The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-02-17
j. Pierpont Morgan Rakes i
Another
s1O,OOO,OOO OF BONDS.
No Options on Bonds Can Be
Disposed Of.
. The Popular" Loan Becomes
Less and Less Popular.

WASHINGTON, Feb. 17.-The question
of what disp osition shall be made of the
bonds upon hIch the allottees have de-
faulted by failing to make the required
payment of 90 per cent upon receipt OF
notice of acceptance of their bids is now
before the secretary of the treasury.
The amount of defaults have not yet
been ascertained, nor is it expected the
exact amount will be learned before the
middle and possibly the last of the week
when the reports of the sub treasurers
are expected to be in; 1t is believed,
however, that the bid of VIM.
New York city for $4,50O,000,
at 115. 1891 is by far the largest and it is
probable that the aggregate will not ex-
ceed this amount By. more than $1,000, 600
at the most J P. Morgan has fled with
Secretary Carlisle a claim on behalf of
himself and associates to all default
ed aliotments under his bid OF
$I1O 6S77 and has deposited in
in the sub-treasury at New York suf-
ficient gold to cover them; although
there are scores of others perfectly
willing to take these bonds. The secre-
fary within the last day or two has re-
ceived a number of offers 10 take all
bonds upon which default of payment
has been made at figures considerably
in excess of the Morgan bid but
he is undoubtedly inclined to the
opinion that under the terms of
Mis- circular of January 6, he is Irohib-
Iited from accepting any bid for bonds
after that date, and hence it follows that
Mr. Morgan and his associates are very
likely to get an amount considerably in
excess of the first allotment.
The secretary, however, has not made
an official decision on this point and
does not expect to do SO before tOmOr-
row
:, The expected order of Sec'y Carlisle
means that MIR. Morgan is likely to get
perhaps ten millions more of the new is
sue, for which customers are standing in
line to take at profit to him of from
seven to nine per oent.
This much is clear: The administra-
tion's rulings are all in favor of j. Pier
pont Morgan. as the original terms of the
bond sale were all in favor of J. Pierpont
Morgan.
By his order Secretary Carlisle has
Pade it unnecessary for the Morgan rir e
10 pound down the price of the new gov
ernment bonds. Morgan's purpose in
hammering away at the bonds
was to keep the price SO low that
men taking advantage of the easy
conditions of the treasury call for bids
and who had made successful offers for
blocks of the new issue by borrowing g
postage stamps with which 10 forward
their letters to Washington, could not
sell their options in the market and thus
would be compelled to default on the first
payment.
Morgan need bear the bond market no
longer. Mr.. Carlisle, who had raised no
safe guards about the awards, who had
not required that a guarantee of good
faith accompany the bids, is about to
Tissue the order that prevents bidders
from assigning their options.
This order makes it extremely difficult
for one who does not stand high in fin
ance to get rid of his allotment He
must be trusted not only with the goods
with which to make payment, but with
the certificates of deposit as well. After
getting the gold and certificate, he might
suddenly determine that the price at
which he had sold was too low, and in
sist upon another half per cent before
he would close his bargain finally and
turn over the bonds.
y Morgan will reap the benefit of the
scheme and undoubtedly will get about
100000 of bonds at his own price.
which was a little less than III.