The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-02-07
HE FAvoRs POPULAR LOANS.
Because They Bring Ont the Geld
Hoards of the People.
Cola Going Into rhe New York Sub
Treasury by Big Banks, the
Treasury Department Explains. Arc
Often for Clients. so the Bonds VIII
he Well Distributed.

Cleveland regarding the bond issue. in
which he says:
srom such information as comes 10 me
from various private sources l an cen
WINGED that more small holdings Of gold
viii be drawn into the treasury by the
present arrangement than appears on the
surface. The small country banks. for In
stance, which are buying bonds for their
customers have made their bids through
their New York and Boston correspond
ents. and this gives the loan the appear
ance OF having been taken up by the big
financial institutions at the money CEN
ters. although as a matter OF fact not q
little CT II vii ultimately come from the
small investors
The subject OF the syndicate contract of
February, 1885. having been mentioned,
Mr.. Cleveland remarked that he had never
had reason 10 question the wisdom Of that
aTrang ement under the conditions then
existing That contract" he continued,
helped us out ar a time when forty-eight
hours delay might have produced serious
results, I sympataize. nevertheless. with
some objections TO taat form Of pacing
loan. The difference between the price OBJ
tanned from the syndicate and the price
currently quoted can be twisted into an
argument which WIZ appeal 10 the people
who DO not stop to calculate the actual
cost 10 the syndicate Of floating the loan
at that time. My preference would have
been 70 have had the present loan more
popular than 1t appears on its face, but
we have done the best we could. The
peop.e who hoard small savings Of gold
or the equivalent OF gold are unaccus-
toned 10 transacting business on the basis
on which these bonus had 70 be issued;
they are unused to premiums or 10 the
forrnalities OF making bids. II We could
have sold them 8 per cent god bonds at
mar. | think il would have brought out a
u - .sNfZ hss. he 1F1fN
law allows US to Issue have to be so.d
considerably above par IN order TO Keep
the net rate OF interest within reason
able limit"
Deposits of Coll at New York.
The total deposits of gold at the sub
treasury and assay office today in antici-
patton OF payments of allotments or the
government bonds were S.lla,Do IRE
81 0o0 000 Of gold which arrived on the Ma
iestic proved TO be for the account on j.
p. Morgan 4 Co. 1t is expected that this
amount VIII shorty be placed In the sub
treasury and that +. Won HOFFMAN on
account will also tender s3oo.e0. The tsn-
oo sterling in gold which arrived on the
steamer Umhria last Suntiay was con-
signed to ]. +. Morgan Co The Amer
lean Exchange National bank deposited
$500 tso gold coin at the sub-treasury and
tbn Bank Of New York deposited sao9es9.
The Hanover National bank has deposited
al the sub-treasury $4,000 in gold coin.
Total deposits today were $2.35oooo.
New YORK BANKERS Thank the People.
The Chamber OF Commerce he'd a meet
ing today and adopted on motion or Pres
ident j. Edward simmons, Of the Fourth
NatIonal bank the following resolution:
Resolved That this chamber recognizes
with grateful pride the confidence Of the
people in the financial strength Of the
country as expressed by the large sub
scrptions 10 the government loan an
nounced yesterday. The chamber believes
the extraordinary success OF this loan
should dispei every doubt TO the ability
and intention Of the United States govern
ment 10 redeem al its 1gations in the
best money Of the world"
Classifying the Bids,
Washington City. Feb. 6.-The work OF
scheduling and classifying the bids opened
yesterday was resumed today. Until II Is
completed no definite Information can be
obtained az 70 the amounts bid for at each
Of the several rates or how low rate can
be accepted for a large amount variouslv
estimated at S45cnogeD 70 s55.G0eDo. All
the legitimate bids at rate above that
submitted by Morgan nin eS7s1 viii be a.
cepted and all bids below that rate VIII
be rejected II WAS expected by the treas.
ury officials that the secretary would I've
able 20 use some discretion In acceptance
10 give preference TO parties who would
agree 10 obtain their gold from abroad.
The fact, however that all the bids higher
than that made by Morgan must - ac-
cepted precludes the possibility of tie Sec
retary's making any discrimination what
ever. except In rare cases where the bidder
shows he has foreign gold on the way here
and asks for a slight extension Of time 10
make his deposit. II is believed ths Sec
rotary Will grant such requests.
The treasury officials are espe tally
gratlfed al the success of the popular sub
sc-ripttou Of the loan. and stated that while
the sche1rse OF tha bidders undoubtedly
will show very large percentage Of banks
and moreyed institutions, Il Is indiEDuta-
bly, true that In many eases. and possibly
in a nlajor.tv q them the hanks act as the
agents Of the private individuals Who sFe
the real purchasers. This - shown % y
true by an instance cited AT the time Of
the last subscription issue. A New York
firm bid in 81 e1o.o1a % the bonds, and the
treasury officials took sufficient fnieres. in
the matter to follow them to Their final des-
tsnat!ons II was found that the firm acted
for four large interior baLks. and that each
of them ia turn acted IN part Tor a number
OF country banks. and they FOR Individual
customers. so that the bonds we're hnaliy
distributed among several hundred private
parties. This will be the result. il IS be-
revea IN a very large humber Of cases, Cf
the bids for the present issue. II i also
believed the certainty that no bid can be ae-
cegtea al a lower rate than ii0.eslT wlil
have the effect Of releasing large q2slJi-
fles cf gold which have been accumaiated
by unsuccessful bidders. Having ao further
Use FOR thslr surplus hclaings, & f. argued
that large portion 0f II Viii and is way
trto the sub-treasary-
The Delivery OF the Bonds.
The secretary % the treasury today sent
tha following letter of Instructions 20 the
treasurer and assistant treasurer of the
United States IA regard 70 the receipts OF
gold IN payment % the new bonds.
As soon as practicable the department
WI furnish vel a isst - lhe accepted BID
ders for the Per cert. b0n8s ol 1888 offered
10 thA public BY the circulars of January
s 9 ana e. is.S The i.ss HiA contain the
name Of each bidder. Nlfa the aasEess, tae
amount ~ ~ n BID the Prise ara tae date
cf tbs secretary . acceptance Yos WI re-
relve payrnent for the bonds IN tnitea
States gold cen or gold certificates hy tn
sgallnents or IN fall. a. prov asd u tne cir
eular~ ahove mentioned. Eaeh payment
q an iusG8liment should Include ne prsa-
cp4l premium AZ the prsee Eanea iB the
h,a ard accrued interest from FeoruAsF
l. fxas 70 f5se szte u ss1ch payment - tsl&E
the ~ gTsoFT s1nafe amount OF tsse 13E1s req
FssaHfing the lustzIsusent wlu D. paid Tor
~ fall T5u SlIi ssac for each pay Fisf't
yc9r certificate of deposit Ia dapAcsie ~