The citizen. (Frederick City, Md.) 1895-1923, 1896-01-03
BIDDING FOR BONDS
Applications Pouring in on
the Morgan Bankers.
Bids for $3.50, 100000 So Far Re.
ceived from Local Subscribers
RumOrs of Another Financial
Message from the President to
ConGress-No New Contract Closed

COnRreSS-NO new CONTRACT CIOSoQ
New York, Jan. ALI day yester-
day formal applications to participate
in the su description to the new issue of
bonds by the United States government
were filed with Messrs. j. P. Morgan &
Co. in large amounts. 1t could not be
learned at the close of business just
what the applications aggregated, but
1t was understood that the local sub
scriptions alone footed up $50, 900, 900.
1t was said that the form of application
conveyed the impression that each sub
scriber bound himself to subscribe to
an equal amount of a subsequent issue
should one become necessary. The
amount of the new issue was gener-
ally understood to be 500, 200, 900, and
as it may be assumed that the new is
sue will be conducted on the lines of
the February issue, the new contract
will doubtless be one involving the sale
of about 100000 ounces of gold to the
treasury. Under the terms of the con-
tract of February Messrs. j. p Nor.
gan & Co. and August Belmont & Ca
with their associates, contracted to sell
to the government 3,500.0OO ounces at
the rate of SIT. s0441 per ounce.
Another Financi.l Message.
There is as yet no conclusive reason
to suppose that a new contract has
been closed between the secretary of
the treasury and syndicate, though
probably this will be done during the
next few weeks. Washington advices
to Wall street houses reported that Mr..
Cleveland was preparing another f.
nancial message to congress. This was
taken to mean that, as in February
last, he wanted to give one more
chance to congress to pass gold bond
bill. theoretically, if congress fails to
act, new contract will at once be
made with the syndicate now forming.
Foreign bankers said that at least $685.
900, 900 of the new issue would be sub
scribed for in Germany. 1t was learned
that the gold was shipped on the
steamship sailing last Wednesday for
Europe, amounting to $1,700, 900, had
all been repurchased and would be
shipped back here upon the same YES
sci. A premium of a half penny above
the bank of England's purchasing price
for gold was paid for the metal.
Subscribers Going 1t Blind.
AS the applications for participation
In the new syndicate are in advance of
the known making of the contract with
the government, the subscribers had
practically to go it blind in binding
themselves to furnish their proportion
of the gold to the syndicate. For the
same reason Wall street heard very lit
tie as to the probable terms of the new
contract, though it was generally be-
lieved that the gold purchase would be
effected through the issue of thirty-year
4 per cent. bonds, as was done in Feb
ruary. 1t is not thought, however, that
the syndicate will assume, as they did
the last time, any implied or stated OBJ
legations in regard to protecting the
treasury from gold Withdrawals
through control of the market for
foreign exchange or otherwise. The
external evidence that at last some
thing practical was being done to take
care of the treasury was sufficient for
Wall street, and the stock market was
very strong in consequences.
Foreign Press Com mont.
London, Jan. 1.-The Standard to-
day says, in connection with the new
America loan: 1.-The loan is mere
raising of money to enable the United
States to maintain an appearance of
Solvency. AS it prolongs the present
financial system it must end in de-
creasing the currency. The new bonds
would not be extravagantly cheap 1T
par"