Birmingham state herald., 1896-02-07

amount of bonds bid for, but also as to the price. As all of the institutions, firms and individuals who requested MT. Stewart to bid for them left the deter imitation of price with him he called in sort of advisory committee to confer with him as to the price at which the aggregate bid should be made. This com mittee consisted of President Edward King of the Union Trust company, Will liam A. Read of Vermilye & Co., and Err nest Thalmann of Ladenberg, Thalmann & Co.
 MT. Stewart, owing to the large num- Der of interests that placed their bids with him, was obviously compelled to play rather an open hand. In conse- quence a number of bankers knew on Tuesday night, and a still larger mum Der yesterday morning, that MT. Stew arts bid would be slightly above 11e This knowledge doubtless influenced many other bids, and the prevailing im- pression in Wall street is that 1t deter mined the figures MT. Morgan bid for himself and his associates. MT. Stewart said yesterday that he did not care if he did not get single bond; that he had taken the course he had in the matter with the view of sustaining the credit of the government, and that he was sat- is1ed with the apparent outcome of the loan as indicated by the number of bids and the price.
 The situation in brief appears to be that MT. Stewart has been successful in advancing the price at which the new loan will be awarded and that J. P. Morgan & Go. and their associates will secure a large proportion of the bonds. Current estimates last night by those most familiar with the bids were that the Morgan syndicate would get at least 40 and possibly 50 per cent of the bonds. In considering the difference in price that the Morgan syndicate will pay for the bonds and the price at which Mr. Nor gan was willing to take them in Decem- Der a number of circumstances should not be overlooked. Chief among them Is the change in the attitude of Great Britain as set forth by Lord Salisbury in the Venezuelan matter and the rise in the price of securities both in Europe and this country since the subject of broached.
 Among those not interested in making a direct profit out of the loan the view was generally expressed that great good had been accomplished by the competi- ton between MT. Stewart and MT. Nor gan and their respective following. In the first place the credit of the govern ment has been emphasized-that is the bonds are being sold at a much higher price than the last issue, and at the same time the handling of at least 50 per cent of the new loan will be in the hands of bankers who can conduct the operation with a minimum of disturbance in the money market. Not less important than these considerations is the fact that considerable percentage of the bonds will judging from the bids. be awarded to interests that have facilities for plac- ing them abroad. including the Deutsche bank, which has already arranged to dis tribute with actual investors on the con- tinent of Europe whatever proportion of the loan it may secure
 The first effect of the floating of the loan will be to release large amounts of money. particularly gold and legal tenders that have been held by bankers and others who have bid for the bonds. For this reason the premium on legal tender notes virtually disappeared yes terday, and the premium on gold was down to ss@B per cent. Large amounts were offered al the fraction last named.