Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-09-20
Mr.. CURTIS MISSION
The Treasury Interpretation of the Option
of the Bond Syndicate
The Secretary to FIX the Price at
Which Bonds Shall BE Sold IL
an Issue is Necessary.

The treasury officials maintain the!I
silence concerning the purpose Of Assistant
Secretary Curtis visit to New York and his
conferences with the subtreasurer and rep
resentatives of the syndicate. An under
standing of the Interpretation put upon the
bond contract by both the Secretary OF
the Treasury ard the syndicate might
throw some light on the matter.
Nearly every person and every prominent
newspaper that has discussed the question
has proceeded upon the theory that the
option given the syndicate upon any bonds
that may be issued by the treasury on or
before the lst of October implied the sale
of bonds upon the same terms as the
original issue to the syndicate. That was
the theory upon which the question was
discussed in Congress when the contract
was first published. ''r.' 'N'
The Treasury Interpretation.
But this is not the Interpretation of the
department. 1t is officially stated that the
option does not include the rate at which
the bonds are to be offered, and that the
syI dicate does not claim that 1t does. That
clause of the contract is interpreted to
mean simply that If an issue of bonds is
decided on, the Secretary will fix the rate
at which he is willing to sell them, or, as
they put it, the rate at which he is willir g
to buy gold with bonds, and that then he is
to give the syndicate the first chance to
accept the offer at that rate.
The rate at which the last issue of bonds
sold On the market after they passed into
the hands of the syndicate. and not that at
which the syndicate get them, 1t is said,
would be considered in making the terms of
another issue. 1t is insisted that the sym
dicate does not contend for any other con-
struction of the contract, and such con-
struction destroys the prospect of any such
a profit on new issue as the syndicate
made on the last deal. 1t, therefore, gives
1t. less reason for desiring another issue
within the time covered by the contract,
and makes the government the solicitous
party if other bonds are to be offered. The
treasury also concurs in the statement that
the syndicate was relieved from any obli-
cation to maintain the gold reserve after
it completed the payment on the bonds.
Investigation Necessary.
If the department feels that the occasion
for another bond Issue has arisen. or is
likely to arise soon, there is, therefore, a
reason why some one with the authority
situation in New York to determine upon
what terms bonds can be sold. 1t is be-
lieved that this is Secretary Curtis mis-
sion. If bonds are to be sold-and there
seems little doubt of 1.-THE purpose of the
Secretary will be to fix price upon them
which will reduce the interest as low as
possible and yet enable him to place them.
If he cannot make better terms than be-
fore it is possible that an extra session of
Congress may be decided upon in preference
to bond issue which allows such enormous
profits to the first purchasers. A sale of the
would make the interest much less than that
of the syndicate bonds, would, of course,
increase the value Of the latter in the hands
Of the present holders.