The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-01
THE BOND SYNDICATE.
Terms of the Agreement to Furnish
100000 900 in Gold.


NEW YORK, Dec 31.-The Evening Post,
in its last edition, says: "A contract was
signed this morning by all members of the
new bond syndicate, subject to formal
acceptance of the government. The syndi-
cate agrees to furnish 11,500,000 ounces of
gold, amounting to about 500, GOO GOO, the
government to take one-half of this sum
first, and to have the option of taking the
other half, and to deliver four-per-cent.
thirty-year coin bonds at about the same
price as paid for the last issue of bonds,
the managers of the syndicate to receive
a commission of / per cent. The price at
which the last bonds were taken was
1Oi49, at which they yielded Sai per cent
interest"
The same paper further says: 1.-The most
interesting piece of news in financial cir
cles to-day, next to the report that con-
tract had been signed by J. p. Morgan &
Co. for a new government loan. was the
announcement that Lawson Weidenfeld &
Co. had ordered 100000 in gold from Lon
don, and that it will leave on Saturday.
The firm mentioned is new one. A MEM
ber of it, when asked for some particu-
lars of the transaction. would only say
that the firm wanted the gold: that they
were not acting for any one else, and that
it was necessary they should procure the
gold from outside the United States. II
is understood that the gold is imported for
the purpose of paying for some of the new
government bonds TO he issued. A curious
thing in connection with the importation
of gold by Lawson, Weidenfeld & Co. is
that the bankers who sold them the ex-
change on which TO import the gold will
have to export gold TO cover their bills.
Foreign bankers, however, said that no
doubt that for some time imports and ex-
ports of gold would occur simultaneously
In consequence of the unintelligent action
of Congress and the terms on which SUBJ
scriptions TO the new government loan
would be received.
1T was reported to-day that the syndi-
cate in the first instance was made up by
j. =. Morgan & Co.. the City National
Bank, the Hanover National Bank and n
German bank. that Messrs. Morgan 4 Co.
would take s5ceooe ths ss Sssg and bs,Hn ham
them and the German house &5.c00c00.
Other banks and institutions are 10 be al
Virtualy ,iMe 10 be blind pool % the four a em =
bers of the syndicate mentioned handling
the bonds.
orders given by London bankers to claim
gold for all coupons payable In gold, due
on Jan. /, to remit the gold. or. as in
some cases. retain IL subject to order. In
event OF nonpayment in gold protest there
of is to be made. Many bankers also re-
ceived similar instructions to-day from in
terror banks with regard to coupons OF tho
Pennsylvania Railroad Company and other
companies. falling due on JAN. 2. These
banks, some Of them In Pennsylvania. in
structed their agents here to remit the
gold to them by express. Bullion dealers
today bid x cent premium for gold, but
est offers rnade were at ~ cent premium.
and at that rate one foreign house said
nounced at noon that the gold shipped
from this city to London on last Wednes-
day had been purchased for American ac-
on the same steamer. The price paid was
half penny per ounce higher than the
Bank OF England's bid"
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