The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-05-08
CORNER ON GOLD.
Morgan and Rothschild Conspir-
ing to Control it All.
Syndicate Buys Up the Metal
Quick as Produced.
CHARGE A PREMIUM.
Private Purchasers Are Com
PEELED to Pay a Margin.

CHIcAeo, May s.-A special to the
Post from Washington says: The dis
covery that there is an actual basis for
the report that the Morgan Rothschild
bond syndicate is conspiring for the
gold market has been regarded as a
foolish eanard. It is a fact, however,
that brokers representing this syndi-
cate have been paying a premium for
the refined gold output of the private
refneries throughout the west during
the last two months and that they
are accommodating fine gold at the rate
of 50, 500, O0U or SO, 900. 900 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
tracted to this peculiar business by the
sharp falling off in the deposits of gold
at the minis and inquiry soon devel-
oped 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 it 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
minis the private purchasers have
been obliged to pay a premium
of ~ to X cents The premiums
paid for most of the gold was 18 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 $62, 900, 600 has been pretty well
closed out, over S51, 200, 900 in gold hav-
ing been paid out of the S64, 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.
hands until that date. If from natural
causes or through chicanery and
manipulation 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
specifically in the contract signed 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. If, in the car
rying out of that moral obligation the
syndicate shall decide that the govern
ment must issue another 800, OOO 600 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 dictation of the syndicate the re-
serve can be practically wiped out in
ten days, and then, if he should decide
in self-prOtection to put out more
bonds, he must sell them to the Nor
gan-Rothschild people and nobody
else.
The new bonds are selling to-day in
open market at 1919. They cost the
syndicate 1O41S. which would show a
profit of II points in the operation,
amounting in all to $40, 900. It
would not be fair to say that the syn
dictate made that much out of the
operation, but it is very safe
to estimate its profits at So, O0O,-
900. The syndicate is hurrying
the completion of its present bond deal
with the government. 1t deposited
over S1,OOO,OOO yesterday, which will
bring the reserve up to nearly 1913, 600,
OOO 1t will not have to complete these
payments until the 1st of August, but
the operation may be closed up within
a few weeks That will leave the syn
dictate free field.