New-York tribune., 1896-01-16

BINATIoN AND THE REASONS FOR ITS DIS
CoNTINuANcE-A PLEDGE TO AID IN
MAKING THE LOAN A SUCCESS
NEWS OF THE STREET.
Formal notice of the dissolution Of the bond
syndicate was received yesterday by its men,
bers from j. p. Morgan & Co. The communica-
ton which was dated January a. reads as
follows:
Dear Sir: We beg to notify you that we have
decided to dissolve the syndicate recently
formed to make contract with the tnlted
States Government for the sale of ll.2oo'ooV
ounces of United States gold. payable in United
States per cent bonds of 1925 and you are ac-
cordingly released from your participation ION
therein The reasons for this decision are set
forth in the nclosed circular letter from our
J. Pierpont Morgan.
HISTORY OF THE SYNDICATE
The circular letter referred to in the notice
furnishes the history of the syndicate. 1t fol-
lows:
No. 2s wall-st New-York City, January IA,
1896
Gentlemen In sending you formal nouce
of the dissolution of the United States BOND
Syndicate in which you have co-operated, IT is
proper that l should make some statement
showing why the syndicate was formed, wnat .
actor. has been taken on its behalf, ana why
it is dissolved. ~
on December 23 last I was invited TO
Washington a
visit there as / have verbally stated to every
one who has conferred with me on the subject.
no negotiations for loan were commenced, or
even suggested. nor there then or since
anv agreement request that l should take
any steps preparatory to making contract
The result of my visit was that l came to the
following conclusions:
FirstEThat the President and Secretary OF
the Treasury Were determined to use every
power at their command 10 restore ana mann
tain the gold reserve.
SecondSThat no steps would be taken
any preparatory negotiations commenced until
II was ascertained what action. If any. Congress
would be likely TO take in response TO the APP
real of the President for adequate and mn
proved means for making such restoration.
Third-That the Executive Department would
nrefer if possible 20 secure 5000 600 900 Of gold
in order to avoid any probable necessity for a
similar negotiation before the meeting OF the
new Congress in 1897.
Fourth@That II was absolutely certain that
no adequate relief could be obtained from Con-
gress and that no bill could be passed through
the Senate for the Improvement OF the monetary
system of the country.
Upon my return. appreciating to the full the
gravity of the situation. and keenly awe 10 the
fact that early action was essential ana IN
order that | might be prepared. II called upon
10 act promptly. l took steps TO ascertain 70
what extent it would be possible TO secure ,hs
co-operation Of capitalists institutions and
others in forming a syndicate which wonid
agree to sell TO the United States Government
$500 900 900 Of gold coin.
ENCOURAGED TO PROCEED.
In my efforts while far from sangune as TO
the result. the ready acquiescence or James
Stillman, president of the Natioral City Bank.
New-York: Edward u. Adams. with full power
representing the Deutsche Bank of Berlin Ger
many; John a. Stewart pres asident United states
Trust Company; Pliny Fisk, of Messrs Harvey
Fisk Sons. and others. to all OF whom am
deeply grateful encouraged me TO proceed
The contract, as prepared and signed by the
,,artie:pants did not stipuate whether the pur-
chase should be b. private contract or oy punnc
offer The only prosso dn addition to the I'M
rortant one that no gold should be Withdrawn
from the Treasury was that the minimum
amount of the contract should be SlO0,OOO'OOo ana
the maximum the full amount Of participa-
tions which might be secured before II became
necessary to act. not exceeding S2OOOOOOOO
The applications for participation far exceeded
my expectations; AZ the end OF tnree or 20 I1ui
had in my hands full authority which would
enable me. whenever and however the Executive
might decide to act. to secure that amount OF
gold for the Treasury reserve in exchange Tor
United States bonds.
The participants may be divided into four
classes:
l. Institutions banking firms and others In
Europe who were prepared If necessary. to ship
the amount of their participation in gold TO thls
side
Q Banks savings banks. trust companies and
private individuals throughout the United states
in possession Of the actual gold coin who desired
to secure bonds. either Tor Investment or as d
basis for National bank circulation.
g. Banks in New-York. Chicago. Boston, Phila-
delphia Cincinnati and other cities in possession
of gold who. without necessarily desiring bonds
for investment. were willing TO aid in the move
ment to sustain the Treasury reserve and ex-
pecting afterward to sell the same in the
market
without being in possession Of the actual gold.
were willing and able TO obtain that gold. at
whatever cost for deposit with the Treasury in
pavment for bonds. provided the movement con-
templated could be carried out
may add for your information that the
5000 100000 participations were about equally d.
pla ip1ic tod
The formation of the syndicate being COM
pleted I commenced negotiations for the perma-
nent placing Of portion OF the loan ,n py pGonc
issue in Europe. should contract with the Gov
eminent be made. The London market was un-
fortunately closed 10 us. owing 10 causes 10 whlch
need not refer therefore, through the i)eu'sche
Rank Perrin and Messrs Morgan Harjes & Co..
Paris opened negotiations for public issues in
GERMANY France. Holland. Belgium ana Swltzer-
land which negotiations were practically CON
cIuded and had II been possible to proceed fur
Their doubtless a very large amount IN oonds OF
small denominations would have found pgrina- ln
nent place in those countries 10 IN" great duN"'-
tage OF every interest
LETTER TO THE PRESIDENT
After waiting few days for some announce
Ynent or invitation from Washington. and realz-
ing that every days delay serious in the race
OF the growing tension in financial ahairs' on
Saturday. January T. sent by messenger t"e i''-
lowing letter to the President:
New-YoK. PIG Madison-ave. January d. 1896
To the President, Washington - 10, venture TO
sir III ls Win great ncSlttlloH ''" III
address you In relation to the present hnancal st
uaton AS you doubtless well aware nndht,n ma ,h
affairs are approaching a serious crisis. ana dnI
tersion to-day Is extreme; and, while no ouawaiu %
~s1serces have developed. are likely al any IL M
fs~nt 70 reach the point and consequences S ,be
VII rhen be late to remedy. The gravity oi '''e
eitratoT be my . -
The most important step the moment IS M ,Mhe
restoration Of Government credit by replacing ,he
sod reserve IN the Treasury beyond question in's
once ACCOMPLISHED confidence both at nome anu
abroad in the stability Of currency VIII DE re-
Stored
After my. recent visit to Washington ! became me
CONVINCED that legislative action to improve ,ne
4 a H.. lInr.c. az he