The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-04-12
sHERMAN's CONFERENCE WITH THE
BANKERS.
He Asks Help Only and No COunsel-The
PrOpOsLtinn Of the Ranke,S

New YORK, April 11.-Secretary Sherman
made the sub-treasury office his headquarters
yesterday, where he was called upon by iinan-
cial men. He had no formal conference with
representatives OF national banks and bank
ing firms.
The Secretary said to leading banker that
he came here for the purpose OF securing aid
from the banks in resumption Of specie pay
ment, not to be dictated to or advised as to
his precise plan. He stated to the officers of
national banks that he required Sl40, ,0O0, 600
in gold to resume specie payment on January
L; he had on hand about S90,0 900, 900, and de-
him, to subscribe for S50,OOO,O0O in bonds,
which would make up the full amount of
$40 100000; he also expressed his Willingness
to dispose Of 00,000, 600 OF per cent bonds at
par, with commission Of u per cent. After
general discussion, which was not favorable
to the proposition in regard to the 4 per cent
bonds, Secretary Sherman made an offer to
dispose of S50,000000 OF ~ per cents, and re-
quested the banks and bankers to submit
proposition to him for the full amount or any
fractional part thereof
1t is understood the national bank prpsi-
dents held a secret meeting Tuesday night to
consider the proposition OF Secretary Sher-
man. His proposition that the banks should
subscribe for per cents was voted down. A
committee was selected to prepare and sub
init a new proposition, which would be salts
factory to the banks. The proposition as de-
cided upon Is accompanied by arguments set
ting forth among other things that the banks
assembled are desirOus of rendering all the
aid possible gratis in securing resumption Of
specie payment, but in doing so certain things
must be ct nsidered. The banks are will
ing to subscribe for the full amount
Of $50,0O0,000 bonds, and to sell them at the
| same price paid for them, asking and requir-
ing no profit, but they must have something
to say in regard to the classes of bonds to be
issued; 4 per cents they cannot use at all as
sale is entirely too slow and uncertain they
per cents, of 1881, which could be placed more
readily. We know that the large number of
bonds which have recently been returned to
this country from abroad on account of the
reconciliation OF silver are now held on
speculation or have not been disposed Of,
and that the banks generally have more
government bonds now on hand than at any
previous time since they were issued. The
banks cannot assume any great risk in sub
scribing for the bonds proposed and the mar
ket must be viewed perspectively as we'll as
in its present features. Should the market
become flat and the demand for bonds cease,
the banks cannot consent to assume a loss on
such bonds as are held over, and they will re-
quire a guarantee against loss, in order to
protect their capital; with this guarantee
from the Secretary the banks are willing to
subscribe for the full amount of $50, 200 of
"a per cents, or new SIS OF 1881, at the market
quotations, and crediting the Treasury De-
partment with their equivalent in gold.
This proposition, it Is understood, was pre-
sented to Secretary Sherman. A meeting was
held of members of The late per cent syndi-
cate, composed of the First National Bank,
August Belmont representing the Roths-
childs Of London, Drexel, Morgan q Co. and
J. x w. Seligman Il Co, at which it was de-
cided to make bid for the entire amount
offered bv Secretary Sherman.
H. G. Fahnestack, George Bliss and August
Belmont called ou Secretary Sherman and
had an interview with him. They informed
him they did not come as syndicate, but as
representatives of banks and banking firms
to render substantial aid to the government
in its efforts to secure speedy and permanent
resumption OF specie payments.
Secretary Sherman said he felt confident Of
the ability of the Treasury Department to
resume by January ], If not before that time,
bonds, and he claimed that with the gold now
in the treasury, and that yet to come, and
fifteen millions realized from the sale OF
bonds, as he proposed, he would have nearly
two hundred million dollars gold by january
l. which would render resumption entirely
practicable. The bankers said they
were prepared to make an offer for Az per
cents, and if it should be accepted, they
would hold themselves ready to honor his
of S., ,O0O, 600 per mouth. The offer was sub
mltted, and Secretary Sherman promised to
give final answer to-day, saying he would
accept the bid which proved most favorable
to the government. 1t is understood the off-r
made by the members of the late syndicate
was 103 gold for ~ per cents and accrued in
aereSt.
apecie ResumptiOn-sherman and the
Bankers-sale Of Bonds.
NEW YORK, April 1l.-This morning Secre-