No. 95.
Mr. Hitt to Mr. Evarts.

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.,

R. R. HITT.
[Inclosure 1 in No. 1470.—Translation.]

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.
[Page 142]
[Inclosure No. 2 in No. 1470.—Translation.]

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.