New-York tribune., 1896-02-06
WHAT THE BOND BIDS MEAN.
RESTORATION or CONFIDENCE
FINANCIAL. MEN CERTAIN THAT BUSINESS
WILL REVIVE AT ONCE.

WILL REVIVE AT ONCE.
WALL. STREET WAS PREPARED FOX HN'''N
SUBSCRIPTION. BIT NOT FOR ONE so GREAT
PRICES ADVANCE As SOON AS THE
OPERATORS RECOVER FROM THEIR
SURPRISE NO CHEERS FOR
PRESIDENT CLEVELAND
HEARD DOWNTOWN.
Nothing more astonishing than the result 0.
the Government bond call was ever experienced
hv the financial community Whie II was
thought that the amount OF the loan ii's"' o0
apped for twice over, the most sangulhe Prop"-
cts looked for a subscription little greater "eh
{, was announced that the bona fi1e bids were
for nearly six times as many bonds as were VI
fered the calculators were dumbfounded.
The most striking effect Of the outcome OF the
loan was witnessed in Wall Street. Noon was
the time set for the opening Of the Dds IN 'ne
Treasury Department at Washington and the
stock market was stless and slightly depressed
from the opening at 10 o'clock until the tele-
cranb. almost exactly at II. brought the first
news which was that John y. Stewart had pre-
sented bids for s7jOOO,o0o Of the bonds at lloo'o
and for $40 900 900 at slightly lower figures.
Then. as if the wires had been severed the
stock tckcrs ceased their oatter. The specu-
Iators dil not know what to make of ii. They
had not looked for a bid above lOSi. by MT
Stewart Next came the news that j. Perpont
Morgan had put In a bid on behalf or MS nrm
j T. Morgan & Co., the National City Bank
the Dcutsche Bank Of Berlin and Harvey FISK
a. Sons for the whole SlOO0OO,OOo. or any part
- that amount. at llo6S77 After that the wires
gave forth the lesser bids in such bewiderlnE
multiplicity AMI at such Unexpectedly hgh
ngures that there was no thought of anything
else Transactions on the stock Exchange were
almost suspended until o'clock. when the oper-
ators suddenly woke up to the fact that 1t was
good time to be long Of stocks. and they started
in - buy.
HOW THE PRICES WENT Up.
Prices Immediately began to advance. and the
inward movement continued right UP 10 the
close The net gains for the day for leading
stocks We're: Rubber preferred. 2is. Leather pre-
f,rrci ea.: Wabash common. 2is; Lake Shore
o.. Cleveland and Lorain. >, Metropolitan Trac-
,lon. T.: sugar common. =; southern Railway
preferred. Is, Rock Island. -. Lake Erie ana
Western common. lie, Omaha. iis' Rubber COM
mon. ~. Michigan Central, Ia ~. Paul ~
Lake Eria and Western preferred. IL; Louisville
and Nashville. IL. Mexican Central Ia; North
80
Sugar pr,fcrrod. !: Tobacco. !, Atchison, /; Ma
t.onal Lead /. susquehauna and Western pre-
rerrel. !. Tennessee Cal and Iron, !; Cordage
prcfcrred. J. Ia. Improvement in bonds was
corrr.pondinsly great
The Government per cent bonds. the same as
thos. T., De, issued which opened at ia, seller IL
oat" aeains, the closing price Tuesday Of llSS4
regular way" moved up rapidly after the sue
cess ~ the new loan was assured and closed at
rlsa. "r.gullr way and ll6i. seller 20 fiat
The Eur,pean security markets had closed
when tho bids for the bonds were opened go that
the. eGc., of the loan abroad could not be de-
,.r,,incd but lt was predicted that it would be
followed hy a demand to-day for American stocks
and bonds Of all kinds.
Sterling exchange was rather weak, ana the
rate for demand bills was unchanged al ASIA.
Money got up t. per cent. but at TINS hgu'e
there. vfre large offerings made. and the rate
fell f. 81, per cent. which was the closing quota
tion. ..
\ CLOUD LIFTED FROM THE COUNTRY.
President stewart. OF the United States Trust
COMPANY. whose application for bonds next to
that Of J. Perpont Morgan was the largest
made. said.
"The result Of the loan Is magnificent 1t lifts
, cl,ua from the country. did not collect
subscriptions with the idea of making money
hnt o. urc,,ent the credit OF the country from
being sacrificed by sale OF its bonds Deiow
their value | was glad to see that bidders VINO
intended to name low figures FOR bonds in their
applIcations finally changed their minds. The
bids sent I'm by me came from over two hundred
hanks trust companies and individuals through
out the country
As the bid of Mr.. Morgan was above that of
IIr Stewart it was at once seen that those for
whom the latter bid would be awarded no bonds
1t was thought that Mr.. Morgan and his asso-
ciates would receive about one-half of the bonds
for which they applied. on the basis OF the
United Statce Treasury calculation their bonds
would yield 3 1882 per cent on the purchase
price Most Of the bonds which they take will
be rcsOG.
The bonds allotted T. Mr.. Morgan's combination
viii ba paid for with clean gold'-that is. with
gold obtained outside of the Treasury. That
would have been the case. also. had the whole
sl00Oo0000 been secured by this combination.