This does
NOT include the California bid, of course.
Representatives of the press here, gen.
eral and special, feel that they have cause
for dissatisfaction in the evident reluctant
opposition of the Treasury Department to
furnish the public with news relating to the
loan bids and other important facts. Gen.
eral press agents will, as special corre-
spondents, have the same complalnts to
make. Heretofore such matters have been
given to tho country in detail at the ear
LEST moment. In the present case the Sec
retary himself, after considerable neslte-
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