Birmingham age-herald., 1895-06-02

Expects Later to Reap o Vast Rront- Gov- ern,nent Assay Office Cheap and Con- venient Safe Deposit-what Treasury and Syndicate Officials Say.
 The story from Washington that the bond syndicate wns casting a financial an chor to windward in gathering up bar gold in tho west and holding 1t for possi- bio contingencies was verified in Wall street Tho syndicate has been taking this bar gold presumably ut slight nd vance over assay office posted rates.
 This is practically creating corner in gold, but instead of taking the metal off to a safo deposit vault tho syndicate de- posits it at the government assay offlco and takes out assay office checks which call for equal amounts of gold coin. These checks arc held, so that tho syndicate has clcvcrly made the government act as Il safe deposit company and whilo Uncle Sam has tho gold hc does not own it any more than tho coin held for the gold certificates which tho banks hold on to when they wish to hoard gold. In each caso the gold appears in the treasury statement, but docs not holp the free gold figure which is tho ono which gives the government abil- ity to meet its promises to pay freely in gold paper presented for redemption.
 At the offices of Belmont and of Nor gan discussion of tho matter was avoided, as J. P. Morgan, who Is the head and spokesman of the syndicate, is now in England. Others who speak for tho syn dicato and represent its views explain that "undcr its agreement the syndicate bound itself to keep the government gold reserve intact until the completion of Its contract which will Do about September. It still owes tho treasury some s13, 000 900 in gold, m amount sufficient to bring the reserve above tho limit or to about Sl04, 900, o0O
 "Thcn, again, tho expense of tho govern ment between now and September will not exceed tho receipts, so that thcre will not be any increase in the present. deficit. On tho contrary, thcrc is n possibility of the receipts being enougHNin excess of ex- penditures to cause a decrease In the def icit.
 "Whcn that month arrives, there will Do such demand for money in tho interior states to move the crops that tho rate of interest will be so high as to preclude any exporting of gold.
 "The syndicate is simply acquiring all this gold as safeguard against possible demand for gold from abroad. If there should como such demand and the syn dicate could not sell bills of exchange in sufficient quantity to satisfy it, it would under its contract with tho government have to supply the gold directly or indi- rectly, and 1t wants to be prepared for any such event"
 Tho facts were found to bo exactly as stated with regard to the syndicate gold purchases, syndicate payments on bonds, the frantic haste displayed by syndicate agents to get the deal closed up, the artifl- cial character of tho barrier for the proven tion of gold exports and the palpable weakness of the treasury situation. Noth- ing was discovered to in the slightest de- gree weaken the force of the revelations which laid bare the motives influencing the syndicate to attempt repetition of the last exploit that Is netting it such tre- mendous profits.
 Treasury officials lot another damaging fact escape, and that Is the failure of the syndicate to import gold from abroad &C., cording to the terms of the contract with the administration. It was In tho agree ment that the syndicate was to bring in one-half tho gold from abroad to pay for tho bonds. Treasury admissions were made today that doubts are felt as to whether the syndicate has complied with that part of the bargain, and the half ex- planation is made that possibly tho pur- chases from tho western rehners and smelt- CTS are to mako up this foreign gold.
 It is explained that under tho spirit of the contract the syndicate will keep it's obligation if it obtains gold from private quarters that it promised to import, al- though In collecting tho metal it may be robbing tho government sources of supply.
 With millions In sight as a reward for simply withdrawing artificial support from the treasury and letting tho gold begin to flow through natural channels to foreign lands and into the vaults of the Wall street raiders the situation is seen to be full of peril. Professions of courage or indiffcr- ence on the part of treasury officials to the obvious facts will not protect tho gold re- serve or prevent tho occurrence of events that would make another bond call abso- lutcly necessary to keep tho government from going to silver basis.-New York World.