The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-01-16

Washington City. Jan. 15-Secretary
Carlisle this afternoon, ia speaking Of iha
dissolution of the syndicate, said he could
be quoted as saving that "the success Of
the loan was assured" Further than this
he declined 10 make any statement
The treasury today lost $50 500, princi-
paIly for export. and received deposits
amounting 70 sz0,fs,e, making the net loss
for the day $4,000
The announcement that the bond syndi-
cate had been dissolved was received WIKI
some surprise although among officials
converssnt with the changed situation no
other course has seemed open 70 Mr. Nor
gan and his associates. The reason given
for the dissolution Is accepted as the true
one. since Mr.. Morgan and his friends are
fully aware OF the fact that the success
OF the loan by popular subscription Is no
longer matter of doubt. To hold the
syndicate banks to the terms OF the con
tract. II is argued. would prevent any Of
them from participating in the loan exceps
in the capacity OF q syndicate. which, IN
der the changed conditions almost Ger
tainly would result 10 their disadvantage.
Mr. MorgaH's purpose. therefore. in re-
leasing his associates. IL Is believed. is TO
give them an equal chance with the other
banks and financial institutions TO secure
whatever part OF the loan they may de-
sire. The only criticism so far heard Of
Mr.. Morgans public statement is that his
assertion that he was invited TO Wash
ingt0n city FOR a conference" is mislead-
ing as the natural inference is that this
invitation came from the president or by
his sanction from some member of the cab
met. This II is said, is not the fact. When
Mr.. Morgan came 10 Washington City the
president declined 10 see him, nor. il is
added. did he confer with any member OF
the cabinet az the presidents suggestion
Il IS stated on high authority that the
80. ~ff -. how
ceived such assurances from large num-
Der OF prominent bankers throughout the
country that there cannot be a doubt as
20 the loan being a success. IL Is argued
that during the late break in the market,
which followed the announcement OF the
governments attitude on the Venezuelan
question Eastern bankers took advantage
Of the sharp decline in American securi-
ties. and as a result their holdings are now
large and must be protected from a further
decline which would necessarily follow
the failure OF the loan or the depletion or
the reserve 10 a point so unfaFoFa0ie as
70 affect the market Under these cir
cumstances Il Is believed that should
large export movement set in before the
loan is consummated the large banks and
other financial Institutions would neu-
tralize the effect by making deposits or
gold In any event the officials here are
not apprehensive Of any serious dltflcully
in maintaining the reserve az aoout ~ -
present figure. nor in placing the sl0oeeeo
loan al a fair price. both TO the govern
ment and to the purchaser The only Sc
r.ous question involved In the situation i
Is said, is from what source are the oond
purchasers TO obtain their gold ana II
from the banks as seems altogether prooa-
blo se - a very large percentage Of H.
unl not the banks eventually recoup their
reserve holdings by Withdrawals from the
treasury?