The Caucasian. (Clinton, N.C.) 188?-1913, 1895-11-07
PROFITS FOR
THB BANKERS
Twelve Millions Made By Mem
bers Of the Great Bond
Syndicate.
S 100000 TO ONE GANG

5 6, 100000 TO ONE GANG.
The sss. Of es.sSs.s.s Dsssrsssssd ny
Messrs- Morgas Co.. The Wall ssss~s
Nes Whs Gave Prossestss - the Trsas-
.ry Gold ksssrve-nasdssns rroass In
Addisaea Have DesSsisss Bsss Res,.
i.ea upos The sale Of the Besda.
Special to the Washington Poel
NEW YORK. Oct. 29.-Ths great
gold syndicate which undertook TO
preserve the integrity Of the treas
ury Of the United States has dis
solved, and the profits have been di-
vided by Messrs. ]. P. Morgan 4 Co.
Each of the twenfy-sevsn bankers
and banks participating in the syn-
dicate has received . check repre-
septing its share of the profits with q
note Of explanation and . statement
of the transaction. But perfect Sc
crecy has been preserved regarding
the allotment Of bonds, and no mem-
Der of the syndicate knows what 9TH
er members received.
1t will be remembered that during
the desperate emergency that con-
fronted the Treasury last spring,
Messrs. Morgan and Belmont entered
into q contract with Secretary Carl
isle under which they agreed to fur
nish the government 3. 500 600 ounces
Of gold, and as much more as might
be necessary at the rate of $l7 80 l-2
per ounce, taking in payment there
for per cent. thirty year bonds to
the amount Of $62, ,3l7 500. AS the
government price for gold Is $lS 60i
per ounce, the difference of 80
cents amounted to 81, 400. 900, which
was the premium paid by the syndi-
cate for the bonds, 30 that the total
proceeds Of the loan to the govern
ment were SOS, III 800.
In other words the syndicate pur-
chased bonds to that amount at the
rate of $lO4 4S although the price Of
the same in the open market at that
time was about $ll9. and a similar
amount might have been sold to the
public at that rate if they had been
offered by the Treasury. But this
sacrifice was made by the President,
and the bonds were furnished to the
syndicate at a price nearly l5 per
cent below the market rate.
| Under the terms of their contract
the bankers were required to import
at least one half Of the $500, 600
ounces of gold from Europe. AS a
matter of fact, however, only $l5,-
75O 900 in gold was actually imported,
and that came through the Roths-
childs from the bank of England.
AS has been stated, the bonds,
amounting in value to $65, III 500,
were purchased from the govern
ment at $lO4, ,4S, or a premium OF
$4.48 above par. They were sold to
the syndicate at $ll2;25, an advance
of $7.77 on each bond Of 500. A,
that rate they yielded Messrs. Nor.
gan and Belmont $69, ,940, ,075, or a
profit of $4,831 ,575. This profit,
however, was not retained by those
gentlemen They simply retained
three-fourths of per cent. as com
mission for their trouble, or the sun
of $4SS 1872; and divided the remain
der, which amounted to 81 ,344 42S
among their associates in the syndi
cate, which is equal to q profit Of
6.672 per cent. They also received
3-4 per cent. interest which &C
crued upon the bonds before they
were finally distributed. That make.
total profit of S.422 per cent. upor
every dollar they furnished. A
their money was tied up for abou
six months, the transaction nettet
them at the rate of 1854 per cent
per year.
It was this amount, namely, 81,
344, ,428, that Messrs. Morgan & Go
. distributed among the members o
} the syndicate the other day. Tn,
principal houses participating wer
j. r. Morgan & Co., Belmont & Co.
Morton, Bliss & Co.. Kuhn, Loeb 1
,, Co., Lazard Freres, Heidleback 1
.. Co., Jekelheimer & Co., and tn
f Chase, First, Fourth, Hanover, City
Commerce, and Gallatin nations
e banks.
: But the members of the syndicat
were enabled to double their profit
8 by selling the bonds thus acquired
s and many of them have already don
= so. There is always an active d,
mand for government securities, an
S the market rate at the present wri
: ing for this issue is 1922. They 9,
t. cured the bonds at $l04, ,48, with th
8 commission of Messrs. Morgan
J. Belmont, which was three-fourths {
: per cent. added, or $1O5,23 gros
n and have sold them 1T $l22, an -
|, vance of $l6,T on each bond Of $40
# so that, assuming that all Of Il
q bonds are sold, the total profit O.
g joyed ny the members Of the synd
q cate is $12, ,494, 1884. This, divid,
q among twenty-seven participant
q" gives an average Of about $500 o.
to each.
But the bonds were not evenly q
portioned. While the facts are n
" known outside the immediate circ
ir in which the managers move, it
At generally understood that ]. p. Nc
m gan & Co. and Belmont & Co. I
ar served for themselves about on
g. half, or $50, ,OOO, 900 of the total.
this is true, their reward amounts
n something like sc, 600, 900.
).l The above shows just how I
al gold standard system is manipulat
to by the Bankers to make the govel
al ment give them immense fortun
g. Every cent of this money is paid
K the people rho eork-who prodr
,st wealth. If they want to, they c
M pay out some more in the same VI
e. and they will have it to do If Ii
no keep on voting for Clevelsnds, .
ad Ca1lisles and Shermaus and Mortt
and the like.
MAD A GOOD THING.
Two Old Negro women Defrs0d the g