New-York tribune., 1879-03-28
DOUBLE INTEREST COMMISSIONS.
A REPORT BY SECRETARY SHERMAN.
REPLY TO THE INQUIRY OF SENATOR SALISBURY
ABOUT THE OPERATIONS or HE TREAsUKY.

REPORT BY SECRETARY SHERMAN.
A REPLY TO THE INQUIRY OF SENATOR SALISBURY
ABOUT THE OPERATIONS or THE TREASURY.
WASHINGTON, March 27.-Secretary sherman re-
ported to the Senate to-day on the commissions
paid for services in negotiating United States bonds
from 1867 until the present time, together with In
formation concerning " double interest," etc.
The Secretary says that Won Hoffman & Co., of
New-YOrk, IN June. 1873, received a commission
of Onequarter of l per cent on a subscription of
$4,000 600 Of new per cent bonds, and that Kuhn,
Loeb & &c. received like commission on 81 1000,-
600. The Secretary refers to the annual Treasury
report of 1874 for the terms and conditions of the
contract made in that year by Secretary Bristow
with the Belmont, Rothschid, Seligman syndicate
for the negotiation Of the per cent bonds. He
says:
In substance may be stated that the contracting
parties paid the bonds par and accrued interest to
the date OF the maturity Of each call and received
Of tho sales from winch 10 be paid the expenses
incurred in sending the bonds to London and
| In transmitting from there TO the Treasury
the called bonds and received in payment leay
ing cneourth OF per cent at the disposal OF the De-
partment from which TO paw for preparing the bonds
and other charges incidental thereto At the time the
contrast ,r was made the per Gent cent bonds 0o 81
| lots IN the open market at price somewhat
above par coin, exclusive OF the accrued interest and
this increased value OF the bonds enabled the Depart
meut TO obtain somewhat better terms than those OF
tract Sl5OOOO 900. which the contracting parties
received commsslon' as stipulated, Of one-t0hrth OF
one per cent.
Secretary Sherman next recites the contract
in January, 1873, with the same persons, and
Messrs. Drexel, Morgan & Co., of New-York,
and j. S. Morgan & Co., of London.
These contracting parties received a compensation
of One-haf of per cent on Sl22, ,6S255O of bonds
sold for refundiug purposes. and per cent on $15.
215,5OO of bonds sold for the purpose of carrying
into effect the third section of the act of January
II, 1875, from which compensation they betrayed
all expenses connected with the issue. including
penses Of preparing the bonds.
The next contract was for the negotiation of the
412 per cent bonds. 1t made By Secretary
Morrill, with the members of the former Syndicate
land Messrs Morton, Bliss & Co. for themselves and
associates" Under this contract the Syndicate were
to pay accrued interest on the bonds to the
date of their application for delivery, to pay
all expenses of the preparation and issue, and
were 10 receive a commission Of One-haf of per
cent on the amount negotiated. Secretary Sherman
continues:
When entered upon the duties Of my present Office in
March, 1871 there had been sold under this contract
became apparent that the condition Of tie money mar
! ket had become SO favorable that per
therefore avaed myself Of the privilege secured by the
contract, ana notice uat the sale Of the 4lS per
! of mis- au0nnt an agre1lnent was made that
- 900 600 should be applied TO resumption purposes
sales were rapidly made the amount Of 100000
for reuudng PURPOSES, and 100000 tOt resumption
| nurrnse4 Inc expenses were pad and the cOmpensa
lon allowed as per the Of the contract AT that
| time there lad been issued 10 redemption OF . per
! cent bonds Sis6 900 OF 5 per cents and SIs5-
NG on0 ~ IL Ir c.nts making saving in the annual
f,il iyin, made contract with Messrs August Bel
! mont n Co of NeU-York Oh behalf OF Messrs y. NJ
ROtlscnIld sons OF London, and themselves; Messrs
| Drexel, Morgan u Co., OF New-York, on behalf
| OF J. 5 Morgan, of London, and themselves; /;
of Messrs. seIgmsn Brothers, Of Loudon, and them
selves Messrs. Morton Bliss & Co.. OF NewYork, in
seT ., and Thr Fst National BSnk Of NeSYork Civ
tor the sale at par OF cent bonds The cOHd
| tions "a accrued interest aud commissions we've
I'm subsauce as in the previous contract but reserved
the ri h 10 open the loan TO popular sunscr on for
period OF thirty days such subscriptions were opened
and within the pe1od InehlOIeu they Iedcneu the
amount Of S75,39655O OF which reserved 70. rcsump
| ton purposes S2J,OOO.0OO. Additional sales Uf
| ucr cent bonds IN small amounts were made dur
ing the Winter and Spring by popular subscriptions,
moi give much encouragement for the future sale at par
| OF bonds bearing SO low arate OF interest
Recognizing the duties imposed upon the Secretary OF
the Treasury TO prepare Tor the redemption OF
| United states notes OIL January l. 1873, /
the parties OF the previons contract for the sale
Of SJO0UO00O 4l2 per cent bonds 1r resumption puT-
nose. AL p-cmlum Il per cent, the parties 10 detr
the expenses OF the preparation aud issue OF the bonds
aud To receive commission OF hall OF per cent on the
above the market value OF the bonds ut the
time the contract made, and we're the best rates
accordance with tue terms OF the contract and the
commissions have been pad The contracting parties
cal ed Tor by the terms OF the contract
The confidence eminent bankers III the yane OF our
securities as Shown Dy contract extended through
oa tne country and the money markets or tine world
and enhanced the value Of the per cent bonds
DESTROYS OF pOpularZmg this latter loan among our
own people ana being contract with ANY party
for The sale Of bonds on the 2Oth OF June, ISIS, 30
c eG popular subscriptions, aud invited AL banks aud
bankers 10 AID in bringing me Donds WITHIN the Ieach
Of all the people. As the proceeds OF the sales
c,piJ he used under the law only in pur-
chase OF q Ike amount OF pcr cent ponds,
and as these could not be called IN except upon nOtcc
%T tbr.e months the money received from the sales
was.e ritted In the oanks, properly secured
un needed TO meet the payment OF the called bonds
usralIv somrw nat less than three months,
calls were frequently made III advance OF sub
scripttons In thls way the exchange OF the
boufs was made without interfering with the
volume OF the currency Outstanding, or causing any
nrnnon To tie ordinary business of the country. In
' eass Sas onblIc money been delivered any parties
upon colateTas otherwise enclose me several CIR
cuiars showing the terms on wnlcn ine oAA mas Oeen
dsvgsed OF and the lTterest adJusted
In tLis way theT, has been taken mostly ~ TINS coun
try to 1st instant since JANUARY l. le ), about
nor cents and an lnnua saving for al time in the in
teret charge Of s. 100000. Am also pleased to state
mar after paying CompensatOns ana the oxpenses
o tbe tsr 50 Al as can be aseertancd 70 date there
reJnoips ia the Treasury unexIeuCed OF the amount al
lowed by law, $685., SO NO ftyogs havo ,een SHOWN
any OF the subscribing parties, and the loan Il SIN open
or any one who wishes TO make subscription on the
terms offered.
The statement of commissions paid to SUBSCRIBERS
to the per cent loan covers several hundi ed pages
of manuscript. The items range IN amount from
81 to S74.G42 the latter having been paid 10 the
Rank of the New-YOrk National Banking AssOca-
tiop on the sth ult. The total amount OF the COM
missions paid in is not stated but 1t appears that
since the 1st of January last there has been paid to
the First National Bank of New-1olk, Sl"9,I0O; to
the bank of the Now-York National Banking Asso-
ciatiop SIOs 024 to the National Bank OF the State
...I H.. rigL IA