New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-07

THE COMING BOND ISSUE.
OPINIONS ABOUT 1T IN THE FINANCIAL
COMMUNITY.

SOME DOUBT WHETHER A POPULAR LOAN WILL
BE sUccEss-AN IDEA IN WALL STREET
THAT FINALLY THE MoRGANsTILLMAN
SYNDICATE WILL GET THE WHOLE
rssUE-THAT BODY NOT TO
DIsBAND-ITs BIDS.
While the public offering of bonds by the
Secretary OF the Treasury came as surprise 10
the financial community a whole It was not
| altogether unlocked for by ] Picrpont Morgan
and President James S.illman, OF the National
City Bank who organized the syndicate to pur-
chase the bonds. or rather to furnish gold in ex-
change for the bonds II likewise proved what
they had all along said, namely, that no bar
gain had been struck between the Admnstra-
ton and the syndicate.
The syndicate was formed with the idea
originally Of supplying the gold to replenish the
| Treasury reserve whenever the Administration
should reach the conclusion that the reserve
was dangerously low. 1t yas not thought the
Administration would try popular loan." but
would 1t did in February. 1885, sell the en-
tire issue outright to the syndicate which was
prepared 10 purchase it.
When objections to a private sale to the
syndicate were raised and demand made that
the people at large should have an opportunity
| to bid in competition for the bonds, the promot-
of the syndicate that a change In the
situation not improbable, and they were.
accordingly as stated. not unprepared for the
announcement which the Secretary OF the
Treasury made at midnight Sunday
The syndcat, not abandoned as a con-
sequence Of the action Of the Administration In
inviting proposals for the bonds but the plans
Of Mr. Morgan and President Stillman and their
associates were materially altered.
THE SYNDICATE NOT TO DIsBAND.
When asked what the future policy OF the
| syndicate would be. Mr.. Morgan said:
| Il cannot at present say what the syndicate
will do. There are thirty days In which to think
| over matters and arrive at conclusion. The
syndicate will not disband. No member Of II
has withdrawn. The Secretary Of the Treasury
| had a right TO offer the bonds TO the public and
| Go not see why the public should not be able
to obtain the gold with which to pay for them.
| The bond syndicate has corner In gold and
the notion that it has is absurd"
The remarks of Mr.. Morgan were made after
he had talked with leading members Of the SYM
dicate and found that ingness existed to
let their subs oriptons stand and be turned in as
a bid AT price to be fixed Upon at a later date.
When the second bond issue under the Cleveland
Administration was made. in November. 1884,
bids were asked from the p 4blic by the Secretary
Of the Treasury. John A. Stewart Of the United
States Trust Company. and Mr. Morgan made
up syndicate and offered TO take the whole issue
at one price or. If part Of the bonds were awarded
to others To take what were left at a lower price.
The Administration rejected all separate bids
and accepted Mr. Stewards bid for the whole
issue at the price named by him. The reason for
the acceptance OF Mr.. Stewarts bid was that 1t
would yield more to the Government than II the
outside bids were accepted and the balance OF
the bonds sold to the Morgan syndicate at the
reduced figure It is the intention Of the present
syndicate TO bid for the whole issue a. one price
and for any part Of the issue at another lower
price The bid for the whole issue will probably
not be over l05.
OPPOSED BY MOST BANKERS.
a majority OF New-York bankers are op-
posed 70 a popular loan. because they believe 1t
will not succeed. and its failure. they contend.
would impair the value Of the bonds. The first
issue of bonds under the Cleveland Admins
tration was 10000 600 per cent ten-year bonds.
They We're offered to the public on per cent
basis. and subscriptions for less than sl.0oo,oOo
were received President John a. Stewart. OF
the United States Trust Company. then took
mold and raised the loan which. with the
premium aggregated $4,000 O00 among New
York bankers
The call for loan which the Secretary OF the
Treasury has jast put out does not prohiois
bidders from drawing gold from the United
States Treasury with which 10 pay for bonds.
The agreement # the Morgan-Stillman syndi-
cate provided that the gold 20 be paid for the
bonds should not be taken from the Treasury
In ,ha case of the first Cleveland bond Issue
s24. 600 Ooo out If the s5S,OOo,OoO paid for the
bonds was taken from the sub-Treasury In
the case OF the second issue large portion OK
the gold used in payment for the bonds was
borrowed and the borrowers subsequently pro-
cured gold lrom the Treasury with which to
repay II. -,
The sole object Of he forthcoming bond ISSUE
&c r. secure gold There is enough money in the
Treasury to cover the National deficit for long
time to come. The thing Il to restore the gold
reserve IN the Treasury II is argued that In
tending buyers Of bonds will not pay specie
brokers commission TO pick up gold Tor them
when they can secure ii without cost by pre-
senting greenbacks or Treasury notes at any
Sub-Treasury.
THE SUPPLY OF MONEY.
The official statement OF the money In the
country shows the supply and distribution OF the
different kinds of monty on January to have
BEEN
In circulation. Treasury.
-, .,i, .......... Sis4 72s541 ss3.2Is 3e2
Subsidiary silver. % -
Gold certificates. '2n 80 sos ssS
silver certificates. o.po.oof,
Treasury of 1890 ...... liot2o'o9 zzo+t'oi'
United states notes green o.os.-s-, ,,xs,. ,xs
Currency certhcates 1872. eos o,9 2sts"9