Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-02-18
THE BOND ALLOTMENTS
No Decision Yet as to ths Award of Those
De5au.ted.
F sr''
The Arguments For and Against Civ.
ing Them to the Morgan
Syndicate.

1t is said at the Treasury Department
that no action will he taken for severa
days yet with regard to the disposition OF
the bond allotments which have been de-
faulted by the failure of the allottees te
make the ~ per cent payment by Saturday y
last, as required by the circular The de.
lay in acting upon the known cases IS be.
cause the department first desires to Know
the full extent of tie defaulted allotments
1t will require two or three days. at leas,
to get complete detailed information on this
subject, inasmuch as the assistant treas ur-
ers have mailed reports of bond transac.
uons up to the last day for the making OF
the first installment, and they have not ali
been received.
The Question to Decide.
Although it is understood that the de.
faults amount to over s50o0, 600, the de.
partment so far has received definite in.
formation of only one case involving a
large amount. That is the case Of Mr.
Graves of New York. ''and his associates y
who were allotted s., i,500, 600 bonds at the:,
Did OF 1los3. The question the departmea,
Is called on to decide is whether the de.
laGited bonds shall be sold to the Morgan
syndicate at their blanket bid of 11OGs7Is on
Whether they shall be disposed CT TO the
ilshest bidder in new competition.
mere Is a strong disposition to give the
ground that it is entitled to them ,:nde,
the'r original bid for all or a part of the
ioan. me allotments were made to the
nishest bidders All the legitimate bids
above mai made by the syndicate We're ac.
cepted llfst, and the balance of the loar
was allotted TO the syndicate. 1t is claimed
1of lts members that they would have re-
eelved all the bonds now in default in the
first place, if all the facts had been known
at the time of the ailotmcnts.
on the other hand, it is held that the
government Is not obliged to make such
alsposit1on of the bonds, and that it has q
!ul iega! r,sht to put them on the market
to the highest bidders in case it is So dis.
posed. The government reserved the right
TO reject any and all bids, and according tc
one authority it is not bound to issue bonds
70 me 1ull amount of the loan unless il
should deem it advisable. There is no cues.
tlon that the defa ulted bonds belong to the
government, and it has been suggested tt
Secretary Carlisle that the best solution OF
the present difficulty would be to hold then
indefinitely ard decrease the loan to tha,
extent
Would he Making a Present.
The advocates of this course of action
say that the award 5of the bonds 10 The
Morgan syndicate would be virtually max.
ing them present of the difference be-
tween their bid of 11e6s77 and the market
price Of the bonds today, to wit, 1863 be.
ing at the rate of $4,000 for each million
OF bonds. amounting to S27G,0nU on the
single defaulted allotment of Graves anG
associates.
Thorough considera ton of the whole
question was had by the President and his
cabinet at their meeting today, and it is
understood that it was decided to defer ac-
ton until complete returns shall have beer
received from all the subtreasuries. The
situation is exceedingly embarrassing, ano
there is said to be q great diversity OF
opinion among the cabinet officers as te
the best and most equitable plan of action