New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-02
CONSULTING THE BANKERS.


secretary Window was IN consultation WIN
.,snv urominent bankers and business men at
,hs Sub- Treasury yesterday. The policy to be
arrsued by the Treasury in providing
sor maturing bonds, and the oest
icons of selling the bonds which 1t
= s.,ho,;zed 10 issue, were the chief topics OF
S.orssion. No decision was reached, and
- formal proposition for the purchase
- fcur per cents was offered. There
.~as much diversity of opinion among
the persons present. There was a general
: onnos,tion to syndcates and equal unanimity
~ favor of offering the bonds for public
mbscription. Later in the day many prom-
cent persons paid their respects to the new
Treasurer.
CONFERENCE AT THE SUB-TREASURf.
AZ Secretary WINDOWS request. Assistant Treas
,,er Ihouse had sent TO leading bankers and
busjness nlen invitations to be present Attorney
General Macyeagh took part in he discussion. aud
Assistant Secretary Upton and Mr. Knox, Control
ler of the Currency, were also present The visitors
presented themselves IN detachments, accordingly 10
The hour fixed for them The first and perhaps the most
important conference with members ot Inc ou
syndicate, between II and 'l2 O'clock Ol these
there were present George Bliss, OF Morton hilss q
"a Apcust Belmont George L. Baker president oil
the First National Bank, and A. S. Hatch. OF FISK
& Hatch. Drexel, Morgan q Co.. j. d W. Selg-
man & Co., Winsow Lanier q Co. and other
members of the former syndicate were not repre-
sented.
The motive Of Secretary Window in seeking the
conferences was to ascertain the prevailing senti-
meut Of New-York bankers III regard to inatur-
ing bonds and TO the best method of marketing the
bonds which the Treasury is authorized TO issue
Al the outset the Secretary announced that lie
slruld not decide al present on his future course;
but he wished to hear the views Of those present
Mr. Hatch is understood TO have taken the ground
af first that the bonds not due that they were
reieemable at the option OF the Government after
certain dates and that II the Treasury did not have
the money with which 10 Ort deem them, cUuid wait
until il did have 1t. To this George Bliss replied
that The Government had always met its obi gatOns
Al maturity. and hitherto 1t bad consGsTed D0ngs
dee AT the date after which they might be paid. Tie
nrged also that at the time of the issue OF the SKIES
was undoubtedly the intention to make the Issue
4 twenty-years loan and that the blyeTs of the
bonds so understood 1t. To this Ar. Hatch rctored
by proposing that under these circumstances the
Treasury should give notice at once that
after q certain day it would redeem the
whole amount of skies and iives outstand-
ing, and that, at the same SANE, time =, the tue
the bonds at per ceut interest. Ihe treasury
would have about S2J00OO,OOO available Tor the
payment OF the bonds, aud that sum would hc more
10 an inquiry from Secretary Wiudom rs TO how
lhat sum was made up. Mr.. Hatch offered the iol !
loving estimate; From the sale ot
four per cents $ll3eC0OCO, surplus
revenues 500 100000, and Treasury funds
under the Bayard amendment S50,000O0O.
Mr. Bliss suggested that it was unbecomlng the
dignity Of the Government that II should advertise
10 redeem nearly 500 OOO0.U 900 maturing bonds
when the whole world would know that 1t did not
have over S<5O.O 900 applicable for the purpose
that il was not wsn or proper that the Treasury
"A
In regard 20 the extending of the bonds at lower
rate ot interest there was considerable discussion
sent Mr.. Hatch urged the lower rate but. il Is
understood Others present were doubtful whether
that rate woud be ACCEPTABLE tn the holders OF the
bonds. Among the objections TO the j per cent rate
Il suggested that the question had wider
meaning than the mere extension Of maturing
bonds. 1t was urged that at that rate country
banks would be unable TO make their note circula-
lion profitable, aud that they would be likely TO
surrender it, Ii was objected also that II holders
willing to extend the bonds at that rate the
very Of the plan would affect future funding
legislation. IL would be argued III Congress that -
Fandng bill was unnecessary, for under no cir
eumstances could an act so favorable to the Govern
ment lie made. Tie Government wOuld be borrow
ing money at per cent which it could pay at any
time but of which the lenders could at no time de
maud the payment 1t was admitted by all
present that the Treasury could not extend
the. the bonds for ,.ui.y any definite period
Congress Ii is understood that the general opin
Ion was against tbs extending of the bonds but
hr. Hatch did not admit that the plan was i'm
Practicable There was no discussion at this con-
ference of the best way OF marketing the four per
cents bat the members of the old syndicate are III
favor of public proposals
OPINIONS OF BANK PRESIDENTS.
Immediately sfterward the presidents of several
prominent banks were admitted. There were1
present Benjamin b. Sherman. of the Mechanics;
Jacob d. Vermilye. Of the Merchants George S.
Coe. Of the American Exchange; Charles VI. Fry, of
The Bank of New-York; William Dowd of the Bank
Of North America George J. Seney. OF the Metropoi-
tan; John Thompson. of the Chase, and Ex-Gover-
aor L. D. Morgan. They were asked at once their
opinions TO the best method of selling the
teur per cent bonds. In general they
favored the plan of making fixed price which
should yield the buyers 3l2 per cent and of Offering
the bonds for public subscription. Great opposition
10 further syndicates was manifested by all To |
The proposed ran Mr. Thompson objected that the |
rate OF interest to be allowed was too large; that
sle plan would work more harm than syndicate.
because the hrst subscriber would take the whole
anoun. at the price. lie declared that the rate of
interest ought not TO be above per cent Som0 of
opinion. w
: Z was the general sentiment among them that.
ibe bonds eo % psee sho9ld be made BY lhs rrS"sgry
bidders at popular subscription IL was |
susgested that the bonds should be ex.
ended one year at per cent, but by some 1t
80 oolected that this was equivalent 10 the issue
treasury certificates. There was some discussion
70 the power OF the Treasury to issue certificates
sethe extent OF Sl50, 100000, but Secretary Win
hom remarked that that question was held IN aber-
1ce - IS understood that he believes he has
power 10 issue certificates In regard 10 the sur
Sai revenues OF the Government the Secretary was
thderetooi to estimate the amount for the wear 10
= mmcent to redeem the bonds already called.
uo III addition to produce about $50, 900 600
CALLERS AFTER LUNCHEON
AMER tbe Secretary had eaten his lunch the con-
Nsenec became more general. Among the Visitors
s1s Edwin W. Stoughton, Collector Morritt ac-