The New York herald., 1874-08-03
FINANCIAL And COMMERCIAL
Particulars Wanted Of the Recent Ne
gotiation Of Five Per Cents.
ARE ALL THE STEPS LEGAL :?
Last Weeks History in Stocks
and Gold.
WALL STREET,

WALL STREET
SUNDAY. August g. 1874.
The feature OF special interest here during the
past week was the negotiations In respect to the
new loan. And in this occurred great dsap.
pointment. The early announcement that the
syndicate had submitted firm bid for $55, 900 0O0
with cali on the balance for one year, afterwards
modified upon the acceptance OF the American
bids to the amount of s1O,O0O0OO to a firm bid OF
$45, 200, with call on the balance for Six
months, created marked enthusiasm, 1t being gen.
orally regarded as the most successful negotiation
In our contemporaneous Treasury history. But
when the Secretary appeared with his cali for
only $685. o00 00o that Is, $10,O0OOOO account Of
accepted American subscriptions and $15.0OO,0 900
on account Of the syndicate. people began TO in
quire
WHAT DOES THIS MEAN
Has the Secretary deceived us in regard to that
.nrmn lid OF $45,0 900, and has the syndicate
only bid Tor SIS. 100000 firm, is he laundering
simply In his management or this matter through
lack Of experienced The two excuses put forth for
this extraordinary actiOn-arst, that 1t was had
upon the suggestion OF the syndicate for fear Of
disturbing the foreign exchanges and second that
1t was induced by the want Of sufflclent clerical
force in the Treasury Department to attend to the
redemption Of any larger amount at the present
Ume-DOtn Iall 10 JurDlsn satisfactory eXpiana-
ton. In regard to the foreign exchanges the
danger of disturbance, with money ruling at such
an extreme point OF ease as 1t now in all the
Continental money centres would be less than the
damaging effect upon American credit OF this
'most lame and ImpOtent conclusion" OF a nego-
tiation that had been 80 pomDOusiy set forth, and
believed virtually closing out the entire five per
cent loan. This the syndicate was well aware Of
and
IF THEY REALLY BID FOR $45, 100000
OF the new fves ''rm, 1t would more to their in-
terest that call should be made for rwice that
amount at once than one third OF it-$so. OoO 900
rather than $15 00o 900. 1t would make market for
them and help them to place their bonds The'ex-
cuse OF want of clerical force too absurd Tor ar
gument. The result take 1t which way we may,
IS eminenty unsatisfactory, the Improvement in
the severa! markets, gained upon the first an
nouncement OF great success being wholly lost
upon these later untOward developments, with the
continued danger Of still further reaction OF q
yet more damaging nature. The Secretary or the
President, If in this matter the Secretary Is to be
regarded only as clerk. has 1t in his power to
stay this somewhat If be will only come out with
PLAIN straightforward statement of this entire
transaction, as full and complete as that made
every Thursday in respect to the bidding for and
awards OF government gold.
why some $40, 900 bids, accompanied with the
only conditional legal one-Oi 4 OF l per cent
commission, and on home account, were rejected
and this $15 600, 900 bid accepted with other con-
ditons no, binding Vi On the government according
to the provisions OF the Secletary's circular. We
unofcially informed that another call is TO be
made on the 1st OF September for $4,000 000 and,
again, on the LIST of October for $10,O0O.00o. So ?
There will thus expire three months Of the syndl-
caters option on which they may call for the bal
ance of the $l24 0o0 900. What wonder is it, then,
II people begin to inquire whether that "call' was
Sonestly meant or not whether 1t was not simply a
ruse give the syndicate six months to market its
S45000 600 In 1t Will be recollected that the Roth
schilds, the principal figures In this negotiation,
never evidenced very strong faith In our govern
ment's credit. refusing during the war to enter
into any financial arrangements with us. 1t need
not, therefore, be matter OF surprise to find
them now, when bidding for a five per cent loan
after they had for fifteen years rejected our skies,
suddenly developing, upon the acceptance Of their
bid, fear that they had been too confding, espc.
cialiy with President and Secretary only TOO
willing to placate them, and imposing
CONDITIONS DEROGATORY TO AMERICAN CREDIT
and damaging in Its inference to the American
character. II President Grant Will only let US
have all the facts in this matter, we may perhaps
be able to get an understanding OF 1t less disap-
pointing than that which at present attaches to 1t.
II the Secretary and the President will give heed
to the following figures, they will learn something
of the confusion they have created. Thus
The American bid firm" Is placed at $40 600 600
The syndicate bid "frm" at. ........... 45000, 900
Total sdrmn bids. s55 OOO, 900
Upon the terms here expressed-that is,
"drm'-these bonds are deliverable in ninety
havp
Increase in new hves November 1...... $55 0oo 900
Decrease IN sixes. OBSERVATION-DISCLOSURES. 25,OOO, 600
Increase in the public 900 900
beng a simple violation OF the Funding act, which
says "Notning in this bill shall authorize any
increase in the principal interest OF the public
debt.n Now will the Secretary tell whether that
bid was $4,000 600, either originally reduced to
that amount, or $45 500o,000s
THE GOLD MARKET
was largely Influenced during the week by the
progress OF these negotiations or rather such In
creasing knowledge OF the negotiation as closed
as came to us in progressive stages. The first
enect when the negotiation was proclaimed q
success at $45 OOo 900, bid firm" by the syndicate
was decline OF u per cent to 100 IRON which,
however, there was reaction later to l09sS, when
the Secretary's call dispelled many hopeful antici-
pations. The friends or the syndicate were free
sellers during the week, and 1t was announced
! as certain that the Secretary would this month
sell oOoo, 900 Treasury gold in the same interest
| That the Secretary will do all In his power
to help the syndicate is natural and that II
| increasing his gold sales Will do that he will in.
crease such sales to the extent OF his ability Is also
! a safe inference. Considerable interest was felt
| in this market during the week BY the movement
! OF specie from the Bank OF England to the Bank OF
France. The preparation Of the latter country for
return to specie payments ana consequent
| boarding OF coin by the Bank OF France would
seem a natural enough explanation OF such a