The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-05-08
In Order tn Divert the Yellow Metal
from the Mints, an Premium. Ii L.
Reported, Is Being Paid.
TREASURY AT ITS MERCY
RESERVE MAY BE DEPLETED WHEN
EVER THE SYNDICATE DESIRES.
Alleged Conspiracy to Force Another
Issue of Bonds on Any Terms Of
fered by the Bankers.

CHICAGO. May "A special TO the Post
from Washington says: The discovery that
there is an actual basis for the report that
the Morgan-R -Rothschild bond syndicate II
conspiring TO corner the gold market has
been regarded as a foolish canard. Ii is
a fact, however. that brokers representing
this syndicate have been paying a premium
for the refined gold output of the private
refineries throughout the West during the
last two months and that they are accumu-
lating fine gold at the rate of S2,50o.000 to
$3,000,000 per month. which represents fully
two-thirds of the entire gold output OF the
United States. The attention OF officials OF
the Treasury Department was first at
tracted to the peculiar business by the sharp
falling off in the deposits of gold at the
mints and inquiry very soon developed that
private parties were buying the product OF
the refineries. Further inquiry revealed
that the metal was purchased and was
drifting to New York, where il is being put
in store 10 the credit of the Morgan-Ro'hs-
child syndicate. In order TO divert the
metal from its usual channels leading into
the United States mints the private pur-
chasers have been obliged to pay a premium
of rs to IL cent. The premium paid for
most of the gold was Us cent. but so anx-
lines and get everything inl sight that they
have marked up their quotations during
the last few days. At the present time they
are getting practically the entire output OF
the Unitea States, excepting for the ex-
treme Western coast.
Many long headed men in Washington
and Wall street, who are familiar with the
methods of the parties composing the syn
dicate, have jumped to the conclusion that
the foundation is being laid for another
bond deal before Congress meets again.
The last bond deal of G2,OOO,oO0 las been
pretty well closed out. over $1.0o00o0 in
gold having been paid out of the S64,O0O,OcO.
and it is generally believed that the entire
deal will be cleaned up before the first
day of August. Under the terms OF the
contract with the Treasury Department
the Morgan-Rothschild syndicate has an
option on any new bonds that may be is
sued by the government prior to Oct. L
next. The treasury is absolutely in their
hands until that date. IL from natural
causes or through chcanery and manipula-
ton the administration Is obliged TO issue
another batch OF bonds TO maintain the
gold reserve the sale must be made 10 the
Syndicate that took the last issue There
is no escape from such action. III was NOM
mated specifically in the contract signed by
which the syndicate agrees TO maintain the
treasury reserve leaves the syndicate TO be
the Judge as TO what il can do in the Prem
ises or to what method IL shall adopt. If.
i'm the carrying out of that moral obligation
the syndicate shall decide that the govern
ment must issue another $1O0000.000 or So
100000 in bonds. the administration viii
have nothing TO do but comply with the
terms If the President does not want to
issue any more bonds at the. dictation OF
the syndicate. the reserve can be practically
wiped out in ten days, and then IL he
should decide in sef-protection TO put out
more bonds, he must sell them TO the
Morgan -Rothschild people and nobody else.
The new bonds are selling to-day In open
market at Fly They cost the syndicate
IOiIs. which would show profit OF seven
teen ,oints i'm the operation, amounting in
all TO $10,54O,OO0. 1t would not be fair TO
say the syndicate made that much out or
| the operation, but IL is very safe TO esti-
| mate it's profits at $S,0o0.000. The syndicate
| is hurrying the completion OF its present
| bond deal with the government: IL de-
posted over Sl.0o0.O00 to-day, which viii
bring the reserve up to very nearly So.UO,-
| 600 1t will not have to complete these pay
ments until the 1st of August, but the op-
| Grafton may be closed up within few
| weeks That will leave the syndicate q
free field