New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-09-14
Tho Government Loan.


The exact amount of the new four and .
half per cent loan, for which subscriptions
have been received by the syndicste. has
not yet been made public. Persons outside
the syndicate express surprise at the with
holding Of this Information, and it is claimed
by some that this failure to make known
the result of the negotiations is evidence OF
q want of success. A report has been cur
rent on the street that the actual amount
taken does not exceed $50, 900 900. and that
the syndicate, in representing that
$4OOOO,00O had been taken, included
the subscriptions made by its own men,
bers-that, as they had agreed to take
that amount of The government, they sim
ply subscribed for what remained on their
hands last Monday afternoon. 1t is not de-
uied that the new loan can be negotiated in
qrired about five years to dispose OF
$500 100000 five per cent bonds, it will take
much longer than either three or SIX
months to sell $500, ,000, 900 ut four and q half
per cent. For the purpose of testing the
feeling of the street, q banker on Wednes'
day offered $5O,O 900 Of the new loan ito be
delivered as soon as issued by the syndi-
cate> at llOas, currency. which it was
claimed was just equal to the price at
which the bonds have been offered by the
syndicate, but they were not taken.
August Belmont stated to q Tribune re.
porter on Wednesday afternoon that the
members of the syndicate we're disposed to
give the public all the information regard.
ing the loan to which it was entitled; for
this reason the announcement has been
made that about $40, 600 600 had been taken
prior to the closing of the subscriptions.
Indeed, the success which had attended the
negotiations had exceeded the most san
guine expectations Of the members of the
syndicate. He denied emphatically that
any portion of the loan had been taken by
the members of the syndicate in this coun-
try, and although he could not speak posi-
lively in regard to those residing in Europe,
he said that he knew the persons
we'll and was confident that not
dollar had yet been taken by any
mem Der, either here or abroad. This was
not saying that they would not take pOr
ton of the loan, for their first work had
been to place it upon the market, and they
still had 500, 600, 900 from which to take as
much as they might want. As to the ques-
ton whether q majority of the subscrip-
tions had been received from residents of
| it was information which could be OF no
real benefit to the public, and to which it
was not entitled; to answer such question
was furnishing information which be-
longed exclusively to the members of the
| syndicate. Nr. Belmont said that he had
been surprised ut the large number
of applications for small amounts,
ranging from $4,000 to $4,000, made
| by persons who were evidently seeking in.
vestments, and there was evidence that in
| many cases the money had been brought
from the savings banks or other places of
| deposit. While he had no direct means of
| knowing, he had the impression that the
| subscriptions were made almost without
| exception on account of bona tide invest
| ments. He said that no further subscrip-
tions would be called for. The syndicate
| and it would now be question of purchase
| and sale between it and the public. As the
| old bonds were called in he thought that
the applications for the new bonds would
| undoubtedly increase in number. He eX-
pressed great confidence that the entire
amount would be successfully negotiated.
| The successful negotiation Of government
securities at four and half per cent, it is
| claimed, directly refutes the charges made
been made during the past seven years mo
advances toward resumption, nor prepara-
| tiOns for resumption" while it fully meets
the point made in Governor Tildens mes
sage, where he says: "Of the public debt,
$685., 600 900 bear interest at six per cent in
gold and $7lS00O,OO0 at five per cent in
gold. The average interest is 5 So per cent.
highest credit wisely availed of ought grad
ually to obtain q reduction of one per cent
in the interest of most OF the loans. A saw
ing of one per cent on the average would
be $l7, ,OOO, 900 q year in gold. That saving
regularly invested at four and half pei
cent, would in less than thirty eight years
extlnguish the principal. The whole 81 200,
O0e,0 900 of funded debt might be paid BY
this saving alone, without loss to the pe0
ple."-Nec York Tribune.