The daily gazette., 1880-03-12

A4A&ss -S@ - A. n xNA -
"a. 1874, Wa renewed the co,.,plct,ns
parties being Messrs. August Belmont &
Co., OF New York, ON behalf of Messrs.
n. M. Rothschid Il Sons, of London
N essrs. Drexel, Morgan g. Co., OF New
York, ON behalf OF Messrr. j. s. M organ
q Co, OF London; and M essrs. j. & w,
Sehgman b Co., OF New York, on be-
half OF Seligman Brothers, of LIZ ndon.
The conditions Of the contract were so
modified that the contracting parties re-
ceived comm issi On Of Of per cent.
on S122, ,682 $50 bonds sold for refundipQ
purposes, and per cent. on s15,2l6, 200
bonds sold for purposes, of carrying Unto
effect the third section OF the act Of jan
uary IA, 1876, from which Commission
they betrayed all expenses connected
with the issne, including expenses of
preparing the bonds.
The next-contract was for the nego-
tiation OF the 4 1-2 per cent. bonds, and
was made by Secretary Morrill,, August
"a, 1876, the contracting parties being
N essrs. August Belmost & Co., of New
York, on behalf Of Messrs. N. M. Roth
schild q Sons, of Loudon, and N essrs.
j. Il W. Seltgman & Co.. for tbemse Ives
and associates; and Messrs. Drexel, M or.
gen & Co., on behalf Of Messrs. j. 8.
Morgan Il Co ;and Messrs. Morton, Bliss
a. Co., for themselves and associates.
Under this contract the contractiuR pa r
ties were 70 pay accrued interest ON the
bonds to the date of their application for
delivery and 70 pay all expenses Of the
issue, including the preparation Of the
bonds, and were TO receive commission
on the amount negotiated Of IL OF per
cent. =
when entered upon my duties of nv
present office, March, 1877, there had
sold under this contract $40, 100000 of
these bonds.
In the following May 1t became ap-
parent that the condition Of the money
market had become SO favOrably that
per cent. boEds could be sold at par, and
l therefore availed myself OF privilege
secured by the contract, and gave notice
that The sale OF the 4 I-2 per cens. bonds
would be limited TO 500, ,0OO, 900, and ,f
this amount All agreement was made
that S15, 100000 should be applied to re-
sumption purposes. -tf
Sales were rapidly made to theamount
OF SlS5 600 900 for lrefunding purposes
and SIS 600 900 for resumption purposes.
The expenses were paid ana the aOm-
missions allowed as per the terms Of the
contract. 7-'t t-t
At that time there had been Issued In
rea emption Of per cent. bonds S486, ,043
600 OF hve per cents, and S185, ,O0O, 900 of
four and One-half per cents, making q
saving in the annual interest charge Of
| 81 ,635, ,43O. u-l
On the 9th day Of juno folio wing /
made q contract with Messrs. August
Belmont & Co., OF New York, ON be-
half of M essrs. N. RotLschild & Sons, Of
LONDON, and themselves; Messrs. Drex-
o.. Morgan & Co., Of N. Y, ON behalf
of j. s. Morgan & 20 of L. ndon, and
themselves; Messrs. j. & W. Seligmsn
q Co., of New York. on behalf Of
Messrs. Seheman Brothers, of London,
and tbemselvesj Messrs. Morton, Bli-s
b Co., of New York, on behalf OF Nor
ton, Rose b o., Of London, and them-
selves; and the First National Bank Of
New York Ciiy, for the sale, at par, In
coin, of per cent. bonds. The condi-
tons as TO accrued interest and COM
missions were In substance as In the
previous contract, but l reserved the
right to open the loan TO popular sub
scriptions for period OF thirty days.
such subscriptions were opened, and
within the period mentioned they reach
ed the amount of S76, ,496, $50, of which
reserved for resumption purposes $685.
100000.
Additional sales Of 4 per cent bonds
In small amounts were made during the
following winter and spring by popular
subseTl ptioD, but the condition OF the
money market at that time did not give
much encouragement for the further
sales ut par of bonds bearing SO low a
rate of Interest.
Recognizing the duties imposed upon
the Secretary of the Treasury to pre-
pare for the redemption in coin of U Ubited
States notes on January l 1873. 4 enter
ed into q contract, April ii, 1873, with
the Iarties OF the previous contract for
tue sale Of $50 900, 900 4 1-2 per cent.
bonds tor resumption purposes at a
premium of l 1 2 per cent. the, parties
to defray the expenses OF the prepara-
ton and issue OF the bonds and to re
oeive q commission OF IL OF per cent.
on the amount issued. t.rr..
The Secretary appears to be some
what confused in his statement of the
amount of bonds sold for resumption
purposes. In his annual report of 1878
he fixes the sum at $95, SOC, 900, which
is reiterated in an official letter to me
dated January II, 1880. This is near
ly $40, 900, 900 less than the amount as
stated by him In his letter to the SEN
ate of March 90, 1870, above quoted, in
which lie gives in detail the several
amounts of bonds sold for this pur-
pose. The following extracts from
this document make the total amount
of bonds sold for resumption $105, ,215,-
500, not including five and half mil
lions sold for the Halifax ward. - \
1875, January 20, United States
five per cents, and per cent
smmissloD,. .........,..... .S16, ,216 800
1876, August "a, United States
four-and-a- half percents and
one-hAlf of per cent. com
missl0a.. ........., lo,OOO,OOO
1877, june Q, United States four
percen.s, and IL per cent.
1876, April IL. United States n7
four-and-a-half percents, and
IL per cent. commission,.... 60,OOO.OOO
...,i 105, 5,2i5. 800
The interest charge on these bonus
from the date of their issue to January
/, 1880, aggregates S12, ,806, $50, as per the
folio wing table: 81. .t-4al
Interest charge on the bonds sold for
resumption.
sl5, ,2i5, 800 from January 20,
1876 TO January ], 1880, per -
cent. 3o,I45,4oU
$50, ,OOO, 900 from April 4, 1876 -
u January 1, 1850, 412 per
cent. ..................... 2,524.3l5
kar OnA f-.x. Ia. a..