New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-29
WASHINGTON.

THE PLACING OF THE NEW LOAN.
CONTRACTS FOR Sf5,OCOOOO OF THE REMAINING TIVE
PER CENT BONDS sIGSED-A CONDITIONAL Rid
FOR THE REMAINDER ALSO AccEPrED-sRcRs-
TARY BRIsTow CONFIDENT OF THE SUCCESS OF
HIS PLAN.
IBY TELEGRAPH TO THE TRIBCNEl
WASHINGTON July 25-The contracts between
the Secretary of the Treasury and the bankers.
mentioned in last nights dispatches. were slgned to-
day. and at the expiration of 80 days. bonds 20 the
amount of S45OO0OOO Of the remaining per cent
loan will be transferred 70 them. The parties 70
the contract are August Belmont & Co, On behalf
of RothschIld & Son and their associates and j. "
W. Selgman on behalf of themselves aud their as
socates. The bonds, under the law, inssmnch rs
they take the place Of per cents 20 be retired can
not be delivered in less than three mont hs during
which time the same amount Of per cents wnl Do
retired. The price paid by the firms Damed was
par they receiving onequarter OF one per cent COM
mission and paying all expenses. They, Of course.
receive no accrued interest. The same firms made
conditional bid for all Of the loan that remains,
namely, lS122, OO0,O0ol at the same rate with siS
months option, and this the Secretary has also ac-
cepted so that the remainder of the loan may be
regarded as disposed Of at least, until the lst "
February next, when the option expires OF course
no other offers Will be received by the Departments
during that time, and the only question swnether
the buyers can keep the price Of the bonus at such
figure that the purchase OF the remainder will Do
profitable.
There were remaining Of the original five hundred
millions Of FIVE per cents sl77, 10000 OF this sum
the firms named took 81, 900 00O and home bidders
S10,OOO,0OO, leaving as above stated, si-2c0ocO.
A very large sum has been saved by the new secTe-
tary in commissions. The law authorizing the issad
of five per cents allows the Secretary TO pay COM
mission of One-half of per cent tor negotiations.
and when the larger part Of the bonds were placed
which was done under the direction of Secretary
Boutwell, the amount of COMMISSIONS paid
tho Syndicate was the limit OF one-haf
of one per cent and accrued interest. which
amounted to large sum. The present said
costs the Government nothing in adver-
Using and saves in addition accrued interest and
one-quarter of one per cent. 1t IS probable THAI
S2500OOOO of six per cents will be called N by the
Secretary on the lst OF August, in which event In-
terest on that amount will cease on Nov
The Secretary's policy in fixing the option at SIX
months. instead of year. as at first required by the
bankers was to leave the matter IN such AZ attitude
that Congress might legisate on the subject, with
a clear understanding as 20 whether the bonds were
to be disposed of OF not. The six months option
| expires on Feb. !, at which time the bankers VIII
either have taken the S22OOOOOO remaining OF they
will have declined. AS Congress cannot adjourn
before the 4th of March a month is allowed for adj
dtional legislation. The Secretary has htte doubt
of the complete of the plan, and says that no
hopes by next year 20 be ready nOat bonds Of u
and per cent interest.