New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-21
BIG GAINS FOR BANKERS.
THE PER CENT BOND ISSUE LARGELY
OVERSUBSCRIBED.

TWENTY-TWO MINUTEs-LONDoN ALSO
ANXIOUS FOR THE PAPER.
The last formality in the mastery bargain
which the Belmont Morgan bond syndicate has
driven with the Government was completed
yesterday when Mr. Morgan and Mr.. Belmont
announced the closing of the subscription list for
the new per cents. The advertisement INFORM
ing the public that the syndicate ready TO
receive subscriptions to the new bonds was pub
shed in yesterday mornings papers. and before
the majority OF people had tim to read the oe-
tails Of the prospectus the subscription list had
been closed and many people who wouid nav
liked to have made bid for some OF the pohus
u,era shut ont i'm the cold. OF course II was
known before the invitation for public pids was
made that the general public would nave 'i''''
cbance m secure any of the gilt-edged paper o"'
Tho raniditv with which the subscrlp'ions "e''
sbut off caused mild surprise IN the oai'A'"e
co,,mu,,tv The Belmont Morgan syndca'e
allowed the public exactly Twenty-Five minutes
70 hand in its bids. and in that tune 'he iss"e VI
q, least that part Of it which Is piaceo II" 'nis
country was oversubscribed somewhere IN the
neighborhood of ten times.
Mr. Morgan's banking mousse at No. % Wall
Ct WAS the scene Of much activity. and large
force of clerks and messenger boys was on mana
Yesterday morning at the opening OF business
Clerks and messengers representing suoscrlpers
for the bonds tumbled over each other IN 'heir
,os,a IN get in their subscriptions. and in
twenty-five minutes Mr.. Morgan observed from
,o;r, ~ vantage behind a glass door that enough
subscriptions had been made TO Ill up all the
available books in the Office. and he waved his
hands at the receiving clerks, who in turn waved
+be,r hands at the would-be subscribers. saying
hat 10 closed.
Nr Relmonts office the same thing occurred.
FLOOD OF SUBSCRIPTIONS.
Tho aggregate amount of bids received could
not bo learned yesterday and Mr. Morgan said
,ho, bo would not know himself until Saturday.
II is believed that the subscriptions ran up to at
least five times the amount Of the issue. s62aooooo
and some people in the Street placed the hgure al
ton times the amount. In London there was the
Same anxiety on the part of the public TO get the
hords and cable reports were TO the effect that
tho issue had been largely oversubscrbed. THIS
Information caused a better feeling in the stock
market here and the price Of other Government
issues showed an appreciable advance. The men
in charge OF the syndicate will now begin the al
lotment Of the bonds among the ooders' anu
there is great deal Of curiosity on the part "i
the public to know just how many people VINO
MI, in subscriptions yesterday will get any OF the
coveted paper.
The managers Of the syndicate reserve to them
selves as stated in their circular the right 10 re-
ject any Of the applications, and TO allot smaller
amounts than those applied for.
Now as the syndicate knows that there Is an
enormous profit in the bonds and that ALREADY ITO
has been bid for them on the Street. II is not like
ly that many people who made subscriptions yes
terdav will get anything for their trouble and the
&c hat
part Of the bonds will be held by the members of
the syndicate. 10 sell at their pleasure
THE GENERAL PUBLIC FROZEN OUT
About the only people who will be considered in
this bond deal will be those who have already fur
nished the gold for the bonds. People VINO nave
studied the situation think that only about sl5,-
100000 Of the bonds will be sold by the holders
hore. and that the rest will eventually find a
market in Europe.
The syndicate bought the bonds at sO4 4s. and
offered them for sale at SIP %. This means
profit Of about 81 75 on each bond or s4,s2s4l2 on
the total issue This amount the Government
might have saved if it had offered the bonds at
s11225.
The syndicate announces that the allotments
are TO be made in four days. and that 1t will
place the bonds where they will do the most good
TO the Government. Such an announcement is
superfiuous The Government Is no longer TO all
outward Appearances. playing part in the bond
business President Cleveland made bargain
which gave gigantic profits to a syndicate OF
bankers who viii now proceed TO place the bonds
where they will command the highest premium.
TO be sure, the bond syndicate has promised 10
keep the Government gold reserve Intact Tor
some time to come. but Il will not have TO give
up any Of its profits in order to do this the
syndicate is now in a position to control foreign
exchange and its intention OF selling good
part of the bonds besides the amount agreed TO
in the contract abroad will bring enough gold to
this country and prevent gold exports from here
for a long time 10 come.
GOVERNMENT CREDIT GOOD
An encouraging feature of the bargain. despite
the fact that the Government has been "milked"
10 certain extent. is the demand for the bonds
abroad and the willingness of the Rothschilds to
come again into an active part in United
States Government loan
j. Perpont Morgan went 10 the Sub-Treasury
yesterday and turned over TO the Government
s1,12S 900 gold which had been received from the
members Of the syndicate in excess Of the total
amount Of gold required. Mr. Morgan took legal
tenders for it, and carried them in neat little
bunch to his own office 1t was said that this
amount of gold meant that the payment Of the
American half Of the gold for the bonds had
been completed. and that the extra Sl123,00O gold
was a bonus given by the syndicate in accord
ance with the clause In the contract binding 1t
70 restore and keep entire by all possible means
,ie government gold reserve The syndicate
however, exchanged too many legal-tenders to
pahks and gold houses for gold, and had this
amount over. and II was nothing more than gen
erosty on It's part TO exchange It with the Gov
eminent for legal-tenders
Inc total amount Of gold received at the Sub
Treasury and Assay Office on account Of the
bonds was sla9lo22Os0 the rest Of the amount
being deposited at the banks which were made
legal depositares
BIG PREMIUM IN LONDON
In the London market premium OF 4 per cent
waS od Tor the new bonds yesterday which
would make their price about 1I7h. Bids were
made in this market AT 1l6 but no future trans
actions were made, and ii will probably be week
before any actual transactions will take place