Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1896-01-23
SYNDICATE DISSOLVED. !,
Mr.. Morgan Issues an Important
Circular. /.
Subscribers for Bonds Released from
Their COmmitMents-Proba Success
of the Popular Loan Caused the ;Ac-
tlon- Presldcnt Commended. 81

&
New York. Jan. 16..-The members
ct the government bond syndicate re-
ceived IN their mails Wednesday morn
ing q circular letter from j. p. Morgan
d Co. releasing them from their COM
mitments to furnish their pro rnta
share Of $loo.ooo,00o in gold to the gov,
crnment, and second 100000, 900 If
desirable, taking their pay therefor in
four per cent. bonds. The circular sets
forth that this action seems desirable
IN view OF the terms of the treasury cir.
cular. offering bonds to the public. The
text of the circularis quite lengthy. 1t
containssa detailed statement of every
phase, of the syndicate's connection
with the proposed bond issue and offer
of gold to the government.
Was Invited to q Conference.
Mr.. Morgan says he was invited to Wash
1rgton. December e last, for conference
but that no negotiations for loan were
commenced or even suggested. nor was
there then or since any agreement or re-
guest that Mr.. Morgan should take any
steps preparatory to making contract.
The result of his visit led him to the con-
clusion that the president and secretary
OF the treasury were determined to use
every power at their. command to restore
AMI maintain the gold reserve; that no
steps would be taken or even any prepar-
atory negotiations commenced until It was
ascertained what action. II any. congress
would be likely to take in response to the
appeal of the president for adequate and
improved means for making such restora-
ton; that the executive department would
prefer, II possible, to secure 5000 900. 900 of
gold in order to avoid any probable neces-
sity for q similar negotiation before the
meeting of the new congress In 1897 and
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 Improvement OF
the monetary system of the country
The Forming of the Syndicate.
Upon his return he took steps to ascer-
tain to what extent It would be possible to
secure the cooperation of capitalists, In
situations and others in forming syndi-
cate which would agree to sell to the United
States government SEQ, 900 of gold coin,
and as a result a contract was entered into
with institutions, banking firms, banks,
savings banks, trust companies, and private
Individuals in Europe and the leading cities
of this country to furnish the required
amount.
The contract. rs prepared and signed by
the participants, did not stipulate whether
the purchase should be by private con-
tract or by public offer. The only proviso
Tin addition to the Important one that no
gold should he withdrawn from the
treasury. was the minimum amount of the
contract should be 500, eco and the
which might be secured before 1t became
necessary to act. not exceeding $2fO, GOO, 600.
The formation of the syndicate being com
pleted, Mr.. Morgan commenced negotia-
lions for the permanent placing Of por-
ton of the loan by public Issue In Europe.
-, ~,
made, and these negotiations were prac-
t1cally concluded.
Warned the Government of Crisis. d
| after waiting few days for some an.
nouncement or invitation from Washing
| ton, on January he sent by messenger q
| letter to the president informing him of the
approaching crisis and extreme tension In
financial affairs and acquainting him with
the successful steps he (Morgan) had taken
In arranging for the sale of II ,5O0. 600 ounces
Of gold, approximately 5000, O00. 900, on about
! the basis of the contract OF February 8
| 1895. Mr.. Morgan affirmed his opinion and
| urged that such contract would In every
way be for the best interests of the gov.
eminent and the people. and would be fol.
lowed by less arrangement of the money
market. of trade and IN fact Of all interests
including foreign exchanges. all of which
until recently, were In such an increasing
ly prosperous condition, and urged the pres.
| lOcuL SCElOuS Va oAN ~ - wa
tract
Pledged His Support. 8.
Mr.. Morgan, in his letter. pledged to the
president every influence and effort In his
power to assist the government in It's en-:
Geavor to make successful negotiation;by
public advertisement which shall result
in the sale to the treasury of II, 800, 000
ounces United States gold coin-$200, 00O. 600
land further so far as possible take such
steps as will enable the syndicate which
lie represented to join in making the
negotiation successful to its full amount.
lie bids for bonds to the extent of $1C0. 000,
600 was issued by the secretary of the
treasury. ES
Resolved to Dissolve the Syndicate.
Mr. Morgan continues: THE amount of
bonds thus offered made the syndicate con
tract - owing TO the minimum therein
fixed-available only to bid for all or none.
I should be unwilling 10 make such a bid
underpresent circumstances, as l might
thus seem to present for c2nsiderat ton by
the secretary of the treasury the throwing
out of smaller bids made in good faith
under a public call. The only emergency
which would Justify such course would
be the failure of the public to respond to
the call Of the government. Under these
circumstances at once decided to dis
solve the syndicate.
Thinks the Loan will Be Successful.
1.-THE subscription by individuals and
Others including many of the syndicate
whom have encouraged to subscribe,
from present Indications, will insure the
complete success Of the ISSUE therefore
feel that the time for announcing the dis
solution of the syndicate has arrived and
an official notice to that effect has been
issued. ] feel perfectly satisfied that there
Is no question as to the success Of the
loan.
Commends tho President.
II desire to sustain the executive to the
fullest extent In his endeavors to maintain
sound currency and the credit of the coun-
try, for which every loyal citizen should
hold him in honor. Ny firm will gladly as
sist any party desiring to subscribe under
tho present call and will join with those
prepared to take any amount that may not
be desired by smaller investors. I feel
sure. should 1t hereafter appear desirable
to make such bid that you will gladly
cooperate with them in such action. either
individually or otherwise"
GOES TO CHICAGO.
Democratic National Convention Meets, in
the Lake City July !.
lCaShinufnn Ian 17-The dem corn II.