The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1896-01-24

PLENTYOF GOLD OFFERED
FOR THE
Mr. Morgan's Circular says Seco,000,0OO
Was Subscribed In Four Days-An Expla-
nation Of the Operations Of syndi-
cate--Mr. Morgan's Letter.

M AN0V ~ EO Uh V1CulUCIS u
the Government bond syndicate re-
ceived IN their mail this morning q
circular letter fromJ J. r. Morgan & Co.,
releasing them from their commitments
to furnish their pro rata of 500, O00,,-
600 in gold and a second 500, 100000
if they desired, taking their payment
therefor in four per cent Government
bonds. Accompanying this letter was
Q circular explaining how the syndi-
cate was formed, what action was
taken on it's behalf: and why it is now
dissolved.
s'On the 23d of December" Mr.. Nor
gan says, 81 vas invited to Washing
ton Tor a conference. During my visit
there nc negotiations for a loan were
even suggested, nor was there then,
nor has there been sinces any agree
mcnt or request that | should take
any steps preparatory to making a
contract. / came, however, to the
conclusion that the President and sec
rotary Of the treasury would use every
power at their command to restore
and maintain the gold reserve; that no
steps would be taken until it was as
certained what Congress would do:
that the executive department would
prefer to secure 5000, 900, 900 Of gold,
and that it was certain that no rel1ei
could be obtained from Congress.
Upon my return, appceciating the
gravity of the situation and in order
that might be prepared to act
promptly, / took steps to ascertain to
what extent it would be possible to
secure the cooperation Of capitalists
IN forming a syndicate which would
agree to sell to the United States gov
eminent $500, 600, 900 of gold coin. The
contract prepared and signed bv the
participants did not stipulate whether
h purchase would be by private con-
tract or by public offer. mz
The only provision in addition to
h important one that no gold Should
be withdrawn from the treasury was
that the minimum amount of the con-
tract should be $lOO, $1,000, the maxi
mum not over $500, 900, 600. The ap-
plications far exceeded my expecta-
tions. At the end of three or four
days the total of 5000. 600. 900 was
reached, and | had full authority
which would enable me wheneverand
however the Executive might decide
to act to secure that amount of gold
Tor the treasury reserve in exchange
for United States bonds.
Having completed the formation Of
n syndicate, ! entered into negotia-
tions in Europe and in places other
than London, where the market was
closed to us. and through the Deutsche
bank and Messrs. Morgan, Haries &
Co. Negotiations were practically
concluded for public subscriptions in.
Germany. France and Holland, which
would have resulted in a large mount
OF bonds being placed in those coun-
tries.
Q January A, realizing that the
tension was growing daily and had
become serious, l addressed a letter to
the president, calling his attention to
the situation and representing that
the most important step was the re-
~storatlon OF the government, credit by
replenishlng the stock Of gold. De-
tails OF what was proposed were given
and assurances offered that the utmost
efforts would be made to. procure for
the treasury II, $50, 600 ounces of gold.,'
The reason given for the disso-
luton of the syndicate is that the con
tract called for a bid Of '.all or none, y
and therefore Mr.. Morgan was I'M
willing to make a bid under the pres
emit circumstances, al he might seem
to desire the secretary Of the treasury
to throw out smaller bids made in
good faith under the public call. The
only emergency, in Mr.. Morgan's jndg-
ment. which would justify such a
course, would be the failure of the
public to respond to the call OF the
government. ..EE
The CIRCULAR concludes: II feel per-
fectly satisfied that there is no cues
ton as to the success OF the loan. ''He'..
MoRGAN's LETTE To THE PRESIDENT.
The following is the text of Mr..
Morgan's letter to PresidentCleyeland
on the 18th of the month. ME6
"Sir: It is with great hesitation
that venture to address you in rela-
tion to the present financial situation.
As you are doubtless we'll aware,
financial affairs are approaching a
crisis and the tention to-day is x
IRENE; and whilst no outward evil
dences have developed, we are likely
ut any moment to reach the point and
consequences which it will then lie too
late to remedy. The gravity Of the
situation must be my excuse. The
inost lHportanb step VI This is
the restoration Of government credit
by replacing the gold reserve in the
treasury beyond question, This once
accomplished confidence both atAAhome
and abroad in the stability of our cur
rency WILDE restored. After mgSrecent
visitto Washington / becarneconvinced
rhav any Legislative action to improve
the methods at the disposal 81 the.
executive was unlikely; in fact, impos-
sible. | therefore took steps to ascer-
Tain q 10 ntXss;hla