The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1896-01-23
Subscribers for Bonds Released from
Their OBSERVATION-DISCLOSURES Success
Of the Popular Loan Caused the Ac-
tica-President Commended.

text of the circular is quite lengthy. II
contains detailed statement of every
phase Of the syndicate's connection
with the proposed bond issue and Offer
of gold to the government. 49,
Was Invited to = Conference.
Mr.. Morgansays he was invited tc Wash
| but that no negotiations for q loan were
commenced or even suggested, nor was
| there then or since any agreement or re-
quest that Mr.. Morgan should take any
steps preparatory to making contract
| The result Of his visit led him to the con-
| Of the treasury were determined to use
every power at their command to restore
| and maintain the gold reserve; that no
| steps would be taken or even any prepar-
atory negotiations commenced until 1t 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, If possible, to secure $2OO.NU.OOO OF
gold in order to avoid any probable neces-
sity for a 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 tho 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 synd1-
cate which would agree to sell to the United
States government $500 900 900 Of gold coin.
and as q result a cOntrac ct 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 provtso
lin addition to the important one that no
gold should he withdrawn from the
treasury, was the minimum amount or the
contract should be $10000O.00O and the
maximum the full amount of participations
which might be secured before It BECAME a M
necessary to act, not exceeding 500. OOO,O 600.
The formation of the syndicate being com
pleted, Mr.. Morgan commenced negotia-
tons for the permanent placing OF por-
ton of the loan by public issue In Europe,
should . contract with the government be
made, and these negotiations were prac-
tically concluded.
warned the Government Of Crisis.
After waiting a 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, 500, 600 ounces
Of gold, approximately $2o0. 0o0. 900, on about
the basis Of the contract Of February >.
1896. Mr. Morgan affirmed his opinion and
urged that such a contract would In every
way be for the best interests Of the gov
ood %Io r,oor,1o 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
~ prosperous condition, and urged the pres
ident's serious consideration Of such a con-
tract
Mr.. Morgan, in his letter. pledged to the
president every influence and enort IN MS
power to assist the government in It's en-
Geavor to make successful negotiation oy
public advertisement which shall result
in tho sale to the treasury Of II 500 600
ounces United States gold coin-$20o. 00O. 600
and further so far as possible take such
steps as win enable the syndicate which
he represented to join In making the
negotiation successful to its full amount:
On Monday, January 4. the call for pub
lie bids for bonds to the extent of 500 600, =
600 was issued by the secretary Of the
treasury.
Resolved to Dissolve the Syndicate.
Mr.. Morgan continues: 1.-THE amount Of
bonds thus offered made the syndicate con-
tract - owing to the minimum therein
should be unwilling to make such bid
underpresent circumstances. as I might
thus seem to present for consideration by
the secretary Of the treasury the throwing
out of smaller bids made in good faith
under q public call. The only emergency
NH n
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 1 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.
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. My firm will gladly as
sist any party desiring to subscribe under
the present call and will join with those
prepared to take any amount that may not
be desired by smaller investors. feel
sure, should it hereafter appear desirable
to make such bid. that you will gladly
cooperate with them in such action. either
individually or otherwise"
Congress to Act Before February 22.
Boston, Jan. 1S.-Simon Wolf, chair
man of the Cuban committee at Wash.
iDgton, says congress will recognize
the belligerent rights of the Cubahs be-
fore February 20.
once to Remain Vacant for Present.
Ottawa, Ont, Jan. 1s.-No one will
1,e appointed at present to succeed Sir
Charles Upper as high commissioner
in London. The administration of the
Office will now be under direction of the
secretary of state. Sir Charles HILBERT
sr,,r,y,or xvas offered the position Of