Rensselaer Union, Volume 3, Number 49, Rensselaer, Jasper County, 31 August 1871 — The Syndicate. [ARTICLE]

The Syndicate.

In the Funding bill, approved July 14, 1870, and in a previous act, passed daring the war, there were three provisions which the Secretary of the Treasury has determinecfto employ in the negotiation of i he five per cent. loan. The substance of his intention in this respect has already been embodied in his correspondence with the national banks. The law allows the exchange of the five per cent, bonds for six xi cent, bonds, or their sale for not less han par for gold, the gold so procured to be dovoted to the redemption of outstanding bonds. This la the first provision. The second is that a ninety-davs* notibe is required of the Secretary of his purpose to redeem outstanding five-twenty bonds, duriog which ninety days Interest continues on bonds so called in. The third provision authorises the Secretary of the Freasury to designate national banks, at which may be deposited all public moneys, except customs’ receipts. The five per cent, loan was offered by the Secretary of the Treasury in February last About seventy millions were subscribed in this country. The Secretary has now made arrangements for the disposal of the remainder, about one hundred and thirty millions. These arrangements are made with several English ana American bankers, who associated themselves in what they call a “syndicate.” This syndicate agrees to subscribe at once for ten millions of dollars of five per cent, bonds and subsequently for at least five millions per month on the average. The money thus subscribed is to be deposited with the national banks, to be withdrawn' only for the redemption of the .fivetwenties, to the redemption of which it is by law exclusively devoted. While the money remains in their hands, the banks are required to keep with the Treasurer United States bonds to an equal amount. In addition to the advantages of deposit of public moneys, during the ninety days required to elapse before the flve-twen ieb can be called in, the national banks are to be allowed, as announced to them in tbe Secretary’s letter, to auscribe for amounts not exceeding fifty millions of the five per cents, within sixty days from the 10th of August On the other hand the intention or the Secretary is to call in twenty millions of the five twenties of 1802, over and above the amount subscribed from all sources to the five per cent, bonds. It is not improbable, should the state of the treasury and the country generally seem to justify it, that the Secretary may eall in still fur. ther amounts of the five-twenties—per-haps as much as thirty millions—making fifty millions in alt. The method which will be employed In selecting the five-twenties for redemption with its effect, has Already been explained In our financial columns. It to at onoe impartial, and calculated to stimulate the exchanges of five-twenties tor the new five pet cento. •, . Thai Um condition of the arrangements

above stated meet with the Approval of the President and his Cabinet may be accepted as a matter of coarse. It may be added, however, that they are also regtrdcd by Houston to whom they have been submitted as eminently advantageous. —Neva York Time*.