New-York tribune., 1896-01-13
ITS SUCCESS ASSURED.
MR. MORGAN'S STATEMENT WITH REFER
ENCE TO THE BOND ISSUE.
POSSIBILITY OF THE FORMATION OF AN UNDER.
WRITING sYNDICATE-THE BANKS DoIN0
WHAT THEY CAN TO PREVENT THE
DRAWING OF GOLD FROM
THE TREASURY.


No matter II the bond syndicate organized
by j. Perpont Morgan and President James
Stillman. of the National Ci:y Bank. Is dis.
solved. it is certain that the entire issue Of
sOOOOO0OO will be promptly taken. The state
ment by Mr.. Morgan. made exclusively In me
Tribune of yesterday that he felt bound under
anv circumstances to see the loan made a sue
cess IS assurance that failure is out OF tho
question Furthermore the Administration VIII
have the support, in placing the loan, or MI.
Stiman and the powerful coterie OF banks.
lif. insurance and trust companies. whose SUD-
scriptions to the syndicate he secured
Financiers are urging Mr.. Morgan and MI.
Stman, after the dissolution or the present
syndicate. to make up new one to bid either
for a large block Of the bonds or to agree to
take such part Of the issue as Is not applied
for at an acceptable price by the general pun
lie If they are not prevailed upon to adopt
this plan they will. at any rate see to 1t that
the bids are ample to absorb all the bonds Oh
fered.
4 notion has prevailed in Europe that there
was not enough gold in this country outside
Of the Government stock 10 pay for the DohhA
It is true that there Is no large surplus Of gold.
but there is enough to purchase not only
500 100000. but If need be- $2OO.OOO.0oO Of bonds
specie, or, in other words, the gold, holdings
OF the associated banks, as shown In Satur-
days bank statement was made up OF gold
collected wholly in the regular course OF busi-
ness Not a dollar of the gold was drawn from
the Treasury supply The accumulation OF gold
was plainly for use in connection with the bono
issue.
p Speaking on tins point. Of the ablest bank
presidents i'm New-York said: we have not
been collecting gold because we think the bank
needs IT, but t. be ready to furnish gold TO
orr customers who desire to purchase bonns
We would rather provide our customers with
gold than with greenbacks TO be used In ex.
tracing gold from the Treasury. The less goiu
is taken from the Treasury with wnlcn 70 buy
honds the greater benefit Of course the Treas
ury will derive from the bond issue and tho
higher will be the credit Of the country IN the
eyes OF the foreign financial world
The belief is growing among bankers ana
others directly Interested in the Government
loan that the amount OF gold drawn from the
Treasury 10 pay for the bonds Will be far .ess
than has been expected. Most subscribers Ior
the bonds will feel that 1t is a duty TO OBTAIN
gold outside of the Treasury. Even II they
have to pay a premium. or a commission; OF
whatever 1t may be called to get the gold II
will be better than TO impair the market Value
OF the bonds by lowering the gold reserve ana
thereby creating the expectation or the neces-
sitv for another issue Of bonds in the not dis
tant future. 49,, ,o,,
The financial community is waiting anxiously
for a modification Of the bond call by the sec.
refarv Of the Treasury. The designation or
banks as repositories to hold for conslderapis
period the gold paid In for the bonds wouIo
help immensely in averting stringehcy III the
money market but II is insisted In ADDITION,
thar the time in which the bonds must be paid
for should be greatly extended. -,
There is little or no doubt that the Admins
tration viii comply with the Views or New
York bankers as expressed in urgent commune
cations sent 10 Washington