The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-31

deplrtment
As before stated. think the present an exception
ally favorable time for the refunding. and am salts
fed that the five per cent and six per cent bonds so
become redeemable. cannot be so safely and
SO proftably provided for in any other manner.
The very large amount TO be refunded prior to July
q 1881 nearly $500 900 000 is considerably
of the amount refunded in any year since re-
funding began. and respectfully submit that the
time now available none too great the purpose.
The passage of the bill introduced by yourself in
the Senate and by General Garfield in the House or
Representatives will. believe. enable the depart
ment to refund the entire amount prior to the ma
turity Of the bonds but If it should not result in
speedily refunding the whole of them that clause OF
the act of July a. 1870, &C., will enable the depart
ment to .'call such five per cent and six per cent
bonds, after they shall have matured and to redeem
them with the proceeds of the sale of the four per
cent bonds so authorized. aud such proceeds would
may then sell for. While it is not thought
saro to assume that upon resuming FUNDING
operations with the prospect OF an emission OF
four cents about equal in amount to the present
ssue) the bonds will remain at price much. II any.
above it is thought that under the operation OF
the proposed bill. parties may be induced to sur
render the bonds now held by them upon tho pay
mentof an amount not to exceed the difference in
interest between tho bonds received and those is
sued. Very respectfully, JOHN SHERMAN.
Secretary
Mr.. Wood being asked this evening whether hehad
read letter OF Secretary sherman to Senator Nor
rill respecting tho refundins OF the government
bonds 1885, said that he had. and that he
regretted that the Secretary had predicated much OF
his reasoning upon false premises. The bill referred
to having been presented by himself on the Sd of
December had reference to tho refundtng Of the
ives and skies comprohendcd in tho bills Of Senator
Morrill, in tho Senate and General Garfield in the
House. He fMr. Wood had not presented his bill
yet. but should do Immediately tho reaascm-
bling Of Congress. In that bill there would be
found features which would render the SH
per cent bond an extremely desirable one,
quite as much SO. If not more so. than tho present
four per cent which the Secretary appears to think
possesses such very remarkably popular" charac-
terstics.
To the argument that the increasing business de-
mands for money will raise the rate OF interest and
thus make 81 per cent bond impossible Of sale. it
is only necessary to reply that the business demands
for money have been active for year. and yet the
four per cents have been steadily increasing in
value. They now worth ~ per cent premium
and in good demand. They yield to the investor
but little 81 per cent interest on the invest
ment. The Secretary Mr.. Wood said does not appear
to realize the fact that divorce has taken place be-
tween business capital and tight
money market affects stocks and trade. but not
United States bonds. because the money thus in
vested has been withdrawn absolutely from the
hazards and speculations incident to business The
four per cent bonds are even now. while money Is
worth six and seven per cent on the Stock Exchange
and on business paper. and. while the further issue
Of four per is advocated by the Secretary of
the Treasury. selling at price ut which they will
pay but little over 81 per cent per annum
for their unexpired term. With the reinvestment of
the 900 to be dsbursed in January for inter-
est and dividends; with the ease in money which will
prevail during the few months. and with legs-
lation by Congress which would put final end to
any hopes or expectations that more four per cents
were to be had from tho government. there can be-
no doubt whatever that they would immediately adj
vance to a premium at which they would not pay
anything over ga per cent
with this state Of things existing" said Mr..
Wood. "and with the features which my bill will
contain to render the PROPOSED long 3h per cent
bonds attractive and desirable. have fear that
they would not be taken as rapidly as could be
desired"
In reply to the question what he thought would be
the effect of the letter and position upon
Congress-, Mr.. Wood said it would have effect at
all; that in his opinion Congress would act ndepen
IDENTIFY Of Executive influence upon this ques-
ton, and that when his bill should be intro
duced and thoroughly canvassed, Congress would
be satisfied that q 3% per cent bond. accompanied
by certain adjuncts which he should attach
to it. would be sustained He thought that the
last four per cent bonds which this government
would issue in existence, and that the
new and lower rate would DO permanently estab-
ished.
OF course he said. he knew that the lenders of
money would clamor for higher rate. but he did
not why parties thus interested should govern
great question like this.
THE POSTMASTER GENERAL-DErAILs OF
swINDLING OPERATIONS.
The Postmaster General to-day issued an order
directing the Postmaster at New York city to refuse
payment OF postal money orders or delivery Of
registered letters addressed to the bogus bankers
and brokers'" firm names Of Lawrence & Co.. pur-
porting to do business on the "stock combination
SYSTEM. at No. 10 Broad street, Adams. Brown Co..
at No. % Broad street, Allen. Jordan Co.. at No. 81
Wall street, and Barnes. Garrison Co.. at No. IS
Exchange place and No. II Broad street. and else
whore in New York city. The swindling operations
of the persons conducting these concerns ave been
enormously profitable. at the expense Of prodig-
ious number of dupes In all parts of tho country.
In obtaining the evidence upon which this order is
based the special agents Of the Post ONCE Depart
ment have been assisted by tho authorities Vt the
New York Stock Exchange. and the against the
managers of the swindo is conclusive that several
Of them have now made full confession.
1t appears from the evidence. rs set forth in tho
report of the departments special agent. that one
Benjamin Il. Buckwalter is the originator and prin-
cpal proprietor of the business conducted under the
above mentioned firm names lover which he obtained
control by recording under the laws of the State of
New York fictitious articles Of copartnership, &c.),
but that some time ago he effected an arrangement
with w. d. Dun and H. Lassing. according to which
they have for number OF months boon attending to
the practical management upon terms which. in con-
necton with transcripts of their books. show the
enormous amount of the notorious profits"
Their agreement was to pay Buckwalter
sl2.5oo per month t$15o.oO0 per year, for the
net receipts of the business during term of five
years, under the single firm name Of Lawrence a.
Co.." and equal amount for the privilege OF doing
business under two of the other bogus Arm names.
Buckwalter's interests were guarded by his having
confidential agents to be present at the opening of
the letters containing romittances. which have
poured in at such rate as to mako the profits"