The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-15
SIERN\N'S FOUR PER CENTS.
MIR HONEST JOHN's POPTLiR LOAN
I\PIKIIENT CtHE TO GRIEF.

,u,, Begun A Chapter of syndicate Finance
For several days past n rumOr has been
current in financial circles that there was
trouble brewing between the De fdcio Secretary
OF tho Treasury. John sherman. and the four
por cent loan syndicate. ON the one side. and
certain national banks and prominent banking
houses on the other II was hintod that Secrc-
hry sherman was himself connected with the
syndicate. and that ~ the result Of breach Of
faith and direct act of trcachcry on the part Of
Ncasrs. Morton Bliss a Co. 10 their recent as
.ocia,cs in the four and half per cent loan
evndcatc. connivcd at by sherman. "A suit had
been begun against that firm. Color was given
/, the report 10y the fact that the four per cent
l,an Is now offered in the open market at Il
price inelulngt the accrued interest. nearly ono
ror cent below the price at which IT was sub
s.rb,d for by the syndicate. This. of course.
makes il impossible for sherman to carry out ut
rresent his pet -chomc Of funding the six per
e.nts In four per cents. for which nearly nine
hundred millions would hc required This
failure. u wd- -nd on the street. was partly due
b. the hostility of the banks and bankers who
had been badly treated in regard to the other
loan though of course other cNtrancous cir
rumsinn'rS too obvious in the light Of cent
occurrences to need pointing out. were really
The principal ,aU-o. OF what must now Jo con-
.ii.rcl q financial nas 20.
The inside history of the affair is extremely
interesting. Tie story ~ gathered from the
most trustworthy sources i- a- follows:
Tn four and "a hall per cent. loan syndicate
wis formed "a year usulI-' august. TIL" amount
Of the l,nn was three hundred millions hut
WHOM the tim" for sui- rilu 30 ."NIlrei. John
sherman for some reason NtAirvw one hun
drnd millions. and |. fused o. comply with thu
request ui the synd' air for am extension ~
time. lie then placed i'' Tour l'r 'ent loan on
The markrt. winch led TO ile formation oi the
four pr coat. syndicate. The subscriptions Co
the four and 10 laif Dor cont. loan h.d hc,u ..u-
INK ON swimimnsly, aud it struck ihe a.;li"
Sherman a. brilliant ilrN o. Withdraw
The remainder. substitute a loan at a
nhks il II popular loan with bonds of small
amounts. from so un ia" four and
ti'rhti' lor Tree country hut a peoples loan
for small amounts after the Government had
shown lis independence hy withdrawing u
body would rush for thcru. fearing thor, would
never he amy moro Governments Tor sale. 50
rrH-inri sherman.
Tin. heads oi the four anil a half per cont
fynI ..te were the l,othSrhlil- and they are
MS the heads Of the present one. In iat. they
john sherman Is Obliged to consult them be-
FIRE ial 'L- any iinan -Ial stop. Tic only place
Wnrru no'n , uV1poh nha nlnn V' w
,M ,'n 'm W, U,Hn.n'u ~ ,,,I'u, . - ~, u,
u I ~ ,h.,, ,,i ,,i a, ~, r, ,o,
"on l rsI h,,i ,s,i,i u" ..,,' a. ~
- a, ~ nix o,.s r,,piiv a, 'iaiin in ,hts
nnrr, rn Nv, srr,t i. in nv "r.n.ii,v horr1
ismfe Xxx ,, ,'n,rnr ~ ~ ,hn Ipn,Ss ,h1IiiI..'
srL.r I'M ,,,,,rt..t ~. I,.'r NJ, a. ~ mi /,
Iif 'n H. ,i,,"r sii a,i ,I' So, ti',, 49,, ian ~
,, nav ..ll ~ LnmI i"u,,Nt fr1,n thn G,v.
,rnn1nr, ii',r nnr thou,,I 81 ,'lii'si inI viiunl
.n'iir- ,,f ,r,,i, a. H. ti,.es. in ~ oven
mark, .trnmg ,nolousv nyii.utiv eXi.,s ~
H.. n,,,f,,'I Ln,'Is ma !, .,ti,ius VII, tL,.1.
yer, fr1 i ~ ~ ,,,r mt n"r rb,
fur mnI " XIII ,'.r r,.ni r.n li'.';a V,',. c,',,,
nnsaj 49, Gii,,,vs 'TbN it,tis.l'iiis brr>J X
4, Sai-nnn 4 g., NWfi.n Hiss & 60 tIn
Mnrehanfs' %utonni R1nE ttn Am.rirnt,
lrhnntn %utinutI LINZ tho Enu, III
New York National Bank. Tnm Nntlonai
Bank. Winslow, lanicr Co., Kuhn. Loeb 4
c.. and the Tnual States Trust tompany
When il wn, organized Mr.. Thompson 6f tho
Iirst National Bank. who has folt-l more Gov
orumrui louns than any man In the country
wished To- loin. II 5 attempt was bitterly res ST.
eli by Morton Bliss Co.,. and finally sherman
gave him an outside contract. WI! n he lllei
with his usual marked ability and zeal. Now
the Ruths II lbs wished one firm g. do all tAN
clnrich WORK uf the syndicate. uui selected
Morton. Bliss x Co. This firm was NJ course
rnpow.rel To- q and s.-n iori e.r asso .!at'-
oi the Mnrchant,'. Amer AN IN hange Bank
q New York. Third Nj nm. i.l SiIrs