Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1895-05-10
AFTER MORE BONDS.
OPERATORS PUTTING UPA COR
NER ON GOLD.


squeeze the Govcrnmcnt-A HUI
initiating SpectacIe-The Great
Republic i'm the Power of the
Gold SpeculatOrs.
A special to the Chicago Post from
Washington City, dated on the 9Th
inst, says; The discovery is made
that there is an actual basis for the re-
port that the Morgan Rothschild syn
dicate is conspiring to corner the gold
market, though the story has been re-
garded as foolish canarj 1t is q
fact, however, that brokers represent
ing the syndicate have been paying a
premium for the refined gold output
OF the private retineries throughout
the West during the last two months,
and that they are accumulating fine
gold at the rate of $500 600 to 3d.
100000 per month, which represents
fully thirds of the entire gold out
put of the United States. The atten-
ton OF the officials OF the treasury de-
partment was first attracted to the
peculiar business by the sharp falling
off in the deposits of gold q: the minis,
and inquiry very soon developed the
fact that private parties were buying
the products OF the refineries.
Further inquiry revealed that the
metal was bought and was drifting to
New York, where it is being put in
store to the credit of the Morgan
Rothschild syndicate. In order to d.
vert the stream from its usual chan
nels leading into the United States
minis, the private purchasers have
been obliged to pay premium of Is
to - cents. The premium paid for
most OF the gold was l l-S cents, but
so anxious have been the buyers to in
crease their lines and get everything
i'll sight, 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, except from the western
coast.
Many long-headed men in Washing
ton City and Wall street, who are
familiar with the methods OF the par
ties composing 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 So co.,
600 has been pretty we'll closed out,
over $51 100000 in gold having been
paid out of the $54,O00OOO, and it is
generally believed that the entire deal
will be cleaned up before the LIST day
of August. Under the terms of the
contract with the Treasury Depart
ment the Morgan-Rothschild syndi.
cate has an option on any new bonds
that may be issued by the government
prior to October Let next. The treas
ury 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. 1t was nominated spe-
officially in the contract signed by d.
rection of the President. The clause
in which the 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 what
methods it shall adopt.
If, in the carrying out of that moral
obligation, the syndicate shall decide
that the government must issue
another 500 0OO, 900 in bonds, the ad-
ministration 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 reserve can be practi.
cally wiped out in ten days, and then
if he should decide in self-protection
to put out more bonds, he must sell
shen, En- til. ha-oon p OF hsoi,ild people
and nobody else.
The new bonds are selling to day in
open market at 1.2lt. They cost the
syndicate 1.044, which would show a
net profit of II points in the operation,
amounting in all to $40, $40, 900. 1t
would not be fair to say that the syn
dictate made that much out of the
operation, but it is very safe to esti-
mate its profits at $S,OO0,OO0. The
syndicate is hurrying the completion
OF its present deal with the govern
ment. 1t deposited over $4,000
to-day, which will bring the reserve up
to nearly $93,OOO,OO0. 1t will moi
have to complete these payments un.
til after the first of August, but the
operation may be closed up within 8
few weeks. That will leave the syndi
cate free field.