The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-01-16

ny releasing tnein lEOu Alrh SSA'''A
ments to furnish their pro rata Of $780,
6OO, 900 in gold and second 3loo0OO,OOO,
II desirable, taking their payment
therefor in, a 4 per cent government
bond.
Accompanying this letter was a cir
cular explaining why the syndicate was
| formed, what action was taken on 'IS
behalf and why & IS now dissolved.
"on the 25rd OF December" Mr. NOR
gan says, II was invited to Washing
ION for n conference. During my visit
there no negotiations for loan were
even suggested, nor was there then or
since any agreement or request that
should take any steps preparatory 10
making a contract. came, however,
10 the conclusion that the Presiueht
and secretary OF state would use eEeTy
power at their command TO restore anu
maintain the gold reserve; that no
steps would be taken until II was as
certained what Congress would 90:
that the executive department would
prefer 10 secure Se00. .O00, 900 OF gold, and
that II was certain that no reliet couid
be obtained from Congress.
Upon my return, appreciatIng the
gravity of the situation, and in order
that might be prepared TO act prompt
ly, took steps TO ascertain to what eH-
tent II would be possible TO secure the
corporation OF capitalists in forming
syndicate which would agree to cell 70
the United States government S2OO,OO0'.
O0O of gold coin. The contract prepared
and signed by the participants did not
stIpuIate whether the purchase would
be by private contract or by pubic
offer.
Quickly Raised.
'aThe only provision in addition TO
the important one that no gold should
be withdrawn from the treasury was
that the minimum amount OF the con-
tract should be 500. 100000, the maxi
mum not over S20O.00O,OO0. The appli-
cations far exceeded my expectations
Al the end OF three or four days the
total OF 500, ,oO0, 900 wns reached and
had full authority which would enable
me whenever, and however, the execu-
tive might decide, to act 10 secure that
amount OF gold for the treasury re-
serve In exchange for United states
bonds.
''The participants may be divided In
10 four classes: People In Europe who
were prepared to ship gold TO this side;
Institutions in the United States IN
possession OF gold coin who wanted
bonds either for Investment or as
basis for national bank circulation;
thIEa,-haulSs In various cities VINO were
willing to exchange their gold for bonds
expecting afterwards 10 sell them IN
the market; fourth. institutions ana
firms not having gold, but which would
get II at whatever cost. prop4ded me
contract was put in force. PnrtlcipA-
tions were about evenly divided be-
tween the four classes.
Having completed the syndicate.
entered into negotiations In Europe
and in places other than London. where
the market was closed to US, and
through the Deutsch Bank and Messra
Morgan, Harjes. & Co Negotiations
were practically concluded for public
subscriptions In Germany, Franee and
Holland, which would have resulted In
a large amount OF bonds being placed
In those countries.
"On January 4, realizing that the
tension was growing daily and had be-
come serious, addressed letter TO
the President, calling his attention to
the situation and representing that
the most important step was the res
toratIon OF the government credit by
repfenishIng the stock OF gold. Details
OF what was proposed were given anu
assurances offered TINT the utmost ef-
forts would be made TO procure for the
| treasury II, 600 900 ounces OF gold.
The reason given for the dissolu-
tlon Of the syndicate is that the syndi-
cate contract called for bid Of all or
none and therefore Mr.. Morgan was
unwilling to make bid under the
present circumstances, as he might
seem to present for the consideration OF
the secretary OF the treasury the throw.
ing out OF smaller bids made in good
faith under the public call.
TIE only emergency, in Mr.. Morgnn's
Il. NgsntrtI tNqNiNV qtNHh n
couTse would be the failure OF the pub
lie 10 respond to the call OF the govern
| ment.
dIssoivinE Of the syndIeEte up TO the
present time. as every financial inter-
cst required protection afforded by the
knowledge that the syncicGte was In
existence, prepared TO make loan
success under amy ol mstEhcsS' Ihe
circular concludes;
II feel perfectly salsileh TINT there Is
no. question Us to the success OF the
loan"
MT, Morgan To the President
The following is the text OF Mr.. Nor
Ean's letter TO President Cleveland:
NEW YORK. 2i9 Madison avenue.
Jan. 4, 1856.
To the President. Washington, D. C.
slr;-It Is with great hesitation that
| venture to addrcsB you IN relation to
tho present financial situation.
As you are doubtless aware, financial
affairs nrc approaching crisis, ana the
tension to-day Is extreme; and, Whilst
no outward evidences have developed.
we nre likely at any moment to reach
the point and consequences which II
will then be too late to remedy, The
gravity Of the situation must he my ex-
cusc. The most important step at the
moment Ia the restoration OF the gov
| orpTnent credit by replacing the gold re-
Rcrye in the treasury beyond question.
| This once accomplished confidence both
Al home and abroad In the stability OF
! our currency will be restored.
After my recent visit TO Washington
became convinced that any legislative
| notion 10 improve the methods at the
| disposal OF the executive was unlikely
| in fact. impossible. therefore took
| steps to ASCERTAIN whether II would DC
| posslblc to obtain the cooperation OF
| nnrtics Mt home and abroad to an extent
| thnt would enable mo to negotiate n
| contrnct with the government for the
| sSie Of II ,bOO.O 900 ounces OF gold approNi-
mating ZOO. .OO10OO OF dollars, on about
tho basis OF the contract OF February =.
| tSS5 In this effort have been success
| mi ahd ufn nov IN a Posl'leH 10 HAke
such a contract for the full amount
do not hesitate 10 aihrm, In mot 70
urge, that such contract would IN
every way he followed by loss dcranGc-
ment for the money market Tor trade, IN
fact, all interests. Including iorclgn sS-
changes, all OF whlch uhtil Iecently'
we're In such an increasingly prosper.
ous condition and 1 urge your serious