The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-17
RANKS OFFER PROMTREASURY
NATIONAL CITY BANKS BOND
CIRCULARS MAKE TALK.
treasury Clerks Addressed Its Envelopes
10 Registered Hslders. the ham
Paying the Expenses-Prstests An
swered by Mr.. Shaw with Precedent

10 Registered Hslders. the BANK
PAVING the Expenses-Prstests An
swered by Mr.. Shaw Win Precedent.
Eighteen thousand circulars from the
National City Bank Of this city. mailed at
Washington a few days ago by en-
ployees Of the Treasury Department to
The registered holders OF the Government
bonds affected by the refunding offer OF
Secretary Shaw, have brought protests
from local banking houses and bond deal
ers, who think that the United States Gov
eminent should not do such work. The
bonds affected by the Secretary's refund
ing offer are the <'s OF 1907 and the SIS Of
1905. Following is the National City Banks
circular in full:
The NATIONAL CITY BANK OF NEW YoRK.
April II, 1908.
on April j BY the secretary Of the treasury
resulted in sharp advance In the market
price OF Government per cent bonds of 1901.
over ~ per cent since refunding was re-
sumed and carries the price TO . point where
he GG on but return an peI Ssns b t'
bond can be sold to-day for about 81 .iiS. the
Governmept will redeem y in four year. at
Who Who carries it to maturity. The bonds never
before have sold at so high q prioe e. would
result IN this low income return. There are
Standing. nearly. ali Of which are in the hands
Of investors. and 1t Is not reasons ble to sup
famed after refundine ceases, -.
We beg the liberty OF asking. IN view OF
the unusually favorable opportunity. 4 you
you prefer to keep your funds invested In
United States Government securities. you
can buy the per n.t cent bonds Of ,s1S on
as against less than ~ per cent. on your
present holding.
prompt action in taking sdyapt.se Of fhs
Or to exchange your bonds FOR 1es per % cont mt
S@G 81 s &c Which 70 mart
conditions viii permit. With no compission
current Suotat lon. for your Per sS cent. bonds.
offerings Of other securities Of the highest
any Of which win pay much better income SsSns
q ,hs soundest OF which can Be had at sI par
~ viii you kindly let us know II. yoy would
like to take advantage Of our facilities IN
ns IN veW cf Thy UNUSUAL nne
which is at the moment presented. Very
Tlcc. President.
These circulars have gone TO all the
registered bondholders excepting the
very smallest. The postage on them
was paid by the City Bank and
the bank also paid the CLERKS OF
of the bondholders copied from the ofiicial
Government lists. The envelopes which
contained the circulars, while they bore
In the corner the name OF the National City
Bank and it's New York address, were post
marked Washington. The circulars as
they were turned over by the National, City
Bank to the Treasury Department employee
we're each addressed dear Sir In the
case Of at least one circular. which was
stamp reading Madam had been placed,
evidently by q careful Treasury employee,
over the word Sir, so that the feelings OF
the woman bondholder to whom II was to
20 might not be offended.
Several proteets have been lodged with
the Secretary. Of the Treasury since copies
of tk5 circular reached this city. The
protestante have taken the ground that
the United States Treasury should not
of theirs whose addresses could not pos
sibly be obtained from any other source
than the oficial lists OF the Government.
received the circulars. and that for this
reason they had protested.
II Is known that the Secretary Of the
Treasury In answer to the protests has
taken the ground that In the matter the
Department has simply folio we'd precedent
The protestants say that they fail to re-
call presidents where the Government had
done work at Wholesale for private parties.
This statement, however, was made last
night by man familiar with the dtua-
ton:
1T Is a fact that the Treasury Depart
ment has a number Of times. while refusing
cations to Government bondholders when
1t was believed by the Department that
such communications would he Of benefit
20 the Department. 1t Ii In this case .
desire Of the Department to increase the
to increase rounding and the Department
thought IL was In its interest and to the
interest OF the bondholders as well, that II
should aid In disseminating tho circulars.
The addresses Of the bondholders were not
Bank merely turning over it's circulars to
the Department, the employees Of which
put on the addresses and attended to the
mailing Of the circulars.
Theodore H. Banks Of Harvey Fisk 4
Sons, which is one Of the most prominent
Il had been informed that the Govern
ment had given out q list Of the holders
OF bonds. A representative OF Harvey
Fisk Sons called on the Secretary In Wash-
been made public. I know that there have
been protests by other parties and that In
one instance a letter has been received
from the Secretary Of the Treasury
member OF the bond house OF FsSs- 4
Robinson said that his firm had not made
protest. but that they would certainly
IN the future endeavor TO take advantage
OF the precedent when they wished TO mail
circulars to Government bondholders.
Similar statements were made In other
quarters.
Vice-President Frank A. Vanderlip
Of the National City Bank. who prior
to his coming to that bank was an Assist
ant Secretary of the Treasury, whom seen
last night, declined to make any statement.