The New York herald., 1876-08-17
A NEW INDICATE.
HOW THE SECRETARY OF THE TREASURY PRO-
POSES TO DIAL WITH THE THREE HUNDRED
MILLION OF FoUI AND HALF PER CKNTs.

POSES TO DIAL WITH THE THREE HUNDRED
MILLION OF FoUE AND HALF PER CENTS.
WASHINGTON. Angus. l6. 1870
with the failure OF Congress make any alteration
or amendment OF the Funding act, II has become tho
implied duty OF the Secretary OF the Treasury TO re-
sumo the 'undns OF the hvewentss. especially tho
condition OF the money market and the or tho
public credit such make the present an oppor-
tune time to renew funding operations Mr. Morrill,.
received numerous propositions during the past month
the shape OF offers for the four and half per
cents but with the agitation OF tho Silver bill and
kindred topics in Congress he felt that the
negotiation might DO attended with more or less
uncertainty, and deemed it best, therefore, to wait
until these unsettling matters out OF the way
With the adjournment of Congress he believes the op
portunry has come and the public will doubtless learn
in few days by official announcement from the
Treasury that the three hundred million Of four and
half cents has been taken by new syndicate. The
fact viii be remembered that all the five per cents
authorized by the Funding act were closed out the
later part of last year. and that Mr. Brsow In enter
ing upon the negotiation of the four and
half per cents desrous Of having
their term OF duration extended to thirty
wears But this like the dozen other financial meas
ures moo,ed Congress- never came to anything, and
the law 1t stands unaInended, provides for
$780, 0o OF four and half per cents and 500 600
per con, Eve twentles Mr.. Morrills belief that the
opportunity is afforded for successful negotiation
TINT in selling 81 O0O 900 OF hve per out Of the
Alabama indemnity fund the other day he got 1O6 OS
gold for hem and he sees by the Wall street reports
TO day that the same class OF bonds are now selling
at the equivalent OF very nearly 1861. Tho
sale Of the Alabama five per cent bonds At los 05 was
regarded as a very satisfactory transaction by tho
officials at the Treasury Department and whilc this
be done with much facility Is obvious that the
Secretary OF the Treasury ought not to continue To pay
RI Pnn mn - N
be very and seeking Investment at low rate OF In.
erest IN good securities especially foreign capital tho
owners OF which are moro willing TO take long bond
at q OF interest thao paying higher rate
and likely TO DO called in at any moment short
ejaculation based upon the prices above given will show
that with the five per cents, which have only about
nine years to run, selling At lO5 aud fraction. tho
new four per cents, which have nfcen years run,
arc desirable investment mt par IN gold This TACT
has been settled to Secretary Morrilrs satisfaction
but the delay in proceeding further comes out OF the
competition Of bankers and OF the old syndicate.
his award OF the new loan Is disputed by ths several
claimants therefor, and no later than this afternoon
he was waited upon by delegnte from the New York
banks-viz, Mr.. George S. Joc-wno asks that tho
negotiation may be thrown open for competition 70
the bankers and to all who like TO subscribe.
Tho parties who represent the syndicate plan
comprise such firms the ScliRmans, Belmont
representing the Rohschi'ds, Morton the Bar
ns nna wnsow lsS aner 1 sAe; Co. Now n Horr 1i' !:
u believer in the syndicate pan He says his succee.
tried the free competition plan and advertised tho
five per loan all the country 10 make pop
ular. bu failed, whercupon the syndicate had 70 be
taken In to finish up the work. ''rho syndicate" 10
tue recognized financial agency abroad and TO u pco-
plc 60 for investments. Syndcates understand
tho business OF handling and negotiating
such loans; and the best way with
the four ana half per cent is to let ono OF ihem take
hold OF it, Three hundred million dollars 10 good deal
OF money and people have not much money
right away IN four and hall per cent
government bond.
While these are the views entertained by Secretary
Morrill, is sud that President Grant Is in favor Of
throwing open the loan 70 everybody. but conf
very warmly such policy. II Is known that
he has not laid any restraint upon Nr Morrill, bus
will allow him to take his course.
The Treasury Department. is In good position to
any arrangement tha, may be reached inasmuch
as the chief OF the United States Loan Division,
Mr.. II. b. Bgeow has been Tor some years In London
managing the syndicate details connected with tho
loans heretofore negotiated and Is In position 20
facilitate a ready handling OF the loan should be
put upon the market IL is thought at the Treasury
that II money continues easy as 1t Is now ana there
is no serious financial arrangement in Europe DIN.
Guilty will be met In disposing OF tho four and halr
per cent loan u reasonably short time.