New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-08-16
IBr TELEGRAPH TO THE rKIBusE.l


IBr TELEGRAPH TO THE rRBUSEl
WAsuuNGTos. Aug 15.-The attention Of the Treas
urv Department has been repeatedly called lately to
the fact that the four-percent Bonds are offered IN
the open market in New-York at price. including
accrued interest, nearly per cent below that at
which they offered by the Sydicate. and Treasury
officials have been asked the reason for this.
letter on this subject was addressed by the Loan
Division to-day TO A prominent New-York banker,
in which 1t was suggested that the present condition
OF the loan market is probably the natural result OF
a reaction which has occurred since the expiration
of the thirty days within which popular suDscril'-
tons TO these bonds were received 1t Is Learned
AT the Treasury that considerable sums of money
were subscribed for the four cent bonds during the
first month, for speculative purposes, and not 1or
permanent Investment the idea being that upon the
expiration of the month the Syndicate would I'M
medately put the price Of the bond above par. This
has lot been done and as consequence consider
able number of the bonds which were subscribed
for by the people who have not the means to pay Tor
them and who have no way of raising 1t before Oc-
tober. are necessarily on the market ms mas
caused decline in the price and the decline mas
been so considerable, it is reported here that some
of tire Syndicate subscribers to the loan have sup
pIied their customers through purchases IN open
market instead of calling for their bonds upon the
Treasury Department The loan authorities are OF
the opinion that the decline in price viii be only
temporary. They say that they have an ASSURANCE
of the ultimate successful negotiation OF Inc entire
loan.
Considerable jealousy seems to have existed be-
tween the members of the Syndicate and the
officers of some of the New-York National banks, be-
cause the former did not allow the latter To become
parties 10 the contract with the Treasury Depart
ment. Immediately after the contract was signed,
the officers of some Of these banks accused the sec
rotary OF the Treasury of treating them unJusty III
making the award. They wrote him some pretty
sharp letters in regard to The Secretary Is under
stood TO have answered them at the time bnt as he
is absent very little can be learned Of the details OF
this correspondence.
II ia understood however. that in making the
contract with the Syndicate the Secretary having IN
view the best interests Of the Government, was
Obliged TO accede in respects, to the wishes Of
leading bankers who make up the present syndicate
They were unwilling that National banks generally
should become parties 10 the contract, and a. the
admission of one would compel the admission OF
others. and as the Secretary thought it very de-
sirabie that certain great houses should be-
interested in the sale Of the loan. he was
Obliged to accede totheir wishes, and refused
at the request of some Of them to enter
tain the propositions Of others. Some misunder
standing seems also 10 have arisen between Morton
Bliss & Co. and other New-YOrk bankers. because the
latter were not admitted parties to previous con-
tract When the contract for the sale OF the tOurand
one-half per cent. bonds made, Morton, Bliss ~
Co. signed for themselves and for a large number Of
other bankers whose names were given IN the con-
tract itself but the Treasury Department conducted
its negotiations exclusively with Morton, Bliss ~
Co. aud had nothing whatever to do directly with
the other bankers. So too. when IN accordance
with the provisions of the contract for the sale
of the four-and-one-half per cent bonds, Sec
retary sherman decided to withdraw 100000
900 of them from the market and terminate
the contract. He gave legal notice OF the
termination to Morton. Bliss * Co. In making
new contract for the four per cent loan Morton,
Bliss & Co. signed and acted Ior themselves aud for
Morton. Rose q Co., of London and for none OF the
others with whom they had formerly been asso-
ciated.
The quarrel which il reported 10 have grown out
Of this Treasury officials say, Is confined to the
bankers themselves and the Government has moth
ing TO do with 1t. Some publications in regard 10
this have recently been made, but the correspond
ence with the Treasury Department touching II was
mostly closed month ago and very little has been
heard about 1t in Washington since.