New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-27
HOW NOT TO SELL BONDS.

States does not appear to advantage III tne
higglIng now going on at Long Branch over
the remainder of the five per cents OF the
Funded Loan. 1t seems that only ten millions
have been placed on the terms to which the
Secretary of the Treasury thinks he Is re-
stricted by the law. Syndicates are anxious
10 get exclusive control of the remaining
S1G9, 100000 on the sale of which they foresee
a great profit. We have no doubt that the bar
gain which they are anxious to make with
Mr. Bristow is very disadvantageous for the
United States. We believe that Mr.. Bristow
can do great deal better than to agree to 1t.
What are the factsf Mr. Bristow has for
sale 500 000, 900 of bonds, worth in New York,
London, Paris, Frankfort, or Berlin over one
per cent above par in gold, and morally GER
tain to be worth two or three per cent more
before the end of the year. He is asked to
sell them at a price one and quarter per
cent lower than he has yet offered them to
American investors with cash in their hands.
We believe the greater part of the unsold
bonds can be placed in the United States OF
America and we wish to see it done, and we
will tell Mr.. BristOw how it can be done. We
want to see him give Americans fair chance
before he consummates bad bargain with
the Syndicates.
Mr.. Bristow has accepted bids for S10,OOO,OOO
of the new bonds. He has in the Treasury,
after just having paid the July interest, $685.
100000 in gold. The three months in which
the great imports for the Fall trade are to be
made begin with this week. He may safely
count on the surplus revenue for S12,0OO,O00
more to be added to his gold, over and above
the amount of the accruing interest, before
the 1st of November. Let him then immedi-
ately issue a call for fifty millions of the five
twenties, and look to the 150,OO0OOO people OF
England, France, Germany, and the United
States to buy of him S4O.OO0,0OO in bonds be-
tween this and the 1st of November. This
plan Is entirely safe, since the Treasury will
be able to meet all Its obligations should 1T
not sell single bond, but be compelled to
pay off the whole S400OO,00o called, in excess
of the S1O0OO,OOO already covered by the
accepted bids under the recent circular. A
meager and hungry Treasury is not unde-
sirable when we consider what thievish and
hungry Congress will assemble four months
hence, relieved from the dread of coming cleo
TONS
But there is no danger that the bonds will
the bonds called in for redemption. In the
first place, the very fact that fifty millions of
old bonds are called in will make market
for the new. The way to start clock is to
wind it up and then move the pendulum.
But Boutwell,, Richardson, and BristOw have
all tried to make the clock go by moving the
pendulum without winding up the weights.
They say to the holders of six per cent bonds.
"Will you exchange skies for fivesf The
bondholder replies, 81 am not such fiat"
They ought to say, "Give me your SKIES, and
"you may take fives or be paid off at your
"choice." The Treasury coin balance of forty
OF fifty million dollars in gold is power,
and we can imagine no reason why 1t should
not be used to help forward the negotiation
of the Funded Loan.
But there is still another advantage in the
plan we have suggested. The conditions on
which the new fves are now offered to Amer
lean investors are impracticable for another
reason. Mr.. Bristow does not offer bond for
par, cash down, but for par three months
hence If cash is paid. the price is 10lt. If
Mr.. Brstow would on the LIST of August call
900 for redemption, he could on the list
of September offer any part of $4O,OOO,OOO new
bonds. to the public at 1O1, and again on the
1st of October at 1901, and on the 1st of No
vember the remainder to the highest bidder
at not less than par. So far not much has
been done by private dicker. While we do
not claim to be proficient in the art of selling
bonds, we think the Treasury and American
citizens both as investors and taxpayers,
would receive some benefit from trial of the
method above proposed, or something similar
to it, involving as the first step notice to the
holders of $40,0OO000 fve-twentes of 1862 that
the bonds were wanted at the Treasury.
1t is little singular that during the last
six months our five per cent bonds have not
risen in the London market in the same pro-
portion as French and Russian stocks, which
rank with the United States in credit with
European investors. The following is a COM
parison of prices in London of French, Rus
sian, and United States five per cent bonds on
the 9th of January and 10th of July, 1874:
January. july. Rise.
united stsies............'..... l00S l0lt is
kuian S6a l0ls
The quotation given for all the above is
the per cent of the real par, and includes in
the case of the United States one per cent of
accrued interest. We say it is singular that
French and Russian stocks should have risen