The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1895-06-14
CORNER in GOLD.
SYNDICATE TAKING NEARLY
ALL THE OUTPUT.

Are Paying Big PreMiums--SuDDOsed to
BE Morgan-Rothschild Agents-The
MINIS Getting Very Little Gold
Rumors of an Attempt.
Chicago, Ill, May 21.-A special to tho
Post from Washington says: The dis
cOvery that there is an actual basis for
the report that the Morgan-Rothschild
bond syndicate is conspiring to corner
the gold market has been regarded az
a foolish canard. 1t is a fact, however.
that brokers representing this syndi-
cate have been paying a premium for
the refined gold output of the private
refineries throughout the west during
the past two months, and that they are
accommodating fine gold at the rate of
$500, 900 to 5 $4,000 0 per month. which
represents fully two-thirds of the en-
tire gold output of the United States.
The attention of officials of the treas
ury department was first attracted to
peculiar business by the sharp falling
off in the deposits of gold at the mints,
and inquiry very soon developed that
private parties were buying the prod
uct of the reineries.
Further inquiry revealed that the
metal was purchased and was drifting
to New York, where it is being put in
store to the credit of the Morgan-Roths-
child syndicate. In order to divert the
stream from it's usual channels leading
into the United States mints, the pri-
vate purchasers have been obliged to
pay a premium of Ia to 1A cents.
The premium paid for most of the
gold was Is cents but so anxious have
been the buyers 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 getting
practically the entire output of the
United States excepting for the ex-
IRENE western coast. Many long
headed men in Washington and Wall
street, who are familiar with the meth
DDS of the parties composing the syndi-
cate have jumped to the conclusion that
the foundation is being laid for another
bOhu uCdl DclUIe CUuSI SSS ulGGIS dSdlu.
The last bond deal of $62, 600, 900 has
been pretty we'll closed out, over $751;
OOO, 900 in gold having been paid out Of
the $62, 500, 900 and it is generally be-
lieved that the entire deal will be
cleaned up before the first day OF
August. Under the terms of contract
with the treasury department, the Nor
gan-Rothschild syndicate has an option
on any new bonds that may be issued
by the government prior to Oct. 1 next.
The treasury is absolutely in their
hands until that date. If from natural
causes or through %chicanery and man
ipulation the administration is obliged
to issue another batch 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 speci-
ically in the contract signed by direc-
ton of the President. The clause in
which the syndicate agrees to main
tain the treasury reserve leaves the
syndicate to be the judge as to what it
can do in the premises or to what meth
DDS it shall adopt. If, in the carrying
out of hat moral obligation the syndi-
cate shall decide that the government
must issue another $100, 0O0, 900 or $50
900 900 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 dictatioa
of the syndicate the reserve can be
practically wiped out in ten days, and
Their if he should decide in self-pro-
lection 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 1.211a. They cost the
syndicate 1.04h, which would show a
profit of II per cent in the operation,
amounting in all to $40, 5O4, OOC. 1t
would not be fair to say the syndicate
made that much out of the operation.
but it is very safe to estimate it's profits
at $4,000, 900. The syndicate is hurry
ing the completion of it's present bond
deal with the government. 1t depos-
tied over $1,000, 900 to-day, which will
bring the reserve up to very nearly
So, 900, 900. 1t will not have to COM
plete these payments until the LIST of
August, but the operation may be
closed up within a few week.. That
will leave the syndicate a free field.
ts