The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1895-05-09
CORNERlNG GOLD.
The Bond Syndicate Accommodating
the Yellow Metal
SAID TO BE AFTER MORE BONDS.
The GOLD Reserve in the Treasury Can Bc
Practically wiped out In Ten Days
The Products Of ReHucries
Being Bought.

CHICAGO, May s.-A special TO the
Post from Washington says The dis
coverv that there is an actual basis for
the report that the Morgan Bothschild
bond syndicate is conspiring for the
gold market has been regarded as q
foolish canard. IL is fact. however,
that brokers representing this syndi-
cate have been paying premium for
the refined gold output of the private
refineries throughout the west during
the last two months and that they
are accommodating fine gold at the rate
of -. 300 900 or $4,000, 600 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 at
tractcd to this peculiar business by the
sharp falling off in the deposits of gold
at the mints and inquiry soon devel-
uped that private parties were buying
the product of the refineries.
Further inquiry revealed that the
metal was purchased and was drifting
To New York, where il is being put in
store to the credit of the Morgan
Rothschild syndicate. In order to di-
vert the stream from its usual chan
nels leading into the United States
mints the private purchasers have
been obliged To pay a premium
of ~ to ~ cents. The premiums
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 extreme western 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 To
the conclusion that the foundation is
being laid for another bond deal before
congress meets again. The last bond
deal of So, 600. 900 has been pretty well
closed out, over Sol 200. 900 in gold hav-
ing been paid out of the SGi. 900, 900 and
it 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
Rothschilds syndicate has an option on
any new bonds that may be issued by
the government prior TO October next
The treasury is absolutely in their
hands until that date. If from natural
causes or through ehicancry and
manipulation the administration is
obliged to issue another batch of bonds
. IL !
must be made to the syndicate that
| took the last issue. There is no escape
| from such action. 1t was nominated
| specifically in the contract 81 yned by
! direction of the president. The clause
| in which the syndicate agrees to main
tain the treasury reserves leaves the
| syndicate To be the Judge as to what it
can do in the premises or to what
methods it shall adopt. IT, in the car
rying out of that moral obligation the
syndicate shall decide that the govern
ment must issue another 100000 600 Oh
$50. OOO, 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 dictation Of the syndicate the re
| serve can be practically wiped out ~
ten days, and then, if he should decid,
i'm self-protectiou To put out NOR,
bonds. he must sell them 10 the Nor
Pan-Rothschild people and nobody
else
The new bonds are selling to-day il
open market at l?lis. They cost tn,
syndicate lOii. which would show
profit of Il points in the operation
amounting in all To SlO,54O,OOO. J.
would not be fair to say that the syn
dicate made that much out of tn,
operation. but it is very SAT,
to estimate its profits at 5000,
900. The syndicate is hurryinl
the completion of its present bond dea
with the government II deposite,
over 81, 900, 600 yesterday, which vii
bring the reserve up To nearly So3, 900,
600 1t will not have to complete thes,
payments until the lSt of August, bu
the operation may be closed mp within
few weeks That will leave the syn
dicate free field