St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-05-08
EVERYTHING is BOUGHT UP.
Looked Upon as a Scheme to
Compel Another Bond
Issue.
GOVERNMENT Is HELPLESS.
Gold Reserve Can Be Wiped
Out in Ten Days by the
Syndicate.

CHICAGO, May IA special to the
Post from Washington says: The dis
covery that there is an actual basis
for the report that the Morgan-R
child bond syndicate is conspiring
to corner the gold market has been
regarded as foolish canard. 1t is
fact, however, that brokers represent
ing this syndicate have been paying
a premium for the refined gold out
put of the private refineries through
the West during the last two months,
and that they are accommodating fine
gold at the rate of $1,000, 900 or $3,000,-
600 per month, which represents fully
tWothirds of the gold output of the
United States. The attention Of Off
cials of he treasury department was
first attracted to the speculative
business by the sharp falling off in the
deposits of gold at the mints, and in
quiry very soon developed that pri-
vate parties were buying the prod
uct of the refneries. Further in
quiry revealed that the metal thus
purchased was drifting to New York,
where it is being put in store to the
credit of the Morgan-Rothschild syn
dicate. In order to divert the yellow
stream from it's usual channels lead
ing into the United States mints the
private purchasers hive been obliged
to pay a premium OF ~ to " cent.
The premium paid for most of the
gold was 1s cent, but SO anxious have
been the buyers to increase their lines
and get
EVERYTHING IN SIGHT
that they have marked up their quo
tations during the last few days At
the present time they are getting
practically the entire output of the
United States, excepting on the eX-
treme Western coast. Many long
headed men in Washington and Wall
street who are familiar with the meth
DDS 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
$62, 100000 has been pretty well closed
out, over $51, 900, 900 in gold having
been paid out of the $64, ,000,0 900, and it
is generally believed that the entire
deal will be cleaned up bfore the 1st
day of August. Under the terms of
the contract with the treasury de-
partment the Morgan syn
dicate has an option on any local
bonds that may be issued by the gov
ernment prior to October next. The
treasury is absolutely in their hands
until that date. If from any natural
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 syndicate that
took the last issue There is no escape
from such action. 1t was nominated
specially in the contract, signed by di-
rection of the president. The clause
in which thej syndicate agrees to main
tain the treasury reserve leaves the
syndicate to be the judge as to what
it can do in the premises or to what
methods it shall adopt If, in the
carrying Out VI llldI HUT dl OUISdliOll, =
the syndicate shall decide that the
government must issue another $780,
0O0, 600 or $50, 100000 in bonds the admin
istration will have nothing to do but
comply with the terms. If the presi-
dent does not want to issue any more
bonds at the dictation of the syndi-
cate the reserve can be practically
WIPED OUT
in ten days, and then if he should de-
eide, in self-protection, to put out more
bonds, he must sell them to the Nor
gan-Rothschild people and nobody else.
The new bonds are selling today in
open market at 1211A. They cost the
syndicate 1912, which would show a
profit of II points in the operation,
amounting in all to 10,540,00O. 1t would
not be fair to say the syndicate made
that much out of the operation, but it
is very safe to estimate it's profits at
$S,000,G00 The syndicate is hurrying to
completion it's present bond deal with
the government. 1t deposited over
1000, 900 today, which will bring the re-
serve up to very nearly 500, 100000. 1t
will not have to complete these pay
ments until the 1st of August, but the
operation may be closed up within a
few weeks. That will leave the syndf-
cate free field.