The herald., 1895-05-08
70 CORNER ALL THE GOLD
Alleged Combine of Morgan and
ROthSChild
PRIVATE PARTIES BUYING
Gold Bullion Being Gathered 10 From
Every Quarter
Long Headed Hen In Washington and Wall
Street Think the Foundation 10 Being
Laid for Another Big Bond Dea!

CHICAGO, May IA special to the
Post from Washington says:
The discovery is made that there is an
actual basis for the report that the Nor
gan-Rothschild syndicate is conspiring
to corner the gold market though the
story has been regarded as foolish
cauard. 1t is fact, however, that the
brokers representing the syndicate have
been paying a premium for the refined
gold output of the private refineres
throughout the west during the last two
months and that they are accumulaitng
fine gold at the rate OF 81, 800. 900 to $3.-
007. 900 per month. which represents fully
two-thirds of the entire gold output of the
United States. The attention of the otfic-
ials of the treasury department was first
attracted to the peculiar business by the
sharp falling off in the deposits of gold
at the mints, and inquiry very soon de-
vcloped the fact that private parties were
buying the products of the refineires.
Further inquiry revealed that the met
al was bought and was drifting to New
York, where it is being put in store to
the credit of the Morgan Rothschild syn
dicate In order to divert the stream
from its usual channels leading into the
United States mints, the private purchas-
crs have been obliged to pay premium
of 1 Is to Il. cents. The premium paid
for most of the gold was 1-S cents, but
So anxious have been the buyers to in
crease 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 nearly
the entire output OF the United States ex
cept from the extreme western coast.
Many long g-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 an
other bond deal before congress meets
again. The last bond deal of $52 000, 900
has been pretty well closed out, over
SOL, 900, OOv in gold having been paid out
of the $64 600, 900, and it is generally be-
lieved thai the entire deal will be cleaned
up before the first day OF August. under
the terms of the contract with the treas
ury department., the Morgan Rothschild
syndicate has an option on any new
bonds that may be issued by the govern.
ment prior to October 1st next.
The treasury is absolutely in their
hands until that date. If. from natural
causes or through chicanery and manipu-
Iation, the administration is obliged to
issue another ba .ch 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 specifically in the con-
tract signed by direction of the president.
The clause III which the syndicate agrees
to maintain the treasury reserve leayes
the syndicate to be Judge as to what it
can do in the premises or to what meth
DDS it ashall adopt. If, in the carrying
out of that moral obligation the syndi-
cate shall decide that the government
must issue another 500, 1000. 900 or $780,
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 dicta-
ton Of the syndicate, the reserve
can be practically wiped out in ten
days, and then if lie should
decide in self-protection to put out more
bonds he must sell them to the Morgan
Rothschld people and nobody else. The
new bonds are selling in open market to-
day at 12l1a. They cost the syndicate
104la which would show profit of II
points in the operation amou ntng i IL all
to $40. 54O,O 900. 1t would not be fair to say
the syndicate made that much by the
i" ,,eration. but it is very safe to estimate
their profits at $s. 900, 900. The syndicate
is hurrying the completion of its present
deal With the government If deposited
over $1,000 900 today which will! bring the
reserve up to nearly $95. 100000. 1t will
not have to complete these payments un-
til the lst of August, but the operation
may be closed up within few weeks.
That will leave the syndicate free field.