The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-01-16
END OF THE BOND SYNDICATE.
BANKER MORGAN Announces ITS
DISSOLUTION.

An Interesting Circular sent TO the
Members Explanatory of the Situa-
ton Before the Organization OF
the Syndicate and Since the Issue
OF the Bond CaII-Mr. Morgan
Makes Public His correspondence
with President Cleveland.
New York. Jan. 15.-The members Of
the bond syndicate received in their mail
this morning the following circular:
q Wall Street. New York City, Jan.
IA, 1896:
Gentlemen-In sending in our formal no
tice Of the dissolution Of the United States
bond syndicate. in which you have CO.
operated, it is proper that 1 should make
some statement showing why the syndi-
cate was formed. what action has been
taken on its behalf, and why it is now
dissolved.
On Dec . last, was invited to Wash
ington for a conference. During my visit
there, as I have verbally stated to every
one who has conferred with me on the
subject, no negotiations for a loan were
| commenced, or even suggested. mop was
there then or since any agreement or re-
quest that 1 should take any steps prepar-
| atory to making a contract.
The result of my visit was that I came
to the following conclusion:
First-That the President and Secretary
of the Treasury were determined to use
every power at their command TO restore
and maintain the gold reserve.
Second, That no steps would be taken or
even any preparatory negotiations COM
menced until it was ascertained what ac-
tion, if any, congress would be likely to
take in response to the appeal of the Pres
ident for adequate and improved means
for making such restoration.
Third, That the executive department
would prefer, if possible to secure S20O,-
100000 OF gold in order to avoid any prOba-
bic necessity for a similar negotiation be-
fore the meeting of the new congress in
1897.
Fourth. That it was absolutely certain
that no adequate relief could be obtained
from congress, and that no bill could be
passed through the Senate for the inn
provement of the monetary system of the
country.
Upon my return. appreciating to the full
the gravity Of the situation, and keenly
anVe 70 the tact tpal carry actloh was es-
senual, and in order that might be pre-
pared, if called upon, to act promptly,
took steps to ascertain to what extent 1t
would be possible to secure the cO-opera-
ton of capitalists, institutions and others
in forming a syndicate which would agree
to sell to the United States government
In my efforts, while far from sanguine
as to the result the ready acquiescence
of james Stillman. ESD president of the
National City Bank, New \ York; Edward
ID. Adams Esq, with fun power repre-
sentng the Deutsche Bank of Berlin,
Germany; John A. Stewart, ESD, presi-
dent of the United States Trust Com
pany; Pliny Fisk, Esq, of Messrs Har-
Vey Fisk & Sons, and many others, to all
Of whom l am deeply grateful, encourag-
The contract, as prepared and signed
by the participants, did not Stpulate
whether the purchase should be by private
contract or by public offer. The only
proviso Gin addition to the important one
that no gold should be withdrawn from
the treasury was that the minimum
amount of the contract should be $l0O0CO,-
OOO and the maximum, the full amount of
participations which might be secured
before 1t became necessary to act, not ex-
ceeding $20O,O00O00.
The applications for participation far
exceeded my expectations At the end of
three or four days the total of $200000,000
was reached and 1 had in my hands full
authority which would enable me, when
ever and however, the executive might
decide to act to secure that amount of
gold for the treasury reserve in exchange
for United States bonds.
The participants may be divided into
First, institutions, banking firms, and
others in Europe who were prepared, if
necessary, to ship the amount of their
participation in gold to this side.
Second, banks, savings banks, trust
companies and private individuals
throughout the United States in possess
sion of the actual gold coin who desired
to secure bonds either for investment
or as a basis for national bank ciEcula-
ton.
Third, banks lin New York Chicago,
Boston, Philadelphia, Cincinnati and 9TH
er cities in possession of gold, who. with
out necessarily desiring bonds for invest
ment, We're willing to aid in the move
ment to sustain the treasury reserve, and
exchange their gold for United States
! bonds. GXneCflnQr affprWard
same in the market
Fourth, institutions, banking firms and
others, who, 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 payment for
bonds, provided the movement contem-
plated could be carried out.
may add for your information that the
100000 participations We're about
equally divided between the four classes
| indicated.
The formation of the syndicate being
completed, commenced negotiations for
the permanent placing Of a portion of the
| loan by public issue in Europe, should a
contract with the government be made.
The London market was unfortunately
closed to us, owing to causes to which
need not refer. !, therefore, thought the
Deutsche Bank OF Berlin, and Messrs
! negotiations for public issues in Germany
France, Holland, Belgium and Switzer-
| land, which negotiations were practically
concluded, and had it been possible to pro-
ceed further, doubtless a very large
amount in bonds of small denominations
would have found a permanent place in
those countries, to the great advantage Of
every interest.
After waiting a few days for some an
nouncement or invitation from Washing
ton and realizing that every days delay
was serious in the face of the growing
tension in financial affairs, on Saturday
Jan.s4, sent by messenger the following
letter to the President:
New York, PIG. Madison Avenue, Jan. A.
1896.
To the President, Washington, d. c.:
Sir-It is with great hesitation that I
venture to address you in relation to the
present financial situation. As you are
doubtless well aware, financial affairs are
approaching a serious crisis and the ten
sion to-day is extreme; and while no out
ward evidences have developed, we are
likely at any moment to reach the point
and consequences which it will then be
too late to remedy. The gravity of the
situation must be my excuse.
The most important step at the mo-
ment is the restoration Of the govern
ment credit by replacing the gold reserve
in the treasury beyond question This
once accomplished confidence both at
| ah II, fHa .fa