No. 95.
Mr. Hitt to
Mr. Evarts.
Legation of
the United States,
Paris, March 29, 1877.
(Received April 11.)
No. 1470.]Sir: I have the honor to inclose herewith a copy of
a letter from Mr. Cr6pon, representing the stock-brokers’ association,
inquiring in regard to the new United States 4½ per cent, three hundred
million loan, with a view to its admission to the Paris bourse, and a copy
of my reply, together with translations of both letters.
He also suggests the advantage of establishing an office in France for the
payment of coupons on our bonds and as this suggestion comes from a source
enjoying high consideration here in the financial world, I forward the
correspondence to you, that you may, if you deem it advisable to do so,
transmit it to the Secretary of the Treasury.
I am, &c.,
[Inclosure 1 in No.
1470.—Translation.]
Association of Stockholders,
Syndical Chamber, 6 rue Ménars,
Paris, March 24,
1877.
Sir: The syndical chamber is solicited to admit
to the negotiations of the Paris bourse the United States 4½ per cent,
loan, 15–30, ($300,000,000,) created by act of Congress of July 14,1870,
and January 20,1871, and granted to Messrs. Rothschild and Seligman
freres.
Convinced of the advantage there would be in officially negotiating this
new fund of a government which justly enjoys much credit and favor, and
whose bonds are for this reason widely diffused among the French public,
the syndical chamber is entirely disposed to permit it to be quoted.
But before taking this decision it would like to be assured by authentic
documents in relation to this loan. For this purpose it cannot do better
than to apply to the first representative in France of the republic of
the United States.
I have the honor to request, sir, that you will kindly procure for the
syndical chamber the information at your disposal, and also let me know:
1st. Whether the new loan is quoted officially at the stock exchange of
New York; 2d. Whether there is already a sufficient quantity of the
bonds positively issued to meet the wants of business.
Finally, sir, I will avail myself of this occasion to call your attention
to the notable advantage it would be to the French holders, at present
very numerous, of American bonds, to be able to cash their coupons in
France, at some office which might be chosen by your government, and no
longer be compelled to submit to conditions which are sometimes,
perhaps, very high.
Please accept, sir, the assurance of my high consideration.
- CRÉPON,
First Assistant Syndic of
the Association of the Stock-brokers of
Paris. - Mr. Washburne,
Envoy Extraordinary and Minister
Plenipotentiary.
[Inclosure No. 2 in No.
1470.—Translation.]
Legation of the United States,
Paris, March 28,
1877.
Sir: I have the honor to acknowledge the
receipt of your letter of the 24th instant requesting information in
regard to the 4½ per cent. $300,000,000 loan of the United States. In
reply I inclose to you herewith a copy of the acts of Congress of July
14, 1870,- and of January 20, 1871, to authorize the refunding of the
national debt, in accordance with the provisions of which laws this loan
is issued. By the text of the law it will be seen that the bonds are
redeemable after September 1, 1891, in coin, with interest in coin at 4½
per cent, per annum, payable quarterly; that they are exempt from all
taxation, and that the proceeds of the sales of these bonds are to be
applied to redeem and cancel outstanding 5–20 6 per cent bonds.
I have to say further in response to your inquiries that this loan is now
quoted officially at the stock exchange of New York; that I am advised
that more than $120,000,000 of these bonds have already been sold, and
as the conversion provided for by the laws referred to is going on
rapidly, it may be expected that the entire $300,000,000 will be issued
and in the hands of purchasers before long. You remark that there would
be an advantage in having an agency in France where French bondholders
might cash their coupons. Such has not been the course of the Government
of the United States heretofore, though several of the States have
issued sterling bonds which were payable in London.
It will give me pleasure, however, to convey your suggestion to my
government.
I have the honor to be, &c.,
- R. R. HITT,
Chargé d’affaires ad
interim of the United States. - Mr. CRÉPON,
First Assistant of the Syndic of the
Stock-brokers’ Association, Syndical Chamber, 6 rue Ménars, Paris.
