New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-04-11
CALLING ON THE SECRETARY.
UALLINU On IIIL nIN M NM
MANY BANK OFFICERS AND PRIVATE BANKERS
HAVE CONVERSATIONS WITH MR. SHERMAN
DETAILS OF THE OFFERS FOR BONDS.

| DETAILS OF THE OFF hS FOk BONDS'
| Secretary Sherman made the Sub-Ireasuly
Office his headquarters yesterday, and with the exce
ton of unching at Delmonicos he did not leave the
| building until 4 O'clock when he went TO his hotel
During the day he was called upon by financial men,
among whom were George Bliss, of Norton Bliss Coz
Is. g. sherman, president OF the Mechanics Bank; J d.
! Vcrmilye president of the Merchants Bank; Joseph
| Selgman, OF ]. q W. Seligman Co.; Henry F. Vail,
president of the Bank OF Commerce; George $. Coe,
| president Of the American Exchange Bank; james NJ
| Brown and Howard Potter OF Brown Brothers; T. ID.
Morgan, Of f. d. Morgan Co.. John A. Stewart, presi-
dent of the United States Trust Company; Samuel d.
BabcOck, president OF the Chamber of Commerce; j. F.
d. L,nier of winslow, Lanier & Co.; George f. Baker
and H. Fahnestock of the First National Bank; Jacob
| II. schT. OF Kuhn, Loeb & Co; August Belmont, and
others There was formal conference between Sec
rotary Sherman and the representatives, Of National
| banks ana banking firms.
| "The Secretary" said leading banker yesterday
came here for the purpose OF securing aid from the
banks in the resumption OF specie payments, and not to
he dictated 10 advised to his precise plan. He
the officers Of the National banks that he re-
CURED 900 In gold to resume specie payments
on January that lie had hand about ,OO0
and desired the banks, If they willing TO assist
him. subscribe for S5OOOO.OOO in bonds, which would
make mp the full amount Of SlfO,OOO,0O0 II, also
expressed his Willingness TO dispose Of $l00OOO00O Of
the per bonds at par with commission Of u per
After general discussion, which not favor
able TO the proposition in regard to the per cent bonds
Secretary sherman offer 10 dispose Of 100000
600 OF 42 per cents and requested the banks aud bank
ers to submit proposition to him for the full amount
amount any fractional part thereof"
II is understood that the National bank presidents held
secret meeting last Tuesday night TO consider the pro
position of Secretary sherman, those present being
Henry +. Vail. OF the Bank Of Commerce George l.
Sency, of the Metropolitan Bank b. b. Sherman OF the
Mechanics Bank +. d. Happen, OF the Gaatin Bank ;
p. C. Calhoun, OF the Fourth National Bank L. A.
Palmer, Of the Broadway Bank j. d. Vermlyc Of the
Merchants Bank and George :. Coc OF the American
Exchange Bank. The proposition Of Secretary sher-
man. that the banks should subscribe for the per cents
was voted down. and Henry +. Vail, j. d. vcrmilye and
George g. Coe were selected to prepare and submit in
writing proposition which would be satisfactory
TO the banks.
The proposition, as decided upon, Il accompanied by
an argument setting forth among other things that the
banks assembled DESTROYS Of rendering all the rid
possible, gratis in securing the resumption Of specie
payments but in doing certain things must be con-
dered. While the banks occupy the position OF general
dcpotaTle Of the Treasury Department and closely
connected with its interests they also are the only
OF the commercial community, and In extending
aid TO the Government, they must do nothing that Will
ALLEVIATE the interests Of the commercial world. The
banks are willing to subscribe for the fun amount OF
500 OOOOOO bonds and to sell them at the price
paid for them, asking and requiring profit, but they
nave something 10 III ltgaIu inc Clhhses OF
bonds TO issued The per cents they cannot AZ
ALL as the sale is entirely slow and
uncertain. They would be willing to accept the
4ls per cents the per cents Of 1881
which could be placed more readily. We know
! that n large number Of bonds that have been
returned country from abroad account Of the
reconciliation Of silver, held on speculation, or
have not disposed Of and that the banks generally
have more Government bonds on hand than AT any
previous time since they were Issued The banks can
not any great risks IN subscribing Tor the bonds
proposed ana the market must be viewed prospectvely
as we'll In its present features Should the market be-
come fiat and the demand for bonds cease the banks
cannot consent 10 the loss such bonds
held over and they will require guarantee against loss
I'm order 10 protect their capital With this guarantee
from the Secretary. the banks willing 20 subscribe
for the full amount Of 0OO0O OF lie per cents
5s Of 1881 the market quotation, crcdng the Treas
ury Department with their equivalent In gold"
This proposition, IL Is understood, was presented 70
Secretary sherman yesterday afternoon.
OFFER OF THE FOUR PER CENT SYNDICATE.
meeting was held yesterday Of members OF the late
-Four Per Cent Syndicate, composed Of the First National
Bank, August Belmont representing the Rothschilds OF
London Drexel, Morgan Co, Morton, Bliss & Co., and
j. W. selignan & Co., at which 1t decided to make
bid for the entire amount offered by Secretary Sher
man. II. G. FahuestOck, George Bliss and August Bel
mont called Mr. Sherman ana had interview with
him. They Informed him that they did not come a
Syndicate, nut or banks banking
FIRMS render substantial aid 20 the Government in its
efforts TO speedy and permanent resumption Of
specie payments
Mr. Sherman said that he felt confident Of the ability
OF the Treasury Department TO resume by January l. II
moi before time If he could the sale OF 500
600 900 bonds, anu he claimed that with the gold
in the Treasury, the yet to come, and 100000
600 realized from the sale OF bonds he proposed he
would have nearly S20OOOO,00O gold by January /,
which would render resumption entirely practicable.
The bankers said that they were prepared TO make
offer for l. per cents and II II should be accepted they
would hold themselves ready to honor his drafts for
gold the Issue OF the bonds In instruments Of 80,
OOO.0 900 per month. The offer submitted. and Sec
rotary Sherman promised to give final to-day
rcnarkng that he would accept the bud which proved
the most favorable To the Government 10 Is understood
that the offer made by the members OF the late Syndicate
was 1913 gold for the 4 los, ana accrued interest.
member Of the Syndicate said yesterday, that Score
tary sherman was deeply In earnest about resumption
aud that Inc had given the National banks the first
chance to subscribe II was for them 10 whether they
would 10 the relief OF the Government wrigglc
OF IL by conditional bid that could be accepted"
1t is folly he added, for the banks suppose that
Secretary sherman guarantee the bond market He
is here to sell bonds and IT The banks viii buy
qualedy, he must make other aud more advantageous
arrangements II the National banks do not move
rapidly others viii carry Oh the prize"
Mr. Schf stated that he had an interview with Score
tafy sherman as the representative OF Kuhn. Loeb
Co.. which Of an individual character and he de-
MED that there had been any general conference be-
tween the secretary and the various banking firms as
reported. He said that be submitted several PROPOSE
for Ills firm for portions OF the SJOOOOOOO but he
declined what terms IL II understood that he
prOspOsed to take S500OOOO IS ~ par. less commits
sion OF IL per cent So 5000 digs Il per cent be-
one other bid was received by Secretary sherman for
50 100000 Of ll2 per cents
in the City probably until tomorrow night He VIII
dispose OF The bond question to-day and Will also