The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-01-16

NEW YORK, Jan. 15.-The reasons
given for the dissolution of the Morgan
bond syndicate is that the syndicate con-
tract called for a bid for ''all or none"
and therefore Morgan was unwilling to
make a bid under present circumstances
as he might seem to present for con-
sideration by the secretary of the treas
ury the throwing our of smaller bids
babe in good faith, under public call Only
the emergency. in Morgan'S Judgment
which would justify such course would
be the failure of the public to respond to
the call of the government. 1t has been
necessary to delay the dissolving of the
Syndicate up TO the present, as every
financial interest required the protection
offered by knowledge that the syndicate
was in existence, prepared to make the
loan success under any circumstances.
Circular concludes: 81 feel perfectly sat
iSfied there is no question as to the sue
cess of the loan"
The letter to the president to which
the circular alludes, follows:
NEW YORK, Jan. 4, 1S96-2t9 Madison
avenue.
To the President, Washington
Sir:-It is with great hesitation that I
venture to address you in relation to the
financial situation.
AS you are doubtless well aware, fnan-
cial affairs are approaching a serious
Crisis and the tension today is extreme;
and whilst no outward evidences have
developed we are likely at any moment
to reach the point and consequences
which it will be then too late to remedy.
The gravity of the situation must be my
excuse.
The most important step at the moment
is the. restoration of government credit
by replacing the gold reserve in the treas
ury beyond question. This once accom-
plished confidence both at home and
abroad in the stability of our currency
After my recent visit to Washington 1
became convinced that any legislative
action to improve the methods at the
disposal of the executive was unlikely;
in fact impossible. / therefore took steps
! to ascertain whether it would be possible
! to obtain the cooperation of parties at
| home and abroad to an extent that would
| enable me to negotiate a contract with
! the government for the sale of II. SOC. 900
ounces of gold, aproXimating $500 600, 900.
on about the basis of the contract of
! been successful and am now in posi-
ton to make such contract for the full
amount. do not hesitate to affirm. in
! fact urge that such contract would in
| every way be for the best interests of the
| government and the people and would be
! followed by less arrangement of the
! money market, of trade, in fact of all
/ interests including foreign exchanges. all
I of which, until recently were in such an
increasingly prosperous condition, and l
| urge your serious consideration of such
a contract. At the same time I recog-
nize the effect of legislation which has
| been proposed and the discussions there
on IN both houses of congress all of
which might lead you to hesitate to make
| a private contract, and consequently in
view of the gravity of the situation, feel
bound to say that if after a conference,
in which [ can more fully lay the matter
before you, and without expressing any
| confidence in such a mode of procedure in
face of previous failures of similar at
tempts, but recognizing as I do that the
responsibility of decision lies with you,
| pledge to you every influence and eff
fort in my power to assist the government
in its endeavor to make successful a ne
gotiation by public advertisement, which
shall re result in the sale to the treasury
coin $500, 900, OOO and further I will, so
far as 1 possibly can, take such steps
as will enable the syndicate which [ rep
resent to join in making the negotiation
successful to its full amount. Awaiting
! the indications of your pleasure 1 re-
main respectfully yours,
]. PIERPONT MORGAN.