The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-07-31

TIE NEGOTIATION OF TIE FIVE PER CENTS, -
The result of the negotiations Of Secretary
Bri,tow with the great European houses OF
the Rothschlds and the Seligmans, 10y which
the two firms make an absolute subscription
for S45 .00O, 900 of the remaining S1I9,O0O,0O0
of the $500. 00O,0 900 five per cent. loan, with
an ontion of taking the balance, exclusive oil
the $4,000, 900 accepted home bids at par, Is
regarded as eminently favorable to the Gov
eminent Us business transaction and to the
country in a financial point OF view Ihe
law authorizing the issue OF five per cents
allows the secretary to pay COMMISSION OF
ope-half of one per cent. FOR negotiations,
and when the larger part Of the bonds were
placed. which was done under the direction
of Secretary Boutwell,, the amount OF COM
missions paid the syndicate was the limit OF
one bali of one per cent, besides the conc !s-
sion of three months interest, which made
the commission practically about one and O
half per cent. By the terms of the present con
tract the only expense or charge whatsoever
is the one.quarter of one per cent. commits
sion. The interest is not slapped" The
special advantage Of the negotiation will be-
come apparent when it is known that the
United States is the only government which
places its loan at par, and the only govern
ment which gives SO small commission for
negotiation. The TejectlCn Of home bids for
some ten or twelve millions on precisely the
same terms has occaSiOned some comment.
but it is understood that, under all the CIR
cuustanccs attending The negotiations, tue
secretary concluded 1t to be doubtful Wheln-
er any policy than that of making negotla-
tions with large dealers would be successful.
There is believed to be no prospect OF any
undesirable disturbance Of the gold or eX-
change market in this country by the negc-
tiation, but that it will have wholesome
effect is the firm belief Of many fnanclers.
The sale Of the greater part OF the loan 10
foreign capitalists will help to keep in the
country large surplus OF gold, ana thus
facilitate, perhaps, the day OF specie pay
mems, which the president and the secretary
look forward to with SO much hope.
1t is suggested in this connection by Inc
New YORK Times, that ''those VINO have so
earnestly advocated that the entire loan
should be let to home-bidders, seem to have
overlooked the fact that what IS called tne
five per cent loan is, in point OF iacl, moi a
loan, but simply refupdlug, ana tnat LOT
every dollar of the new bonds which are IS
sued dollar of the outstanding tive-twen-
ties must be called IN. Nearly all the gold
which under the existing law would be paid
in this country for these new bonds Wouid,
by the operations of the law, directly 60 TO
Europe to re deem an equivalent amount OF
the outstanding tye-twenties there"
The New York Journal OF Commerce,
which has seemed somewhat inclined TO crit
icise the action of the secretary, says ~that
the prospect opens so auspiciously that the
members of the syndicate confidently assert
their ability to place the entire amount OIL
the fves and begin on the 4es within
the time allotted them for operating.
They wanted years option, but are salts.
fed with the six months they got. With the
Titanic grasp the Rothschilds and seiigmans
have upon the markets Of Europe. 1t is not
surprising if their anticipations are fully re.
allied. Already there are signs of prepare.
ton, as if they Intended to take advantage Of
every days opportunity. The bankers ana
others who have criticised Gen. BristoW Joe
his course in this matter all seem satisfied Win
the result, and with one accord are ready TO
ioin ia populnrizing the bonds. They nolo
MIN guilty of great indiscretion in the man,
agement of the affair, but applaud his una
acceptance of the syndicate's otter, attrlpu,
ting the success more to the. strength OF ou !,
credit than to our minister's sagaclty.-bas Y
| ii1n0re Sun. 80. c.