The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-06

Since the first OF January the Treasury
Department has announced extraordinarily
large subscriptions TO the four per cent
loan. On Thursday, the first business day
Of the now year. the subscriptions were
Ss,69O,l5O. This exceeds by more than five
and half million dollars the greatest total
subscription on any previous day. On Fri
day the subscriptions were $2,6l9, 1870, and on
Saturday, s2,697,150. Here, then, we have
on the first three business days Of 1879
total subscription OF about fourteen millions.
During the last half OF 1878 the daily SUBJ
scriptions ranged from $4,000 TO 81, 10, OO0
seldom exceeding the latter figure
Does this amazing increase in the rate OF
placing the new loan indicate sudden
access Of popular confidence In the four per
cents as safe and profitable investment
Or have people more money TO put into Gov
eminent bonds in the first week OF January
than they had in the last week of December
circular issued by JOHN SHERMAN, week
before last, and dated Jan. /. announced new
rates OF commissions 10 be allowed on the sale
OF the four per cents. To get the benefit OF the
new rates the banks have been holding back
their subscriptions until after New Years
Day. II Is owing TO this fact that the sales
have so suddenly and largely increased.
BY the circular Of last August the COM
mission allowed on sales of large quantities
Of the bonds-amounts exceeding $4,000, 900
was thirty-ilve cents ON every hundred
dollars. or $4,000 on ten millions. BY the
circular Of Jan. 1 the commission is still
35-lOO Of one per cent. The rate is not in
creased. How, then, are the banks bene-
fitted by the new circular ?
In very simple and effectual manner.
ByJoHN SHERMAN's now circular no commits
slons are allowed OF sales less than $1,000
BY the superseded circular commission OF
one-fourth Of one per cent. was allowed on
small sales. Any individual could send in
his subscription for 81 600 and get the adj
vantage OF the commission. Now, JOHN
SHERMAN has so arranged 1t that there is
no commission on sales under 100000. and
how many individuals are purchasers OF
Government bonds to that extent
The direct effect Of the change is to pre-
vent individual subscribers from dealing
Immediately with the department, and to
throw the whole business into the hands Of
the banks which act as the departments
agents, and which alone can make such
enormous subscriptions and get the benefit
OF the commissions.
1t has been shown that more than two
thirds Of all the business done through the
banks is done through the First National
Bank of this city. That institution Is sup
posed TO have on hand large quantities Of
the four per cents from its previous pur-
chases. II that is the case, 1t will be enabled
by JoHS SHERMAS's new arrangement TO
dispose Of them at an advance, for small
purchasers can no longer buy as cheaply Of
the Treasury as before Jan. /, while the bank
itself can buy Just rs cheaply.
Moreover, the First National Bank will
ho enabled hereafter TO almost monOpolize
tho Government sales. No other concern
has such facilities for the business
The commissions on the three days sales
since New Years Day amount to about
$4,000. 1t would be interesting to know
whore this has gone.
JONI SHERMAN frequently fclctates him
self upon the success Of his endeavors to
make the four per cents a popular loan
Was his circular Of Jan issued for the pur-
pose OF increasing the popularity OF this
loan, or for the purpose Of increasing the
profits Of tho First Eational-his favorite
and strangely-favorcd institution ?