THE FIRST $1,000,000 97 
they should not be otherwise disposed of. It was also 
deemed advisable in this way to extend the credit for such 
securities, and the advantages which might accrue to the 
community should foreign capital be employed in invest- 
ment in the bonds were considered. 
On the afternoon of July 9, 1895, I went over the bond 
matter quite fully with Mr. Morgan. He said that it was 
a good bond; that it would sell for a good premium; that 
he would take the whole two and one-half millions author- 
ized issue and pay a good price for the bonds; and that he 
would arrange payment so that the commission could have 
the money as fast as needed or whenever wanted. I asked 
him if he thought the bonds with a rate of less than four 
per cent. “would go.” He said: “Yes.” “Three and a 
half per cent.?” TIasked. “No,” he replied. “Well, then, 
what rate would you suggest as being safe for insuring a 
sale of the bonds below four per cent.?” He thought a 
moment, and remarked: “Some people like the idea of a 
cent a day on a hundred dollars, or a 3.65 interest rate,” 
and intimated he would take the bonds himself at that 
rate; also that he thought they could be sold at a small 
premium. I told him that we should be glad to take up the 
negotiations with him, but the decision had already been 
made that the only way the bonds could be sold was by com- 
petitive bids, under the usual specifications. He replied 
that he would not go into competition, but would probably 
pay as good a price for the whole issue as likely to be ob- 
tained from others. Events soon demonstrated the correct- 
ness of Mr. Morgan’s observation. 
Immediately after leaving his office I conferred with 
Commissioner Peck, who agreed with me that we should 
favor the change in interest from four per cent. to 3.65 per 
cent., notwithstanding that reports like those above quoted 
had gone out to the effect that the park bonds were to be 
“four per cents,” and the form of advertisements and circu- 
lars inviting proposals at the four per cent. rate were then 
in proof ready for printing. The same afternoon I wrote 
Treasurer Murphy and Counsel Munn as follows: 
