The evening world., 1895-09-21
SYNDICATE
DISSOLVED.
Formal Communication Was
:sReceiYsd BY The Members
This Morning. "
SERVICES ARE NOT NEEDED.
After Allowing Interest, Prof.
its Are a Little Less
Than 6 Per Cent.
NO MORE BOND ISSUES NOW.
Responsibility for Such . Move to
he Thrown Upon the Next
Congress.
NO MORE BOND ISSUES NOW.
Responsibility for such q Move to
he Thrown Upon the Next
Congress.

The members of the Government Bond
Syndicate this morning received by mail
from the managers. what Is generally
regarded by them as a formal dissolu-
ton of the Syndicate.
The reason assigned for this acton is
that the Government has no further need
OF Its services.
The notice came in the shape OF
communication to each member OF the
Syndicate. regarding his profits. checks
for which accompanied the communlca-
ton.
1t was marked "private and con-
hdential." and the exact figures are as
yet unobtainable. but II is understood
that, after allowing Interest on the use
Of the money contributed. the profts
ore little less than six per cent
The members have already received
the principal which they had placed in
the hands Of the syndicate managers.
The dissolution OF the syndicate camc
~ a surprise to Wall street. as It wa.
tinue and assist the Government In
maintaining the 800. 900, OOO gold reserve
90 long as there was any considerable
drain.
From now on. for the next ten weeks.
Wall street will watch closely to zee
whether the opinion OF the syndicate.
that 1t 10 no longer needed, proves true.
The members, especially Me.srs. Nor
nd nl is,
know better than any ,ne else, and IN
advance. the probable future movement
Of gold.
Since Feb. last, when the contract
between the Secretary OF the Treasury
OF the United States as the party OF
the first part. and Messrs. J. T. Morgan
and August Belmont Of the second part.
for themselves and J. 3. Morgan Il
Co.. and N. NJ. Rothschiid n Sons. OF
London. was made. tn, latter have sold
362.3l5,OOO OF United States 4-per-cent.
thirty-year bonds. and turned over to
the Secretary OF the Treasury an
amount Of gold equal to the face value
OF the bonds and the premium OF nearly
: per cent. which the syndicate pa d
the Government for them.
In selling the bonds to indiv !dull pur-
chssers the syndicate made handsome
profit. realizing ll2 l-2 for some OF the
bonds. and IL IS said high as l2I
and l22 for other sales.
1t Ia understood, however. that the
syndicate has had IS profit reduced
during the past six or eight wceXs IN
Its efforts to control the sterling ex-
change market and prevent the export.
Ing OF gold and the depletion of the gold
reserve.
While no authoritative figures arap Al
hand as to the profits the synd cate has
made by paying the Government god
for the bonds and then pedd.ing them
out at greatly increased figures. It is
understood that the members of the syn.
dicate were allowed per cent. Interest
on their money. which for the period II
was used amount, to about "a pei
cent.
The profits in addition to this interes,
are a little over 7-s per cent. making
total net profit to those lucky enough
to get into the deal OF 6 5-S per cent
While the profits to individual mem
bers Of the syndicate will probably nevel
be exactly known. the profit to the syn
d!cate as whole Is sa.- to he abou
$4,000 900.
The situation up to date is as follows
Taken from sub-Treas-
ury Yesterday .......... HI5O,OO,
Amount of gold export-
ed since the bond
Syndicate contract In
February last ........... 30, 202, ,OO>
Amount Of gold brought
from abroad by bond
Syndicate, about .......17 900, 90,
Peneral feeling Wall sfreat 4
that the god furry is over and tina
but comparatively small amounts will
be shipped across the water for som
time to come. The withdrawals from
the Sub-Treasury yesterday amounte
to only $4,000. and this was a NOV
on the part OF a jewelry firm to saw
I5 by not purchasing regular bills o
exchange.
II was announced yesterday that ther
would positively not be another bon
and that II the situation became sum
ciently serious as TO warrant 1t tn
move could be deferred until Congress
was In session.
The bankers Of the principal cities Q
the country stand ready 10 deposi
$3OOO.UO OF god in exchange for lega
tenders. This deal was negotiated b
Aessrs. Belmont and Morgan, and
confined exclusively to such banks a
profited by the last bond issue. Tn
amount Of their prof,s depends lsrgel
on the condition OF the Treasury. an
It Is to their individual interests
protect me condition.
In addition to this. the Admlnistratio
feels that another bond issue prior
the elections might have a tendency
strengthen the free-silyer men and n
Populists; consequently the rsspons
bility for such a step will be added
the other burdens OF Congress.
Aessrs. Lazard Frercs. when ssks
to-day what the prospects were Il
gold shipments next week. replied:
Unless something unforeseen shou