The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-10
THE BONDS COMING BACK.
Gold May BE Withdrawn From the
IrcnsIr.X TO PAY for Ihern.

New York. Aug. 9.-The ss0.ooa 0a0 Of new
4 S per cent bonds sold abroad by the
Belmont Morgan bond syndicate have
been delivered in London 10 the individual
subscribers. and goodly portion Of them
viii start back at once for the nted
States This is a new danger which the
syndicate will have 20 face 50 long as
the subscribers To the bonds abroad had
only interest bearing scrip in their pos
session. calling for the delivery Of the
bonds on August s. the syndicate was IN
control Of the situation. as the holders Of
the scrip could sell only contracts to dc
liver tho bonds when released by the syn
eicate managers in London. The London
price of the scrip has been below the
New York price for the bonds tor over
two mouths. and holders cannot resist the
temptation 10 negotiate sales Tor iuture
delivery IN New York. Considerable AR
hitragc" business has been done
A large portion OF these bonds VIII he
shipped within week. The return Of sin.-
teaa of the bonds TO this country, oF ono
third OF the entire amount placed abroad
within week Of actual delivery or tho
bonds ia london. is startling. Every
bond which Is sold here ny The foreign
holder must he paid for either IN gold or
a hill az exchange. and the difficulty OF
controlling the foreign exchange market
so as 10 prevent extensive exports 80 gold
Is ccrrespondincly intensified.
II II believed that a considerable portion
a the bonds placed aboard VIII
return % this country within a short
period The reasons are very simple,
There is demand for the bonds bere Tor
uses heyond a mere investment. The
banks contested eagerly for ne new
bonds when they were paid out, as they
provide a much more profitable llsis fer
circulation than 5 per cent. bonds which
Mere issued ny the government IN he pre-
Viogs loans The hanks throuTAoot the
country have importuned their New York
sleaoa and sl-n 30 OF the bonds. Tee New
York market being hare az the bonds. Trey
can be obtained only in London
Notce has been glyvn that a govern
merit bond syndicate distribution VIII be
made today ~ 81 - and Is per cent. capi-
ia3 ontrbute3 FOR operations or the s&u-
cicate This payment s. - per cent On
acceunt of principal and q. s6 per ceaf.
CT account Of premium paid Tor the bonds.
ard leaves - per cent. paid for bonds
aad leaves - per cent :. III due IL IS Dn-
cerstoo3 that tfls VIII be retained by the
manages ~ the sy0i.cate until the sfer-
ing exchange market reaches a point
which Shau preclude the possibility or
taFther gold shipments this year. the
London operations were terminates yes
'ertay ~ tho actual delivery - the bonds
70 fhe holders - the syndicate certificates
The Morning Advertiser tomorrow VIII
say; Notices have been sent cut by the
NerSan belmont syndicate - those Who
participated IN the government bond issue
mat fhsv would refund in currency sn-
etaer 3nsta15u1ent. amounting 20 - &Ags per
tenf, or So sd - oa every ST .ttN 90 ~ geld
.aFaneea ta~ handling that portion OF the
t9Ar dis hutNf In this country \ pay
taeHt ~ So ger cent was made Some tllae
SO. r1ak5us the total payments to1aY
shout = rsr cent. or three-fo0rths OF the
whole. The total amount advanced Tor
'se American portion of the loss ~aS
sooa, -, "a. 100. and the amount Of tia