Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1896-01-16
DISSOLVED
The Bond Syndicate
Has DiSbanded.
THE MEMBERS RELEASED FROM
THEIR CONTRACTS.
MORGAN EXPLAINS
WHY THE SYNDICATE WAS FORM
ED TO PURCHASE THE Gov
ERNMENT bonds.
Gives Letter Addressed to the rrcsi-
dent TO the Public - wnn
Street Was Surprised.
MORGAN EXPLAINS

New York. Jan. 1.-THE bond syn
dlcate has been dissolved. Members
of the government bond syndicate re-
celved In their mall today a circular
letter from j. p. Morgan g. Co., reieas-
ing them from their commitments TO
furnish their prorata of slO0 ,OOoO OO In
gold and second Si0O,OO0OOO " deslr-
able, taking their payment therefor
In 4 per cent government bond.
Accompanying this letter was circu-
lar explaining why the syndicate was
formed what action was taken on It's
behalf and why II is now dissolved.
ION the Sd day of December Mt
Morgan says, 81 was invited to wash
lngton for a conference. During my
visit there no negotiation for a loan
was even suggested, nor was there
then or since any agreement or re-
quest that l should take any steps
preparatory to making contract. L.
however, came to the conclusion that
the president ana secretary OF the
treasury would use every power Ut
their command to restore and maintain
the gold reserve: that no steps would
be taken until 1t was ascertained wnht
congress would do; that the executive
department would prefer 20 secure
$500, Ooo, 900 OF gold and II was certain
no relief could be obtained from CON
gress.
upon my return, appreciating the
gravity of the situation and In order
that / might be prepared 10 acl
promptly, l took steps to ascertain
to what extent II would be possipie
| to secure the cooperation OF capitai-
would agree to sell to the United states
| government 200.000.000 of gold coin.
| The contract prepared and signed by
| the associated banks did not siipuIste
whether the contract would be by
| private contract or public omering'
"Thc only provision ] MADE 70 'he
| proposition was that no gold should us
vi,bdrayyn from the treasury was that
| the minimum contract should be NOT
| iess than 500, O0O, 600 and maximum not
| over 5000. 0O0, 600 Applications TAR eS.
| cseded my expectations. AZ the emu a. OF
| three or four days the total OF SzoV,VVv,-
COO was reached and had tull autn ,'lr
ity which would enable me wheneNsr
NJ hnweyer the executive might decide
10 act TO secure that amount OF goIo
| for the TREASURY reserve IN eNchhnse
| 10, limited States bonds. The particl-
| pants may be divieed Into four GLASSES
people In Europe who were prepa,eu
ti,ns In the United States In posses,
sion OF gold coin who wanted
| hnnds either for investment OF
90 basis for national pahh
| circniations; 4hifd. banks in various
citiss Who were willing to exchange
their gold for bonds, expecting ai,sf'
wards to sell them in the inatnst
sonrih Institutions and arms not hay.
ing gold. but which wouis ses n ~ .,
whatever cost provided tne ~ ,ye,'
VOC mi In force. Partlcipauons WIZ
w ABOUT equally divided between inc
four classes .,.,d,cate
i In EutOHt
and in places other than in Lonao y,
where the markc, was closer 70 ~ ~
and through the Deu,sene ~ JAM neroti
a aiionss' were a practically concluded fo'