Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-05-09

Chicago, May IA special to the
Post from Washington says: The dis
,overy Is made that there is an actual
basis for the report that the Morgan
Rothschild bond syndicate is conspir-
ing to corner the gold market, though
the story has been regarded as fool
Ssh canard. 1t is fact, however, that
brokers' representing this syndicate
nave been paying a premium for the
refined gold output of the private re-
flneries throughout the west during
the last two months and that they are
accommodating refined gold at the rate
Of $2,5OO,OOO to SS,OOO,OOO per month,
which represents fully two-thirds Of
the entire gold output of the United
States. The attention Of officials of the
treasury department was first attract
ed to peculiar business by the sharp
falling off in the deposits Of gold at the
nints and inquiry very soon developed
that private parties were buying the
product of the refineries.
Further inquiry revealed that the
store to the credit of the Morgan
to New York where it lie being put In
Rothschild syndicate. In order to di-
vert the stream from it's usual chan
nels leading into the United States
mints, the private purchasers have
oeen obliged to pay premium OF Ia
to ~ cents.
sCooPING THE LOT.
The premium paid for most of the
gold was one-eighth cent, but so anX-
luos have been the buyers to increase
their lines and get everything in sight
that they have marked up their quota
lions during the last few days AT the
present time they are getting practic-
ally the entire output of the United
States excepting for the extreme west
| ern coast
Many long-headed men in Washing
| ton and Wall street, who are familiar
with the methods Of the parties COM
posing the syndicate, have jumped at
| the conclusion that the foundation is
being laid for another bond deal before
| congress meets again. The last bond
| deal of $52, 900 has been pretty well
| closed out, over $51 100000 in gold hav-
| ing been paid out of the $64,000,00O and II
| is generally believed that the entire
deal will be cleaned up before the first
| day of August. Under the terms OF
contract with the treasury department
| the Morgan-R atschild syndicate has an
option on any new bonds that may be
issued by the government prior to Oc-
tober 1, next.
The treasury is absolutely in theiI
hands until that date. If from natura,
causes or through chicanery and man
ipulation the administration Is Obliged
to issue another batch of bonds to main
| tain the gold reserve the sale must be
made to the syndicate that took the
last issue. There is no escape from sucf
action.
NOMINATED IN THE BOND.
1t was nominated specifically in the
contract signed by direction of the
president. The clause in which the
| syndicate agrees to ma'ltain the treas
| ury reserve leaves tho syndicate to be
the Judge as to what it can do in the
premises or to what methods 1t shall
adopt. If, in the carrying out of tina
moral obligation, the syndicate shall
decide that the government must ISSUE
another $100,000,00O or S5O,OOO,OOO IL
bonds, the administration will hav'
nothing to do but to comply with TN
terms. If the president does not wan
to issue any more bonds at the dicta
ton of the syndicate the reserve car
be practically wiped out in ten days
and then If he should decide in self pro
lection to put out more bonds, he mus
sell the Morgan-Rot hschild people anC
nobody else.
The new bonds are selling today ii
open market at 1211s They cost thu
syndicate 1041a, which would show {
profit of seventeen points in the oper
alton, amounting in all to Sl0,54O,OOO
1t would not be fair to say that thu
syndicate made that much out Of thu
operation, but 1t is very safe to esti
mate its profits at $S,000000. The syn
dictate is hurrying the completion o
its present bond deal with the govern
ment. 1t deposited over $1,OOO,OOO to
day, which will bring the reserve up t.
very near 500, 100000. 1t will not hav
to complete these payments until tn
first Of August, but the operation ma!
be closed up within few weeks. Tha
will leave the syndicate a free field.