The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-08

Chicago. May IA special to the
Post from Washington says:
The discovery is made that there is
an actual basis for the report that the
Morgan-Rcthschild bond syndicate Is
conspiring to corner the gold market.
though the story has been regarded
as a foolish canard. 1t is a fact, how
ever, that the brokers representing
the syndicate have been paying a
premium for the refined gold output
Of the private refinefies throughout
the west during the last two months.
and they are accumul7Jing fine gold
at the rate of $2,5j0,G00 20 100000
per month. which represents fully
two-thirds Of the entire gold output
OF the United States. The attention
OF the officials of the treasury DEPART
ment was first attracted TO peculiar
business by the sharp falling off in
the deposits of gold at the minis. and
inquiry very soon developed that pri-
vate parties were buying the products
OF the refineries.
Paying Premiums For 1t.
Further inquiry revealed that the
metal was bought and was drifting
TO New York, where il is being put in
store to the credit Of the Morgan
Rothschild syndicate. II order to di-
vert the stream from its usual chan
nels leading into the United, States
minis, the private purchasers have
been obliged to pay premium CT ia
to 11ac. The premium paid for most Of
the gold was Ia cents, but 50 anxious
have been the buyers to increase their
lines and get everything IN sight, that
they have marked up their quota
tons during the last few days. AT
the present time they ere getting prac-
tically the entire output Of the United
States except from the extreme west
ern coast.
Many long-headed men in Washing
ton and Wall street, who are familiar
with the methods of the parties COM
posing the syndicate, have jumped to
the conclusion that the fcuIica-ion is
being laid for another bond deal be-
fore Congress meets again. The last
bond deal of $50, 100000 in gold having
ben paid out IF the $G4,U0y,J0G and It
is generally believed, THAI the entire
deal will be cleaned up before tho
first day of August. Undr the terms
Of contract with the treasury depart
ment, the Morgan-Rothschild syndl-
cate has an option on any new bonds
that may be issued by the government
prior to October 1 next.
In Their Tentacles.
The treasury is absolutely in their
hands until that date. If, from nat
ural causes or through chicanery and
manipulation, the administration IS
obliged to issue another batch OF
bonds to maintain the gold reserve,
the sale must be made to the syndi-
cate that took the last issue. There
is no escape from such action. II
was nominated specifically in the
contract signed by direction OF the
president. The clause in which the
svndicate a grees to maintain the treas
ury reserve, leaves the syndicate to
be Judge as to what it can do in the
premises or to what methods it shall
adopt. If, in the carrying out Of thar
moral obligation, the syndicate shall
decide that the government must Is
size another S100, 900, 900 or S50,000,OOO in
bonds. the administration will have
nothing to do but comply with the
terms. If the president does not want
to issue any more bonds at the dc
tation of the syndicate the reserve
DAYS. and then if he should decide in
self-protection TO put cut more bonds,
he must sell item to the Morgan
Rothschild people and nobody else.
Nice Little Profit.
The new bonds are selling today in
open market at I2112. They cost the
syndicate 1919, which would show a
profit of II points, amounting in all to
SO, $4,000, it would not be fair to
say that the syndicate made
that much out of the op-
Grafton, but it is very safe to esti-
mate its profits at sS,0O0.OOO. The syn
dictate is hurrying the completion of
its present deal with the government.
1t deposited over s1,0OO,0OO today,
which will bring the reserve UP to
nearly s9S,O0 900 It will not have to
complete these payments until the first
Of August, but the operation may be
closed up within few weeks. That
will leave the syndicate a free field.