The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-01-21
SYNDICATE

= SAASAS0
NEW YORK, Jan. 15.-The members
of the government syndicate received
in their mail this morning the follow
ing circular letter:
% Wall street.
New York City. Jan. ID 1896.
'Gentlemen:-In sending you formal
notice Of the dissolution of the United
States bond syndicate, in which you
have co operated, it is proper that I
should make some statement showing
why the syndicate was formed, what
action has been taken on it's behalf, and
why it Is now dissolved.
NO NEGOTIATIONS.
ION December 23d last | was invited
to Washington for a conference. Dur
ing my visit there, I have verbally
stated to every one who conferred with
me on the subject, no negotiations for
a o. was commenced or even sug-
gested, o was there then or since
any agreement or request that | should
take any steps preparatory to making
a contract.
THE result of my visit was that I
came to the following conclusions:
First That the President and Sec
rotary Of the Treasury were determined
to use every power at their command
W. SSSO4 "4N VAS 6SAN AZ
serve.
Second. That no steps would be
taken, Or ever any preparatory negO
tiOns commenced, until it was ascer-
tanned what action, if any, Congress
was likely to take in response to the
appeal of the President, for adequate
and important means, for making such
restoration,
Third. That the Executive Depart
ment would prefer, if possible, tosecure
5000, 900, 900 of gold in order to avoid
any probable necessity for a similar
negotiation before a meeting Of the
new Congress in 1892.
Fourth. That it was absolutely Ger
tain that no adequate relief could be
obtained from Congress, and that ne
bill could be passed through the Senate
for the improvement of the monetary
system of the country.
WHY IT WAS FORMED
Upon my return, approaching the
full gravity of the situation, and keenly
alive to the fact that early action was
essential, and in order that I might be
prepared, if called upon to act prompt
ly, / took steps to ascertain to what ok
tent it would be possible to secure the
cooperation of capitalists, institutions,
and others in forming a syndicate
which would agree to sell to the United
States G. Jvernment 5000, 900, 900 of gold
coin.
I'm my efforts, while far from san
guine as to b result, ready acQuies
ence of J. 8. Stillman. ESQ President
of the National City Bank, New York;
Edward D. Adams, Esq, with full
power representing the D6utsche Bank
of Berlin, Germany; John A. Stewart,
ESQ , President of the United States
Trust Company Pliny Fisk, ESQ of
Messrs. Harvey Fisk 6 Sons, and many
others, to all Of whom / am deeply
grateful, encouraged me to proceed.
THE contract, as prepared and
signed by the participants, did not
b stipulate whether the purchases should
be by private contract or by public
offer.
H ONLY PROvISO.
1.-THE only proviso lin addition to the
important n that no gold should be
withdrawn from the treasury was that
the minimum amount of the contract
should be 500 900, 900, and the maxi
mum the full amount of participations
which might be secured before it be
came necessary to act, not exceeding
, 5000, 600, 900.
! "The applications for participation
far exceeded my expectations. At the
! end of three or four days the total of
: $500, 900, 900 was reached, and I had in
= my hands full authority, whenever
' and however the government might
. decide to act, to secure that amount of
. gold for the treasury reserve in ex
change for United States bonds.
The participants may be divided
8 into four classes:
First. Institutions, banking firms
and others in Europe who we're pre-.
f pared if necessary to ship the amount
of their participation ia gold to this
f side.
THE PARTICIPANTS
Second. Banks, savings banks, trust
companies, and private individuals
throughout the United States in pos.
session of the actual gold Din, who de-
sired to secure bonds either for invest
a ment OF as basis for national bank Cir
. culation.
Third. Banksin New York, Chicago,
. Boston, Philadelphia, Cincinnati, and
p other cities in possession of gold, who,
| without necessarily desiring bonds for
+ investment, were willing to aid in the
, movement to sustain the treasury re
{ serve and exchange their gold for
United States bonds, expecting after
. ward to sell the same in the market.
, Fourth. Institutions, banking firms
and others who, without being in pos.
session of the actual gold, were willing
and able to obtain that gold at what
. ever cost for deposit with the treasury
I in payment for bonds, provided the
g movement contemplated could be car,
ried out.
t 81 may add for your information
s that the 5000, 900, 600 pa~rticipatione
@ were about equally divided between
/ tho fam nl.nrnn in6innhnA