New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-08-26
THE NEW LOAN.

The United States in its progress toward
financial health, passes the four-and-a-half
per cent mile-post. In 1875, when the Re-
sumption act was passed, five per cent bonds
were below par in gold, and it was not clear
that the funding process had not been inter-
ruptcd for years. Since that time we have not
only placed all the funding iives then unsold.
amounting to 1922 ,GSS, $50, but, IA Mr.. Bris-
tow explained in his speech at burlington, over
$1,000, 900 Of five per cents have been sold
under the act OF 1879 in preparation forreSump-
ton. The sale of these bonds, however, became
inexpedient as soon as 1T appeared that bonds
bearing lower interest could speedily be
placed, and Mr.. Bristow properly discontinued
| the sale for n time. He was foOlishly beratcd
by some partisan organs, but the result thus
| early proves that his Judgment was correct.
The four-and-a-h0lf per cents will now sell at
par, probably to the full amount authorized
by the Funding act, namely, S3OO,OOO,OOO,
| though the contract with the bankers who
| take the loan gives them until March to de-
| termine whether more than $40,OOO,OOO can
| AT this time be advaDtagcously placed.
| Secretary Morrill, deserves much credit for
.his success in conducting this somewhat diff
cult negotiation to 50 favorable an issue. The
difficulty was not in any unwillingness Of
| bankers to bid, but the reverse; the Secretary
was embarrassed only by the originally con-
tlictinS interests and proposals OF syndicates,
| embracing many OF the strongest firms on
| both sides Of the Atlantic IL was obviously
very much to the advantage OF the Treasury
to interest American as well as European bank
ers, both because there is large amount OF uncm-
ploycd capital here, and because, III event OF any
| unexpected disturbance of the markets or Of
| the public credit, it would be important to
| have enlisted strong firms in either continent.
The difficulty of the negotiation WAS in bring
Ing the rival firms to act harmoniously to-
| gether, and this Mr. Morrill, has accomplished
| upon the same terms made in the last contract
| with the Rohschild -Seligman party. The as
ISOLATION of bankers now formed is probably
| the strongest ever enlisted i'll negotiating any
| loan.
There will be criticism, of course, though
| there is less excuse for it than there was in
| 1873, when Mr. Boutwell, first made his con-
| tract with the great bankers. The terms are
far more favorable TO the Government the
option allowed TO The bankers is much shorter,
and there is no longer occasion for that feel
| ing which naturally arises when European
firms have the exclusive enjoyment of profit
able operation III American securities Posi-
bly, some may carp at the terms even now, as
financial journals did in 1878, saying that the
Syndicate had given no bond or guarantee,
and made no deposit, and would not take any
considerable amount of the bonds unless
they could make it profitable TO do so. We
know of no way in which large loans
can be placed unless it is made profitable to
somebody. The bankers interested in this con-
tract can place the loan promptly, If any In