New-York tribune., 1895-12-28
GOSSIP IN THE STREET.
BELIEF THAT THE ISSUE WILL BE
500, 000, 900

CONTRACT WITH A SYNDICATE HEADED
BY MEssRs. MORGAN AND BEL
MONT GOLD WITHDRAWALS
FOR TO-DAY s2OOoooo.
Some announcement as to the forthcoming
issue Of bonds by the Government was expected
yesterday, but IT not made The general
belief in Wall Street was that the bill au-
thorizing the issLc Of fve-year per cent coin
bonds would not pass the Senate. There was
a story that ten-year per cent bonds would
be issued Under the Resumption act. instead
of thirty-year 4 per cent bonds as had been
reported All the talk was that the emission
would be $100, ,000. 900.
number of financiers believed that the Ad-
mnstraton would wait until 1t was apparent
that Congress would not act or would delay
action. before making public its arrangements
for replenshing the gold reserve. No doubt
was entertained that the Treasury Depart
ment had formally entered into contract with
a syndicate headed by ]. Pierpont Morgan and
August Belmont for the sale of bonds; but on
this point there was definite information.
Two callers upon Mr. Morgan in the course of
the day were Francis Lynde Stetson. the law
YER who drew the contract Cor the sale to the
Morgan Belmont syndicate Of the Issue of last
February and President James Stllman Of
the National City Bank. Mr.. Stillman is
friend of President Cleveland and his bank
has the largest supply of gold Of any bank in
New-York.
II was agreed among bankers that 1t would
be difficult to market 8 per cent coin bonds
above par and If that could not be done, they
would hardly be available, even II the au-
thorty to issue them should be granted by
Congress Under the proposed law. they would
have 10 yield par at least to the Government
and there would be nothing to pay
syndicate for dsposng Of them II was con-
ceded. however that per cent bonds specif-
cally payable in gold would command a good
premium.
President James T. Woodward, of the Han
over National Bank said: Il do not think
bond issue Is imminent Time will probably
be first given to Congress to show what II
intends to do. The bonds will not be offered
at popular subscript IN. They could not be
placed that way. The issue must be under
written. Talk Of limiting the issue to $5O,Ooo,ooo
is not sound. That amount would not be any
where near enough.
Union Bank, said: "My understanding is that
ten-year per cent bonds are to be issued
The biz for 3 per cent coin bonds Will never
get through the Senate"
Ioftin Love. cashier Of the Corn Exchange
Bank. said England will take United states
bonds No matter what its prejudices may pe IL
will not let them interfere with opportunities Tor
making good Investments
Gable dispatches reported that financial houses
in London had been asked to take part or the
issue and that they would probably do So Not
much stock was taken in Wall Street in a story
that the Administration had entered into deal
whereby a syndicate was to keep it supplied with
gold until after the National election III 1896 lr-
respective of the amount of bonds required for
the purpose.
I,eopold Zimmerman. Of zimmerman & For
shay bullion dealers. said that individuals VINO
desired TO purchase the new bonds were engaging
gold coin for which they paid an advance OF
One-ouarter to one-half of per cent. This ad-
vance was not premiu n, but A commission In
fact A small commission was also paid for the
privilege Of calling for greenbacks at later dates
There a reaction in the stock market. but
this was not surprising 1t was the result chiefly
OF sales of stocks to take profits which had accu-
muated since Monday. when the rally began. For
another thing. lower quotations from London dis
closed that operators there were sellers or Amer
ican stocks and New-York has for some time
been rather prone to follow London In specula-
ton The highest rate for call money was per
cent At the close call money offered at
ner cent Sterling exchange was barely steady
Gold was taken for export by the Umbra. sail
ing to-day as follows: Lazard Freres 81 .000, ,000
L. Won Hoffman, a. Co. $500 900; Barring. Magoun
& co Oor Kidder. Peabody & Co. of Boston,
$500 900; total s.. 100000 All the gold was in
hars from the Assay Office. except that taken by
Raring Magoun & Co. which was in coin from
the Sub-Treasury.