The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-01-16
New York,
2l9 Madison Avenue,

sLJ Aie'NiRNh NNNtANTi
Jan. 4, 1896.
To the President, Washington, ID. c.:
Sil-It is with great hesitation that
venture to address you in relation 70
| the present financial situation
AS you are doubtless well aware,
financial affairs are approaching a Sc
rious crisis, and the tension to-day is
extreme; and, while no outward evil
| denees have developed, 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 sit
uation must be my excuse.
| The most important step at the mo-
ment is the restoration Of government
credit by replacing the gold reserve in
the treasury beyond question, This
once accomplished, 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 unlikely;
in fact, impossible. / therefore took
steps to ascertain whether it would be
possible to obtain the cooperation OF
parties at nome anu ptoau u an en-
tent that would enable ME to negotiate
q contract with the government for the
sale of II, 900 ounces of gold, approx
| mating $780, 100000, on about the basis
of the contract Of February 8, 1895. In
this effort I have been successful, and
am now in a position to make such a
contract for the full amount.
| I do not hesitate to affirm, in fact to
urge, that such contract would in
every way be for the best interests of
the government and the people, and
would be followed by less arrangement
of the money market, of trade, I'm fact
of all interests, including foreign ex-
| changes, all of which until recently
We're in such an increasingly prosperous
condition, and urge your serious con-
sideration of such contract. At the
same time | recognize the effect of leg
islation which has been proposed, and
the discussions thereupon in both
houses of congress- all OF which might
lead you to hesitate to make a private
contract, and, consequently, i'll view of
the gravity of the situation, feel bound
| to say. that, it, after conference, in
which can more fully lay the matter
before you, and without expressing any
confidence in such mode of procedure
in face of previous failures Of similar
attempts, but recognizing as do that
the responsibility of decision lies with
you, l pledge to you every influence and
effort in my power TO assist the govern
ment in it's endeavor to make a success
full negotiation by public ADVERTISE
ment which shall result in the sale to
the treasury of $4,000 900 ounces United
States gold coin 2o0,00O,000), and, fur
Their, l will, so far as | possibly can,
take such steps as VIII enable THE syn
dictate which represent to join in maxi
ing the negotiation successful to its full
amount
Awaiting the indications of your
pleasure, | remain, respectfully yours,
/ j. PIERPONT MORGAN.
ION Monday, january 6, the call for
public bids for bonds to the extent of
100000 900 was issued by the secretary
of the treasury.
The amount of bonds thus offered
made the syndicate contract lowing to
the minimum therein tixed) available
only to bid for all or none. I should
be unwilling to make such a bid under
present circumstances, as | might thus
seem to present for consideration by
the secretary of the treasury the throw
| ing out of smaller bids made in good
faith under a public call. The only
emergency which would justify such a
course would be the failure of the pub
lie to respond to the call of the gov
eminent. Under these circumstances,
/ at once decided to dissolve the syn
dictate.
1T has, however, been necessary to
delay this action up to the present
time, as every financial interest requir-
ed the protection afforded by the knowl-
edge that the syndicate was in exist
ence, prepared to make the loan sue
cess under all circumstances, but hap
PLY this necessity does not exist any
| longer.
1.-THE subscriptions by individuals and
others, including many of the syndicate
whom I have encouraged to subscribe,
from present indications, will ensure
the complete success of the issue.
therefore feel that the time for an
nouncing the dissolution of the eyndi-
cate has arrived, and an official notice
| to that effect has been issued.
IT feel perfectly satisfied that there
is no question as to the success of the
| loan.
| IT desire to sustain the executive to