New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-01
pOND SYNDICATE READY.
LARGE OTER-SUBSCRIPTION.
TUE GOVERNMENT, HOWEVER, HAS NOT
VET MADE A CONTRACT.

..,-, EVE MILLIONS AND THE NOR:
svxn,cATE FIFTY MILLIONS TwEN-
FIVE MILLIONS TO Re PLACED
ABROAD. PARTLY IN LONDON
AND PARTLY IN BERLIN
,,,orration as 70 the arrangements for
- ,ssre NJ Government bonds has at last
= h,atned There Is 10 be a firm sale OF
"a, ooo ooo ~ bonds: or in other words. an abso-
-. Il ~ that amount Of bonds. and there is TO
arrangement witt the purchasers or THIS
-. =, hords TO buy Slo0OooOOO more during the
.rsssr, wear If the necessities of the Government
require the sale Of them
The situation Is as follows: The Administration
has not vet made contract with syhdica'e LOT
,,sc,nr the bonds neither has IT named the terms
-, which 1t will deliver the bonds to the s!ndl-
80 Nevertheless the bonds will handled by
. svnd,cate OF which J. Pierpont Morgan VIII be
the chief manager
rha a,ttra subscription for the bonds has been
...,red In fact there has been large over
.,,scription James Stillman the president OF
tho National City Bank and the personal repre-
.s,,a,,ve OF President Cleveland. has made UP
.,a,c,,s ., take s25 600 600 Of the first 100000
ooo q, bonds and 70 take 900 more II the sec
90. 400 900 600 is issued. In his syndicate are
,,d some Of the big insurance companies and
-. ., tba ,rnst companies including the United
states. the Farmers Loan and Trust and the
New-York Life and Trust.
NJ Norsan is Of course the head and 'front.'
n, the scheme for placing the bonds. He Is 10
arrange for the sale Of $50 900 Of the bonds
IN this country and s250o0,O0) In Europe. The
bonds which be will place here will be taken
bv banks and their correspondents throug 'out
the country and by other financial institutions.
The bonds which he will place in Europe VIII
be taken part In London and part In Ber-
lin The Deutsche Bank of Berlin has agreed
10 purchase block Of the bonds. but before
doing so II must obtain the consent of the I'm
perisl Council OF Germany.
POLITICAL SIGNIFICANCE OF IT.
There is no. a little political significance in
the disposition Of bonds on the other side. The
eale Of bonds in Germany will mean, it is con-
tended that the German Government does not
sympathze with Great Britain in the conten-
tlon OF the latter with the United States over the
boundary between Venezuela and British Gut
ana Again, the sale Of bonds in London will
mean that the English people do not believe
there will be conflict between Great Britain
and the United States AS August Belmont is
not to participate in the bond issue it is
acts correspondents in America, are not to
buy any of the bonds.
While the Administration will probably wait
q few days for the Senate 20 disclose it's at
titude the Bond bill which has already
passed the House of Representatives IL is con-
WINGED that this bill will not be accepted by the
Senate. and it will ACCORDINGLY put out thirty
year per cent coin bonds under the Resump-
fion acc The understanding is that these bonds
VIII be issued at 104is, and that the syndicate
will pay Mr.. Morgan ! per cent for his
vices. that the bonds will cost subscribers
1854 The commission for Mr.. Morgan. TO
be precise his banking house. will be 81, 900
on the s100.000.O 900 issue. and s2.0O0.0O0 If the
second issue of 500. 900 is made. Mr.. Still
man. 1t is said. will turn over his subscriptions
to Mr.. Morgan. and let him include them with
his own He simply makes himself responsible
for the disposition Of s25 900 Of the bonds.
and s25yooo0ce additional in case the issue is
doubled. James 7. Woodward. president Of
the Hanover National Bank, who is. like Mr..
Stlman personal friend OF the President.
has assisted Mr.. StimaI IN raising subscrip-
fons for the bonds. The banks OF which Mr..
Sullman and Mr.. Woodward the chief Off
GERS have the largest gold holdings OF any
banks in New-York or for that matter, in the
country. The City Bank has in its vaults
s. 900 900 In gold. and the Hanover has 81 600
There is a very large invisible supply OF gold
in the hands OF the insurance and trust com
panies.
AGREEMENT OF SUBSCRIBERS.
The subscribers for bonds who have made
their applications to Mr. Morgan have gone to
his Office and signed a typewriter blank which
states that they obligate themselves TO take bonds
'at price to be fixed" and 70 take an equally ad-
d!tional amount II they should be called upon 10
do so. The bonds are to te paid for in install
men,s az called for. The eight Is reserved 10
reduce or reject subscriptions II is specifically
provided that gold paid for the bonds shall not
be Withdrawn from the Treasury OF the United
States, but shall be obtained from other sources
To be exact bonds are not 20 be bought OF the
Government. but gold is tc be sold 70 the Govern
ment and pay Is TO be taken in bonds The
syndicate agreement is 10 sell 50750O0 ounces
OF gold to the Government at price which will
Yield 10000 900. and later 5.075000 ounces more
6; the same figure
The subscription lists practically closed at
o'clock yesterday afternoon when the appca-
tions for bonds aggregated S175 10000, outside
OK the foreign subscriptions. The success Of
the bond issue Is. therefore, assured. ship
ment Of $4,000 In gold will be made from Lon
don Saturday 10 Lawson. Weidenfeld & Co.. to
De used In paying foi Government bonds. 1T Is
supposed the firm had to pay good premium
ior the gold. Gold is bringing premium OF
three-quarters Of per cent In New-York, but,
as has been stated. this is a temporary pre-
MUM.
IL Is reported that 81 100000 In gold sent 10
Europe last week on the steamship Paris will
pe returned 10 New-York. No gold will be
shipped On the St. Louis. which sails to-Gay.
AR. KEENEs VIEW.
James r. Keene. a leading operator in Wall
o'Teet. said yesterday:
"A a BOND Issue may he expected at any moment.
sno the subscriptions TO Il large enough to as
sale prompt and ample relief 10 the Treasury.
sosv,Oks are very cheap and many Of them are far
80" ,helr value. They must be favoraby affected
" 'ne pond Issue they were By the previous one.
nave been considering the various plans for