New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-09
THE FEELING IN WALL STREET
4 HARD BARGAIN DRIVEN By TIE BANKER

4 HARD BARGAIN DRIVEN BY TIE BANKERS
WITH A HELPLESS GOVERNMENT
The Morgan-BelmOnt bond syndicate has driven
hard bargain with the Administration and the spec
tacie is presented of President OF the United
States publicly acknowledging over his own sig
nature that the National Congress has brought the
Treasury into condition where the Government
must b. dictated BY syndicate of bankers
While no one disputes the fact that good VIII come
from the present issue OF bonds and that the coun-
try in general will receive untold benefits. the an
nouncement Of the terms of the issue was surprise
to the banking community. From the bankers point
Of view the bargain Is an excellent one per
cent bond a Sa4 per cent basis was not 10 'he
liking Of the Administration. but it had TO accept H.
and the result will be that big scramble VIII take
place 10 get hold OF the bonds. The syndicate Is
composed Of August Belmont. j. Plerpont Morgan
James Speyer and several banks. believed to be the
National City Bank. the Hanover National l"e
Chase National. the Gallatin and the Fourth Ma
tional. From the opinions expressed yesterday III
Wall Street it looks as If every bank in New-forK
would like get hold of some Of the oonds at 'ne
terms proposed, but it understood that the syn"'
cate Is close corporation and only le" ou'Si'''
will be allowed to ~ome in.
The fact that the Administration has bought ohS
enough gold to make the reserve re" millions o'.-
600 leaves the supposition that IL WISHES y.
convey the idea that the issue made spocHicdh!
to replenish the gold reserve and not TO meet '"'
rent expenses. The Treasury now mas iarse -"
rency balance owing the heavy receip's OIL ies"'
tender notes in exchange for gold. 80 that II ca"
meet the current deficit for some time u co'"e WV"
out cutting into the gold reserve. 49,.
Wall stree, EXPRESSED considerable satisfaction
in the fact that the President. In his message 10
Congress took occasion TO impress 'hat oouS w."
tho fact that had authority been given to the Sec
rotary of the Treasury TO issue per cent soan ~
the saving to the Government would De so'', "
year and for the thirty years. the time the bonus
are 70 run s617i77O Under the terms OF me fi
ment between the Administration ana , tmt ova1
Syndicate the right Is reserved by the auHllHtln,
tion 70 substitute at par within ten days eoiu
bond bearing per cent interest. A.. ,o,,.s .,
The stock market did not advance on INV 49, -
tho bond issue but. the contrary. suffered ~
sharp decline The fact that no better terms vouo
be made indicated decline In pubic creu' sS,,J
November when a less marketable bond wa t ,ss'n
ON a 2 nor cent basis municipalities nave no
trouble in floating per cents put Gne yrhanp
here were sales OF $4,000 United States registered
Is at 1I47s an advance of - per cent from me ,as'
sale. and Of ~ per cent from he met b There
also were sales of $1,000 coupon OF AZ - n,
80 days at per cent for carrying ana 49," rh
non is at 1l0i. seller 30 days at : per cent i'e
last issue per cent basis ana So'' III
Henry W cannon. president o. the Chase N"t ls
Bark said yesterday, in speaking Of me po'iI nl,
Il think the Presidents message settles c9nriuII
sively the question as to the maintenahVs 1i ioscy
payments 10y the Treasury. iis aIt1n T. EomeoSn,
and the disposal of half Of the bonds TOT r.uopo'
gold VIII undoubtedly prevent further exports VI
Inv stewart, president Of the United States
Trust company. said in doing this the iresi-
dent has simply carried out the determination hcrr
currency Iipou Tho money basis OF the world. The
difference in the price at which We nave pe,i ,"l
is simply the panatv which he peop.e have 10 pay
because Congress fails to IeaIiEr now a -
It is TO keep on right basis Ihe Iaaa,tng no, 81
this transaction IS that i9r a time AT ""S' eNpo''S
Of gold will be checked.