New-York tribune., 1878-04-12

drawn from the market, and new contract
was made for the sale Of the per cent bonds Secretary
Sherman said yesterday that by the withdrawal OF tne
last hundred millions OF the 4l9 cent bonds he had
saved the Government S50Oo000 in interest ana tne
increased price at which onehalf the remainder had
been sold
A SYNDICATE VIEW OF THE MATTER.
The members OF the new Syndicate are n. N.
Rothschild Sons, j. s. Morgan Co.. seligman Broth-
ers, and Morton, Rose & Co., of London, and August
Belmont Co.. Drexe Morgan Co., J. W. seigman
& Co., Morton, Bliss Co.. and the First National BANK
OF Eew-York
prominent member of the Syndicate said yesterday:
The terms Of the contract have made with seere-
tary Sherman are that we subscribe for Sl0000OO0 OF
the 4la per cent bonds, at 101l2 gold coin ana
accrued interest, and have the option to sub
scribe for S4OOO0,OO0 more provided We take
not than $5000O0 per month"; beginning with tue
month OF May. This contract may be considered as
equivalent actual placing Of the entire S5oOOooOO
In carrying out the details Of the arrangement IL
is the intention of Secretary Sherman to avoid any sud
heavy withdrawal OF gold from the NewYork mar
ket, and In the of the 40,000OOO covered nto
the Treasury June TO December 1877, 80 to dis
tribute the payments that they cannot possibly occa-
sion any inconvenience to the money market For this
purpose it is understood that the Secretary will
allow the Syndicate, to any desired extent,
to deposit the payments OF gold IN any desig,
mated depository banks duly quallned IOr ths
purpose under tHe provisions o e HevSa @ e S1S
cent loans The New-York price when our bid was
2is io24sSi03 dHrrency % with gold gold at lOo4, mat
we have paid for this loan price eIuIaIeht
OF the contract, allowed commission
by the Government the same that paid TO the last
OF engraving printing and delivering the bonds. in ad-
dton this, the arrangement includes the European
agency as in the previous Government loans. Mr;
COnant will probably be selected TO fill the position or
chief OF the bureau with headquarters at the once OF
Referring TO the possibility of a combination TO manip
uate the price OF gold to affect the price OF the
bonds, this bauher said In addition TO The facilities
possessed by the Syndicate their large experience
In the previous loans Secretary shermanb by this contract
movement to extent sufficient to prevent large gold
shipments to Europe II any sach movement snonld De
undertaken in opposition TO the policy OF the treasury
Department 1t could be prevented by drawing ex-
'D''"9'' VIEWS OF GEORGE s. CoE.
George 8. Coe, president OF the American Exchange
Bank said that in his conference with the National
banks Secretary Sherman began by asking the banks 10
take 500 OOO OF the per cents at par, or similar
amount the 42 per cents at per cent premium The
banks decided that inexpedient for them TO take
any per cent bonds or to participate IN any loan that
Referring to the entered into by Secretary
Sherman Mr. COe said that he had made good SAFE Dut
that he had positive guarantee that any more than
$4,000, 600 would be taken
OPINION OF b. b. SHERMAN.
H. b. sherman, president OF the Mechanics Bank,
Secretary had completed arrangements for the
sale OF the bonds lie now believed that
resumption by the first OF next year was
guaranteed He had great hope that it the dawn of
better days He had doubt that resumption could he
brought about with $140OO0O00 gold, and assur-
ancc OF resumption all that was now
necessary to restore confidence among the people.
All the banks heartily in sympathy
with the Secretary in his efforts to come TO specie pay
ments again. and they were ready almost without ex-
ccpon to give him an the assistance they were able TO
give. The proposition Of the National banks
was substantially TO take the whole Issue
Of S5O.OOO,0OO and sell them at the
best price Obtanable charging i OF one per cent COM
mission but guaranteeing that the Secretary should re-
ceiye at least par for the bonds.
OTHER OPINIONS.
Francis o. French said "Ths sale by the Secretary
settles the question OF resumption by giving him the
600 gold that he requires for that purpose
George F. Baker, president of the First National Bank
said believe that the bonds will sell faster than the
Secretary expects aud that by the middle or July the
entire $50, 900 600 OF bonds will he placed"
IL was a common remark among bankers yesterday AZ
ternoon that the Secretary had made good bargain.
resumption by January l. 1879, was virtually guar
anteed.