The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-08-22


year ago the four per cent. loan OF the
United States was dead 1t died Of the sill
vcr dollar the war in Europe, and Secretary
SuERMAN's syndicatc jobbcry. People would
not pay par in gold Tor bond that they saw
was likely TO be paid in silver, nor lend
money at four per cent. when they thought
European complications were going to make
it worth seven, nor in short would they
have any financial dealings with n Govern
mcnt whose Secretary of the Treasury was
VIGOROUSLY in partnership with the men
transactng business with it. So the loan
failed, and the syndicate, from which JONI
SHERMAN hoped for his profits, had to be dis
solved.
Lattcrly, however, the loan has como to
life again, and is disporting itself in the
most cheerful manner. Peace i'm Europe
and our own abundant harvcsts have dis
PEELED all expectations Of impending high
rates for money. The bonds have been
offered TO the public directly without the in
tcricrencc of any suspicious intermediate
syndicate, and the silver dollar being judi
ciously locked up in the Treasury So that it
cannot brighten people. is out of sight and
forgotten. The result is highly gratifying
cents. The four per cents are being rapidly
taken. as the frequent calls for redemption
Of the six per cents indicate. If nothing un-
toward happens. we may expect that nearly
500 900 81 them will have been disposed
of before Congress meets in December.
Now the question which shrcwd men in
Wall street are asking is. How Is Secretary
SHERMAN getting his little dividend out Of
this loanY If the syndicate had held
together the answer would have been plain
enough. Mr.. SHERMAN had put in we'll
known banking house TO take care Of his
interests, and was to have shared with
them But that Is over now, and yet. as
JOIN was never known to lose chance Of
making money, it H. assumed that in some
way or other he contrivcs TO benefit himself
in the present case.
A clue to the mystery has been thought
by some to be afforded by the operations OF
n certain national bank In this city. This
institution Is an enormous dealer IN the new
four per cents, and offers exceptional in
ducoments TO buyers who hold the six per
cents which have been called or are likely
soon To be- called for redemption. IL allows
them not only the quarter of one per cent.
discount made by the Government ON the
new bonds, but n very handsome share Of
the ninety days uncarncd interest on the
old bonds into the bargain. This can only
be- accounted for on the suppostion that the
bank gets from the Treasury Department
the whole Of this ninety days interest on
the called bonds, although interest is also
paid on the new bonds for the same period.
That is To say, for ninety days the country
pays six per cent ON the old bonds and four
per cent. on the new, or ten per cent per
annum altogether on all bonds converted
through this favored bank. There is no proof
that Secretary SHERMAN profits by these
transactions, but it l. a singular coincidence.
as Mr. WELLER would call il. that the bank IN
can only be derived from the Treasury De-
partment, OF the names and addresses Of all
holders Of old bonds which have been or are
going to be called for redemption. Not long
ago one Of these holders was surprised by a
visit from an agent Of the bank proposing
to him To exchange his old bonds for new
ones before he knew himself that his bonds
had been called. His name and address,
and the amount of bonds he held, had been
evidently IN possession OF the bank; and as
soon as the order was made at Washington
for the redemption Of the bonds the bank
pounccd upon him. Now, it is possible that
this happens without JOHN SHERNAN's con-
sent and cOnnivaHcc, but uncharitable peu-
pie will insist that the bank has taken the
place occupied by a partner in the old synd-
cate and that joins j. thus compensated for
the failure of that enterprise.