The silver blade. (Rathdrum, Idaho) 1895-1903, 1896-01-18
Bond Issue Can b FIoated In
dependent Of Syndicate.
MoRGAN's CLIQUE HAS QUIT
The Great Combine of Gold BarOns Has
Dissolved. Each to Get What
He Can.

Washington, Jan. 15.-The announce
ment that the Morgan bond syndicate
had been dissolved, made in New York
today, was received with surprise, al
though among officials conversant with
the changed situation no other course
has seemed open to Morgan and his as
sociates. The reason given for the dis
solution is accepted as the true one,
since Morgan and his friends are fully
aware Of the fact that the success Of
the loan by popular subscription is no
longer a matter of doubt. To hold the
banks to the terms of the contract, it is
argued, would prevent any of them
from participating in the loan except
in the capacity of a syndicate, which,
under the changed conditions, almost
certainly would result to their disad-
vantage. Morgan's purpose, therefore,
in releasing his associates, 1t is believed,
Is to give them an equal chance with
other banks and financial institutions to
secure whatever part Of the loan they
may desire.
The only criticism 50 far heard of
Norgan's public statement is that his
assertion that he twas invited to Wash
ington for conference is misleading,
as the natural inference is that this in
vitation came from the president or, by
his sanction, from some member Of the
cabinet. This, 1t Is said, is not the fact.
When Morgan came to Washington the
president declined to see him, nor. 1t is
added, did he confer with any member
of the cabinet at the presidents sug-
gestion.
It is stated on high authority that the
president and Secretary Carlisle have
received such assurances from large
number of prominent bankers through
out the country that there can not be a
doubt as to the loan being a success.
1t is argued that during the late break
in the market which followed the an
nouncement Of the governments atti-
tude on the Venezuelan question, east
ern bankers took advantage of the
sharp decline In American securities
and as result their holdings are now
large and must be protected from fur.
ther decline, which would necessarily
follow the failure Of the loan or the
depletion Of the reserve to point sc
unfavorable as to affect the market.
Under these circumstances it is be.
ieved that should large export move
ment set in before the loan is con.
summated the large banks and Other
financial institutions would neutralize
by making deposits Of gold. In any
event the officials here are not appre
hensive of any serious difficulty il
maintaining the reserve at about itt
present figure nor in placing the $1OO,
10000 loan at a fair price, both to The
government and to the purchaser. The
only serious question involved in thu
situation, 1t is said, is from what sourct
are the bond purchasers to obtain Their
gold, and If from the banks, as seem:
altogether probable as to very larg.
percentage of it, will not the bank.
eventually recoup their reserve hold
ings by Withdrawals from the treasury
Secretary Carlisle this afternoon IL
speaking of the dissolution Of the syn
dictate said he could be quoted as sayint
that "the success Of the loan was as
sured." +
MODIFIED CONDITIONS FOR PAYMEN,