New-York tribune., 1896-01-14
SYNDICATE AID NOT NEEDED
J. p. MORGAN SURE THE BOND ISSUE WILL
BE A SUCCESS

EFFECT OF HIS STATEMENT IN THE FINANCIAL
CONTEMPLATION TO DISSOLVE THE
SYNDICATE REACHED. BUT ANNOUNCE
MENT OF The FACT NOT MADE
SOME INFORMATION
FOR BIDDERS
There was a conference yesterday afternoon of
leading members of the bond syndicate including
J. Plerpont Morgan. President James Stillman OF
the National City Bank and President Jonn A.
Stewart Of the United States Trust Company,
and it was decided to dissolve the syndicate.
How soon a formal announcement OF the fact
will be made depends uron circumstances. IL
may be made to-day. or it may not be made for
ten days or two weeks. Mr.. Morgan Is TO be the
Judge in this matter
The proposition to dissolve the syndicate was
considered and practically adopted the middle OF
last week 1t was thought advisable to postpone
final action for fear that the dissolution OF the
syndicate might create the impression In Europe
that the support OF American financiers had been
withdrawn from the Government, thereby hurting
the Nations credit and perhaps causing the re-
turn to this country OF large amounts OF Ameri-
can corporate securities held on the other side.
IMPROVEMENT IN STOCKS
The statement by Mr.. Morgan, printed exclu-
sivelv in The Tribune OF Sunday. that he was
bound to see the issue made a success, was suf-
icient TO allay any apprehension that might nave
been felt either at home or abroad. Tne erect OF
his statement was reflected in the improved tone
of stocks and bonds and his utterance was
warmly commended by Inanciers. Mr. Morgan
is convinced that the bonis will be readily taken
without the aid of any syndicate He said at
Yesterdays conference tha: the applications for
the bonds under the public offering would be
largely in excess Of SlO0,ooooOV' the amount ior
which bids asked
The dissolution Of the syndicate will leave the
members Of 1t free to put in bids on their ind-
vidual account Mr. Morgan will probably ask
them To do So He will, any rate, see To II that
the subscriptions ample u ABSORB the whoie
issue Gable advices that .nder no circumstances
will the Government loan be allowed TO be iaii-
IRE have been sent to ell European financial Z,
centres
THE CLOSING OF BIDS
No large number of bids are expected TO be
received by the Treasury Department until
| within a day or two before February ., the
time set for the opening of the bids. Ihere Is
no reason for haste in putting in bids. They
will be accepted up TO noon of February D. ana
none Will De opened before that time. con-
dtions may arise in the next three weeks Which
will induce changes in the prices that intend
ing bidders had previously decided upon 1t
! is the invariable custom Of buyers to wait until
the last day named for receiving bids for any
| kind Of bonds before turning in their bids
! II is doubtful If Mr.. Morgan complies with the
suggestion that he shall make up new syndl-
cate to bid for SO much Of the bonds as are not
awarded to the general public 1t Is regarded
as probable nevertheless, that he Will bid Tor
large block of the bonds for his own frm ana
its clients. although on this point he has not
vet expressed himself. The course OF the Ad-
ministration In sending copies Of the bond call
! to the 5000 postoffices throughout the country
! TO be posted up where people of all classes can
read them is in keeping with the IDEA OF making
the loar popular one
Not everybody understands that bids can be
made for bonds of denominations running from
$50 up To 900 The only cost in sending In
bid is a two-cent stamp for postage and the
labor of filing out a blank and addressing the
envelope to the Secretary of the Treasury.
When people throughout the country acquire a
better understanding of the bond call they VIII
see how easy it is to become bidders FOR the
bonds \ bid on a per cent basis would make
! ,ha cost of $50 bond $50 g. and Of 500 bond
sIlq 33 There will be no trouble in obtaining
| gold from banks. or If not from them. then from
| money changers or specie dealers at a snali
! premium. Il is pointed out that II the ponds are
/ subscribed for on s per cent or a q. per cent
! basis the credit OF the Government Will not only
be greatly improved. but values generally VIII
/ be enhanced.
JOHN \ STEWARDS STATEMENT.
The banks throughout the country are writ
inc to their New-York correspondents to make
arrangem ,nts for getting gold with which to
huv bonds President John \. Stewart. Of the
United states Trust Company. said:
7-nero vnlhe no subscription for the proposed bond
issue on the basis of the whole or none" but me
nuhlic wil have all the opportunity they desire 10
] hand hoy
hr,.n.,s in New-York which viii bid for the whoie
iasve or any part thereof and in either case the
! pVWV.b5,n The time cones 1t will probably be found
,hat he banks and otaer financial institutions viii
~ b f,t'Sd TO subscribe for in other words should
the foreign AMI domestic hn2nc.al institutions sup,
i, ihcn he found that Of the remaining one-thrd
anv proportion Of It had not been taken by the
! nm6,ic then the banks or other financial institu-
! lions will take up that amount
There is NOT the slightest desire on the part of
scribing for the issue, but on the contrary, tnere
is and will be disposition to help the matter
Wpd matters gone as originally expected, the big
banking houses would have imported sucn OF me
fher subscriptions so tnat none OF the amount
required would have first been Withdrawn ron
would have had net gold but even as matters
stond there will be everything done which can
be done 10 make the loan a success
The steamship La Champagne, which arrived
on Sunday. brought sl.5OOO0o in gold consignea
! as follows: l.. Won Hoffman, K Co. slOoooV,.
| Zimmerman & Forshay 100000. and Credit
! Iyonnaise 100000. The Aurania. which arrived
| on the same day, brought s25OOoo IN goid con-
signed 10 Brown Brothers & Co. There was de-
posted In the Sub-Treasury Yesterday 10 ne
/ examined counted and weighed sl,7oo,oOo In gold
/ coin and there was deposited In the ASSAY
Office In exchange for checks redeemapie AT the
| Sub-Treasl,ry in gold coin 0o0OO In gold pars
! Nothing was added the Government stock OF
gold by these deposits. but as the me gold ,', ~ 10