New-York tribune., 1907-09-11
to open the bids. The Controller was 1uDi0'
over the success of the sale
Mr.. NETZs STATEMENT


The Commissioners Of the Sinking Fund dld
.he orlv wise thing that could have been 5 ooIi5
under the circumstances when they aoTaIceu 80
the rate Of interest on city honos 70 70 i5
cent In competition with reliable rallIoad anu anu
other bonds selling below par and bearlrg mn,
Z 10 per cent interest. a per cent city oo!lI
par is not financially attractleec An ro1d is
1ional one-half of i per cent on cry y oolao- az
more than equal to similar rate OF increase vi
any outside security because OF the uhQueSl'oi-
able reliability Of the city. .
There does not seem TO be muoh cha1iCe ioI
per cent securities in Europe at present As d
1os-ter af fact most OF the European cities
.ns so,,a eox-errn1ents too are putting out
and even a. per cent bonds below par ana
money is difficult to get even then. SO New holh
is not suffering while other localities prosper
London is talking Of going 10 ~ Per c5Lt- -
They are confronted by the same difficulties that
are. though they do not put out any any t6lIs % ne
like the amount that we nave been coInpSlleu ~
In Germany industrial concerns are paying D
Ter cent on gilt edged bonds for short time loans
There has been so much commercial develop
Tnent there that it has taken up all available
funds. and they will have to go slow Tor aWhlIe.
DIFFICULTY IN PRESENT LAW.
If the law had given an even chance with
other first class market securities our bonds
might have sold below par, bonds are selling
in the foreign markets. but doubt II there
would have been any occasion TO increase the
rate Of interest. The entire issue would PROB
ably have been sold and creditors paid promptly
ding the sale of city bonds at market rates. We
must expect to experience difficulties in times OF
money STrlnsencN. nut Sucn OllUCuiIieS uO iIoe
indicate any financial weakness.
believe that if the law permitted US TO meet
market conditions it would not be necessary to
place the rate OF interest on city bonds higher
than per cent 1 think that a uniform rate of
81 or t par cent for all municipal issues would
bring more satisfactory results, but in order TO
dispose Of bonds at such rates in depressed
market we might he obliged to sell below par
think that Mr. McCooey did wise thing
when he invited bids for the entire issue at
once. The city viii have 10 spend S4ooeOHpo
within few months 20 meet obligations already
past due. many Of them authorized by former
Administrations on which the city is paying 6
per cent interest and others Will mature soon
] do think the city would derive any benefit
from three or four smaller sales, because, as
the end Of the year approaches money rates
generally advance the demands Of the market
TO meet annual and serni-annual dividends. Be
sides it is unfair to force contractors and nler-
chants 10 borrow money At high rates to carry
them, when the city is in arrears to them for
work honestly performed.
The city bond sale vas the principal topic of
conversation in Wall Street yesterday. and great
interest was manifested 10 the result, al
though the opinion had been general that the
ISSUE would be a success.
The new bonds were again active on the
Broad street curb market. and some heavy trad
tng WAS INDUCED in on the when issued" basis
The prices ranged from 103 10 l03Is and alto
Eether about 100000 worth of the bonds were
traded in There were rumors that some Of the
TRANSACTIONS We're nothing more than washed
sales made Cor the purpose OF influencing the
stock market. but IL said in well informed
quarters that many Of the sales were made on
actual orders from some Of the small banking
houses.
Il said that the leading customers of ali
the large bond houses received special messages
Monday night requesting them TO send in
their bids eGrIy on Tuesday. and that in conse-
Quenoe large orders were received. many of
them being from upstate savings banks. Be
cause of the arrangements TO bid cor the bonds
there active demand for money almost
soon as the market opened and the banks re-
ceived numerous inquiries from their customers
and lent considerable amount Of money on
call at per cent before the first quotations for
call money was made on the Stock Exchange.