New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-18
DETAILS OF THE HUGE LOAN.


bers of the Syndicate are given.
DETAILS OF THE HUGE LOAN.
SWIFT AND SECRET ARRANGEMENTS FOR TIE SUR
sCRIPrGON-A CONFERENCE OF THE REPREsEN-
TATIyEs OF THE SYNDICATE TO-DAY WITH SEC
RErARY sHERMAN-THE HEAVIEST SUBSCRIBERS
IN THIS CGTY-WHAT MEMBERS OF TIE sYNDI-
CATE SAY.
The great sensation in financial circles yesterday
the subscription made by the First National
Bank of $15O.O00 900 per cent bonds and $780,
600 900 funding certificates, which practically
provides for the prompt funding of the 1910 loan
of S191, 500, 800. The recent enormous sales of i
per cent bonds created fear that there might be
movement abroad to monOpOlize the sales of this
loan, and yesterday the First National Bank and
Fisk & Hatch, large dealers in Government
securities, conferred together and decided
to form q Syndicate to make an immediate sub
scription. Banks and bankers in this city. con-
spicuous for dealings in United state bonds, were
called upon, and in nearly every instance su6scrlp
tons were made at once Dispatches were sent to
Boston, and the responses were equally as prompt,
the Maverick National Bank answering: 1--WE
will 90 in put down for $10000,GO0 Presi-
dent will leave for New-York tonight"
The Syndicate was not fully organized until
after the close Of business hours IN Washington,
and the bid for all the 4 per cents available for
funding the 1910 loan was not telcgraphed in time
to receive response before the Treasury
Department was closed for the day. Earlier
IN the day the Bank Of New-York forwarded sub
scrptOn for S6000.000 to meet the demands of
current business, Hatch & Foote sent a sub
scripton for 81, 100000, and 1t semi-oflically
reported that Norton Bliss & Co. had subscribed
for $50, OOO, 900. The Syndicate which has made
Ill. &C =
composed il is understood, of the First National
Bank, Fisk e. Hatch the Metropolitan National
Bank, Winslow, Lanier 81 Co.. j. & W. SeIgman,
Morton, Bliss 81 Co.. the Third National Bank, the
Bank of New-Yor&, the American Exchange Bank,
the Park National Bank the Importers and Traders
National Bank, Hatch IL Foote Vermilye 81 Co..
United States Trust Company, Kuhn, Loeb d. Co.,
and the New-York branch Of the Bank Of Nevada.
of this city, the Maverick National Bank, FOote
& French and {. A. Sweet & Co., of Boston,
making nineteen institutions representing COM
bined capital of over $100,000,000. The subscrip-
ton is the largest single one ever made to
Government funded loan in this or any other coun-
try. The four largest loans in their order are
follows:
September, 1915 per cent loan, under
Secretary Boutwell, S75OO0OOO
1873 per cent loan, under Secretary 49,
1s74-5 per cent loan, under Secretary .ooo.oo
April di' 4, 1875 per cent caD under 'O'O0O'o0
Secretary sherman. 4OOOO,OOO
April II, 1S79-10-i0 oan under Secretary
Sherman lJO,OOO,OOO
TERMS OF THE SUBSCRIPTION
The subscription of yesterday was made ac-
corling to the new terms prescribed by
Secretary Sherman in his circular of April
16, which are 1O1 12 and accrued interest less Is
per cent or 1908 net. The closing quotation
Yesterday was 100 to 100ls The text of
Secretary Sherman's circular of Wednesday on the
terms is a. follows:
The Secretary of the Treasury offers at one-haf
of per cent above par, and accrued interest to
date of subscription, 3 $50, 100000 OF the per
cent funded loan of the United states, IN dcnOml-
nations, viz: coupon bonds 500, 500 5000 and
81 900. aud registered bonds OF Too' Hloo' Hooo
81 900 So 600 and S1O,O OO the proceeds TO be ap-
Piled TO the redemption OF United states bonds
issued under the Act of March 3, 1864. and COM
monty known as 1910 bonds In addition to this
amount, Si4 566,3O of these bonds, being the
residue of the sum needed to redeem the 1910
bonds will be reserved for the conversion OF the
$40 rcfunding certificates. Commissions Will be
allowed on all subscriptions of $1,000 or over of
one-eghth Of per cent. to be paid by the depart
Inent by draft.
While the First National Bank for itself and ASSOC
cates has subscribed for the full amount of $500,
600 600 4 pee cent bonds available for Govern
ment sale until 1891, it is understood that the
amount which will be finally awarded will be
down according to the number of bona ide subscrip-
tions which may have been forwarded before p.
m. by banks and banking institutions in regular
coursc of business and by the actual sales OF fund
ing certificates all over the country Ii was esti-
mated last night that the total amount would not
nrobably he reduced over S10.000.000, as the
$50 OOO,O 600 subscription reported As made by
Norton Bliss d Go. would be credited to tine Syn
djcatc. and that firm be made full member, instead
of having an interest only in the allotment of j.
w. Scligman, a. at first suggested.
APPDRTIONMENr OF THE LOAN.
There is also possibility of some members OF the
Syndicate not receiving as large an allotment as
was originally offered. on account Of tins determi-
nation to have the right TO participate i'll the sub
srription left open until to-day, In order that 1t
might be officially passed upon by Boards
of Directors. A conference of financial III
stitutlons was held yesterday afternoon,
70 consider the proposition. among which were
several National banks, trust companies and pr-
vate banking firms and thew desired to have the
proposed subscription laid over until to-day. They
were told by a bank officer who was in favor of
prompt action that they could have day or
week TO consider the proposition, but the tram
wonld start at 3 p. m, after which only platform
room could be had" Two or three held the matter
under ADJUSTMENT, and it was intimated last night
that if admitted AT all into the Syndicate, their inter
est would be very small George +. Baker, president
of the FRS, National Bank and \. 5. Hatch, Of the
banking firm OF Fisk n Hatch. left this city for
Washington last evening 10 arrange the details OF
the subscription. They will hold conference with
Secretary Sherman to-day and they, are authorized
To make the necessary contract Tor the
transfer of the $3.50. 900 900 of bonds and
certificates or such amount as th eSecretary may
award 10 them, after allowing bona hde subscrlp-
tons and sales in other quarters. The allOtmcnS oil
I,t, al. ia lg
nave not been definitely agreed upon, nor can they
be until il il known precisely how many bonds the
Secretary will be able 10 furnish. rough estimate
| Was made last evening. which members declined to