, 1879-01-24
BONDS FOR EUROPE.

lnhke 0cut ehlces IL ID btEFutaieA kIAt LIc
operations OF the Syndicate shall not interfere
IN any way with the disposition OF the popular
loan Ia this country. At the tanls time it is
uudcrstood that subscriptions by the Syndicate
for bonds deliverable at London may
be made at any time and to any
amount. II Ia further provided that tho doVern-
utcnt ahall doltvcr the bonds at London. This
will he done, NJ In tic case of the ~ per cent
syndicate, BY two or mora Treasury clerks
detailed by Secretary Sherman to represent tic
Government ht London, with headquarters at
the Office Of the Kothsclls. They will take
with them as many bonds as may be dcelned
llvcrinG them to tho London members 0f tho
Syndicate In exchange for maturcd 5"20s ~
calls may be made, or by The payment OF gold
~ pat, less the colnnfsslon. Tie expenses o.
will bo paid by the Government. The terms
Will be par, less per cent, the same as paid In
this county The percentage u s'ie sSna!eats @ A.,
;s d Ss Cents pqexe cS %osa 9 M
20. nn.l j. 8. Morgan d c., 20 per cent; J. =
W. 8ellEman Il Co. nrti ae1iEnan Dros., 70 per
cent; and Morton, Bliss It Co. and Morton,
Roso i Co., 20 per cent. ....
The snmo members antl thu First National Bank.
In the present Syndicate tale First Nati0nal
Bank l,as bcen left out. The ~ per cent svn-
sltcatc contract was entered into April II, 1878,
tlls entire s50, QUO 600 Of bonds being tnken IN
little over two montha, OF scsen months bcforc
tl.u cx pration OF tho time allotted for tho total
lion, only lo,ooo, ,o6o was taken In London, md
II has sluco been learned thut most Of these
verc actually sold In this country. VI fhe en-
tiro amount, tho First National Bank, With the
result, sold over onc-hast of the 50,oo0, 900
bonds subscribed for by the Syndicate. Thcse
bonds were sold for resumption purposes. At
tho ofIice Of the seft9mhns 1t was said ycatcr-
day that tts contract had besn made, and that
SO, COZ. COO lad been subscribed for At once.
Joseph Sel!4man said that he REGARDED the con-
tract a. very advantageous to the Government
b. able to 1oat the Der cent bonda on the Lon
don market at rato Of interest lower than for
eign capitalists Ind been willing to accept. The
London members Of tho Syndicate, he said, felt
ed fact, foreign capitalists would readily invest
IN per cent bonds. Exchanging the called
bonds for tho 4pcr cent loan. Mr.. scfigman
nlldcd, would prevent o drain Oh the Treasury
eate, Secretary Sherman would be ensbled to
fund tho debt with bonds bearing lower rate
Of interest, making grcat saving to the Gov
crnlnent eaeh year On lnturcst alone.
III look upon thls contract simply ~ an arrange
rncnt untlcr tho General Circular recently Is
sued, which allows d different grade OF commits
sio',s, according to " gr1ss 2. amount Of psr
with eight leading banking firms Of London md
New York, which provides Tor dcliycrlcs Of the
| bonds In England. There has been growing
ios per ssp1 eo1s nse nten 10
1onK ttmc to deliver tontls there, II tho EugIslt
capitalists ul,l banktrs would take amounts largc
! enough to warrant sending clerks there. DS
| thus sending tho bonds he would be ahlc to save
The cxptess charges which thu Department Inns
to meet tn this country. II the per cent bonds
| vnn bu disposed Ut in tho London market, mud
IT, OIL Juno 10, the SJndicates take all the rs-
manning unsotd bonds, Secretary Sherman mnst
be credited with tho most marvellous tlnaaciai
achievement Of any age. Tic bonds he can call
In for funding purposes ara as folIowa:
Flve.twonttcs Of 1B.t7. 7...-.-..... 3220, 8l0. $50
Ten -iorties 10l 58u. 200
Total. .........,. ..........,....Si Si5g, G48. oB0
"Undor present legislation this will exhaust
tho function Ut tho 1 per cont bonds. since
Jan. !, Including the $lO COX, 600 taken by the
new Syndicate, Secretary sherman has sold
800 000 COO per cent bonds at tbs ratio OF about
! $4,000, ,UN liny. Hhould this be continued the
entire issues Of bonds subject to redemption for
funding purposes would be called In long boforo
Juue 10, tho lato Ut tho synd!rato's option.
Te legislation 81 Gonetsss' which ar threatens to to
equality Of commission TO al classes regard
lrss Ut a subscription Of $50 or $40, QUO, ,00o.
rms somewhat retarded subscriptions by
Nat.ona! banks, asd. II being. Government
then the Syndicate may flnally secure amonoro-
" Of yerr large amount Ct 4 per cent 6onda.
1t IL estimated lllat $Go o00 00o Of tho Sl0o, ,000,
00O 5-20a OF 1867, already called in, are hels!
,onis yct subject to cali arc 80 ll.ld. England
coai.i t MT 10 educated to tnvcstin our " pc!
ccnt ht11fs, tile rate Ut Interest being regarded
% too low, The financial men of Europe zee
their mistake when It IL toe late. this clnss o!
Government securities being now regarded a.
among tho most desirable, ~ they arc not re-
utter July !, 1891: The per cent bonds wl'
bear interest until 1D07, and foreign capitalists
may now be willing to takv hen.h
A Wall street banker familiar with tho sub
there ars called bonds lluld In Europe sufficient
to abaorb all thu 4 per cent bonds that tbs Syn
titcato uay yubscribs for, and II 10 to be hoped
great many ltIoru. Orders for per ecut bond
1t Is known t.Aye recently cotio from Lontlon Il
several banking firms IL this city, showing tia
thcru IL a growing dcu,unl ahroad for low
rata interesting bcarfbx unltett States securities
a. tlts business has been eontFasts' ;!s
natural TINT tha English banktng.house
should participate, as thcrs Mas really no wor
ior American i,rn,s. When this Syndicate VA
s.Se fSs sssleta,s q shsfsa
fused bccaltse he would not consent to max
mare favorable terms With Enulish capitalist
than with Aulerfcans. As y cotnpronisa 1t wa
honda Vi, tic tesIus Ut tbs rrvcnt Treasury eli
, : GUAR it,c c1pen.n Of delivering Tic honds q
London to ho borne hy tho Government. I'll
c,iltract originated with tho scllginaus, md wa
. iiualy completed by the Lion. Levi 4. Mortu
alui A. j. usexelh
Concerning lhs Syndicate aud the prohabl
, efleet oF tts Operations On American sccuritie
!, anl rrrltt, John A. Stewart, President OF I'll
4 United States Trust Company. last eyenin
. said: II hays kuuwu for several days thut III
!. plan OF forming syndicate was unter cons[te
!. tou, but ! was not un.tt t!s moI1Iet
!, aware that the secrctary's purpose had been 4
!. eompitshed. The snosl tnpottant effect Ut tn
=, plan will 10 IT. lui!ucace upon tlle exchaua
+, market. Whenever uxshatgt reaches tbs slt
" ping point. 1t will he necessary 10 send, suy "
" OoO ku oi bon1t to Iondull, mid that will c6tse
a Immediately tho tone Ut tho market. To II
i shipment ut cotn, therefore, the formation
- tie Syndicate most c11cctually puts IN eli
i THIS hayu no doubt was the etl!trolliug motI,
:. ot tue Secretary I1 entering tato u
!, cuntract. Apprehension of soine uiatur
T. anra In foreign exchange which wou
II lead to ths export Of gold h
~ En!ued him IN this msttul. But there coil b.
~ siauYer now isoEn tllut source. Whether |!