The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1874-08-14

offers for portions of this loan from
Two rival syndcalps amounting to-
gether 10 one hundred millions. Not
caring 10 accept either uutll he had
made a public offer of the bonds, and
not wishing TO prefer either 10 The
other he first rejected both and then
issued Il circular on the 2d of July, IN
wiling bids for the whole or any part
of the lOnn, which he subsequently eN-
plained could not be disposed of for less
than par aud interest accrued up to
the time of the expiration of the rall
for iiye.lwentles to he redeemed, that Is
for three months. with the discus.
sion IN the public press rs to this
method of procedure We have now
nothing 10 do, Three weeks were
given for filing bids, and the time eX-
plred on the 23d.
The bids divide themselves into four
classes, ~ bids at tor aboyc) par and
interest, for bonds for investment; ~
similar bids by bankers for bouds TO be
sold 49, bids at or below par and in
teresl, less II commission varying from
ii to 3-S per cent; AZ n syndicate bid
by combination of both the parties
whose offers were rejected in June. All
bids Of the first aud second classes
were accepted, rs soon az Mr.. Bristow
had conferred with the president at
Long Branch. The aggregate amount
of these bids was $40, llS,5j0, of which
$500 600 was for reselling, and the
rest, so far rs ~ known, for invest
ment. All the bids of the third class
were Mt once rejected. They amounted
to about thirty millions, including one
OF the state of New York for three
millions. The syndicate hid was
neither accepted nor rejected at first.
This offer was for Sj5,OO0,O0l "iirm, +"
that is Internationally and at once, ON
the terms offered by the treasury, with
the option of calling for the whole or
any part of the rest At any time with
in twelve months. But the bidders
also stipulated that no other specula-
tive bid should be entertained,
Negotiations were however opened
at once between the secretary and the
bidders. 1t may be mentioned that
the syndicate consists of the German
firm of the Messrs. Seligman, the
Rothschilds, August Belmont ~ Co.,
and the First national bank Of New
York. A few million dollars of specn-
lative bids having been accepted, the
offer ofthe syndicate could not beaccept-
ed entire, aud the government desired
that the twelve months option should
be shortened. The correspondence bo-
tween the different members of the
syndicate was necessarily carried on
by cable, and consumed several days.
The syndicate reduced its firm y bid
by the amount awarded TO other par
ties, and finally consented To shorten
ing the time of option for calling for
the rest of tho loan to six months. On
Tuesday the completion Of the nego-
tiatiOn was announced. The result Il
that, altogether, iifty-fve millions OF
the loan are disposed Of absolutely, and
the syndicate has exclusive rights ia
call within the next six months for rs
much more ~ il pleases. The terms
are such that the rate of interest on
the face value Of all the debt refunded
will be reduced by one per cent, with
out even momentary Increase OF IN,
aggregate of the debt.
There has been great deal of criti'
cism the past week ON the secresy OBJ
served by the secretary in relation to
bids. When the time came for open
ing them, the operation was conducted
in private, and on its completion Mr..
Bristow took schedule of the offers
and posted of to Long Branch to con-
fer with the president. There does not
seem to have been any injury done to
anybody 10y the failure to fake ,he gen
eral public into the confidence of Tie
administration, and perhaps in view
Of the delicacy and magnitude of tn,
negotiations it was quite rs well thai
the business should have been privately
transacted. The final result is wholly
satisfactory, since home investors have
had all the opportunity they could de
sire to take the new fives, aud n way
has been found for disposing OF a grea
part, and perhaps the whole of the new
Joan. Financial Record.