New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-17
CLOSING UP THE CONTRACT.

of the market for the present, and probably until
june July, and that few sales could be
pected at the advance for a short time Ii was de-
cded also to subscribe for the remaining $15, 0O0
900 of the $50 600, 900 provided for by the Synd-
Gates arrangements with Secretary Sherman. The
SO, 900 will be taken for European account.
"1he effect of this action" said banker yester-
day, who is familiar with the operations of the Syn
dcate will be to furnish exchange for the portion
taken in Europe, and practically to increase the
available supply of gold to that extent. Secretary
Sherman has declared that witht gold derived from
the sale of the 500, 900 fouranda-half per cent
bonds contracted for by the Syndicate he will have
sufficient gold for resumption purposes in January
and it is expected that the remaining bonds will
find ready sale at London and Frankfort, where
this class of securities are very popular"
The amount remaining to the credit of the Synd-
cate is $13, 100000, of which $40, 100000 vir-
tuay in the hands of the Rothschilds, having been
taken abroad by Messrs. Conant 81 Coon, the Lon
don agents of the Treasury Department This will
leave $3,750.000 to be disposed of here, none Of
which will be sold, it is understood, except at the
advanced rate of 1929 and accrued interest
1t is understood that the Syndicate has proposed
to make contract for the sale of $50, 900 900 per
cent bonds. with the option of $5O,00O,O00 more,
and that Secretary Sherman is considering the pro-
position. The price offered for these bonds and the
commission to be allowed could not be learned yes
terday, the members of the Syndicate de-
clinng to impart any information on this
subject except to state that they were now
making run on the four per cent bonds, and
that they believed that they would be able
to sell large amounts of these both for home and
foreign account.
The negotiations for the purchase of So, 10000
fOur-and-a-half per cent bonds from tn
| Syndicate which were mentioned in We'd
nesday's TRIBUNE, were completed yes
terday morning. showing aggregate sales
on Wednesdays account in excess of $5,OO0,0OO.
and total sales since April IL of $50, $50 OOO-an
average of 81 900 900 per day since the sign
| ing of the contract. Orders for SI,000,000
fourand-a half per cent bonds declined yester-
| day except at the advanced price of 102l2.
gold and accrued interest advance of L per cent
over the market price of the previous day. The SUBJ
scriptions for the four-and-a-half per cent bonds
have been made by the Syndicate in the following
order:
April 20 May option .... .............. 100000
May yune option) .--..-...........-.. 2OVO,oVOOO
Nav il WgeUst and contender optionsj " 100000
May II October, November and December 80 40.
opuons) loooo'ooo
Total. ..................s 5O,o0o,OO0
The contract for the sale of four-and -a-haf per
cent bonds entered into April IL, between the
Secretary of the Treasury of the United States and
August Belmont & Co., of New-York, on behalf of N.
NJ Rothschild a. Sons of London. England, and
associates and themselves; Drexel, Morgan & Co.,
of New-York, on behalf of j. s. Morgan & Co., Of
London, and themselves; J. & w. seligman Sc
Co.. of New-York, on behalf Of Segman
Brothers, of London, and themselves; Morton,
Bliss & Co.. of New-York, behalf of
Morton, Rose & Co.. of London, and themselves.
and the First National Bank of the City of Now-York
Ii provided that August Belmont Co., on behalf OF
n NJ. Rothschild & Sons, and associates and them
selves agreed to purchase from the Secretary of the
Treasury $4,125 900 of the four-and-one-haf per
cent bonds of the United States, issued under the
acts of July Ia. 1870. January 20, 1871 and Janu-
airy IA, 1875 and that Drexel, Morgan Co., on
behalf of j. S. Morgan & Co. aud themselves, agreed
TO purchase 81 1875 900 of said bonds, and that j. IL
W. Seligman & Co., on behalf of Seligman Brothers
and themselves, agreed to purchase 81 1925, 900 of
said bonds and that Morton, Bliss Co., on behalf
of Morton Rose & Co. and themselves agreed to
purchase 81 1926 900 of said bonds, and that the
First National Bank of the City of NewYork agreed
to purchase 81 100000 of said bonds making
total aggregate of SIC, 100000 of said bonds.
The conditions in the contract were that the
bonds should be sold for resumption purposes, the
Syndicate to have the exclusive right to subscribe,
in the same proportion to each Of the subscribers.
for tho remaining SfO,OOU,UUO DOnus, at tue
of So, 900 900 per month. and no bonds were to be
sold by the Secretary during the time OF the con-
tract except four per cents for rending purposes or
such by Act OF Congress should De provided 10 Do
sold for the payment of the Halifax or Geneva
awards, except by mutual agreement
Under the contract the Syndicate to
pay for the fOur-and-half per cent bonds
par and liz per cent premium and in-
terest accrued to the date Of application for
delivery of the bonds in gold coin or matured
United States gold coin coupons. or any of the o
per cent 500 bonds heretofore called for re-
demption, or in United States gold certificates OF
deposit of authorized designated depostsries that
have complied with the law. The Syndicate
was TO receive in gold coin commission
of one half of one per cent on all bonds taken
by the Syndicate under this contract. as allowed by
the Act of July H. 1870, and to assume and defyay
all expenses which might be incurred in sending
bonds to London elsewhere upon the Syndicate's
request or by transmitting bonds, coupons, coin
to the Treasury Department at Washington, includ-
ing all cost of making the exchange OF bonds. The
Syndicate was also to be charged with the cost Of
the preparation and issuing Of the bonds.
The first issue of $4,000, 900 bonds under rhe
contract was made OH April 10. aud these bonds
were sold In exactly ten days, making an average
sale Of 81, 900 900 day. The total sales of $780,
100000 thus far have been made in thirty working
days, at an average Of s., 20s, 1888 day. Among
the purchasers of these bonds have been trustees
of large estates, savings banks, trust and
Insurance companies, and banks n ana bank
ing firms OF New1YoIk Boston, a pnad sI''
Chattanooga, New-t Orleans, and many other cities
in the New England and Western States and CALI
a 4 Is Of the rs VIII be
about 1888 OOO divided as follows: Belmont Il Co.
and the Rothschilds, Al per cent Drexel, Nor
f fo4 per cent Norton Bliss Co. III per cent.
and the First National Bank 10 per cent.