Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1879-04-23
"REMINISCENCES OF THE
LOANS.
How the First Five-Twenties
and Ten-Forties Were Taken
The Takers Not Patriots, but
Shrewd, Specializing Germans.

~nVe tWenueS cease 70 bear interest
They were called IN Jan IL. This IA
nous loan. therefore, now passes into
history. To MANY, even OF those who
took active part in the contest OF eighteen
wears as), the memory OF the dark days
Of Is5l-S3 i growing dim, and 70 al
Americans now under 30 years OF age
the public strait for money AZ that
period i a thing hardly imaginable
Asa great many scurvy tricks were
PLAYED with the public resources by
aloval'' capitalists and spectators IN
those DAYS Il Is well To review their an
nals.
A reporter OF III World called yester-
day upon several Wall street dealers IN
securities. and especially upon Nessrs.
Henry CIeWs ant Fish < Hateh-vho
were the Original ayents OF the hve-twen-
ties in New GOrk-In order TO obtain 4
chapter Or TWO OF their history.
Mr.. Henry CleVs WAS tOUnd involved
IN an afternoons rush OF business, nom
which he turned in his chair Tor a lew
moments. "Ah, those were very DIRK
i4vs for the country" he said As be re-
called the time when not 80 much the
needs OF the amy - the ineXperence
OF the administration had exhausted
not only the contents OF the national
treasury bat almost the resources avail
able by the secretary. Money was
needed and must be had. Secretary
Chase. Be il said in Justice 20 him, maize
no pretsnse OF being 4 tnanCier, bot he
aDuealed 20 the New York capitalists Of
al parties and eree,ls. He would say %
rhen- - continued Mr. CleWs, Gentle
men. ths-e are nv needs; am 10 HAN
cier, must defer % your superior ex-
perisn,e IN these matters % devise
means OF raising the money, and CON-
plimentad by his respect tOr the Know
i,-ipa and experience Of the business
men Of New York. they never let him
I.ays town without the Necessary AM
cunt placed % his credit He hal the
cDnfience OF the people more than any
sacrptary II the treasury since his time
he m NOT arrogats 10 himself any su-
usrior knoWie,ige by reason OF his posi-
non and authority.
Alter the act OF congress IN ISoL
authorizing the first national loan W.
CFasa ,s4-ns % New York and called 4
r1-erIn-gf capitalists. An arrangement
~ r,a.i- whereby the banks OF New
York- Philadelphia and Boston we're %
furnish the government S5o,OOO,NO IN
eonsSisration Of the proceeds Ola seven
thirty subscription and a8y balance IN
the saven-thirty notes lhE enabled
tha hanks 70 make another advance N
As COO OOO. and thus the government
obtsin 500. OOO. 90 at the pretty stin IN
49,. Of :. 3 per cent for three years
the hanks were unwilling % make iur-
tb.ar loan on the seyen-thIrty notes anu
r. now historical five twentles were
oFsrp,I The original agents OF the
savan-tbir,ies IN NeW York were Morris
Kstchur & Co. AiterWard DrexeL
Rss,I.kVan FI,s,k we're appointed Next
,,suDe 1 iverrnOre, ClsWs * Co, Who were
lust coming into prominence AZ tnAd
time. Jaw Cooke MAS the agent Ia FhII1-
ielphia. When the hye-tWenues were
issued. capitalists, without dlstinctton
of parrv. and the banks were unNhhhS
IN taka hold % them There was a teei-
iry that they might prove yaIuetess::
No one couli see tar into the future Of
~. nation az that time. Finally Ne
t1ruad A syndicate. the original syudt-
,-,ra I might saw. Jay Cooke being IN
PbiI,Islphia. AMI nOt IN competition
vith NsS York az al, held the position
~ b..aJ III The system, and Messrs I Ish
d U,,,.b Varniive 4 Co. and ourselves,
1 Hsnry Cteys & Co. composed the syn
4l,,.s We undertook 70 place the We
,,Frntisz. They went very slowly We
! fssus,i circulars and cent out agents AZ
49, tba rountry. We maize The eoun-
~ hanks or sub-aSenrs and DIVIDED our
,Crnu,i.sions- After a while they oelAn
I IN saW. and thew became popular lhvfe
wsrs m marty lines then, but the oanAs
,ri an. IN In eli defense and became
! c1-workers until they were al PdaeeH'
I These four houses pertOrusi me N"EA'
AMI most Of the bonds were OF eOurse
| .,li bv the then New forN HOUSES
Once when Secretary Chase EAs coz
/ zrafnIated upon The success OF us cans
/ hs frankly said the credit EHs due -
/ these firms.
/ NJ, 81 Of Fisk < Hatch. referred -
.bs5r 6-m having made the nrst large
s.Is al The ive-tWeHties-sluO,uc e-hCt
/ ,oa,v I.,ui native patriots who SOuidn
I sor,.b them but % the German >aVlnzs
/ - and raost Of the sales AZ thar
I -. xrrs made % Germans, he ena-
4 ,5,u..i with whom 10 w&s not matter
\ "a raf-iCtisrl bat % political econouE-
| Psrbaus 4 nav be called seinsn move
I On tb.ir uart. though" be ehnckled,
\ ..f,r they've made Millions Lhs
/ ,.,an.s Z , placinx the loan were pald
/ - rens. tSr the bonds Sold The nrst
I - IS b, 1852 when S5l2,0OO.OIO we're
-, ,1t- Then" he Continued, came
- -. ,rsnties Of %. about Soo,tNo,
I an. tbsn he Eve tWenties OF %. aoouI
80, 80 80 u7ore. They have been
caIe,f tor redemption IN the os.ie s So
/ first the ive-tEenties OF O. men
4 thoSe a lisa. the Old and new u % =
spectively. the 'oTs and nov ISNs
those % '6S- -.
bon,ts for landing v1s begun N aA1en'
Isl bv popular sale, and eonc1a,ieu a.
e. souSa lslavs BY asyndsca,e OF AnsIs-
"a, at foret-n banks in AUgust, Ls.I'
- -. a per cent. bon1s Of 1871, De
10000 we've heyan IN Septemoerf % .,
- ~ Juue. lS77. sd, Ooo. 600 Was s'oad
- ~. r~unaininz 500 OoC, 900 gSs With
9-,un and A neE contract Tor c1sPosins
! oFApsr cent, bonds w&s entsrea mo
with the syndicate -
~ reo.Jr,sr. whose principal know
49, al Eorernnsnt bonds E1s pratt
,,IiT Eu,fte,a- wEs Constrained % ask nc
80 IA he ZANE q the sO-ealled ave
tweptiss and ten-tOrles NJ
sSTh4 SVe-tEenty bonds. sa,d ny
~ ss-e-e made re.ieemahle a the op-
- - government af1rr ave years
- sh.-oIutslx payable IN twenty yearS
-. - for<v h,nds. which we're nr-'
..Ts.I T,~trrtsy Cor redsmption, are "a
I'D Is64. were uade r =. - -