The morning news., 1894-11-23
BANKERS TO BUY THE BONDS
New YOTk'S Big Houses 10 Subscribe
for The Entire Issue.

The American Houses to Bid on a Per
Cent. Basis and the Foreign Bankers
to Take Them on Slightly Lower
Basis-The Issue Expected to be
Largely over-subscrlbed-Th Gov
ernment May Not Net over $50 ,ooo,-
600 in Gold.
New York, Nov. 22.-It was reported
late in the day that after protracted
conference a syndicate was made up this
afternoon to take one-half of the $50 OO0O,-
600 government loan. The new
syndicate is said TO comprise
the Chemical Park, Importers and
Traders, the Chase, the Fourth National,
and the Bank of Commerce. These banks
are among the largest holders of gold,
and if they take the loan, the treasury
Will be a large gamer of the yellow metal.
The agents in this city of the Bank
of Montreal will receive 100000 gold from
Canada this week, and 100000 next week.
1t is understood that this gold is to pay
for subscriptions to the government loan.
number Of foreign bankers held a con-
ference with a number Of the pres
idents of the leading trust companies
this afternoon in the United States Trust
Company's office. There were represented
Loeb & Co, DreXel, Morgan & Co., Held
elbach. EclIleheimer & Co, Lazard Freres,
Ladenburg, Thalman & Co, 1. & s. Wrom-
ser and J. & w. Seligman.
Arrangements We're perfected for taking
a block of the bonds, but whether the bids
would be for the whole amount or not
John A. Stewart, president Of the United
States Trust Company, declined to say.
/ There is no syndicate formed in the techni-
cal sense. but a general understanding
as to The price at which bids would be put
in. Arrangements were also perfected for
securing the gold.
! Notwithstanding the mystery with
which prospective bidders are envelop-
ing their intentions, it is understood that
/ the national banks viii put in their bids
/ on 3 per cent. basis. while the cOmbina-
/ ton of trust companies and foreign bank
/ ers will bid slightly under per cent.
There has been no formal agreement
/ among the banks regarding the method
/ of furnishing the gold, but this is not nec>
| essary at the present time, as the terms
/ of the subscription only require payments
/ in installments. A dozen banks hold the
major portion of gold in New York city,
/ and it is expected that the banks will
/ part with 40 per cent. of their gold hold
/ ings. 1t is extremely unlikely that the
banks will come together to determine
what shall be done regarding the gold
! until Monday next. The bids will all be
J in then, and the banks holding the bulk Of
| the gold will be able to determine fully
what they will be called upon to do. As
it is expected that the issue will be over,
subscribed, each subscriber will not know
what amount of gold he will need until
| the treasury allotment is made. The New
/ York banks will then know how much
. gold will be required by their depostor2
and can act intelligently.
/ The presence of a representative from
1, n,F.,n.
duct the gold shipping business, also leads
to the belief that if the New Workers
should fail to do their full duty the gold
| will be secured abroad. When the foreign
| houses know what amount of bonds is
awarded to them they can begin drawing
their bills of exchange upon London, and
as ample time is allowed for making the
| full payments to the government, If any
! large blocks of bonds are taken by them,
their bills will force down the foreign
exchange market, and permit gold to be
. imported more cheaply than the present
/ condition of the foreign exchange market
. would seem to warrant
The local treasury officials who are
watching the bankers very closely have
reduced their estimates of the amount
of gold that viii be secured through the
bond issue, and are not sanguine that
| over $50 600, 900 gold will be furnished by the
/ New York banks. 1t is believed however,
that some gold which was boarded during
the panic by timid capitalists will be
tempted from the private boards by the
bond issue
1t is estimated by New York bankers
| that the subscriptions will not aggregate
less than S700OO,00O, and will reach over
| 800 100000 if the bankers in other cities
are experiencing the pressure of inquiries
that are pouring into New York city.
Washington, Nov. 22,-The only with
drawal of gold to-day from the sub
treasury at New York was $4,000 by
Charles Hathaway & Co., making the
total Withdrawals since Nov. 13 $4, 100000.
There is no longer any doubt that the
| bids for the new issue of bonds will far
exceed the amount to be sold. Indeed, the
indications are that the bids already re-
| ceived are more than the S5OOOO,OJO and
that the large bids expected tomorrow
from New York and other nearby cities
will raise the total to nearly $4,000, 600
According to the official figures the price
to be paid next Saturday on the per
cent bonds so as to realize 3 per cent is
$l16OO8 in addition TO the interest reckoned
from Nov. I to the date of payment
UNION ooUNTY's BURIED GOLD.