The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-23
WASHINGTON DISPATCHES.
GENERAL


THE SALE OF BoNDs-sEcRErARY SHERMAN IN
RESPONSE TO GENERAL BUTLEn's AFTER
DINNER SPEECH.
Secretary Sherman, upon being asked about the
statement made by General Butler at dinner at
Boston, reported in this mornings papers, said that
General Butler must have been unsupported. or had
fallen into several grave mistakes regard to tho
loans. Tho Secretary said:-
1t Is also not that the people were buying four
per bonds at par the rate Of 900 mouth,
Tor tho whole amount OF sales OF such bonds
from the LIST OF December to tho 11ih OF April
the date OF tho contract-was $5,69s 900, a little
over 100000 month. And it is not true
that sold four aud half per cent bonds for
thirty years No such bonds are authorized.
The bonds sold were four and half por cent
bonds for nftecn years, and they not sold at
par but and half per cent and the accruing
interest premium In gold coin, tho equivalent OF
1o2x currency, which was tho market that day.
ana about tho equivalent OF par for four pcr cent
bonds The truth Is that since the made
NO are selling four pcr cent Qonds rapidly hav
ing sold 81 in ten days, at tho Of
S. 600, 900 month; this one of the beneficial
effects of tho contract tho result OF confidence IN.
spired by it,
As to the stories that Mr. Sherman summoned
before tho House Committee Banking ana Cur
| CouCoai0u FeCent
with the Syndicate for the sale or four and ononal
per bonds or its terms. Mr.. Sherman said that
no had. not been summoned before the committee.
Tho committee know very we'll that he their
vice and will readily respond their request without
formaty, and that summons has ever boon issued.
He received q letter from General Ewing. acting
chairman, and promptly answered II, enclosing copy
OF the contract. and previously copy OF the
contract had been gven TO Mr. Glover at his requcs
Tho contract embraced tho sale Of $4,000 900 Of.
bonds, OF which $l00oo,Oo0 wcro subscribed for the
firm, TO DO paid for in April, and for the balance the
associates had tho exclusive option at tho OF
81, 900 month, but upon condition that tho
amount should 30 sold and paid for each
month In this respect the contract was
In tho words the previous con-
tract for four and a-ha per cent bonds, under which
$780, 600 900 sold. and similar all tho
made by government for tho sale Of bonds So far
from there being any concealmcnt tho contract
made and the whole negotiation in the presence
OF halt dozen leading financial officers Of the govern
ment known and recommended by leading BANK
crs who were competing for tho loan, road by q
number Of others and has been communicated Con-
gress 1t Is just certain result accommodating
in tho Treasury for the 1st otJanuary 600
In coin net as any contract to fulfilled 10 tho future
can bO
THE FoUR AND 4 HALF PER CENT BONDS
COPY OF THE CONTRACT BETWEEN sEcRE-
TARY SHERMAN AND THE SYNDICATE.
Tho following copy Of tho contract recently en-.
tercd Into by Secretary sherman and the Syndicate
for the sale OF four and half per cent bonds:--
This agreement entered into the 1lth day OF April
1878, bctweon tho Secretary OF tho Treasury Of
States q ns ss part ana Messr Bel
Rothschiid Sons OF London England, and associates
and themselves; Mss;T. Dsexsi Morgan Co., q Now
London, and themsslves; M.ssrs. ). 4 W. sslig-
INV xsr London , sa e
selves; Mcssrs. Morton, Bliss Co., OF New York, on
behalf Of Messra Morton, Rose Co., Of LONDON, and
themselves and tho FIRST National Bauk OF tho city
Of New YORK witncsscth:-
That tho said August Belmont & Co., on behalf OF
Themselves nsroby ssrco % purchase from tho Sec
rotary OF tho Treasury s4,l25,ocs Of the
ss Per uuss9 the s0n ss,. Of
July H. ls7o January 20 1871 and January H. 1878;
and sha. hesSrs; D,:scl Morgan \ Co., on behalf
s sene: 1 ana .ha. %essrs sssns as
thcmsoivcs. agree to purchase 1926. 900 Of said
bonds. and that Mcssrs. Morton. Bliss Co., be.
half Of Messrs Morton. 1ose 4 Co. ana themselves.
agrce 70 purchase 1925, 900 OF sad bonds, that
tho First National Bank Of tho city Of Now York
total sssrosaao Of o. SAID bonds on he
terms and conditions following
Fira-Thc bonds covered by this contract shell be
sold for resumption purposes.
Second-Tho parties Of the second part shall havo
tho exclusive right to subscribe the proper
ton 10 each Of the subscribers for tho remainder OF
$50 000 900 four ond onehaif per bonds OF the
United States authorized TO be issued by the OF
Congress aforesaid but the amount TO be subscribed
shall DO less than S. 600 for each and every
month after the prescott month.
Third-That tho Secretary OF the Treasury shall
mot sell during continuance OF this contract any
bonds other than such as BY act OF Congress may BIO
Or Geneva award ana tho four per cent consols Of
tho United Staics, and those only for rcunding pur
poses. except by mutual agreement OF tho parties
hereto.
Fourt-Tbo parties Of the second part agreo 10 pay
said four and one-haf per cont bonds par and
and one.Lalf per cent premium aud interest accrued
the date Of application for delivery OF said bonds
gold coin matured United Stbcs gold coin coupons,
or any Of the six per cent hvetwenty bonds hereto
fore called for REDEMPTION In United States gold
certificates OF deposit Of deposit
torres that have complied with tho law.
FY0h-Thc parties or tho second part shall receive
IN gold coin commission Of onchalf OF ono per cont
on nil bonds taken by them under this contract,
allowed by tho Of July H. 1870 and shall assume
and deiray all expenses which may be incurred In
sending bonds to London or elsewhere upon their re-
quest or by transmitting pouds coupons or coin TO
tho Treasury Department at Washington, including
all OF making tho exchange Of bonds, and shall
also DO charged with the cost OF the preparation and
s,xda-No bonds snail DO delivered TO tho parties Of
have been mado In full therefor in accordance with
the terms OF this contract.
JOHN SHERMAN. Secretary OF tho Treasury.
Nicssrs. J. 4 W. sELIGMAN 4 co.
Messrs. MORTON, BLISS co.
Mcssrs. AUGUST BELMONT 4 co.
THE FIRST NATIONAL BANK OF NEW YORK.
DKEXEL MORGAN & co.
And Witnessed by Assistant United States Treasurer
Thomas Hilhouso and T. q. Babcock.
Tho foregoing is copied from nm Official copy fur
nisbed by Secretary Sherman In accordance with
request OF the House Committee Banking ana Cur
rcpcy.
THE MEXICAN MINISTER TO THE UNITED STATES.
schor Zamucona, having received his credentials as
Mexican Minister to tho United States will call upon
Secretary Evarts to ofcially inform him OF the fact
whom tho latter viii designate time when no will
accompany the Minister 10 the Executive Mansion,
that shc credentials no presented the President
In person.
THE INDIAN APPROPRIATION BILL.
The Housc Committee Appropr iations to-day
mplctcd tho Indian Appropriation BILL Tho total
amount OF It's items about 81 7oo ooo being somc