New-York tribune., 1896-01-02
TALK ABOUT THE BOND ISSUE
BIG PROFIT TO BE MADE BY SUBSCRIBERS

BIG PROFIT TO BE MADE BY SUBSCRIBERS.
MEssRs. sTILLMAN. WOODWARD AND sTETsoN
SUPPOSED TO BE IN WASHINGTON
MR.. MORGAN BUSY HERE REcEIv-
ING SUBSCRIPTIONS
The syndicate which has been made I'D to take
/ the new issue of Government bonds is required 10
furnish to the Treasury. in payment for them
o''ooooO ounces Of fine gold. anyway, and $780, 900
ounces more If called upon TO do so. When the
Government sold bonds last February 1t took pay
Tor them In gold at $l1.sJ4il per ounce. and at
this price 3,l50.000 ounces would be worth sO2-
5'o,351 0O 1t is presumed and in fact the synd-
cate was formed on the theory. that the forthcom-
ing issue will be made on the same terms as that
OF eleven months ago The bonds then sold
yielded to the Government 104la. Accordingly an
emission of $91 962 600 will be needed to pay for
5.15o,OoO ounces. and one of $l9592l 900 will be
needed If 1l.5OOOOO ources of gold are supplied to
the Government
While the Government has yet made no CON
tract with the syndicate OF which J. Perpont
Morgan is the head there Is no doubt that II will
do so. Mr.. Morgan woui not have gone ahead
and secured subscriptions without assurances on
tional City Bank. President James r. Wood
ward. of the Hanover National Bank. and Francis
Lynde Stetson. counsel for Mr.. Morgan. are alb
sent from NewYork. They left here Tuesday
night and IT is supposed they went TO Washing
ton TO consult with the President and the Secre-
tary of the Treasury the bond issue. Mr..
Stetson was formerly law partner of the Presi-
dent. and Mr.. Stilman and Mr.. Woodward are
close personal friends Of the President:
COMMISSION TO BE PAID.
AS has been said. Mr.. Morgan. or. rather. his
firm. is to receive per cent on the par value Of
the bonds for organizing the syndicate The
members Of the syndicate VIII pay this commits
sion. and the manner OF its collection will be the
addition of per cent to the cost price Of the
bonds. In other words. the buyers OF the bonds
will pay 1851 for them to ]. p. Morgan & CO..
who will pay the Government 10iia for them
At 1851 the bonds will be very cheap They
should sell at the same price az the issue OF
February. 1895. and those bringing 1l7ia
Thus there is an apparent profit Of II per cent
for subscribers before the bonds are issued
1t is not often that an opportunity Ike this is
offered and 1t is therefore clear why there Is
such an enormous demand for the bonds in this
country. and why it t. easy to place part Of
the issue abroad despite the differences be-
tween the United States and Great Britain
The subscriptions for s25 100000 OF the bonds
obtained by President Stillman. Of the city
Bank will be included In the Morgan syndicate.
and the commission these bonds Will go to
Mr.. Morgan, the same as on the remaining
s75 0000 900. or s13.0o0000 or whatever the eAict
amount may bc. The pay ment Of Il commission
of 81. 900 900 in round numbers. to Mr.. Morgan,
and ol S2O00.0O0 If .50o.00o ounces of gold ar
asked for b. the Government Will cover an
EXPENSES In conn ction with the loan. includluL
the Transportation Of the gold paid for the
bonds sold in Europe. The commission paid io
Mr.. Morgan and August Belmont for managing
last years syndicate was thr""-quhrt"rs "i
per cent
Even II Messrs stetson. stillman and Wood
ward conclude contract with the AdminiSra.
ton while they are in Washington, II Is not
likely that a public apnolncernt nt o4 !, wa
be made until the Finance Committee or the
Senate has considered the BOND bill which mas
already passed the House OF Reireseh'allN's.
1t Is maintained by the New-York hnanciers
that II per cent coir bonds should De authVI
lied as provided in this bin they would pe
of In acquiring gold to rcpiensh ,hr
Treasury The Bond bin supuiatcs
that the Government must obtain at least par
for the bonds and they would not, 1t ~ az.
serted. bring enough more in the open marK.t
to pay syndicate managers commission, 10
say nothing Of returning profit TO Subscribers
for the bonds.
The applications for the thirty-year per cent
bonds which 1t is good as settled VIII be Issued
will undoubtedly foot up tremendous t,'a.
Banks throughout the country have asked lht'i
correspondents in New-York 10 put them Gown ior
amounts running from $4,000 to $SOOC'O Ine
New York bank have generaHy toId tH- "u'-''-
town banks to send their subscriptions direct 10
J. p Morgan L. Co, they did not want 10 obll-
gate themselves 10 furnish gold be! ond tne'r own
subscriptions. II Is thought the country BANKS
will be literally treated IN the allotment ol l
bonds Whatever bonds they purchaae VIII
probably be deposited In the Treasury as security
for circulation taken out by the banks. II VIII
be desirable TO place the bonds far as practi-
cable that they will not he at once thrown on
the market to realize the handsome pront tha'
there will be In them. In .uch a case the rear
would be that the proceeds OF the bonds miSh'
be used to withdraw gold from the treasury III
preparatiOn for another issue
LIKELY TO REMAIN ABROAD
There Is not much fear of return TO this
country Of the s25 900 900 Of bonds sold abroad.
They will yield a better return, considering the
price paid for them than the issues Of any Euro
moan States OF the 1895 issue. some SlO,OJD.OO0
Of the $50 900 900 placed abroad were reso!d In
Nev-Y York but these were bonds Whlch had
.been taken from the syndicate by sptculato RS
who were able 10 OBTAIN per cent H'i' l"l l"'H
here than in London
The 1895 syndicate took bonds not 10 keep. but 10
sell AZ once The 1896 syndicate Is to take bonds t.
| keen for the most part II VIII make no Offering
| To the general public or at least that Is the
present Idea.
J. Pierpont Morgan spent part Of yesterday at
his office Wall and Broad SITS. receiving out-of-
| town subscriptions 70. bonds. and also making
| ARRANGEMENTS for the heavy Interest disburse-
| ments due to-day He could not say when, or
| whether the second lot Of 800 900 OF bonds
| would he sold
THE BOND AND TARIFF BILLS.
| PROBABLE FATE OF TIE TWO MEASURES ~ THE
sENATE-pIANs OF THE SILVER MEN.
| Washington Jan. 1.-The Srslte Committee on