, 1879-04-20
THE TREASURY.


Adjourned. i
THE TREASURY.
SECRETARY SHERMAN AND THE SYNDICATE
62ectuf Dispatch to The 7FtbHn<-
WASHINGTON, D. c., April 19.-SecretarT
Sherman is extremely anxious that the remain
ing s45, ,000, 600 Of 4 per cents shall 60 into tie
hands OF persons of small means at par and
accrued interest. TO accomplish this it has
been necessary to have some sharp controVef-
sizes with the agents of the new, syndicate, as
the latter insisted that by the terms OF the
circular they we're entitled to all unsold per
cent bonds or refunding certificates. Speak
ing Of this subject today, he said that he was
a good deal embarrassed by the offer OF the
associated bankers to take the whole OF the
refunding certificates. He did not believe they
had any right to demand these certit-'
Gates under the circular OF April
II, but they claimed they had.
The bankers naturally decided to control the
market, and it was. strongly urged on the secre-
tary that he ought to allow the united banks to
have
THE WHOLE AMOUNT,
including the 1000 OF SO certificates, be-
!, cause otherwise those would be available to
outside banks and capitalists for operations
which might emparrass the syndicate. He was
told that the whole amount had been taken IN
good faith, and upon the belief that the impor-
,ance Of the vast transaction would make him
willing to agree at once. The Secretary was
firm in his refusal. He pointed to his circular on
which these bids we're made, and in the hrst par
agraph Of which he expressly reserved sA,500
GOO Of i per cents for the CONVEX
sion OF the $40 rcfunding certificates.
He remarked that the plain intent Of the law
authorizing these reiunding certificates was to
distribute the debt
MORE LARGELY AMONG THE PEOPLE,
and to enable economical people Of small means
to put their small savings into this absolutely
safe and .unta1able form. He telt himself
bound to carry out the clear intent Of the law,
and Of Congress which passed it, and while be
freely acknowledged that the syndicate would
naturally iike to control the whole possible
issue, he pointed to the fact that he had in
his circular clearly reserved this amount,
and that the bids must be made in accordance
with bis offer. The Secretary observed that the
manner in which he disposes OF the refundtg
certificates will prevent any Inconvenience
to the syndicate. The certificates are sold only
for cash, and only by Government agents, Post
1uaSlEItr GI0 OL4CA pA044< VAA~eAo9 %AAAA AWE -
banks or bankers, and ;. , .
ONLY IN SUNS OF Sl00
or less: They do not come into the general
market, therefore, and it is not profitable to the
banks to deal in them or to collect them aud
send them on for exchange for bopds, because
of the class of interest, and the trouble and risk
of the transportation After considerable dis
cusson the Secretary finally agreed that he
41,1
sixty DAYS the rcfunding certificates would be
open to purchase, after which time he would hold
himself at liberty, if the popular demand does not
absorb them, to withdraw them If he thinks it
for the public interest, and, il he chooses, turn
the remainder over to the syndicate. This, 1t
is understood, leaves him entirely at liberty to
do what be may find for the interest OF the
Treasury in the matter OF the refunding Ger
tifcates at the end of sixty days.
The National banks have s57,000,000 OF
10 40s in the Treasury for circulating notes,
which amount the syndicate can easily make it
worth their while to
EXCHANGE FOR FOUR PER CENTS.
The National banks hold already about $751;
100000 OF per cents, besides much less quan-
titY of lis
Since MIR Sherman became Secretary he has sold
$50 900, 900 Of per CENTS and with the proceeds
redeemed Tile o per CELLS, illus s:AFAaS5 q pEl
cent or one-third, Of theinterest previously paid
by the country on that amount. When the
present transaction is completed he will have
solo, in round numbers, 500 100000 OF per
ceut6 additional, for refundinE per cents, saw
ing per cent, besides the premium on TINT
amount. Besides this, he has sold S80, 0,000, OO0
AIS to redeem Is. All these transactions to-
gethcr make an immense saving in the national
interest account.
1HE AMENDED CIRCULAR.
The circular issued yesterday by the Secretary
ing certificates has been amended as follows:
Department circular, No. GO, Of April IL, 1870,
is hereby rescnded. All per cent bonds therein
offered for sale having been sold. the $40 refund
ing certificates will be issued for lawful money in
sums nor exceed 500 at one time, BY the Treas
urcr and Assistant Treasurer Of the United states
and by all public officers bonded for that purpose
They will not be issued hereafter upon
the certificate Of any Natons1 Dans
heretofore or hereafter made will be allowed
at the rate of Il Of per cent on aggregate OF
ST. 600, without regatd to the period IN which such
exchanges are made This circular VII remain IN
outstanding covertd by the sales and no longer
It Is the desire OF the Department give to every
citizen Of the United States IN opportunity to in-
vest, in limited sums, his savings in these ccrti-
Gates at par and accrued interest.
At the end Of the sixty Days to-wtt: At the close
OF business On the Eth Of June, the offer nlrendy
1nade for the per cent bonds sufficient to cover
accepted
The Departments circular OF March IL and &c,
1870, are modified accordingly.
SHIPPED FOR EUROPE.
New YORK, April 19.-Ten million Of the
per cents we're shipped to-day for Europe.
THE SYNDICATE. "