The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-05-29
THAT GOLD CORNER
THE BOND. SYNDICATE HAS CAST IT'S
GOLDEN BREAD ON THE WATERS.
Expects Later to Reap a Vast Pronf-@oS-
eminent Assay Office Cheap ana on
venient safe Deposit-Whst Treasury
and Syndicate Officials Say.

The story from Washington that the
bond syndicate was casting financial an
Choir to windward in gathering up par
gold in the west and holding it for posi-
Bile CONTINGENCIES was verified IN wan
street The syndicate has been taxing
this bar gold presumably at slight au-
vance over assay Office posted rates
This is practically creating a corner IN
gold, but instead of taking the metal on
TO a safe deposit vault the syndicate oe-
posits it at the government assay ONCE
and takes out assay Office checks, which
call for equal amounts of gold coin. These
cheeks are held. so that the syndicate mas
cieverly made the government act as SAFE
deposit company. and while Uncle sam
has the gold he does not own it any more
than the coin held for the gold certificates
which the banks hold on 10 when they
wish to hoard gold. In each case the gold
appears in the treasury statement b':t
does not help the free gold figure, when =
the one which gives the government ami
/ ity TO meet its promises TO pay freeiy III
gold paper presented for redemption
At the offices of Belmont and of Nor
/ gan discussion of the matter was avoided,
; as J. p Morgan, who i the head ana
I spokesman of the syndicate, is now III
/ England. Others who speak for the syn
! dictate and represent its views explain tiiat
/ s'under its agreement the syndicate bouhu
! itself TO keep the government gold reserve
! intact until the completion of its contract,
which will be about September. IL stlu
owes the treasury some sl3,OcV,oOo III
gold. an amount sufficient TO bring the
reserve above the limit or TO about SIO4,
600, 600
"Then. again, the expense or the govern
ment between now and September Will
not exceed the receipts, so that there VIII
not be any increase in the present dellclt.
On tho contrary, there is a possibility OF
| the receipts being enough in excess at eA-
penditures to cause decrease in the der
icit.
/ "When that month arrives, there will he
such q demand for money in the interior
states to move the crops that the rate oil
interest viii be 80 high as 10 preclude any
exporting of gold.
1.-THE syndicate is simply acquiring ~
this gold as a safeguard against possible
demand for gold from abroad. If there
should come such a demand and the syn
dictate could not sell bills of exchange II
sufficient quantity to satisfy II, IT woul'
under its contract with the government
have to supply the gold directly or lndl
rectly, and it wants TO be prepared for an.
such event"
The facts were found to be exactly q
stated with regard TO the syndicate goi'
purchases, syndicate payments on bonds
the frantic haste displayed by syndicat
agents 20 get the deal closed up, the artiil
ciaI character of the barrier for the proven
ton of gold exports and the palpabl
weakness of the treasury situation. Moth
ing was discovered TO in the slightest d'
gree weaken the force of the revelation
which laid bare the motives inluencin
the syndicate To attempt repetition {
the last exploit that is netting it such tr'
mendous profits
Treasury officials let another damagin
fact escane- and that * .th" failnre of III
( syndicate 10 import gold from abroad az
cording TO the terms Of the contract VIII
the adiriDi-t- '9--. in the a