New-York tribune., 1896-02-04
pLANSFOR OPENING THE BIDS
p1nnrRs AND NEWSPAPER REPRESENT
AT1vES TO BE PRESENT
n,opx ov CLASSIFICATION AND TABuLAT1oN
LIKELY 10 TAKE SEVERAL HoURs-PRO5A-

. ~ cen, loan OF NO.0Oo,oc0 will be opened IN sec
ratarv Carl!sles private office al the treasury
prilsine on Wednesday. Bidders, newspaper COT
resnondents and prominent fnanciers VIII DO d.
lowed 10 witness the opening. so far as '"e A0.o
no,stions OF the big room at the south end OF inc
roos,rv Ruild,ng Will permit. The work OF open
~ end classifying the bids likely to take several
hours There nearly three hundreo pius SUI
nitted for the second loan In 1894 wheh II was
generally believed that the bonds would be obtained
in a block by the Stewart syndicate The ods thus
fsr received for the new loan have not DeeH
counted but they are known 10 number several
,bousand Assistant Secretary Curtis has been
making arrangements for announcing the DIGS with
the amounts and the prices offered but ne mas
besi,ated 10 order the opening and taoulaton OF
the offers before Wednesday, for fear that the aV-
erage prices offered might leak out and oeneht late
bidders
Mr. Huntington, the head OF the Treasury Loans
Division, issued a circular some time ago showing
the prices which should be offered to secure the
bonds at certain annual rates OF return sub
scriber willing receive only 2i2 per cent on MS
investment will bid lSos749' subscriber willing to
accept per cent Will bid llsS229 one desiring Sia
per cent will bid 10s0S6 ard one unwilling 10 loan
his money for less than Ss. per cent VIII DID only
loi 1852 A subscriber expecting TO earn per cent
WILL o. course. bid only 100. while one desiring 10
earn more will bid below par. 1t Is not expected
that any bids below par will be submitted or that
they will be accepted II received.
The general Impression among fnanciers appears
10 be that the bids Will run between and per
cent at an average price OF perhaps l09. The pres
ent loans OF the United States are far from being
OF a popular character in the sense OF being held
in small blocks. The bonds being printed
as usual! IN the denominations OF SO sloJ 500 and
s. 900 for the coupon bonds and in these denomna-
lions with additional OF 5000 and $1,000 for
the registered bonds. only few hundred bonds.
either coupon or registered. outstanding below
the denomination OF $3.50. and the great majority
are in denominations OF $500 and larger. The Ma
uonal banks usually deposit the largest denomina-
tions as a pledge for circulation because of their
greater convenience in counting and handling The
Bureau OF Engraving and Printing has been at
work for some time the new bonds and d much
larger edition than usual has been ordered OF The
denominations Of 80 and $50. IN anticipation OF the
popular subscriptions I; is supposed that the
small denominations will be taken more largely
in coupon bonds than T. the with the outsiand-
Ing issues. which included December 81 last
Sos Ss.7v in registered bonds and S5s12,s5o =
coupon bonds. The Law permits the exchange OF
coupon for registered bonds at ihe treasury. o-t
does not permit the exchange back again from
registered 70 coupon.
The Treasury officials counting the
! loan only 10 supply large working balance
| but 10 contract the currency to point which will
prevent the persistent export OF gold. The general
/ cash balance. which stood January 81 az 3ls0.
o2 3a9 will be increased by about 3Oa.JDopo by the
the proceeds OF the bond sale, and Will stand above
.2s5.c1s0 This will permit the accumulation IN
the Treasury q nearly half me volume Of LEGAL
tender notes outstanding The Treasury has al
ready locked up by means Of i,s present balance
s73 500 United States notes. and s-5252G7O Ia
Sherman Treasury notes. II the entire proceeds
OF the bond sale should be in grcenhacks ana Treas
ury notes instead Of gold. the amount locked up IN
! the Treasury would rise TO $20s.y0.ro and the
amount outstanding would be reduced from Si'a.-
/ OrOJ0 to s--5o00.0pO This would be S71erly1 Jess
than the volume Of the old greenbacks and. Il !a
held would give the Secretary of the Treasury much
better control Of the money market than he now en-
joys.
II is not expected at the Treasury that the net
proceeds OF the bond sale VIII be either entirely ia
gold entirely IN greenbacks az the end OF ihe
period set by Secretary Carlisle for the payments
ia3 iiSi.N - '4o'''.''.S - ~ - a.
order 10 prevent undue contraction ot u.c money
/ market Will permit some Of the gold 10 pay the
/ lnsiamenis 70 be drawn from the Treasury while
other amounts Will De drawn for export or VIII De-
tlement Of balances against the Slh-Treasury II
I half the proceeds OF the bond sale remains n the
Treasury IN gold a. the close o me period ior mar
] ing payments and the other half u replaced ty
greenbacks. the gold reserve VIII stand at 31i.e.-
i 90 and the greenbacks ana sherman notes ~ ih'
/ Treasury VIII be $l55.r0yr Tn contraction Of tho
circulating medium in order 70 arrest gold exports
is the customary device OF thc great European han3
In times Of strngency. and one Of the means of ac-
count The Treasury has direct power TO rai,e
the discount because 1t - not lender OF money,
mass OF paper from the circulation viii compel the
New-Yo ork banks to raise their discount raief and
j. T. Morgan understood TO contemplate an
agreement for this purpose when he Was organizing
the syndicate which was recently dissolved.
among stndcnts Of the subject as me dnerent *
periments tr.ed in ne bond contract of February $
ls5. The agreement then made hy tne s}n-.eei
managers 10 protect the Treasury by the control "
foreign exchange w1s executed by an enort 10 cor-
ner exchange. All the dealers In foreign bills and
the god-shlppng houses were brought mo the on
blnatOn. Snd would be reHit'ers were compelled u
purchase exchange Of the syndicate at cent or
more above the usual rates The experiment., X =
said, worked admirably IN accomPnsni.hs P. lne & ae-
seet sree rssu as IN n in bringing
competitors into the market. leading coffee house
lower cost than It could buy bills q exchange. and
having accomplished this FOR Itself began TO SCI
psrln.ent now tried s Of a somewhat, less artificial
Character and It IS hoped viii have more permanent
The National banks already preparing to guard
/ against any tendency 20 undue contraction which
/ nav follow the placing OF the bonds. The bank
note circulation during January lecTeasei $--9' 10
reaching Control.er Eekeis howeyer rsgarl.ng neH
,rollers office would foot up nearly $slvoVD ana
This IL the highest point reached since the spring OF
1889 The actual orders for printing new notes sent
about ylt 81 ooo0cS Controller Eckes Instituted a rule
some months ago that banks ordering new circqla-
ton must pay for H. whether they finally decided 70
take it not. The charge foc printing the notes
without regard to the denomination. Some II the
hanks have n;iInated that they VIII file large order
"a soon as they know whether they are TO Obtain
the new bonds II is not absolutely necessary thl
thev should be successful bidders on Wednesday u
order 10 obtain them. for they may De aDe 70 buS
or a small premium the option 10 take the bonds
acquired by some OF the bidders, II requests fo
-earlv s30 100000 OF circulation have already
been received It IS believed that SUI larger amount
I'll he called for after the bonds have been ac
,",ai,v awarded by banks which have not seen II
~ Communicate with the Controllers Office In al
vance of the award . -. ,..,
: The present holdings Of bonds by the Nationa
hanks as security for circulation are s2l2 so@p an
c,,Ia %
Nv the syndicate last year. and N4l15Ee Of the wv
- cen, loans Of 1894 The present bonded debt .
, pc rn,ed States Is s747 36l $50 and II the bank
sbould obtain proportion of the new ISSUE III n
49, than they hold Of existing issues, they wou
'Is,i.. recure more than S}0OVnOW II IS eXpectel