Daily globe., 1879-04-21
THE FOUR PER CENTS.


secretary Sherman ana the NetC IOrhc SJl1-
dictate.
Washington Special april 1s) to Chicago
Tribune.
Secretary Sherman had long consulta-
ton to-day with representatives of the New
York syndicate that subscribed to the enor
syndicate insisted as condition of its TAX
ing the one hundred and fifty millions of
cents that they should also be allowed to
take the forty millions of per cent. refund
ing certificates that have been issued in sums
of $40. This was of course for the purpose
of giving the syndicate entire control of the
market in per cents. Secretary Sherman
objected to letting the $40 certificates go,
saying that be had intended them to be
taken by the poor classes throughout the
country as means of investment for their
savings, and he thought it would not look
woll to pass these certificates over to a COM
bination of capitalists whose desire to get
hold of them is of course to force
premium. This question came up at
the cabinet meeting to-day. Secretary
| Sherman was in very happy frame of mind.
Last Tuesday he was in some doub tabout
hh ability to get rid of the per cents at a
premium, and within the week the opprtu-
nifty to let 60 the whole amount was in his
hands. He brought up the point made by
the syndicate and found that the President
and cabinet agreed with him that the $50
certificates should be reserved for small sub
scribcrs. Sherman said that he found that
the postmasters all over the country were
making numerous orders for this class of
securities to place in the hands of people
who had never before held any government
securities. He said that he was perfectly
willing to issue o circular limiting single
subscriptions to the $40 certif-
Gates to 500, and would by
that means obviate any objections
upon the part of the New York syndicate tc
the $780, 900 being taken by outsiders. At any
rate, the cabinet was agreed to allow the large
subscription of yesterday to fall if the terms
demanded were insisted upon. Secretary
Sherman said that he had received within
the last twenty four hours bids from othel
sources of amounts large enough to satisfy
him that the per cents would be rapid,
taken up without any aid from the Nav
York syndicate.
Secretary Sherman has decided this even.
ing not to allow any of the $40 certificates
to be taken in the lump by the New Yorl
syndicate. The arrangement he makes is tx
hold these $40 certificates open for popula
subscription for sixty days, and then at ths
close of that time allow the residu
to go to the New York pool. This loa,
is regarded as ono of the most brill
liant strokes of Sherman's financial career
He went over to New York recently ant
asked the opinion of leading bankers abou
offering the 4 per cents at premium. AL
advised him against taking the hazard
They were going we'll at the old rate, and tt
fail in the new venture would make it disas
} trous to attempt to go back to the old al
rangement. His cabinet associates, too, ad
vised him against the move and yet, in tn
face of this aggregation of counsel, b
dashed ahead and won the most brilliant sue
cess. The subscription closes the fupdin
of bonds during Sherman's time, and ther
will be no more bonds to be refunded unit
after December 81, 1880. Nothing but tn
unexpected requirements of specie resumr
ton would authorize any further issue of
Der cents.