Birmingham state herald., 1896-01-16


 and the tension today Is extreme; and while no outward evidences have devel- oped, we are likely at any moment to reach the point and consequences which 1t will then be too late to remedy. The gravity of the situation must be my ex- cuse The most important point at the moment is the restoration of government credit by replacing the gold reserve in tho treasury beyond question. This once ac- complshed. confidence both at home and abroad in the stability of our currency will be restored. After my recent visit to Washington became convinced that any legislative action to improve the methods at the disposal of the executive was un- likely-in fact, impossible. I, therefore, took steps to ascertain whether it would be possible to obtain the cooperation of parties at home and abroad to an extent that would enable me to negotiate a contract with the government for the sale of H. 800 900 ounces of gold, approximating $200, 900 ,000 on about the basis of the con- tract of February 8, 1895. In this effort l have been successful. and am now in position to make such a contract for the full amount. I do not hesitate to affirm in fact, to say-that such contract would be in every way for the best inter ests of the government and the people, and would be followed by less derange- meat of the money market, of trade, In
 
 changes, all of which until recently were in such an increasingly prosperous condi- tion, and urge your serious considera'- tion of such contract. At the same time I recognize the effect Of legislation which has been postponed and discus- sion thereon, in both houses of congress, all of which might lead you to hesitate to make a private contract, and. conse- quently, in view of the gravity of the sit uation, I feel bound to say, if, after con ference in which I can more fully lay the matter before you, and without express ing any confidence in such mode Of pro cedure. in face of similar attempts; but, recognizing, as I do, that the responsi- biifty of the decision lies with you, l pledge to you every influence and eHort in my power to assist the government Tn it's endeavor to make successful nego- tiation by public advertisement which shall result in the sale to the treasury or II. .5OO 0O0 ounces of United States gold coin ($2O0 000000); and further, l will so far as possibly can take such steps as will enable the syndicate which repre- sent to join in making the negotiation successful to it's full amount.
 Awaiting the indications of your pleas ure I remain very respectfully yours,
 J. PIERPONT MORGAN.
 On Monday, January6 G. the call for bids for bonds to the extent of $lOO,OOOOoo was issued by the secretary of the treas
  made the syndicate contract lowing to the minimum therein flxed available only to bid flor all or none." l should be unwilling to make such Did under present circumstances, as l might thus seem to present for consideration by the secretary of the treasury the throwing out of smaller bids made in good faith under public call. The only emergency which would justify such course would be the failure of the public to respond to the call of the government Under these circumstances at once decided to dis solve the syndicate.
 It has. however been necessary to de- lay this action up to the present time, as every financial interest required the protection afforded by the knowledge that the syndicate was in existence, pre- pared to make the loan success under all circumstances, but happily this neces- sity does not exist any longer.
 The subscriptions by individuals and others including many of the syndicate whom I have encouraged to subscribe. from present indications, will insure the complete success of the issue. l there fore feel that the time for announcing the dissolution of the syndicate has ar rived and an official notice to that eI- feet has been issued.
 I feel perfectly satisfied that there IS no question as to the success of the loan
 I desire to sustain the executive to the fullest extent in his endeavors to mein- tain a sound currency and the credit or the country for which every loyal citi- zen should hold him in honor My firm will gladly assist any party desiring to subscribe under the present call. and will join with those prepared to take any amount that may not be desired by smaller investors. feel sure, should 1t herea fter appear desirable to make such a bid. that you will gladly cooperate with them in such action, either individ- ually or otherwise.
 Thanking you for the confidence re- posed in me, for which I shall ever be grateful, I am very trn1v yours.
 -J. PIERPONT MORGAN.