New-York tribune., 1899-11-17
A STIMULATING EFFECT.
SECRETARY CAGES PLAN RESULTS IN
ADVANCES IN STOCK PRICES.
OFFERINGS OF BONDS IN THIS crrY
AMOUNT TO 81. s94 200. PRINCIPAL, THE
FIRST DAY-PROPosAL OF J. p.
MORGAN & co. AND HAIR
VEY FISK & SONS.
vEY FISK & SONS.


The publication of Secretary Cages offer TO
buy S25.OO0OO0 Of United States bends had
stimulating effect yesterday on the stock mar
ket substantial net advances being made IN
the prices of most Of the stocks on the list, ana
the bond market also was strong and active.
The first lot OF bonds TO be turned in was pre-
serted for redemption at the sub-Treasury
soon after 10 o'clock yesterday morning.
At the close OF business Deputy Assistant
Treasurer MIhleman announced that the
offerings for the day amounted to sZ,-
s94 200 principal, or S3.269,29s 90 with pre-
MUM and interest. There were only fifteen
separate offerings. the smallest Of which was
$500 and the largest S1,5O000o. OF the D per
cents $4,000 worth were surrendered, ana or
the As. S2.479,20O.
The bonds were paid for by checks promptly
upon their delivery at the Sub-Treasury. The
largest blocks one Of 100000 and the other OF
S15OOOO0 were turned in by two savings
banks and the money received for them was
deposited in a National bank and almost I'M
mediately lent on call at per cent. The max
mum call loan rate during the day was per
cent, except for single transaction. the first
OF the day. in which H. p Frothingham placed
100000 at Z per cent
Opinions differed as to the total amount Of
cash which would be released here a result
Of the bond purchases. the estimates ranging
from S10OOOOO0 TO S12OO0OOO. and there was
also some doubt expressed, in view OF the small
response to the recent offer OF the Treasury
Department TO prepay interest on Government
bonds up to July l. 1900, as to whether Secre-
tary Cages present offer would be taken adj
vantage Of to the full extent OF S25,O00,0o0.
WHOLE AMOUNT LIKELY TO BE PRE-
SENTED.
There seems little question. however. that the
whole amount will be presented for redemption.
Pliny Fisk. Of the we'll known bond house Of
Harvey Fisk & Sons. when asked yesterday II
the whole S25 900 600 worth would be offered.
answered. IF the necessities OF the case re-
quire it, they will be turned in" 1t is under
stood in Wall Street that Secretary Gage. before
issuing his circular had received assurances
that j. P. Morgan & Co. were prepared 70 turn
in S15 100000 Of the bonds selected by him, and
Harvey Fisk & Sons S10OO0Oo0, or the two
firms would furnish bonds sufficient TO bring the
purchases up to the total offer ~ the Secretary.
S25,Oo0.OoO. A great many requests were re-
ceived yesterday at the Sub-Treasury for in
formation various points regarding the terms
OF the Secretary's offer, and It II expected that
some large blocks of bonds will be turned In to-
day for redemption.
In the statement given TO the press by the
Treasury Department at Washington on
Wednesday, an error occurred TO the price
TO be paid for the bonds. Instead Of the 4s
icing net at 1875 and the 5s net at Ill, TO
these figures should be added the accrued In
terest TO date Of purchase. The instructions OF
the Secretary OF the Treasury 10 the local Sub
Treasury officials were as here stated, and pro-
,oI
paid it should be refunded. The error in the
early statement caused bond brokers TO
cffer one-eighth above what seemed TO be the
Governments price early in the day.
Secretary Gage has in the last few days re-
reatedly declared it to be his belief that there
was plenty OF money circulation for all legiti-
mate business purposes, and that whatever
stringency might exist at this centre had been
occasloned by speculation the issuance OF
his circular came good deal OF a surprise to
Wall Street yesterday, although the fact that
he was considering the advisabllity OF buying
bonds was published several days ago. Secre-
tary Gage was quoted yesterday as saying In
regard to his policy:
II money really IS scarce. we are now prepared
to release considerable volume for the use OF
will be willing 10 surrender their bonds The
an urgent demand for money our ofer 70 buy
bonds will release some Of the money now lying
idle In the Treasury II money Is not scarce, Few
bonds will be offered for sale
CONFLICTING VIEWS EXPRESSED.
Conflicting views expressed yesterday by
leading bankers in regard TO the necessity for
the step taken by the Secretary. President STILL
man Of the National City Bank approved the
secretarys policy as giving confidence to the
business world and as showing the readiness OF
the Government in an emergency to step In and
give assistance. A. B. Hepburn. vice-president
Of the National City Bank. said:
The action OF Secretary Gage is wise one IN
that 1t indicates desire on the part OF tne tbs
confidence Of the financial and commercial com
iaut believe % the orer Of the Secretary VIII be
accented Ii should be remembered that iai holaeits
OF Government bonds as q class wen nheo ia
this worlds goods and they may evince little de-
sire 10 sell at this time.
Mr.. Hepburn added that the senerai opihion
Of fnanciers was that the Secretarys ac"on
was necessary and highly expedient' H' o'
raecb formerly Director Of the Mint, ana no"
,,,ce-nresldent Of the National Union BANK also
warmly commended the action OF 'he Auiiiin''-
tration As
were inclined TO criticise the Treasury Depart
,oert,s offer. F. D. Tappen, president OF the
coratin National Bank for instance. was quot
ed as saying:
,-A, a.,tor of the Secretary was not justified by
,ha circumstances. The merchants and business
nm are not short OF cash. but secretary Gage mas
1on that which will certainly please the specula-
,ors Where is the real money stringency2 don't
soc Z, except among the spectators. II would be
GOOD thing In my judgment 10 have let the mar
sef alone and permitted matters 10 take their own
natural course.
Similar sentiments were expressed by J. Ed
ward Simmons. president Of the Fourth Ma
tionaI Bank, and Warner Van Norden. prest-
dent OF the National Bank OF North America
MR.. SAGE AND THE OFFER.
Russell Sage who is supposed TO hold a large
amount OF Government bonds, was quoted as
sav,ng that he was not inclined to accept Secrs-
,ory cages offer. although he believed that the
dIsnosition shown by the Government would
baye a salutary effect on market conditions.