The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1878-08-26
John sherman and the Four per
IN. Y. SUM-

(N.Y. SUM-
A year ago the four per cent. loan OF
the limited States was dead. 1t died of
the silver dollar. the war 10 Europe. and
Secratarv Sbermau's syndicate jobbery.
Peonle would not pay par in gold for a
hon5 that thew saw was likely to be paid
in silver. nor lend money at four per cent,
when thew thought European complica-
lions were goiug to make it worth seven,
nor. in short, would they have any 6uan-
cial dealings with Government whose
Secretary Of the Treasury was VIGOROUSLY
10 partnership with the men transacting
business with it. So the loan failed, and
the syndicate, from which John Sherman
hoped for bis profits, had to be dissolved.
Latterly, however, the loan has come to
life again, and is disporting itself in the
most cheerful manner. Peace in Europe
and our OVID abundant harvests have dis
PEELED all expectations of impending high
rates Cor money. The bonds have been
offered to the public directly without the
interference Of any suspicious lntermedl-
ate syndicate, and the silver dollar, being
iudiciously locked up 10 the Treasury so
that il cannot frighteD people, is out OF
sight and forgotten. The result is highly
gratifying to everybody but the holders OF
1.-The six per cents. The four per cents are
being rapidly taken, as the frequent call
for redemption Of the six per cents indicate.
II nothing untoward happens, we may ex
pect that nearly $l00,000,000 of them
will have been disposed OF before Con-
gress meets in December.
Now the question which shrewd men IL
W all street are asking is; how is Score
tary Sherman getting his little dividend
oat of the loan? If the syndicate hao
held together, the answer wovid have beer
plain enough. Mr.. Sherman had put IN q
weIl-known banking house to take care oil
his interests, and was to have shared with
, them. But that is over now, aud yet, al
John was never known to lose a chance Of
making money, it is assumed that in some
way or other he contrive5 to benefit him
self.
: A clue to the mystery has been though
J by some to be afforded by the operations o
a certain national bank In this city. Thi
institution is an enormous dealer In the DeV
four per cents, and offers exceptional in
ducements to buyers who held the six pc
: cent which have been called or are likel
, soon to be called for redemption. 1t allow
them not only the quarter of one per cent
discount made by the government on tn
! new bonds, but very handsome share c
q the ninety days unearned interest on tn
{ old bonds into the bargain, This can onl
4 be accounted for on the supposition ths
the bank gets from the Treasury Depart
ment the whole of this ninety days inter
. est on the called bonds, although interes
g is also paid on the new bonds for the sam
a period. That is to say, for ninety days til
= country pays six per cent. on the old bond
: and four per cent on the new, or ten pc
l. cent. DIR annum altogether on all bonds Col
ts verified through this favored bank Thel
Il is no proof that Secretary Sherman prof
h By these transactions; but it is a singult
= coincidence, as Mr.. Weller could call
70 that the bank in question has accurate il
IS formation, which can only be derived frol
D. the Treasury Department, of the namt
a and addresses of all holders of old bont
which have been or are going to be Gale
for redemption. Not long ago one of the
y holders was surprised by visit from 9
al agent of the bank proposing to him to e,
10 change his old bonds for new ones, befo
- he knew himself that his bonds had beG
called. His name and address had ey
% IDENTIFY been in possession of the bank:and
le soon as the order was made at Washingtt
"a for the redemption of the bonds the bar
bounced supon him. Now, it is possib
:" that this happens without John Sherman
no consent aud counivance, but uncharitah
people will insist that the bank has tax
the place occupied by partner in the Q
ct syndicate and that John is thus compe
no stated for the failure of that enterprise.