Democratic Sentinel, Volume 20, Number 6, Rensselaer, Jasper County, 14 February 1896 — BIDS FOR THE BONDS. [ARTICLE+ILLUSTRATION]

BIDS FOR THE BONDS.

TOTAL AMOUNT OF ISSUE SUBSCRIBED MANY TIMES. Five Hundred and Fifty Millions Are Offered in Exchange-Public Gets About a Third—Remainder Will Be Awarded to the Morgan Syndicate. Bidders Number 4,640. Four thousand six hundred and forty bi.ds for $338,2119,830 worth of bonds was the tremendous total of the subscriptions opened at the Treasury Department in accordance, with the terms of the call issued a month ago inviting proposals for $100,000,000 of United States 4 per cent bonds to run for thirty years from Feb. 1, 1893. These figures do not include about $120,000.0l4) of bids rejected as bogus. The immense offerings astounded experts. The bids literally swamped the Treasury Department. At 0 o'clock it was impossible to tell with definiteness how many bids and for what aggregate had been received al figures in advance of the price of 110.0577, at which a syndicate com* posed of J. P. Morgan & Co., Harvey Fisk & Co. and the Deutsche Bank of Berlin offered to take the whole loan. The bids ranged from par up to a single SSO bid at 130. The public gets from $30,000,000 to $40,000,000 of the $100,000,000 popular loan, and the Piorpont Morgan syndicate secures the remainder on a bid of 110.0877 for $100,000,000. Treasury officials regard the loan as a complete success, both as to the popular subscription feature nnd the prices obtained. Bids came from several thousand individuals and from hundreds of national banks and other banking institutions. Nearly all of the leading New York

bankers nnd big insurance companies were represented in the list of bidders, but with a few exceptions they were outmaneuvered by the Morgan syndicate. The opening and scheduling of the bids was conducted under the direction of Assistant Secretary Curtis by a committee consisting of Mr. Morgan, United States treasurer; Mr. Eckels, Comptroller of the Currency, and Mr. Huntington, chief of the division of loans and currency. of tlie Circular. The bonds are redeemable in coin, and will be issued in denominations of SSO or multiples of that sum as may be desired by the bidders. Only United States gold coin or gold certificates will be received in payment. Under the terms of the Secretary’s circular the first payment of 20 per cent and accrued interest .must be made upon receipt of notice of the acceptance of the bid. The remainder of the amounts bid may be paid in installments of 10 per cent each aud accrued interest at the end of each fifteen days thereafter. Accepted bidders, however, are allowed to pay the whole amount of their bids at the time of- the first installment, or at any time previous to the maturity of the last installment, provided that all previous installments have been paid. The bonds will be dated Feb. 1, 1895, to run thirty years from that time, aud will therefore mature Feb. 1, 1923. According to the calculations of the nctunry of the treasury a bidder, in order to realize 2% per cent interest on his investment, should have offered $130.8749 for each SIOO in bonds bid for. ■ Bids for. Previous Loans. For the 5 per cent loan of Feb. 1, 1894, there were in all 238 bids, representing $52,292,150. Of ftiis amount $42,996,850 was bid for at the upset price of $117,223, and $9,295,300 at a price in excess o, that figure. The amount awarded was $50,000,000, upon which the Government realized a premium of $8,633,295. ’ For the 5 tier cent loan of’Nov. 13,1894, for which there was no upset price, the Government received 394 bids, amounting to $178,341,150. The amount of the bids received at $116.8898 was $50,000,000; amount below that rate, $61,776,100; at rates between $110.8898 and $117,077, $5,629,800;at $117,077, $50,000,000, made by the Morgan-Belmont syndicate, 'the amount bid at rates above $117,077 was $10,935,250. The syndicate bid was accepted, the Government realising a premium of $8,538,500. The gold purchase of Feb. 8, 1895, was for 3,500,000 ouilces, payable in United States 4 per cent bonds. The bid of the Morgan syndicate to furnish the gold was accepted. The Government, under the terms of this agreement, issued bonds amounting to $62,315,400, for which the syndicate paid at the rate of $104.4946 per SIOO, the Government thus realizing a premium of $2,800,844.

JOHN G. CARLISLE. (Secretary of the Treasury.)