Year: 1877

Secretary Sherman has taken a step which
will make this an eventful year IN the iinan
cial history of the country his Offer of the
new per cents at par in gold for 80
DAYS, in all the chief cities of the cOun-
try, for free popular subscription. 1t does
not appear that the amount which may
thus be taken is in any way limited i'll
the contract, for it provides that sales are to
be continued as rapidly as possible. Nor does
the Secretary limit in any way the disposition
which he will make of the proceeds derived
from sales, excepting as to the first $25,OO0,-
600 taken by the Syndicate of which $5,-
100000 must be paid for in gold and used
for resumption. Apparently, therefore, if the
subscriptions made at par should far exceed
the amount which the Syndicate originally
contracts to take, the excess of proceeds may
be applied by the Secretary as he sees fit,
either to the redemption of six per cent bonds
or TO the accumulation of coin or legal tend
ers for resumption. But after 80 days the
Syndicate will have power to put the price
above par as no one doubts that they WILL


Under these peculiar circumstances it seems
reasonable to anticipate very large subscnp-
tons during the 80 days of open sales at par
The subscribers are to have 80 days from
date of subscription in which to pay the
amount subscribed and take the bonds at par,
with something very like a certainty that be-
fore the 90 days elapse the Syndicate will
have raised the price The contract is for six
months only. Some time must eapse before
the $25, 900, 900 remaining of the 4l2 per
cents can be placed, and full notice can be
given, as the contract requires, of the free
subscriptions to be received in all the chief
cities. Then 80 days-prObably during the
month of July-are allowed for subscriptions
at par; the payments on those subscriptions
will not cease until 80 days thereafter, or
about the lst of November, and on the 9th of
December the contract expires 1t will be the
obvious interest of the Syndicate to put up
the price as soon as possible after the
80 days elapse, and in view of that GER
tanty. and the known strength of the Syndi-
cate, it would be strange if the subscriptions
at par were not very large. A better Oppor-
tunity cannot well be conceived for the small
investors, the holders of trust funds the man
ayers of savings, insurance, and loan institu
tions, and capitalists of every degree, 10 step
in and share in the profits which most pow
erful combination of bankers may be able to
secure. On the one hand there is opportunity
TO take a Government loan at par in gold,
with the highest probability that it will ad
vance in price even before payment is re-
duired and thereafter. On the other hand is
the extreme distrust which prevails as to al
most every other form of investment. Per-
haps the Syndicate and the Government itself
may be surprised at the result of this sub
sCriptiOn.


Several causes will combine to render large
subscriptions probable. 1t will be presumed
that very rapid progress will be made in re-
decming the consOls Of January and july 1865,
and investors who have foresight will seize the
opportunity TO get per cents in place of them
AT par. But there are no less than 1872, ,Gj7,-
100 of this very class of 6 per cents still out
standing, and any OF these bonds are liable TO
be called within 90 days. 1t would seem
that subscriptions or this account alone must
be very large. Again, the national banks have
on deposit to secure circulation about
$50. 100000 of per cents, of which
a small part are cOnsOls of 1868, while
a larger part may still be sold at
considerably more than par. 1t Is not unlikely