Delaware gazette and state journal., 1896-01-23
nl.aoIutlon of lne nond srnaleate.

tHbhOiuNiDu Ot ihb htonu syndicate.
The announcement OF the dissolution
OF the bond syndicate, contained in the
circular issued Wednesday by Mr.. ].
Pierpont Morgan, its chief organizer,
was not much Of a surprise, but it
served to clear up a great amount OF
misrepresentation and slander. II hnd
been urged by INSCRIPTIONS newspapers
that the syndicate was organized for
the purpose of taking the government
by the throat, and fairly compelling 1t
to award the coming loan OF 800, 600,
600 to the syndicate at the latter's own
terms, the penalty for refusal being a
locking up of the gold supply by the
syndicate, 80 that the government
would not bo able to get any of the
precious coin in exchange for it's
bonds through any other channel. All
this and much more was yiciously
charged, and tho syndicate was held
up TO public scorn as the greatest pub
lie plunderer of the century.
But Mr. Morgan's circular puts an
other light upon the matter. IL shows
that he and his associates were inter
ested as citizens of the country in this
matter, and not merely as cold-blooded
business mon, intent only upon the
matter OF personal profit. 1t proves that
they were desirous Of making the loan
a success, no matter what plan Of float
ing IL might ho adopted by tho admin
istration.
Proof Of this statement is found in
the letter Of Mr.. Morgan to the Presi-
dent written under date of January
9TH. In this letter Mr.. Morgan held
that less disturbance to the money
market would result from loan floated
through the syndicate, but in view Of
tho criticisms that had been evoked,
il the President deemed it best to call
for popular subscriptions, he would
cheerfully aid in making that proceed
ure success. Upon this point Mr..
Morgan said;
i pledge to you every influence and
effort in my power TO assist tho gov
ernment in its endeavor to make sue
cessful "A negotiation by public adver-
tisement which shall result in the sale
to tho Treasury of II, 800, 600 ounces of
United States gold coin 1920, 900, 000),
and further | will, 60 far MS | possibly
can, take such steps AS will enable tho
syndicate which ] represent 10 join in
making the negotiation successful to
its full amount
This letter, it should be borne in
mind, was written ON January 4th, two
days before the call for public subscrip-
tlons to the loan was issued by Secre-
tary Carlisle. The charge, therefore,
that the syndicate was broken by tho
decision of the administration to make
the loan public, and that it retreated
snarling, disappointed and enraged,
falls to the ground 1t practically in
vitcd the measures that led to its disso.
luton.
II is the prevailing opinion that the
bond issue will be success, although
there is apprehension that some change
in the terms of the issue may be neces.
sary in order to relieve an anticipated
stringency in tho money market. II
has been suggested that the money
paid for the bonds bo allowed to remain
in the banks as a government deposit
for fear that some disturbance in bust
moss may result from drawing SO much
money from the banks for deposit in
the Treasury This difficulty, how
ever, is likely to be provided for, and
tho loan foated without any damaging
effect upon the money market.