The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-08
READY FOR MORE BONDS.
Cleveland May Be Forced to
Further Enrich the
Money Kings.
IMMENSE PROFITS ARE MADE.
Nearly All the Yellow Metal in the
United States Flowing In
One Direction.

CHICAGO, ILL, May IA special to
the Post from Washington says: The dis
covery is made that there is an actual
basis for the report that the Morgan
Rothschild syndicate is conspiring to
corner the gold market, though the story
has been regarded as foolish canard. 1t
is fact, however, that the brokers repre-
senting the syndicate have been paying a
premium for the refined gold output OF the
private refineries throughout the West
during the last two months and that they
are accommodating fine gold at the rate of
$2,5O0,000 to 100000 per month, which
represents fully two-thirds of the entire
gold output of the United States. The at
tention of the officials of the Treasury
Department was first attracted to this pecu-
liar business by the sharp falling-off in the
deposits of gold at 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 divert the stream from its usual
channels leading into the United States
minis, the private purchasers have been
obliged to pay premium of 1H to ~
cents. The premium paid for most of the
gold was one-eighth of l per cent,
but so anxious have been the buy
ers 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 get
ting practically the entire output of the
United States, except from the extreme
western coast.
Many long-headed men in Washington
and Wall street, who are familiar with the
methods of the parties composing the syn
dictate, have jumped to the conclusion that
the foundation is being laid for another
bond deal before Congress meets again.
The last bond deal of $52,000,000 has
been pretty well closed out, over $51 900, 900
in gold having been paid out of the 1884,
600, 200, and it is generally believed that
the entire deal will be cleaned up before
the LIST day of August. Under the terms of
contract with the Treasury Department.
the Morgan-Ro thschild syndicate has an
option on any new bonds that may be is
sued 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 re-
serve, the sale must be made to the syndi-
cate that took the last issue.
There is no escape from such action. 1t
was nominated specifically in the contract
signed by direction of the President. The
clause in which the syndicate agrees to
maintain the treasury 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
that moral obligation, the syndicate shall
decide that the Government must issue
another 500, OO0, 600 or $50, 900, 600 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 dictation of the syndicate,
the reserve can be practically wiped out in
ten days, and then if he should decide in
self-protection to put out more bonds he
must sell them to the Morgan-Rothschild
people and nobody else.
The new bonds are selling to-day in open
market at 1917. They cost the syndicate
1.04K, which would show a profit of II
points in the operation, amounting in all
to Sic, $40 900. 1t would not be fair to say
the syndicate made that much out of the
operation, but it is very safe to estimate its
profits at 100000. The syndicate is hur-
rying the completion of its present deal
with the Government. Itsdeposited over
100000 to-day, which will bring the re-
serve up to nearly 100000. 1t 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 syndicate free field.