The New York herald., 1879-03-28

ment. leaving one-fourth of per cent
,ne a,sposal o, ars fpn nonds ana
other charges incidental thereto. At the time this
contract was made the five per cent bonds Of the
kind contracted forwcre selling in small lots in the
open market at price somewhat above par in co$n
exclusive of the accrued interest and this increascd
value OF the bonds enabled the department to obta
somewhat better terms than those of previous con-
tracts The amount sold under this contract was
S4a000O O00 which the contracting parties received
commission. stipulated, of one-fourth of one per
cent.
Secretary Sherman next recites the contract in
January. 1875. with the parties. and Messrs
Drexel. Morgan Co.. of New York. and j. s. Nor
gan Co.. of London added to the Syndicate The
conditions of the previous contract were modified
that these contracting parties received compcnsa-
tion of one-haf of per cent on $122 $50 Of
bonds sold for refundng purposes. and per cent
on sl5.2l5,5OO OF bonds sold for the purpose Of
carrying into effect the third section of tho Of
January II, 1875 from which compensation they de-
frayed all expenses contested with the issue, nclud
ing expenses of preparing tho bonds.
The next contract for tho negotiation OF the
four and half per cent bonds. 1t made by
Secretary Morrill, with the members Of tho for
mer Syndicate 'and Sfcssrs. Morton. Bliss & Co..
for themselves and associates Under this contract
the Syndicate to pay accrued interest tho
bonds to the date of their application for delivery
pay all expenses Of the preparation and issue
and were to receive q commission OF onc-half Of one
per cent ON the amount negotiated. Secretary sncr-
man continucs:--
| When / entered upon the duties Of my present
office in March. 1871 there had been sold under this
contract 100000 900 of these bonds. In the follow
the money market had become favorable that four
per cent bonds could be sold at par and therefore
availcd myself OF the privilege secured by
the contract. and gave notice that the sale
be limited to 5000 900. and Of tins amount an
agreement made that Sl5,O00.00o should bc ap-
piled to % Sss o so were rnpay
purposes and S15.0OO00O for resumption purposes.
The expenses were paid and the compensation al
lowed per the terms of the contract At that time
had been issued in redemlt tion of per cent
bonds s6o43oo of fvc per cents and $ls5,Ooo.oOo
of four and half per cents making saving in the
annual interest charge OF s7Sss.4
On tho 9th day OF June following contract
with Mcssrs. August Belmont Co.. of New York,
behalf of Messrs. N. NJ lsothschild Sons. of Lon
don. and themselves: Mcssrs. Drcxel, Morgan Co..
Of New York. ON behalf OF J. S. Morgan, Of London
| New York. on behalf of Messrs. Seligman Brothers.
of London. and themselves Messrs Morton. Bliss 4
| OF London and themselves. and the First National
Bank. OF New York city, for the sale at par in
! accrued interest and commissions in substance
in the previous contract but reserved the right
to open the loan to popular subscription for pc
riod Of thirty days. such subscriptions opened
and within the period mentioned they reached tho
Sumption PURPOSES saS, 10000 Additional sales Of
four per cent bonds in small amounts made dur
| ing the winter and spring by popular subscriptions
but tho condition OF the money market at that time
did not give much encouragement for the fnture sale
ut par of bonds bearing so low rate OF interest.
tary of the Treasury prepare for the redemption
in coin Of United States notes january l. 1879.
| entered into contract On April H. 1878. with the
parties Of the previous contract for the sale of
$50.0oU.000 four and half per cent bonds for re.
en Tho To epne ne ahe tS
! expenses Of tho preparation and issue of the
bonds. and to receive commission OF half OF one
Tho Mt he rat, oh nod
were somewhat above the market value Of the bonds
the time the contract was made. and wore the best
ratios could obtain. The bonds taken and paid
for in accordance with the terms OF the contract and
the commissions have been paid the contracting par
| ties W. called for by the terms of the contract.
The confidence Of eminont bankers in tho value Of
| our securities shown by this contract, cxtended
the world and enhanced the value Of the four per
| cont bonds. DESTROYS of popularizing this latter
| loan among our own people. and there being no con-
| tract existing with any company for the sale Of
bonds the 10th Of June, 1873, solicited popular
! subscriptions and invited all banks and bankcrs 10
| aid in bringing the bonds within the reach
Of all the people. the proceeds of tho sales could
I be used. under the law only in the purchassof.s
like amount of six per cent bonds. ana these Gould
called In except upon notice of three months.
the money received from. the sales was
erly secured. until needed to meet tho pay
! ment OF the called bonds, usually somewhat
less than three months, as calls were t,reqnenty
exchange OF the bonds was made without interfering
| with the volume OF the currency outstanding or
causing any interruption TO the ordinary business of
the country. In case has public money been de-
livered to any parties upon collateral or otherwise
| enclose the several circulars showing the terms
on which the loan has been disposed of and the in
tercst adjusted In this way there has been taken,
nary 1878. about sT7 900. causing like re-
ducton in the amount of six per cents and n.
nuai saving for al time In the interest charge Of
| $7,40,0W.
| am also pleased to state that after paying the
compcnsatons aud the expenses of the issue 40 far
as can be ascertaned to date there remains in the
| Treasury, unexpcndc, of the amount allowed by
law. sGi7,s19 No favors have been shown any Of
the subscribing parties and the loan is still open
any one who wishes to make subscription on the
terms offered.
Tofrthcr facilitate the diffusion OF the public debt
| among the masses recommended in my last aunua,
report such notifications of the Resumption law
would permit the issue OF bearing certh-
convertible into four pcr cent bonds: Con-
gress, by the act approved February 90. 1879.
| madc the necessary modification. A circular
issued the 18th inst tcopy encloecd) inviting sub
scriptions and extending ~ public officers the priv
ege of becoming agents for their sale Encouraging
responses being made and there is to hope
that before the close OF the prescnt all OF the
Ing TO 800 will be converted into the ccrtd-
Gates or into four per cent bonds, and mainly held
by our people.
IL the Senate deem the mattcr of sufhcient iinpor
tance committee be authorized to examine into the
| method employed by the Treasury IN rcfnnding this
| debt TO the end that any existing methods not
deemed proper expcdient may bc abandoned and
better schemes. devised. shall also be pleased to
| consult with any member OF the Senate who may
have any suggestions to oder in the natter and TO
open to his inspection all books and records Of
/ the department, showing in detail tho transactions
| in the issue and redemption OF the public debt
| Very respectfully. JOHN SHERMAN. Secretary.
The statement Of loan accounts OF tho national
bank repositories contains nothing of general in
tercst except the amounts deposit at various
periods during the past year in certain prominent
banks. which wero made the subject of discusson in
he House of Representatives last session and then
] published.
The statement Of commissions paid to subscribers
| to the four per cent loan several hundred
pages Of manuscript.
The itens range In amount from 81 TO s7< Gia. tho
Inter having been paid to the "Bank OF
the New York National Banking Association on
tho Sth ult. The total amount OF thu com.
missions paid is not stated. but it appears that
since the lst of January last there has bccn paid