The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-01-18
DISSOLVED.
Its Founder Issues n Circular Announce
sng fts Dissolution and Detailing
the Reasons for Taising
such Action.

New York. Jan. 10. The members
Of the government bond syndicate re-
ceived IN their mails Wednesday morn.
ing a circular letter from J. Il. Morgan
d Co. releasing them from their com
mitments to furnish their pro rata
share OF Si0o,ooo.oo0 in gold to the gov
crnment. and a second $l00.O00.O00 II
desirable. taking their pny therefor In
four per cent. bonds. The circular sets
forth TINT this action seems desirable
In view Of the terms of the treasury cir
cular. Offering bonds TO the public The
text Of the circular is quite lengthy. II
contains a detailed statement OF every
phase OF the syndicate's connection
with the proposed bond issue and offer
of gold 10 the government.
Mr.. Morgan says ne was invited to Wash
! inrton, December q last. for conference.
but that no negotiations for loan were
commenced or even suggested. nor was
there then or since any agreement or re-
| quest that Mr.. Morgan should take ans
steps preparatory TO making a contract.
The result OF his visit led him 10 the con-
clusion that the president and secretary
OF the treasury were determined To use
every power at their command TO restore
and maintain the gold reserve; that no
steps would be tnlSen or even any prepar-
ntory negotiations commenced until Il was
nscertainod what action. II any, congress
would be likely TO take In response 10 the
appeal OF the president for adequate and
improved means for making such restora-
ton: that the executive department would
prefer II possible. 10 secure 100000. 900 OF
gold I'm order 20 avoid any probable neces-
SHY for a similar negotiation before the
meeting OF the new congress In 1897. and
that 70 was absolutely certain that no
adequate relief could be obtained from
congress. and that no bin could be passed
through the senate for tho Improvement OF
the monetary system OF the country.
Upon his return he took steps 70 ascer-
tain 20 what extent IL would be possible 10
secure the cooperation OF capitalists. In
situations and others In forming a syndi-
cate which would agree 10 sell 10 the United
States government $500 000.V0O OF gold coin.
and as a result a contract was entered into
with institutions. banking firms, banks
savings banks. trust companies, and private
individuals In Europe and the leading cities
OF this country 20 furnish the required
amount.
The contract. as prepared and signed by
the participants. did not stipulate whether
the purchase should be by private con-
tract or by public offer. The only provso
Cn addition 10 the important ono that no
gold should he withdrawn from the
treasury was the minimum amount OF the
contract should be 100000. GOO and the
maximum the full amount OF participations
which might be secured before II became
necessary 10 act, not exceeding $500 1000
The formation Of the syndicate being COM
pleted. Mr. Morgan commenced negotia-
lions for the permanent placing OF "a por-
ton OF the loan by public issue In Europe,
should n contract with the government be
made. and these negotiations were prae-
ticaily concluded.
After waiting few days for some an
nouncoment or invitation from Washing
ton, on January he sent by messenger a
letter TO the president informing him Of the
approaching crisis and extreme tension In
financial affairs and acquainting him with
the successful steps he (Morgan) had taken
I'm arranging for the sale OF II 800. 900 ounces
OF gold. approximately s20O. 900. 000 on about
the basis OF the contract OF February ),
1896 Mr.. Morgan affirmed his opinion and
urged that such contract would In every
way be for the best interests OF the gov
eminent and the people, and would be fol-
lowed by less arrangement OF the money
market. oftrade and Ia fact Of all interests.
including foreign exchanges, all OF which,
until recently, were IN such an increasing
ly PHOSPHORUS condition.Rnd urged the pres
ident's serious consideration Ss such "a con-
tract.
Mr.. Morgan. In his letter, pledged TO the
president every influence and effort I'm his
power 10 assist the government IN it's en-
ceavor 10 make successful negotiation by
public advertisement which shall result
In the sale TO the treasury OF ll,0o,0OO
ounces United States gold coin-S2Q0 goo, 600
land further so far as possible take such
steps as VIII enable the syndicate which
lie repfesonted 10 Join In making the
negotiation successful TO its full amount.
on Monday. January 9, tho call for pub
lie bids for bonds 10 the extent or $l0O, 0CO-
treasury.
Mr. Morgan continues: Tho amount OF
bonds thus offered made the syndicate con-
tract owing 10 the minimum therein
fixed-available only 10 BID Tor all or none.
4 should be unwilling TO make such q bid
underprcsent circumstances. as 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 a course would
be the failure OF the public TO respond 10
the call OF the government. Under these
circumstances i at once decided TO dis
solve the syndicate.
''The subscription By individuals and
others. including many OF the syndicate
whom have encouraged TO subscribe,
from present Indications VIII insure the
complete success or the issue. i therefore
feel that the time for announcing the dis
solution OF the syndicate has arrived and
an official notice TO that effect has been
isaucd. ! feel perfectly satisfied that there
is no question as 10 The success OF the
loan.
II desire 20 sustain the executive TO the
fullest extent In his endcavora 20 maintain
sound currency and the credit Of the coln-
try. for which every loyal citizen should
hold him IN honor. My firm VIII gladly as
slst any party desiring 60 subscribe under
tho present call and VIII join with those
prepared 20 take any amount that may not
be desired by smaller investors ] feel
sure, should Il hereafter appear desirable
10 nuke such a bid that you Will gladly
cooperate with them in such action. either
individually or otherwise"
Foraker Formally Elected.