Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-01-16

following circular:
'23 Wall street, New York city,
January IS. 1896.
"Gentlemen: In sending you formal no
tice of the dissolution of the Unf1ed
States bond syndicate, in which you have
co-operated, il Is proper that | should
make some statement showing why the
syndicate was formed. wnat action has
been taken on its behalf, and why it is
now dissolved.
ION December 23d. last, | was invited
TO Washington for conference. During
my visit there, as / have verbally stated
to every one who has conferred with
me OH the subject. no negotiation for
loan was commenced or even suggested,
nor was there then or since any agree
ment or request that | should take any
steps preparatory to making a contract.
"The result of my visit was that L
came TO the following conclusions:
First, that the President ana Secre-
tary of the Treasury were determined to
use every power at their command to re-
store and maintain the gold reserve.
Second. that no steps would be taken
or even any preparatory negotiations
commenced until it was ascertained what
action, II any, Congress was likely to
Iake i'm response TO the appeal of the
President for adequate means for making
such restoration.
Third. that the Executive department
would prefer if possible, TO secure $780,
10000 of gold. in order to avoid any
probable necessity for a similar negotia-
don before a meeting Of the new Con-
gress in 1881.
Fourth that II was absolutely certain
that no adequate relief could be obtain
ed from Congress. and that no bill could
be passed through the Senate for the
improvement of the monetary system Of
the country.
STEPS SYNDICATE-WARD.
Upon my return, approaching TO the
full the gravity of the situation, and
keeniy alive to the tact that early action
was essential. and in order that | might
be prepared. If called upon. to act
promptly. ] took steps to ascertain 10
what extent i. would be possible TO Sc
cure the cooperation OF capitalists, in
stltutiOns, and others I'm forming a syndi-
cate which would agree TO sell to the
United states Government $2O0,00OODO of
gold coin.
In my efforts, while far from san
guine as TO the result, the ready acqui-
escence Of j. ). Stllman, ESQ., president
of the National City Bank. New York:
Edward ID. Adams, ESQ., with full power
representing the Deutsche Bank. Of Ber-
lin, Germany; John A. Stewart. Esq,
president OF the United States Trust
Company: Pliny Fisk, Esq, OF Messrs.
Harvey. Fisk & Sons, and many others,
10 all of whom | am deeply grateful. en-
couraged me to proceed.
'rhe contract, ~ prepared and signed
by The participants. did not stipulate
whether the purchase should be by pri
vate contract or by public offer. The only
provsO 0n addition 10 the important one
that no gold should be withdrawn from
the Treasury, was that the minimum
amount of the contract should be 100000,
and the maximum the full amount of
participations which might be secured
before II became necessary TO act, not
exceeding S2C0oO0,00O
THE applications for participation far
exceeded my expectations. At the end of
three or four days the total Of 10000 600
was reached. and | had in my hands full
authority. which would enable me, when
ever and however the government might
decide TO act. TO secure that amount OF
gold for the Treasury reserve in exchange
for United States bonds.
CLASSES OF PARTICIPANTS.
THE participants may be divided into
four classes:
-. Institutions. banking firms. and
others in Europe, who were prepared If
necessary to ship the amount Of their
participation in gold to this side.
"2. Banks. saving banks. trust compa-
nies, and private individuals throughout
the United States, in possession OF the
actual gold coin, who desired TO secure
bonds. either for investment or as a
basis for national-bank circulation.
"3. Banks in New York. Chicago, Bos-
ton, Philadelphia. Cincinnati and other
cities, in possession of gold. who. without
necessarily desiring bonds for investment.
were willing TO aid in the movement 10
sustain the Treasury reserve. and eX-
change their gold for United States bonds,
expecting afterward to sell the same in
the market.
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.
Il may add for your information that
the 500, ,Oo0.O 600 Of participations were 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 i'm Europe. should
a contract with the government be made
The London market was. unfortunately.
closed to us, owing to causes TO which 1
need not refer /. therefore, through the
Deutsche Bank of Berlin. and Messrs
Morgan, Harjes & Co.. Paris, opened ne
gotiations for placing issues in Germany,
France. Holland Belgium, and Switzer-
land which negotiations were practically
concluded; and had it been possible 10 pro-
ceed further, doubtless a very large
amount i'm bonds of small denominations
would have found permanent place in
those countries. to the great advantage
of every interest.
after waiting a few days for some
announcement or invitation from Wash
ngton, and realizing that every dR's
delay was serious, in the face OF the
growing tension IN financial affairs, on
Saturday, January 9Th. | sent by mes
eenger the following letter to the Presi-
dent:
LETTER TO THE PRESIDENT.
New York.
"'219 Madison Avenue. January 4, 1896.
".To the President. Washington, ID. c.:
'Sir.-It Is with great hesitation that
| venture 10 address you In relation TO
the present financial situation. AS you
are doubtless well aware. financial affairs
are approaching serious crisis, and the
tension to-day Is extreme; and while no
outward evidences have developed. we
are likely at any moment to reach point.