Birmingham age-herald., 1895-08-04
THE BOND SYNDICATE.
The Achievement of the Bankers From Lon don Point of VieW-Where the Gold
 Was Obtained.

Correspondence N. Y. Evening Post.
 London, July 22.-Although conditions have not been favorable for any out burst of speculative enthusiasm here dur ing the past few months in American market is noteworthy-too much so to please the bears who have been preach ing for months past a general outpour- ing of gold from the states to Europe, accompanied by a slump in the value of stocks. To these peSsimistic persons the strength of the market has been a most unwelcome surprise, their strenuous ef- forts to depreSS prices having hitherto barely sufficed to check the operations for the rise which, few weeks ago, was undoubtedly beginning Repeated efforts to raise a scare in the market having been as repeatedly frustrated either by renewed support from New York or by prompt denial and contradiction of ad- verse rumors circulated as to impending gold shipments, the condition of the market has, during the>past few weeks, been one of extreme idleness, the bears finding their efforts for material de- cline vain, while through various causes mainly the rampant activity in the kaf11r market-operators for the rise have hesitated to transfer their atten- tion to Americans.
 It is not surprising that, with the ap- proach Of the period when the United States bonds issued here become negotia- ble on the other side, the bears should be renewing their attack, passing their arguments mainly upon the high level of exchange and the proba bilities result Ing from what they are pleased to fore cast as the immediate return of all the bonds to New York some time during the coming month.
 The striking feature of the syndicate's operation has been the manner in which 1t has succeeded in shipping some mill lions of gold to New York without so much as hardening the market here by fraction, or extracting one single gold piece from the accumulation in the Bank of Englan The greater part of the gold shipped has been bought here in the open market from the supplies constantly ar irving from South Africa, and part has been bought in France. About the end of March probably about 8 half million in gold was dispatched from Paris to New York, at which time the Bank of France is believed to have sold American eagles at a. cheap rate.
 Exchange on London during the period of these shipments being comparatively high a certain amount of expense was necessarily involved in the transactions. opinions from a good source estimating the expenditures at about % per cent above that which would have been in-
 
 Allowing for all these and other expenses connected with the efforts made to pro- tect the treasury at Washington, I have good reason to believe that the syndicate has secured or will secure for itself a net profit of something like per cent on the amount of the loan. The course of the money market here has been in favor of the syndica te's efforts to secure gold at a cheap rate, but none the less the results reflect the greatest credit on the skill of those concerned in carrying the operation through.
 One phase of the question stil remains to be noticed, namely the future destina- tion of the bonds placed in Europe. At the moment, that is the most interesting phase of all. As I have said, bear opera tors are confidently predicting the return of the whole amount of the bond issue next month to New York, and if this were the case 1t would certainly seem that a further serious rise in exchange, and pos sibly heavy gold shipments from New York, would have to be faced. But from information received from the best quar- terS, I have good reason to believe that these predictions are not to be fulfilled or at least, not within anything like so short a space of time as is generally sup posed. At first sight of course, it would seem that the immediate return of the bonds to America is more than probable, owing to the extensive purchases which
 
 American account. but it appears more than probable that fully one-half of the amount thus purchased will still be "car- rled" in this country for some little time. while money is so cheap as it is at pres- ent.
 Again. might almost confidently state that fully one-haIf of the amount issued in this country Is in the hands of firms and individuals who will not allow thenl- selves under any conditions to part at present with their holdings. A consid- erable portion, 1 may say, is in the hands of first-class insurance offices here. and while at ordinary times these tffices might well be tempted to realize at pres ent prices, and so secure a handsome profit on the operation. yet. in the face of the present famine" In investment stocks, the embarrassment caused by re- linquishing so good an investment, ob- tained at so cheap price, would be too great to allow them to be tempted for the