The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-31
TIE GEORGIA BONDS.
Undesirable Offering 8 1-2 Above
u Par,

undesirable Offering 1-2 Above
Par.
rbv did Georgia A. per cent. bonds sell
mi 1.16 when the same kind Of Georgia
"uds are quoted in the eastern markets
h 1852
,romiscuously ever since the papers a
me- fJavs ago, printed the news that the
s q. jssue Of Georgia bonds brought only
I, Is easily explained.
9H.tIrday' SAYS the Constitution, the
oA ltion was referred to Col. Robert U.
GH'.Jsnan, the states safe and prudent
6l"p"Ccier and treasurer. who gave the fol-
lnn';ng information concerning this last
ILL., Of Georgia bonds:
THE reason" said he, ''of a difference
IN the price of these bonds and the Quota
~ S1 NJ the same kind OF Georgia bonds, to
/ REF is due to the fact that the former
ga sold at wholesale, and the latter are
Sno,ed by bond brokers at retail prices.
1TSv does a merchant charge 5 cents for an
,a1oe retail, and yet sell that same
o.snFe at % cents when taken by the bar
,a,rhen at wholesale prices Georgia Az per
h ..,t bonds only bring l l-16 above pare"
sFa. asked of the thorough and shrewd
Efosncier of Georgia.
That was not on its face the highest bid
E.rbnitted to us, but it was deemed the best
sud highest, everything considered" was
SW6at was the highest bid, and what
N,rare the considerationsp was asked.
THE history of the issue of these bonds
!. this. The state legislature decided to
Hat S207, 900 Al bonds. We were in
strnc.ed to advertise these bonds in the
Erewspapers of Georgia, in New York.
Philadelphia, Baltimore, Boston, Chicago
srd Cincinnati, and we did so. The bids
came in. When the governor and opened
trem we found one bid from W. ] Hayes
4 Son, Offering 81 above par for the
bonds. with a provision that the state had
3 D D,tN repudiated her bonds within the past
& ton years This was the highest bid re-
ceiyed, but we couldn't entertain it."
Il why"
! Besides, if we did, we would run the risk
& of becoming entangled in a needless and in
Hiuring squabble, and perhaps a lawsuit
Nhtore we got the business straight, which
would have, in all probability, unjustly
crippled the states credit without provoca-
lion. Again, if we had done this, we would
have overstepped stipulation OF the state
constitution which says we could not have
taken SUCH a sJep. Auu JoIs IL WOulQ nave
appeared as though we were trying to evade
eslowing up of Georgia's record of bond
sgas had we declined to notice this bid"
"W hat. then, did you finally agree upon ~
I'VE called the attorney general into con-
ference aud sent a telegram to w. J. HAYES
\ a Son telling them that we couldn't enter
talk their bid unless they withdrew the pro-
vision They wired their reply, stating
tina. they would not make the bid without
the provision, so then we proceeded to look
up the next highest bids. We found that
G. Gunby Jordan, president of the Third
National Bank Of Columbus, offered to take
the whole issue of bonds at 1 lie above par.
THIS We thought the best bid, and accepted
Ill.,
IF you will look carefully into the mat
ter you will find that Georgia gets a COM
paratvely better price for these bonds than
she did for the Gordon bonds which every
body called gloriously sold at AZ. When
they were sold, Georgia Al bonds we're
being quoted at us. Now, when we sell
these bonds-a smaller issue-at l 1-16,
Georgia AIS are quoted at only 10S. Thus
It can be easily seen that the bonds have
brought very good prices, when everything
is considered" ;