Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1896-01-22
THE LOAN Is A SUCCESS
Bond Issue Can Be FIoated In
dependent Of Syndicate,
MORGAN'S CLIQUE HAS QUIT
The Great Combine of Gold Barons Has
Dissolved, Each to Get What
He Can.

Washington, Jan. 15.-The announce
ment that the Morgan bond syndicate
had been dissolved, made in New York
today, was received with surprise, al
though among officials conversant with
the changed situation no other course
has seemed open to Morgan and his as
sociates. The reason given for the dis
solution is accepted as the true one,
since Morgan and his friends are fully
aware of the fact that the success of
the loan by popular subscription is no
longer a matter of doubt To hold the
banks to the terms of the contract, it is
argued, would prevent any of them
from participating in the loan except
in the capacity of a syndicate, which,
under athe changed conditions, almost
certainly would result to their disad-
vantage Morgan's purpose, therefore,
in releasing his associates, it is believed,
Is to give them an equal chance with
other banks and financial institutions to
secure whatever part of the loan they
may desire.
The only criticism so far heard Of
Morgan's public statement is that his
assertion that he was invited to Wash
ington for a conference" is misleading,
as the natural inference Is that this in
vitation came from the president or, by
his sanction from some member of the
cabinet. This, 1t is said, is not the fact.
When Morgan came to Washington the
president declined to see him, nor, it is
added, did he confer with any member
of the cabinet at the presidents sug
gestion.
lie CT ta1 bieyb ~ bof fls
president and Secretary Carlisle have
received such assurances from a large
number of prominent bankers through
out the country that there can not be a
doubt as to the loan being a success.
1t is argued that during the late break
In the market which followed the an
nouncement of the governments atti-
tude on the Venezuelan question, east
ern bankers took advantage of the
sharp decline in American securities
and as result their holdings are now
large and must be protected from fur
ther decline, which would necessarily
follow the failure of the loan or the
depletion of the reserve to a point so
unfavorable as to affect the market
Under these circumstances II is be-
lieved that should a large export move
ment set in before the loan is con
summaleu the large banks and other
financial institutions would neutralize
by making deposits of gold. In any
event the officials here are not appre-
hensive of any serious difficulty in
maintaining the reserve at about it's
present figure nor in placing the $780,
100000 loan at a fair price, both to the
government and to the purchaser. The
only serious question involved in the
situation ii is said, is from what source
are the bond purchasers to obtain their
gold, and If from the banks. as seems
altogether probable as to a very large
percentage of 1t, will not the banks
eventually recoup their reserve hold
ings by Withdrawals from the treasury?
Secretary Carlisle this afternoon in
speaking of the dissolution of the syn
dictate said he could be quoted as saying
that 1.-THE success of the loan was as
sured."