St. Paul daily globe., 1896-04-19
SAW HIS OPPORTUNITY.

age price Yves slightly above 1231k.
SAW HIS OPPORTUNITY.
I assumed and think it was reasonable,
that the new issue Of bonds, having the same
period to run and being in all respects prac-
tfcally the same as the former ISSUE would
sell in the market during the present year
at prices substantially the same as last year,
unless conditions should arise adversely af-
fecting the credit of the country.
Much comment has been made about nv
bid, and particular stress was laid upon the
TACT that was not a capitalist. My right to
bid on the bonds was even questioned. The
wealthiest merchants are borrowers of capt.
tai. Why not 1?
Certainly Mr.. Morgan did not have nor
did his associates, the $40, 900 600 in gold ne
cessary to pay for the bonds purchased in
1885 He and his associates were undoubted-
ly large borrowers for the purpose of pay
| ing for the bonds. Brains and credit and
the ability to finance are much more ne
cessary than actual money. Mr.. Morgan
undoubtedly possesses all Of these qualif-
| cations.
In talking with Boston broker last De-
| cember. he expressed the opinion that If the
loan was made a public one the subscrip-
tions outside the syndicate would not amount
to S2O,O0OOOO. I differed from this view. I
| figured that the credit of this great nation
would be seriously injured by these private
| bond transactions, and I was confident that
the amount Of gold in the country was
larger than financial people estimated
Naturally was much elated over the con-
tinual hammertng in behalf of public sale.
Frankly, the only apprehension 1 had was
that others would obtain my idea of bidding
for large amount of bonds at safe price.
| but without any capital.
WATCHING THE MARKET.
Originally I intended to bid for SO, ,Ooo, 900
| or the bonds on a scale starting at 115 and
running down to Ito, but as I watched the
market and observed the manipulations I
concluded to change my figures. The Mon
| DAY before bids were opened I filled out
| fourteen applications. My bids ranged from
| 1OS to Ito lilo, and aggregating SO, SOC, ,OOO
Ihat day the predominating opinion was
tnat the Morgan syndicate would not bid at
all, and that bids between 1OS and 11O would
| secure the bonds. 1 sent these bids to
washington by registered letter Feb g. T
| still retained, however, a number of appli-
| cations, for I had made UP my mind to he
| governed by the conditions the following
day and send in further bids, If advisable. by
| Tuesday evenings mail.
l watched the markets close'y next day
and when 1 saw the closing price for Govern.
ment As was 113% concluded tina. Mr.. Mr.
/ knew that Mr.. Morgan's firm had imno-t
e1 gold for the purpose of paying for govern
ment bonds, and I found out that a LARGO
amount Of hCld had been contracted for In
Europe.
L decided IT, send to Washington further
bids for $1,500,0 000 Calculating On the basis
of the market price-11S%-and deducting the
premium quoted on gold that day which was
per cent and also figuring in the Morgan
commission Of 1 per cent and providing fer
Il of per cent, brokerage for obtaining the
gold, and 1@ of per cent cost of shipping
the gold, concluded that 111% would secure
a block Of the bonds.
THE FIRST BID.
I made an application for $500 0C0 worth
of bonds at liz, and another of 100000 at
111.005. My next bid was for $500. 900 st
11075 My wife put in one bid for $500, 600
at 111.5311. These four bids for $1,000. .0Oo
were above the Morgan bid of 1106S77, and
awards were made to us by Secretary Carlisle
To indicate how closely some of this fieur-
ing was done. consider the bid at 11O.75. The
difference in dollars and cents between this
and the morgan bid, on 5000, ,000 amounts to
$124.60. At the market price a week later
there was a pro1t of s12,00 net on this bid
for $500, coo.
After the bids were announced-and knew
that 1 would secure some of the bonds-I went
to a number of bankers in Boston seeking in
formation as to the amount of gold obtaina-
BILE in that city. While in the Hancock Ma
tional bank 1 was told that it would be very
much to my interest to meet the president
j. H. Jacquith, before making any arrange
ment for gold. 1 met Mr. Jacquith at a ho-
tel that evening. With Mr.. Jacquith were
Cashier Abbott, Mr.. Preston and Mr. Ban-
chard two of the directors