New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-17
BANKS SELL CITY
NOTES AT COST
Offer $lOO,OOO,OOO Issue
Here and in London at
Par and Interest,
BANKERS LOOK FOR
SUCCESSFUL SALE
Notes Are Payable in New York
Funds-Syndicate Sends More
Gold to Ottawa.

New York City's Sl0O,0O0,000 Of new
per mt notes, underwritten by local
banks end trust companies, are being
offered for subscription to-day here
ant in London. The price set upon
them by the syndicate managers, j. p.
Morgan & Co. and Kuhn, Loeb & Co., is
par and interest from September ], or
exactly what the banks paid for them.
Contrary 10 report, there has been no
preliminary offering of the notes
abroad, and another change has been
made in the original plan by issuing
all the notes as so-callcd dollar Sc
eurities." This will Oblige foreign
purchasers to pay for them in New
York funds, and when they severally
mature. at the end of one, two and
three years, there will be no foreign
exchange problem to meet, because
hey will be payable at this city.
To facilitate purchases OF the notes
BY foreign holders Of the maturing
revenue warrants, which they are sup
planting, the bankers here have ar
ranged to discount these revenue war
rants and apply the proceeds as sub
scriptions for the new issues There
will be no offering in Paris, ,nough a
number Of the warrants mature there,
as French holders will have an oppor-
tunity to reinvest through London.
The demand for the notes from in
vestors in this country is large, and
the syndicate managers arc sanguine
of closing the subscription books at an
early date. On a 6 per cent basis the
notes are considered by bond dealers
generally as an extraordinarily good
investment, based as they are on the
city'S credit, and further buttressed by
the stipulations agreed to by the Board
of Estimate limiting the amount of
bonds the city may issue for some
years to come.
]. 2. Morgan & Co., as syndicate
managers, sent a further S2,050,000 of
gold to Ottawa yesterday, TO be placed
TO the credit of the Bank of England,
making a total of S6,700,0O0 that has
left New York since Monday, when
the movement began. In addition they
received approximately Sl,5Sl 900 IN
exchange on London. The difference
between this total Of about 1921 900
collected in gold and exchange from
The banks, members Of the underwrit
ing syndicate, and the 10 per cent gold
payment requisitioned on Monday,
amounting to SS,247,000, is accounted
for by the fact that the shipments arc
stated in round numbers.
The gold sent out Monday was adj
vanced by the syndicate managers,
payments from the banks not being
que until yesterday, Most of the banks
answered the requisition with gold GER
tifcates, Of which a little more than
100000 worth were turned into the
Sub.Treasury in exchange for coin.
n L !. = .lt hngr Erfw
the Sub-Treasury yesterday $780, goo,
out $4,000 was sent to South America
and s250,000 10 Canada on 4 private
transaction. The United States gov
eminent withdrew $3.50, 900 in gold bars
from the assay Office 10 send to Can
ada in connection with its undertaking
- relieve distressed Americans abroad.
The fact that 1851 900 of the sub.
scriptions paid by the banks yesterday
was in the form of sterling exchange,
though exchange is receivable only at
the rate of 490 the pound and yester-
DAYS market rate was 4.97A, was taken
as significant of the low state of bank
ing reserves in the city. Some of the
atatements published during the day,
following the Controllers call, showed
Why the banks preferred to take loss
OF ~ cents "A pound sterling through
buying exchange to surrenderlng gold
or gold certificates from their cash re-
serve funds. In this connection it was
noted that those of the Western banks
which had already published state
nentS Of condition showed reserves far
above legal requirements and discus
sion turned again TO the proposed re-
yival of the $4,000 900 gold pool plan
suggested 10 ;he Federal Reserve Board
more than a week ago.