New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-01
BONDS TO BE TAKEN ABROAD
ISSUE OF sloo.oOO,ooo EXPECTED TO BE
MADE IMMEDIATELY.

TUE .MovNr-Tr EIR REPRESENTATIVES
~ CONSULTATION WITH ASSISTANT
SECRETARY CURTIS-A SPECIAL
CABINET MEETING TO-DAY
The Administration and a foreign banking
vvndicate ii is confidently asserted, have reached
an agreement and unless something happens to
interfere with the present plans a bond issue
may be made late to-day tomorrow. At the
meeting of the Cabine. which will be held in
Washington to-day Secretary Carlisle. II is un-
derstOod. will report that the foreign bankers
have agreed TO subscribe to an issue of bonds.
and that they advise one of s1OO,OoO.OOO at per
cent Authority to issue these bonds was given
10 the Secretary Of the Treasury under the Re
sumption act Of 1870. Under this act there
three kinds of bonds wh.h the Secretary may
issue. They are per cent bonds which run ten
wears; Az per cent lords which run fifteen
wears and 1 per cent bonds which run thirty
wears One reason why the per cents have not
been selected is that the German bankers say
that Germany has not handled per cents and
would rather stick to the As.
1t was practically agreed yesterday at
ferences held in the Sub~Treasury that bond
issue for 100000 00o at pc" cent would be taken
and the Assistant Secretary Of the Treasury,
William e Curtis. who represented the Admin
istraton, informed the foreign bankers who were
present that their views would be submitted to
the Administration to-day The banking houses
Of August Belmont Co. and j. p. Morgan &
Co. represent the foreign syndicate. the former
acting for the Rothschilds. who will take $780,
600 000 and the latter representing the other
foreign bankers 1t is understood that SIS 600 900
Of the issue will be placed abroad and the other
s25.OOOOOO with the New-York banks 1t was
no ,,1a a,ol hroa
directly, but may be subscribed for by the
syndicate and left in the keeping of the Treas
ury. The syndicate could then sell its Obligations
abroad with the additional security of the bonds
held here.
TALK ABOUT THE TERMS.
The terms on which the per cent bonds will
be issued were not learned yesterday. and vari-
Gus reports were heard in Wall Street about the
proposed issIe. One report was that the Govern
ment wanted to sell the bonds outright. but
that the foreign bankers wanted to advance
money on certificates OF deposit. and eventually
TO get a new 3 per cent bond according TO law
which might be passed at an extra session OF
the new Congress. OF else d per cent BOND un-
der the present law on q. ner cent basis. One
feature Of the new issue. as Announced yesterday
was that pending the receipt of the gold from
abroad the New-York banks would advance
the Government as much gold as it wished. This,
however, was questioned on the ground that the
banks could not legally make such loan.
The fact that Mr. f. Curtis. the Assistant
Secretary. was in New-York caused all sorts OF
reports in Wall Street yesterday. and when 1t
became known that he was here to ma OUT
whether not the foreign bankers would SUP
scribe TO Government loan there was much
comment that the Secretary himself did not come
t,, perform this important work One year ago
Secretary Carlisle came to New-York a-besg.ng.
ha md INT ne
willing to help the Cove 1nment out. Yesterday
the New York bank presidents were not consulted
by the representative Of the Treasury Depart
ment but he invited the heads of all the foreign
banking houses TO meet him at the Sub-Treasury
a nd as a result bond issue will undoubtedly be
made. Before President Cleveland issued ms
last special message August Belmont was In
Washington. and he conferred with the PIesi-
dent about bond issue which would be market,
a bic abroad. and ne was tod 70 g anead ana
form a syndicate. Yesterday Mr.. Belmont rep
resenting the Rothschilds. Informed the Assist
ant Secretary that he could place $3OOJO.oOO win
the Rothschilds: and then j. flefpohl MOT
gan was called in and he agreed 10 look after
good part Of the loan il the interests Of other
houses
THOSE AT THE CONFERENCE.
Besides Mr.. Morgan and Mr.. Belmont there
were present at the conference at the Sub
Treasury 10 talk with Mr.. Curtis. James Speyer'
Of Speyer e. Co; Mr. Crane. Of Barring. Magoun
e. CO.. l. Wormser, Of /. & s. Wormser Mr..
Never. Of Lazard Freres, and Isaac \. Selg-
man. Of ]. a. w. Segman. None Of these men
was willing to give any definite facts CONCERN
ing the proposed isste. but they were wiiiihs 10
convey the impression that the Assistant sec
retary had come TO New-YOrk for lnfOrinatioh'
that he had received it: that he Informed me
foreign bankers that the Goyernnend was Mers VII
ing to make a loan; that the foreign bankers
stated the terms on which they would SuDscrlDe
to an issue, and that the whole business wouIu
be the subject or speclal Capihel iheet'"e "
Washington to-day -,
The bond issue viii. Of course be offered In the
customary way Of inviting public subscriptions,
hut II is not at all likely that any one VIII oer
10 take the bonds except the syndicate ana some
az the New-York banks. The Information thal
the Government would secure the greater part
of the gold for its bonds abroad had notceapie
offect upon the stock market and upon the rates
ror foreign exchange. Prices advanced on the
stock Exchange and foreign exchanges eased UP
and the rates were well beiow
,b"sa renorted on the previous day. Despite this
tbere were further gold Withdrawals OF s20sOOOC
from the Suh-Treasury yesterday, ana tne lo'ai
for the week so far is now over slzo0ooVV ieaN
o., ,ha gold reserve under A4,000.0O0. with
bond issue which can be placed abroad goId eN-
ports wilk soon stop, and there VIII De "'o'e'
inent Of the precious metal TINS way. .,.,
prominent clearinghouse gave out 'i''s s'"'
ment yesterday:
II is understood that important negotiations are
under way by the Rothschilds and selslnars ir ., a
London looking 10 the placing of large DOCK OF -
per cent bonds proposition Tor maklns iaiS ar
loans by them for of SIX bonds S nne at the
here It is believed that an srrangemen,, a, can hac
one wear certihcates being issued in London against
deposits Of bonds. These certificates would only be
availa BILE for the European market
SOME FACTS ABOUT THE WORD "COIN."
The fact that under the law the bonds will
have 10 be payable in coin. has caused consider
sbIe talk and the following by Henry Cews |
about the meaning OF the word "coin." according
to the law is to the point and interesting:
AT the end Of the war there were over 5000, o,oOooo
honds outsta ndnR. They have all been paid off !
princpsl and interest. In gold with the exception
~ ISL aSo 400 Recently $0c.UpOO was added max
49," ,ntaI amount outstanding 1854 $50 1OO The
Government now contempates issuing another $780,
6oD no 4 rer cent bonds under the act Of 1870 At |
thai lime there was agitation OF silver, and none
could ,hen have been anticipated by anybody The |
word coin in the act referred TO gold coin. which