The times., 1901-04-13
A BOND OFFER REFUSED.
The Price OF the s1o,OOO,OOO Block
Considered Too High

NEW YORK, April 12-It is believed in
Wall Street that the offer of the $4,000,
COO Of bonds to the Secretary of the Treas
ury was made by the banking firm of
Harvey Fisk & Sons. At the office of the
firm a member declined to say whether
the offer had been made by the firm or
rot.
The price named in the offer is said to
have been Il of l per cent higher than
the Secretary of the Treasury cared to
pay. This on $4,000. 600 represented $25, 600,
as the difference in price between the
offerers of the bonds and the Secretary
The firm of Fisk &; Robinson sold S4l0. 900
of Government bonds to the Secretary to-
day and the bonds were turned in at the
Sub-Treasury.
1t is understood that the Secretary has
accepted an offer Of 100000 bonds in ad-
dition, the price of both lots being 1855
Secretary Gage yesterday received an
offer from New York bondholders to sell
TO the Government $10,000,00O worth of
short-term per cent bonds. Although
the Secretary does not state the price at
which the bonds We're offered, he said the
price named was a quarter of / per cent
higher than he is willing to pay.
In his original statement offering to buy
shcrt-term bonds under favorable condi-
lions, Mr.. Gage made it clear that the
Government could not purchase unless the
price wanted would give the Government
the same advantage derived from the 2
per cent bonds of 1880 at the market price
OF that day, namely 1861 1t was ex-
pIalned subsequently that ii was u per-
teetiy simple matter for bondholders who
contemplated selling to figure out the
maximum price which the Treasury would
be willing to pay.
Purchases under this simple condition
We're made on two occasions to the total
received about the same time, but were
rejected because the price named by the
holders was in every case a shade too
high
The offer announced yesterday. al
though naming price only % cents per
share above the sum which the Treasury
mas sald IL was willing TO pay, receives no
more serious consideration by the SeCrc-
tary than as If the price had been much
hiSher. In other words, it appears from
the remarks Of Treasury officials on the
subject that Mr.. Gage viii hold TO his
original proposition, inhexibly refusing all
offers which are not within the prescrib-
ed limit OF price.
1t does not even follow that the Gov
efninent would accept all offers which are
barely within the maximum limit Nego-
tlatl0ns VIII be subjected very strictly to
the discretionary powers vested by law in
the Secretary. and he desires to make the
proposed purchases with the greatest Dos
sibie advantage TO the Government
The $l0010,000 offer made yesterday con-
Cdlhed an alternative proposition to sell
per cent bonds in the same amount Sec
retary Gage is not willing to buy these
long term bonds at any Price. the desire
being TO dispose Of the short bonds which
must be taken up at maturity Which will
arrive in a few years. If the offer of short
bonds Is not entirely acceptable at this
time the Government viii wait until the
bonds mature before buying.
The Secretary Of the Treasury late yes
terday afternoon decided to purchase ST.
000 900 worth of per cent short-term
bonds The price paid was 1885
The offer was made 10 the Treasury
Department more than week ago and
was at that time refused From the ac-
emulation Of a weeks interest how
ever, the securities have become slightly
more valuable, and the Secretary felt JUS
titled In paying a price which at the time
the offer was made was a shade too high
The purchase last before this was at
1154z.
The bonds bought yesterday came from
New York holders. who communicated
with Secretary Gage by telephone yester-
day afternoon.