New-York tribune., 1878-04-12
DETAILS OF TIE ARRANGEMENT.


ury Office about 10 o'clock. yesterday morning. and
talked for hour with several bankers who called
upon him. He said that he would announce at noon his
decision the offers for $50 100000 of 4l9 per cent
bonds. There were only two propositions before him
for the entire amount stated IN yesterdays TRIBUNE,
from National Bank presidents and the.other from
the members OF the per cent Syndicate. Kuhn,
Loeb IL Co. sent in n letter asking what terms
Secretary Sherman would sell S2j,000,000 Of per
cents and of 49 per cent bonds. To this
answer was returned.
Tne bid OF tine National Banks presented by Henry
f. Vail, Theodore d. Ycrmye and Frederick ID. Tappen.
Mr. Vail said that the National Banks stood ready to do
anything TO aid the Secretary consistent with their duty
to their patrons and the commercial world. Mr..
Vail added that the banks heartily in accord
with the Administration in its endeayors to
secure an early resumption Of specie payments.
The National Banks, he said, had authorized
himself and his associates to express to the
Secretary their willingness to recommend to their asso-
ciates III New York Boston, Philadelphia and Baltimore
20 unite taking the loan Of SjO,OOO,OO0 Ala cent
bonds AZ par gold coin for resumption purposes with
guarantee take all the bonds and to pay for them in
gold, before the date OF resumption. The banks
would insist, however that II this loan OF S5O,OOO,OOO
taken. the Secretary must not to issue any
other OF this series 20 other persons or corporations
until the $4,000 900 subscribed for disposed Of
Secretary sherman responded that he had received
much more favorable bid upon which the Government
would be obi,e 10 give special guarantees
Mr. Vail said that II tie Sec eary could make any ar
with private bankers TO subscribe for the loan
on satisfactory terms, he would advise him to do so.
banks hc claimed had made the best offer possible
consistent with their duty to their stockholders. the
Government and their customers.
After the delegation withdrew Mr.. Sherman left the
building the Custom House, where he remained until
noon. At that hour George f. Baker and II. c. Fame
stock the First National Bank, Ernst b. Lucke repre-
scntiug August Belmont Co.. George Bliss OF Morton,
Bliss q Co., Joseph selignan OF J. W. Selgman Co.,
aud T. +. Fabbri, OF D.exel, Morgan Co., called on
the Secretary at the Treasury. After brief con-
ference Mr. sherman decided accept amended bid
which the bankers present had submitted as
q compromise behalf OF themselves and their
associates He said that he came here with an earnest
desire 20 secure the cooperation OF the NewYork banks
aud bankers which he felt Indispensable 10 the ac-
cumulaton OF the amount Of coin necessary for the
execution OF the Resumption Act This amount he had
fixed at SIAO 900 900, OF which he said he had in the
Treasury 00O that the sale he had effected OF
S5OOOO.OOO bonds would put him in position, on or
before the Let of January declare specie payments
resumed.
immediately after the adjournment OF the conference
the following posted the cashiers win
dow Of the sub-TTeasury:
The Secretary Of he Treasury and the members OF the
sale I5r TssnInpton purposes, Of $4,000 900 United
State, e per cent een year bonds par and accrued
900 10 be taken Immediately and SJ,oOoOoo per
month during the balance OF the year.
The sale OF per cent bonds will be continued by the
Treasury Department heretofore npon the terms ana
conditions OF the last circular and tue proceeds w De
applied 20 the redemption OF per cent 5-2O bonds.
ATALK WITH MR.. SHERMAN.
Secretary Sherman said TRIBUNE reporter last
ing In conversation at the Firth Avenue Hotel that he
felt satisfied that resumption by January l. 1879, was
now assured. The country TO be congratulated on
that fact The abundant crops the balance OF trade n
favor OF the United states and an assurance that
specie payments would be resumed within few months
all these advantages should inspire commence among
all classes Of people.
Secretary sherman stated further that the contra CT
with the Syndicate was for 1919 and accrued interest
but OF this amount Syndicate allowed for com
MISSION expenses OF printing transportation, etc. 2
per cent The net amount that would, there
fore, be realized by the Government, was lOl
aud accrued interest. He had shown no prefer
ence 10 any ono in making the negotiation. but he
clad that the National Banks had not undertaken TO dis
pose Of the bonds necessarily would have crippled
them 10 some extent The National Banks needed their
funds for the accommodation OF their customers, and
furthermore. the purchase OF the bonds by the Old
Syndicate was n guarantee that the shipment of bonds
Europe would practically be stopped Inc foreign
interest represented in the Syndicate would undoubt-
edy take steps TO maintain the price OF bonds abroad
The contract with the Syndicate Mr. Sherman contin-
ued, was virtually made Wednesday evening although
could not be said that they then bound by Its
terms Any OF them could have declined yes
terday morning TO sign the agreement After
the conference with the representatives OF
the Syndicate Wednesday afternoon ho conferred with
several representatives OF the National Banks, all OF
whom advised him TO close the contract with the Synd
cate as II was certainly the best that could be done
In giving this advice they recommending course
by which they would lose their commissions, but they all
felt deep interest In the OF the Government In
,.,.ltn
10 do all they could aid in its efforts in that drec
ton. The negotiations had been, throughout, OF an
agreeable nature and there no unpleasant feeling or
misunderstanding reported In some quarters between
himself and the banks.
The option clause the Secretary said further.
merely nominal The Syndicate could not consistently
and it certainly would not avail itself OF the provisions
of that clause which we're similar to the provisions con-
tanned In previous contracts between the GOV
ernment and the syndicates With Sl2OOOOOOo
In gold to meet any demands created by the preseht
ton greenbacks and with enough gold ana silver III
addition pay all other demands upon the treasury
would be impossible to impede resumption by the ac-
eumulation OF greenbacks II would be impossible to
gather together SlOOOOO00 for such purpose.
The Senate would undoubtedly sustain him In his
present undertaking. and no did not peneVe that the
House Of Representatives would interfere lie DelleVed
that the latter would let the financial question alone Tor
the remainder OF this session. Indeed he was confident
that during the past three weeks the west had become
more favorable 10 the Resumption Act, and more OPP
posed to any further legislation at present on the money
question The people OF the West had expected great
things from the passage OF the Silver BILL aud they had
been sadly disappointed they were consequently grow
ing daily more in favor trying the virtues OF return
specie payments He thought gold might go to par by
the lst Of July However It might possibly be kept att
premium until the close OF the year.
The negotiation of the 4 per cent bonds was begun
In September 1876 through Syndicate similar TO the
present one and the contract was In force until
June, 1877, when, s2Oo,000,0oo having been
.old. the remaining sloo,0Oo,ooo were with