New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-01-22
DETAILS OF THE CONTRACT.

/ oil a number u Well-kHONn DahheIs are ult.,
| DETAILS or THE CONTRACT.
OPINIONS or LEADING BANKERs oS sEcRrr,pv
sHhRMAS's sew SCHEMA FAVORABLE rrvg
FOR NEGOTIATING NATIONAL BONDS II FrRopr
! The contract between Secretary Shcrrs,
| and the new Syndicate signed yesteri.v
| IN Washington. The Syndicate IA limited
/ TO a date wnen all tie remaining uasoa
bonds may be taken, Secretary Sherman desiring ust
] time To maze sales IL Is stipulated that lie
operations OF tue Syndicate shall not ner;ere IN any
| Way with the disposition OF the popular loan IN Ia,
! country At INC time, II uudsr.
! stood that subscriptions by the syudeaie
| for bonds deliverable London may be made at any
time nd any amount. II IS further PROVIDED that TIE
! Government shal denver the bonds al London Tn,
will be DONE as in the case Of the iouf-andai per
! cent Syndicate by two or more Treasury Cets
! detailed by Secretary Sherman TO represent Le
Government at LONDON, with neadqu trters at the oe
of the ROthschld.. They Will win as maay
bonds a. may BE- deemed proper and hold them subject
! to demand, delivering them TO the London memberd
the syndicate exchange fOI matured 1-2O cdsmsy
be made. BY the payment OF gold at par, less Tie
commission. The expenses OF the London Agency 0fus
Treasury Department VIII be PAID by the Government
The terms VIII be par, less j per cent, the same pail
IN this country. The percentages or the Syndicate re
understood to he: Belmont 81 co. and tle RotnsoAIis
40 per cent; Drexel, Morgan Co. and j. :. Morgan
| co.. 20 per cent; j. & W Sc lyman Co. and selgman
| Brotncrs. 20 per cent; ana Morton. Bliss & Co. aud
! Norton, Rose * Co., 20 per cent.
The todr-aud-l half per Syndicate composed
OF the same members ald The First National Bank In
me present syndicate the First National Bank has been
| lett out. The fOuT-and-t-hdh per c.m synE
cate contract was entered into April H. ISIS, and
me. final subscription was made May l6 the entire
$50 coo 900 Of bonds being taken In little over two
,oubs or seven months before the expiration OF the
| lime allotted tor the total SUBSCRIPTION and pay
rncnt Of the subscription only SlO'0OOOO
WAS taken in London and 1t has since been learned That
most OF these were actually sold IN this country OIms
entire amount. the First National Bank, with The smallest
percentage OF inter The general result sold over
o,ela of the 900 bonds subscribed for by the
S,ndIcae Tb,s bonds were sold Tor resumption pun
poses st the office Ot the Selignans u Ws AN Ne,,e'
ia, that the had been made ana maj FlVut
900 Ind ben subscribed for at once. Joseph sehgnaa
sand that he regarded the contract A. very sl'af
| T,e,siry Department would be able to float tho
per cent bonds on the London nar"ei a. Iag o. ia
trrrs lower than foreign capital-tS i'h D'"h "iuus
accept The London members OF tbe ~ ndtatr, ne sSl
Iclt confident mat, W ia resumption as an go. ~
| iact, ign capitalists would readily Ihye,s ~
~, + cent bonds. Exchanging the called bonus lof
I'll, / per cent loan, Mr.. scIgman added, holI va
by means the syndicate. 5ccrc airy sherman "oqGS
enabled 10 Iund the debt with bonus b aring lower
r,. az INTEREST making a great saving 10 the NO'eI-
nent each year on interest alone
TALK WITH A PROMINENT BANKER.
A member OF the four-and-a-haf per cent Syndicate
said oOk upon this contract simply a. IN arrange
ment under the General Circular recently lssu'd which
allows feren grade Of commissions according 10 the
gross amount OF per cent bonds subscribed ioT' IL
an ARRANGEMENT with eight leading banking hiln'@
Iondon aud Ncw-YOrk, which provides for dely
cries of the bonds IN England. There has been
a growing market for per cent bJhdS idl'B
in Eng and and Secretary sherman has been deSioa'
FOR long time to deliver bonds tAcIe,h the EnglA
I c,pitallsts and bankers wOHld TAX" amounts arge
enough llrant sending CLERKS mere bl i, 1u
| iup me bonds he would be able 10 save tlt tApIlS
charges wuIcI department has 20 meet m TINS eolo,
try. II the per cent bonus can ~ u''p prs
of ia the London market, ana II ON jug jung
30 the Svndcates take all the reminding ulsoh p,nu'
Secretary Snrrmau must be credited with the mos, h
YeOu- financial achievement o. any age; lue '0"N' "
can can Tor fund ng purposes are is ioio"s c,e ga
Fiye-twentes OF y 3g5
FWewentes OF loOo..-.-...-.-...-'.'' ~; SG1
Ten-urtCs l'i''
ro,., 52,6ls,CJO
"I nO,a present c: Station tn, viii exhaust ns
function OF the uer cent oohsis; oioo s~ri,,ag
cuIIng the S10,000,0O0 taken bS me n" :? ni,
secretary sherman has sold SlOOoOOoOo+ er IT,, 80
al the rate of alpout S6,C0O.0JOa day. Sh'ul tuIs
continued the entire lsoucs OF ponds sum 90 ~ ~
ton for umdIng purposes would Toe called ~ oI- 80
Junr 30 the date Of the Syniicitr, option INC ia
latiOn OF Congress when threatens 10 oi" oualIU
~ commission to all classes REGARDLESS o.
a subscription Of $50 Slo,uoo,ooo, has s'ia5Sn a
reiard SUBSCRIPTIONS by National banks anl u o,.ns
Government depo>torirs l. 10 ~ ouo,oy
/ then syndicate may hnally secure uloH'r rsat
HnnJs =, Estimated that S60. 100000 Of The
elUO0OO,OOJ J-2OS OF 1857, already c'le" ~ eto,J,
VET ,nblecl To cali are 80 held England could noI %
educated to invest our l. per ceni bonds, me I'
interest being regarded - too low. lnr iu'uTa late
| AT Europc see tnclr mistake when II j 700 NV
tins class OF Government securities Delhs no" ~,
-jrrm,nl at TIL option Of tie Government unt els,
July l. 1891 The per cent 0ohds VIII Del ,ins
until 1907 ana foreign capitalists HAY 10" DC WINS
10 take them"
now THE SYNDICATE ORIGINA1ED.
A Wall-st banker familiar with the subject %"
last night: :" Ii Is far Ia predict that thcre az.
called bonds held Europe sufficient 10 Az
,orb all the 4 per cent bonds that the syh'I
cate may subscribe tor and IL is TO be hop'.
A great many more. Orders for per ,'p'
bonds it is known have recently come iro~
London 10 several banking firms OF TINS ciV' s"V
ing tha, there Is "a growing demand abroad Tor o"''
Understanding United states securities A. th' ''
ness has been contracted expressly TOR EuTopeAh" "
MAIDS il was natural that the English bdnklhg-ho'
should participate as there really no work io'
American firms. When tons syndicate was urst NV
p,,ed a commission OF onr-half per cent was asSes'
TINS secretary sherman refused because he woud DO.
CONSENT 10 maze more fiN"ltIhe terms WIN -, -
,1s agreed tnat TIE Syndicate should
urrup, tho Doud, the terms OF the recent ita'ua.
rlar me expense delivering the bonds at Lou ,oI
~ IA. hornr by the UOytr mcnt Ih, contract o
/ with the SeEgman>, ANA was many v'"P'c''u ~ w.
! Lon Lew =. Morton and \. j. Dr'AcL
VIEWS OF OTHER B,NkERs.
C,carpn, the Syndicate aud the probable effect o. ~
,,rti,r. on American securities and credit. John \
s,vnr president OF the United States Trust 'oi"P'H'
last ,,.pin, sad: have known FOR several day. '"'
M, ,,,, of forming indicate was under coh'ideiaV-
lint MIS- NOT until tnls moment aware that in' o''
/ t,r,'- purro,r had been accomplished. TIE mo'' 80
n,,t,ut effect OF this plan viii De its mhitnee upon
/ exchange mlrkct Whenever exchange ie"'"''
! snppms point Il VIII be necessary Only 10 aeu' >" m
| ..i...,. ,F hmm London. mat Will tOtle''
| m ,,.,,.lv m, tome of the market To the shlrm''.
M ,oiu therefore the formation Of TIE ~ Indicate "
/ ,ncrtually puts an cad Ih.s have 30 DOUBT W."
Controlling motive of the Secretary M entering iu0 ~
contract Apprehension oI some disturbance IN io''..
yrb ,u,. which would Lad 10 the eNpor, ot g"u '