The Coconino weekly sun., 1895-05-16
CORNERING THE GOLD.
story That Bond Syndicate Is CorrslIins
 the Yellow Metal.

tne ItllOW Nu6thls
 CHICAGO, May s.-A special to the Post from Washington says: The dis covery that there is an actual basis for the report that the Morgan Rothsehild bond syndicate is censpiring for the gold market has been regarded as a foolish canard. It is fact, however, that brokers representing this syndi. cate have been paying premium for the refined gold output of the private refineries throughout the west during the last two months and that they are accumulating fine gold at the rate of S2, 5OO,O0 or $3,O0O, 900 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 att tracted to this peculiar business by the sharp falling off in the deposits os gold at the hints and inquiry soon devel- oped that private parties were hnying the product of the refineries.
 Further inquiry revealed that the metal was purchased and was drifting to New York, where it is being put in store to- the credit of the Morgan Rothschild syndicate. In order to di- vert the stream from it's usual chan nels leading into the United States hints the private purchasers have been obliged to pay a premium of IS to 1Ls cents. The premiums paid for most of the gold was IS cents, but so anxious have been the buyers to. increase their lines and get everything in 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 United States, excepting for the extreme western 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 foundation is being laid for another bond deal before congress meets again. The last bond deal of S62, ,O00, ,000 has been pretty well closed out, over S5l, 900, 900 in gold hay ing been paid out of the S64, 900, 900 and it is generally believed that the entire deal will be cleaned up before the first day of August.
 Under the terms of contract with the treasury department the Morgan Rothschilds syndicate has an option on any new bonds that may be issued by the government prior to October next. The treasury is absolutely in their hands until that date. If from 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. It was nominated specifically in the contract signed by direction of the president. The clause in which the syndicate agrees to main. tain the treasury reserves 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 car rying out of that moral obligation the syndicate shall decide that the govern ment must issue another S1OO, 900, 900 or Sou,UUD,UOu III JULIUS, bHe dulnlHlSLTdllOH will 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 re- serve can be practically wiped out in ten days, and then, if he should decide in self-protectioa to put out more bonds, he must sell them to the Nor. gan-Rothschild people and nobody else.
 The new bonds are selling to-day in open market at 121H. They cost the syndicate 104L, which would show a profit of F points in the operation, amounting in all to SlO,54O,O00. It would not be fair to say that the syn. dicate made that much out of the operation, but it is very safe to estimate its profits at ss,OOO,. 900. The syndicate is hurrying the completion of its present bond deal with the government. It deposited over Sl,00O,00O yesterday, which will bring the reserve up to nearly S93, 0OO,- 900. It will not have to complete these payments until the 1st of August, but the operation may be closed up within few weeks That will leave the sym dipate a free field