The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-02
THE SYNDICATE.
Eleven Million Dollars Worth Of Bonds
Called In Yesterday.
THE PRESIDENTS DESIRE IN THE MATTER,
How the Rothschilds Floated the
New Loan.

WASHINGTON, d. O., Sept 1, 1870
The call to-day for SIS 900 of six per cent bonds for
the sinking fund and s. 900 900 for the Syndicate
piece Of financial news in the opinion the Sec
rotary, too important to be made public during bank
ing hours and therefore deferred until after three
O'Clock There still S32 900 900 ofAve per cent
bonds to be taken before the Syndicate completes the
funding Of the $500 900 900 authorized by law AS has
already been stated the sales of five per cents for gold
TO carry into effect the Specie Resumption act not
counted in the amount of funded FIVE per cents The
Sinking Fund for this fiscal year will be q little
over So, 100000, being per the
debt with the addition Of the Of interest
per cent on the bonds purchased for the sinking fund
at six per cent There no doubt but the Syndicate
will take the remainder Of the five per cent loan
prominent banker who is personally acquainted with
the Rothschlds and the manner in which they have
conducted their operations in United States securities
said to-day that their plan had been demand
and never be prepared to accommodate their
In this way they had steadily appreciated the five per
cents until they the most desirable in
vestmcnt at present offered They could have
taken he said the entire months ago. but that
their way of doing business The certainty OF
disposing OF the remaining $32, 100000 brought
up the question, What will the Secretary do next9 The
amount Of four and half per cent bonds authorized
5000 600 O0o It is the desire of the President
vanced during his administration that whatever the
political financial views of his may be ne
w provided, of course the law remains as it is be
strained carry II a successful termination Though
plan has been definitely agreed upon, the following
Is understood to be the most favoraby Endorsed
and as least likely to disturb the money market while
It will allow accumulation of gold that will bring tho
day of resumption to hand:-
First-Thc Syndicate to be allowed TO purchase the
four and half per cent loan the terms the
five per cent at par in coin with onehalf of per
cent for commission, the Syndicate paying all expenses
The Syndicate to pay for tho bonds either in gold or
coupons Of gold bearing bonds
Second-The national banks of the United States to
exchange gold dividends received on bonds for the
bonds, releasing the amount of six per cent
bonds held for the security Of their circulation.
Third-The sale of four and half per cent bonds at
their par value in con privilege authorized by law
The purpose of this plan is as follows-to wit If tho
Treasury does not its contract for placing the
new bonds all CALL for six per cents will cease and the
value of every bond the market will appreciate
cordingy The business transactions of the Syndicate
It is estimated, would annually amount to taking
SIS 600 ooo $55 900 900 of which would be in coupon
payments, thereby saving that in gold to the
Treasury now required to BIO send abroad
The other twenty actual purchases for gold
aggregate $25, 600 annually, and the sales
at their par value CON- which would be for currency
to meet the currency expenses now provided for by
monthly sales of gold would it is estimated be between
$50 900 and 500 600 oO0 the bonds would readily
be purchased for foreign Investment In two years. it
will be seen the estimate is that the entire loan would
be disposed Of while the interest be paid the
bonds and the requirement of the sinking fund during
those two years would not exceed 500 O00 leaving
tho 1st day of January, 1873, gold fund of
5000 900 the disposal of the secrctaryan
sufficiently large to assure the permanency of the
gold value OF every legal tender In circulation
In other words the scope Of the plan the
Treasury the two years next beginning with January
l. 1876, nearly the exact amount Of gold the govern
ment will disburse during that period in paying the in
terest the public debt which is 500, 600, 900
nually. 1t will be gradual accumulation and this is
what the trainers of the Specie Resumption act had in
view when the bill determined upon a party
measure adopted in the republican Senate caucus and
passed by party vote after few hours explanation
1t passed through the House under the previous ques
tion and was signed by the President within forty
eight hours of its final passage To the objection that
increases the bonded debt its advocates say will
for than three four years 1t will give to the
legal tenders their face value in gold and when that is
accomplished will be the duty of the Secretary who is
in Office to Immediately call in six per bonds the
amount of four and bali per cent bonds issued and
place them TO the credit of the sinking fund.